Assignment no.

Name: Nayab Fatima

Roll no. 21511051015
Section: 7th B (BBA)
Course: International Business Management
Submitted to: Mam Tehreem Ali

Case Discussion Questions

Q1: In the 1980s, Japan was viewed as one of the world’s most dynamic economies. Today, it
is viewed as one of its most stagnant. Why has the Japanese economy stagnated?
Ans: High rates of retirement and high rate of debt were the two main causes of economic
stagnation in Japan. Due to the low birth rate in Japan, a large number of people were retired.
As a lot of people were retired, so it increased the retirement expenses. As most of the money
was used to repay this huge amount, the high levels of debt caused the economy to stagnate
for the last few decades. As a result, less money was invested in the economy.

Q2: What lessons does the history of Japan over the past 20 years hold for other nations?
What can countries do to avoid the kind of deflationary spiral that has gripped Japan?
Ans: One of the factors that caused deflationary spiral was that the monetary policy was strict.
Deflation caused by monetary tightening is accompanied by bad debt and the collapse of the
commercial banks as debt deflation. Therefore, monitoring the deflation's progress is essential.
For instance, it is vital to use economic promotion measures including increasing
competitiveness, redistributing investment funds, and increasing investment efficiency. In
addition, I believe that it is crucial to implement financial and administrative reform in tandem
with the aforementioned economic growth initiatives.

Q3: What do you think would be required to get the Japanese economy moving again?
Ans: According to the Central Bank of Japan (BOJ), Japan's economy is growing faster than
usual. While private consumption has steadied, rising production and exports are what are
driving Japan's economic recovery. Additionally, several areas are making progress in their
recovery. According to the BOJ, Japan will keep relaxing its monetary policy in order to reach its
2% inflation target. The long-term recovery of Japan's economy depends on encouraging
technical innovation across the board and the development of businesses in the private sector.
 Assignment no. 3

Q4: What are the implications of Japan’s economic stagnation for the benefits, costs, and
risks of doing business in this nation?
Ans: Japanese businesses frequently brought their money abroad to invest even if the domestic
economy of Japan is not growing. In addition, there is little demand for loans in Japan; Japanese
investors look for loans elsewhere. Consequently, given this circumstance, it is not advisable to
transfer investment capital into Japan when Japanese investors have abandoned their market
in favour of looking for alternative alternatives. Additionally, Japan's growing ageing population
contributes to a narrowing of domestic market demand. Consequently, when investing in Japan
at this time, one must take into account the drawbacks in cost, market diversification, loans
were limited, etc.

Q5: As an international business, which economy would you rather invest in, that of Japan or
that of India? Explain your answer.
Ans: When investing in other countries, we should know the country’s politics, economy,
morals, culture, and other factors. While balancing risk and profit aspects, we must also
determine which markets, regions, and products we want to pursue.
According to The Hindu, CNBC and Invest India magazines, India's nominal GDP is forecast to
rise from $2.7 trillion in 2021 to $8.4 trillion by 2030'. India is likely to overtake Japan as Asia's
second-largest economy by 2030 when its GDP is also projected to surpass that of Germany and
the U.K. to rank as the world's No. 3, IHS Market said in a report on Friday. According to this I
will prefer investing in India as it’s economic condition is better than Japan.