Japan: Why not in China?



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Code : ITF0011

Year :
2004

Industry : General Business

Region : :China japan

Teaching Note:Not Available

Structured Assignment : Not Available

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Abstract: Japan and China are two of the largest economies in Asia, together accounting for nearly 85% of Asia's gross domestic product. However, political misgivings and a bitter history between the two neighbours have prevented a widespread economic partnership between them. Top-class Japanese firms like Toyota, Nissan, and Honda (automotives), Sony and Hitachi (electronics) have struggled to make a mark in China. Japanese electronics firms have a mere 5% share in the Chinese market.

Pedagogical Objectives:

  • To discuss the possible reasons for which Japan could have stayed away from entering China in a big way
  • To understand how the existing Chinese complemental business and market conditions, with its low cost labour and a growing domestic market, could serve as a major production base for Japanese firms, which are looking to become more competitive globally
  • To discuss whether Japan should be willing to forge an extensive partnership with China to achieve mutual benefits.

    Keywords:
    Japan-China relations, Open door policy,Business Environment Case Study, Bilateral trade between Japan and China, China's accession to the World Trade Organisation (WTO), Japan-China political relation, Japanese direct investment in China, Foreign direct investments (FDIs), Government and Business Environment Case Study,Toyota Motor Company, Free Trade Agreements, Japanese, Chinese economy, Japan External Trade Organisation (JETRO), Recessionary economy, Gross domestic product (GDP), World Trade Organisation, Three Pillar Free Trade Policy

    Contents :
    » Background
    » Political Issues – A Historical Perspective
    » Investing in China
    » China’s Accession to WTO


    Case Introduction >>


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