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Pest Japan Essay

2230 words - 9 pages

Strategic Management



Submitted To:

Sir Faiez H. Sayel

Submitted By:

Ali Ahmad Majoka 006

Ifrah Javaid 045

Muhammad Habibullah 084

Nayab Ameen 115

Sharjeel Arslan 139

Zahid Yousaf 166

Qaiser Abbas 175



COMSATS Institute of Information Technology, Lahore

PEST Analysis of Japan:
Political analysis:
• Political System:
Japan is a democratic country, but it is a very different kind of democracy to that prevailing in most of Europe in countries like France and Germany. The ...view middle of the document...

• The Judicial System
The Supreme Court is the highest court in the land. The Chief Justice is appointed by the Emperor following selection by the Cabinet. Fourteen other judges are selected and appointed by the Cabinet.
Every 10 years, a justice's tenure has to be confirmed by referendum. In practice, the justices are almost always reselected and are allowed to serve until the age of 70.

Election system

The legal age for voting is 20, while the minimum age to stand for election is 25 for the lower house and 30 for the upper house.
There are 252 Councillors elected for 6 years and 480 Representatives elected for 4 years.
Japanese laws prohibit candidates to make written propaganda during the electoral periods - which means that also Internet campaigns are not allowed. As a result, politicians have to resort to shouting in loudspeakers in little vans while driving around their electoral constituencies.
Economic Analysis

In the decades following World War II, Japan implemented stringent tariffs and policies to encourage the people to save their income. With more money in banks, loans and credit became easier to obtain, and with Japan running large trade surpluses, the yen appreciated against foreign currencies. This allowed local companies to invest in capital resources much more easily than their competitors overseas, which reduced the price of Japanese-made goods and widened the trade surplus further. And, with the yen appreciating, financial assets became very profitable.
With Japan's economy driven by its high rates of reinvestment, this crash hit particularly hard. Investments were increasingly directed out of the country, and Japanese manufacturing firms lost some degree of their technological edge. As Japanese products became less competitive overseas, some people argue that the low consumption rate began to bear on the economy.
Japan is the 3rd biggest economy in the world, and the gaming market in Japan is extremely biggest due to its popularity. However, due to the recent earthquake, Japan’s economy has temporarily taken a turn for the worse. Also, expenditure on entertainment has decreased while expenditure on essential supplies such as food has increased. It may be a while before Japan returns to it’s original state and has a demand for video games again.

Closer economic analysis of Japan reveals that there are certain significant areas such as social services and education that have not been accorded much importance when allotting financial aid in times of monetary crisis.

Japan economic analysis reveals that this country is in throes of recession as a result of decrease of its exports. When global financial crisis broke out in 2008 in United States of America because of downturn of subprime mortgage market Japan had not been affected as such because of its comparative lack of exposure but afterwards global financial crunch caught up with it when exports scenario became well nigh redundant.


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