An Analysis of Japan and China Assignment Example | Topics and Well Written Essays - 1000 words

An Analysis of Japan and China - Assignment Example China is the world’s second largest market for consumer goods after the US (Martinsons, 2002). On average, consumers spent an annual average of US$61 on FMCG online an increase of 9.8% from 2010. In 2011, on average, shoppers for FMCG products made three trips while shopping online against 97 offline shopping trips over the same period. The average online transaction amount per trip was US$21, 80% greater than an offline transaction that averaged US$11.50. Attitudes related to e commerce showed that 29.9% of people doing online shopping are comfortable while 17.9% felt it is safe to purchase online. This indicates that there is large potential in China’s e-commerce markets (Ke, 2010). Japan has been innovative in technology with shopping lists growing significantly due to lower costs of setting up businesses online. Japanese consumers who previously were reluctant to do online shopping have grown the online retailing business to a multi-billion dollar market (Fitzsimmon s &Okada, 2002). According to Hamburg market research, the Japans B2C e commerce revenues are forecasted to grog annually by a low double digit percentage between 2012 and 2016 due to high average spending and growth in online shoppers (Herbig & Milam, 1994). Environmental analysis China’s environment has suffered degradation as the country reform its economy because of urbanization and industrial development. The environmental damage costs up to 8% of China’s GDP thus the development of China’s environment protection industry to respond to the environment degrading over the past two decades (Takao, 2012). China focuses its investment to environmentally friendly projects a shift form infrastructure. Energy... This essay stresses that Japan’s legal structures to foreign investors are bureaucratic and present legal hurdles. The main business structures that foreign companies open in Japan are representative office, branch office, and subsidiary company and limited liability partnerships. Representative offices are not allowed to engage in sales activities. Branch offices do not have independent decision-making abilities since they do not have legal corporate statuses. However, foreign investors can invest in Japan through joint ventures with Japanese companies. Corporate enterprise tax is the local tax levied on foreign companies conducting business in Japan. Corporate taxes levied on taxable income. This paper makes a conclusion that the researcher recommends interested Australian companies wishing to go international to invest in China. China is the world most populated nation with over 1.3 billion people compared to Japan, which has a population of approximately 128 million people. As such, China presents more chances of cheap labor and a ready market for the produced products and services. Growth in ecommerce is high in China than in Japan presenting an opportunity for investment. Both Japan and China have stringent environmental regulations. However, Japan being the most affected in emissions is more likely to pass stringent rules regarding pollution than China. China is well adapted for globalization by enacting laws that are in line with WTO guidelines. This puts it in a better position to attract foreign investment than Japan.