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Royal Holloway / MKT / MKT MN3216K / Question: 1.

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Question: 1.     To what extent have Japanese multinationals competed successfully in di erent
international markets, and which major factors explain these achievements and shortcomings?

Guideline: For each of these questions, you are encouraged to make cross-industry and cross-country
comparisons amongst Asia Paci c multinationals, and to employ lessons from international business theory
and research. Consider therefore a number of perspectives, including the aims of Japanese multinationals
in relation to global strategies; the aims of Korean and Chinese multinationals and international business
strategies; major di erences between industries and types of business; the degree of global versus
regional control, and changes in operational control over time; the competitive advantages or capabilities of
multinationals compared to those of rivals; variations in management, organization, and operations
between home country and host nations; the comparative abilities of Japanese, Korean and Chinese
multinationals to compete in Europe, Asia and North America, and their ability to adapt to changes in policy
and markets; and the policies of host governments and the relevance of the EU.
 
Not sure if you provide support for these type of essay based questions. i am unsure of which relevant
theory to relate to the question and how to structure my answer

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Japan is the world's 8th holder of Foreign Investment in 2012 and is ahead of its major Asian Competitors.
They remain as the notable Asian exporter of technology and continually remain its presence in markets of
North America and Europe. They are known for majoring in Automobile Manufacturing and technology.
Japan made manufacturing overseas and this helped to increase their sales outside. In 2012 they make
64% of overseas sales.  

Though in the past years, Japan companies have been doing successfully surviving in the global market
and have high market share at their home country, still many big companies face loses on relative market
shares in the past 10 years. Their shortcomings were focus on low productivity and shrinking consumer
base. They have lowest labor productivity rates and are less competitive at home against international
companies.

Although Japan faces challenges in going overseas and mostly relying on its home market in the past,
experts seen that Japan possess its value to innovation, wealth in human resource, and value to quality to
back it up in competing with overseas market.

Globalization

Globalization means the acceleration of activities and exchanges. When globalization is strong in a
company's home country and the company dodge its new rivals to save its assets the value chain is still
valuable, but when its assets is transferrable and is competitive enough to go global, this company is a
contender.

Competing in global level have Disadvantages and advantages:

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Advantages:
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·        Access to New Customers - new market, new preferences.
·        Lowering Costs - access to lower cost of raw materials and manpower.
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·        Diversi cation of Business Risk - through competing in di erent markets it will lessen the business
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risk since the company to depend in wide variety of market unlike doing in one market alone.
Threats:
·        Political Risk - potential for government disturbance or interfering with business to harm an operation
within a country
·        Economic Risk- refers to the country's economic condition, rules and policies and currency exchange
rates.
·        Cultural Risk - refers to the company to struggle because of di erences in language, tradition and
customer preferences
-         One major shortcoming that was seen in Japan companies is adopting English language in decision
making.

Step-by-step explanation

Good day!

I do not have enough time to answer because Course Hero has time limit, though I really hope this
helps in a way.

Here are some of the resources you may check:

https://globaledge.msu.edu/global-resources/resource/13540
https://hbr.org/1999/03/competing-with-giants-survival-strategies-for-local-companies-in-
emerging-markets
https://saylordotorg.github.io/text_mastering-strategic-management/s11-competing-in-international-
mar.html
https://www.mckinsey.com/business-functions/strategy-and-corporate- nance/our-insights/japans-
globalization-imperative#
https://www.nbr.org/publication/how-can-japan-compete-in-a-changing-global-market/
https://beaconreports.net/en/can-japanese- rms-compete-in-a-globalized-world/
https://granite.pressbooks.pub/ld823/chapter/19/

Thank you!

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