Political and Legal Environment

Team Members

NAME ROLL NUMBER

Shivkarthik GS 20UTA33

Karthikeyan 20UTA18

Vishnu B                     20UTA41

Guru Saran P 20UTB13

Vishnupriya S 20UTA42

Political and Legal Environment - Japan

The Japanese political system is founded on the country's constitution, which was
adopted following WWII's end. It was enacted on May 3, 1947, and it firmly created a
democracy in the shape of a constitutional monarchy. The legislative, executive and judicial
branches are represented by these bodies.
 The Emperor: Above All, Controlling None
 Japan’s Executive Branch: The Prime Minister and Cabinet
 The Diet of Japan

Risk of doing business

Country risk in Japan is low, suggesting a low likelihood that it will be unable and/or
unwilling to meet its external debt obligations. On the World Bank's ease of doing the
business rating, Japan is placed 29th out of 190 countries. In comparison to other
sophisticated economies, paying taxes, safeguarding minority investors, obtaining finance,
establishing a business, and trading across borders are all comparatively simple in Japan.
Expropriation risk is minimal in Japan, which corresponds to low political risk. Yoshihide
Suga, the next prime minister, has great popular support, allowing him to continue Abe's pro-
growth policies. Japan does well in all aspects of government but falls short on metrics of
voice and accountability.
 Legal rules of starting a business
 Investment conditions
 Visa required for starting a business

Business Structure in Japan 

For those who already have an established company abroad and would like to expand
their business to Japan, there are 3 types of operations you can choose from to incorporate
your business. You can either establish a Representative Office, a Branch Office, or a
Subsidiary Company. It is important to secure a special sort of visa in order to start a new
business in Japan as a foreign national. If you do not already have a visa, you will need to
apply for a 4-month Business Manager Visa or a Start-Up Visa, which are available in
various Japanese cities

 Corporation (Kabushiki Gaisha - 株式会社)

Kabushiki Gaisha (abbreviated as K.K.) is a Japanese corporation whose shares can be
traded on the open market. This is the most well-known and widely utilised business structure
in Japan, and it is regarded as more trustworthy than other business structures in the country.

 Limited Liability Companies (Goudou Gaisha - 合同会社)

Yugen Gaisha, a former business structure, has been replaced by an LLC. Liability is
limited, and the cost of registration is less than that of a corporation (K.K). The company's
stock is not available for purchase on the open market.

Political and Legal Environment - Mexico

Mexico is a federal republic made up of 31 states plus the Federal District of Mexico.
The president has strong control over the whole system when Mexico was under one-party
rule in the twentieth century. The 1917 constitution, which has been revised multiple times,
guarantees personal and civic liberties as well as establishes the country's economic and
political ideals.

Political process Mexico's political system is dominated by a small number of large

political parties, with a smattering of minor parties on the periphery. The Institutional
Revolutionary Party (Partido Revolucionario Institucional; PRI) was the most powerful
political party in the twentieth century, ruling Mexico as an effective one-party state from
1929 to the late twentieth century. Traditionally, the sitting president, as the party's leader,
chose the party's next presidential candidate, thus selecting a successor.

Risk of Doing Business

Mexico's country risk is low to moderate. The OECD has a risk rating of 3 for this
country. Individual private and sub-sovereign borrowers can and do default, therefore this
suggests a low to moderate risk that Mexico will be unable and/or unwilling to satisfy its
foreign debt commitments. External factors, notably those in the United States, will continue
to have a significant impact on Mexico's economic performance.. On the World Bank's ease
of doing the business rating, Mexico is placed 60th out of 190 economies, far above the Latin
America and Caribbean average of 116. In practically every category, Mexico outperforms
Latin America and the Caribbean. However, due to the complexity of the process, obtaining
electricity in Mexico is slightly more difficult.

Political and Legal Environment – Sweden

Political and Legal Environment – Sweden
The Swedish Constitution defines how Sweden is governed. It regulates the
relationships between decision-making and executive power, and the basic rights and
freedoms of citizens. Four fundamental laws make up the Constitution: the Instrument of
Government, the Act of Succession, the Freedom of the Press Act and the Fundamental Law
on Freedom of Expression. Sweden scores consistently highly in democracy, freedom of
expression and freedom of the press global rankings. The country enjoys a stable
parliamentary democracy with representation at the national level in the Riksdag (Swedish
Parliament)

Without official power, he is the head of state.

Sweden is a constitutional monarchy, and Sweden's non-political head of state is King

Carl XVI Gustaf. The monarch's primary responsibilities are ceremonial and representative.

The Press Freedom Act

The Freedom of the Press Act establishes the notion of public access to official records
pertaining to the activity of the legislature, the government, and government agencies. People
can view government documents whenever they choose under this law.

The Freedom of Expression Law

In terms of censorship, the freedom to disseminate information, and the right to anonymity,
the Law on Freedom of Expression, which went into effect in 1992, is quite similar to the
Freedom of the Press Act.

Country’s risk

 The political and economic climate is favourable.

 Even though the corporate climate is generally steady and efficient, there is always
the potential for improvement.
 On average, the likelihood of a company defaulting is modest.

Bibliography
 https://www.exportfinance.gov.au/resources-news/country-profiles/asia/japan/
country-risk
 https://www.japanindustrynews.com/2016/06/japanese-political-system
 https://www.exportfinance.gov.au/resources-news/country-profiles/north-
america/mexico/country-risk/
 https://www.theglobaleconomy.com/mexico/wb_political_stability/
 https://globaledge.msu.edu/countries/sweden/risk
 https://www.gov.uk/government/publications/overseas-business-risk-sweden/
overseas-business-risk-sweden
 https://sweden.se/life/democracy/swedish-government