INT 220 Business Brief
Course Project
Section One: Drivers for Global Entry
Country Selection
The organization I work for produces high-quality cell phone cases here in the USA.
Unfortunately, we have seen sales flattening within our domestic market. Looking at exploring
international markets so we can continue to grow. The country I would like to consider for international
expansion is the country of Japan.
Purpose of Global Expansion
Global Expansions’ purpose is to shift toward a more independent and integrated global
economy which helps create opportunities for international business (Dunung, 2020, p. 1.1). Key
benefits to globalization for domestic organizations include expanding their company, tax incentives,
competitive advantage, economic scale, availability of raw materials, expansion of customer base and
profitability for the business as they expand into new markets.
Business Impacts of Global Business
Global expansion of a domestic organization into another country can impact business
operations in many ways. Since the USA and Japan are different countries, companies looking to expand
from one to the other will require research and adjustment on how their business operates to make
sure they are successful in the other country. When looking to expand into Japan companies need to
consider that Japan has higher standards for companies that operate in their country, little to no English
outside of major cities, a weak tax system and recruiting Japanese employees (Centuro Global, 2024).
Another thing to consider is how a company is going to manage a global workforce. Companies will need
to adapt to different cultural norms, customer preferences and local regulations when hiring and
managing a global workforce (Velocity Global, n.d.). Adapting to cultural norms does not only apply to
hiring and managing a global workforce but also when it comes to marketing messages globally. When
businesses are looking into expanding globally, something huge that they need to consider is their global
supply chain network. Global supply chains are very different from domestic ones as businesses are now
needing to look at air and sea transportation for their products verse trucks and trains that they can do
domestically (Prologis, 2021). Cost is another huge consideration that the business would need to make
sure it is worth it to them to expand globally and that they will not loose money by the increased cost
for transportation (Prologis, 2021).
Societal Impacts of Global Business
Global expansion of organizations has impacted Japan’s society. Employment opportunities have
been reduced because of the increase of imports (Mifune et al., 2022). Both freight and passenger
transportation are affected by globalization in Japan (Takeuchi, 2014). Environmental concerns for Japan
when it come to globalization include increase of carbon emissions, overuse of natural resources and a
rise in waste output (Onwe et al., 2024). Another societal impact includes the creation of jobs from
these companies. Japan’s infrastructure is aging and needs to be repaired as most of their
infrastructures are over 50 years old and some have caused major accidents and other issues that is a
huge concern when companies are looking to globalize into Japan because transportation of products,
materials and even employees could be affected if something were to happen with the current
infrastructure (International Trade Administration, 2023).
Cultural Considerations for Global Business
It is important to research the culture of potential global markets before deciding to bring your
business into those markets. One thing to explore is how technologically advanced Japanese are and
what your business would have to advance in to fit in (Centuro Global, 2024). Businesses may have
troubles when it comes to hiring Japanese people to work for them if the business is not up to date with
technology. Another thing for businesses to research is how much Japan values relationships. Patience
when it comes to business deals, being on time, being respectful and polite (Experts, 2023). Some
cultural considerations to consider when doing business in Japan is that they prioritize personal
relationships and trust as well as long-term relationships, patience when it comes to business deals and
negotiations, teamwork, continuous communication, politeness and punctuality are also very important
(Takaoka, 2024).
Section Two: Market Profile
Cultural Profile
Category United States Japan
Commonly Spoken Languages English
Spanish
(Hernandez, 2022)
Japanese
(Original Travel, 2019)
Commonly Practiced Religions Christianity
Judaism
Buddhism
Islam
Hinduism
(Byaruhanga, 2024)
Shinto
Buddhism
(Japan Guide, n.d.)
Power Distance Index (PDI) 40
(The Culture Factor Group,
n.d.)
54
(The Culture Factor Group, n.d.)
Individualism Versus
Collectivism (IDV)
60
(The Culture Factor Group,
n.d.)
62
(The Culture Factor Group, n.d.)
Motivation Towards
Achievement and Success
(MAS)
62
(The Culture Factor Group,
n.d.)
95
(The Culture Factor Group, n.d.)
Uncertainty Avoidance Index
(UAI)
46
(The Culture Factor Group,
n.d.)
92
(The Culture Factor Group, n.d.)
Long-Term Orientation Versus
Short-Term Normative
Orientation (LTO)
50
(The Culture Factor Group,
n.d.)
100
(The Culture Factor Group, n.d.)
Category United States Japan
Indulgence Versus Restraint
(IVR)
68
(The Culture Factor Group,
n.d.)
42
(The Culture Factor Group, n.d.)
When we look at comparing the United States with Japan in terms of their cultural profiles, we
will find that they are many differences between the two countries. When we look at commonly spoken
languages, we find that in the United States the most common are English and Spanish. Then when we
look at Japan their most common language is Japanese. Next looking into commonly practiced religions
Japan comes in with two main religions being Shinto and Buddhism whereas the United States has a few
more common ones to include Christianity being the main one, Judaism, Buddhism, Islam and Hinduism.
So, both the United States and Japan share Buddhism as being a commonly practiced religion in both
countries. Looking into the next category of Power Distance Index (PDI) we find that Japan has a
borderline hierarchical society whereas the United States has a Hierarchy. For Individualism Versus
Collectivism (IDV) the United States scored a 60 and Japan scored a 62. What this means that Japan
shows characteristics of being an individual society, but they are a paternalistic society and the United
States scoring a 60 which indicates it being an individualistic culture. Looking at Motivation Towards
Achievement and Success (MAS) we see that Japan scored 95 and the United States only scored a 62.
This is because Japan is a decisive society, in fact it is one of the most decisive societies in the world and
the United States is lower than Japan based on their individualism. The category of Uncertainty
Avoidance Index (UAI) Japan also scored much higher than the United States scoring 92 with the United
States only scoring 46. Japan is a country that is constantly threatened by natural disasters and because
of this they have learned to prepare for any type of uncertain situation that can happen in all aspects of
society. Japan is a country that is always preparing for the uncertainties as well as seeing their life as
short lived and doing the best in their current life because that is all you can do. Whereas the United
States is a country who doesn’t necessarily feel the need to prepare for uncertainties. Then when we
look at Long-Term Orientation Versus Short-Term Normative Orientation (LTO) Japan scores right up at
100 because they tend to live their life to the fullest for the long term where the United States only
scored a 50 because they are a very live in the short term. Lastly looking into Indulgence Versus
Restraint (IVR) Japan scores lower than the United States because they have a culture that shows a lot of
restraint where the United States scored higher as they are an indulgent country.
Political and Economic Profile
Category United States Japan
Political System Federal Democratic
Republic form of
Government
(Congressman, 2024)
Parliamentary
constitutional monarchy
(Central Intelligence Agency, n.d.)
Current Leaders President- Joe Biden
Vice President-
Kamala Harris
(Santandertrade, 2024)
KISHIDA Fumio – Prime
Minister
(Prime Minister's Office, 2023)
Category United States Japan
Economic Classification Traditional
Command
Market
Mixed
(GoCardless, 2021)
High Income Nation
(World Population Review,
n.d.)
Free Market economy
(GlobalEdge, n.d.)
High Income Nation
(World Population Review, n.d.)
Economic Blocs Impacting
Trade
World Trade
Organization (WTO)
Free Trade
Agreements (FTAs)
Bilateral Investment
Treaties (BITs)
(International Trade
Administration, n.d.)
Asia-Pacific Economic
Cooperation (APEC)
Trans-Pacific Partnership
(TPP)
(GlobalEdge, n.d.)
Gross Domestic Product $25,744.10 billion in
2022
(Santandertrade, 2024)
$ 4212.95 billion in 2023
(Trading Economics, 2023)
Purchasing Power Parity Estimated at $80,412
in 2023
(Santandertrade, 2024)
$45,573 in 2022
(GlobalEdge, n.d.)
Gross Domestic Product Per
Capita
$77,192 in 2022
(Santandertrade, 2024)
$46,268.42 in 2023
(Trading Economics, 2023)
When looking into the political and economic profiles of both the United States and Japan we
can see that they are very different from one another. In the United States the political system is a
Federal Democratic Republic form of government and in Japan it is a Parliamentary Constitutional
Monarchy. Their leaders are different because of their difference in political systems as well as their
difference in countries. The United States current leader is President Joe Biden and Japan’s current
leader is Prime Minister KISHIDA Fumio. Japan’s economic classification is a free-market economy
whereas the United States is a traditional, command, mixed market. Both the United States and Japan
are high income nations (World Population Review, n.d.). The countries have different economic blocks
impacting trade. For the United States a few of those are the World Trade Organization (WTO), Free
Trade Agreements (FTAs), and Bilateral Investment Treaties (BITs). A few for Japan are Asia-Pacific
Economic Cooperation (APEC) and Trans-Pacific Partnership (TPP). Gross Domestic Product is the value
of all the goods and services produced by a country within a single year (Dunung, 2020). The United
States GDP is much larger than Japan’s coming in at $25,744.10 billion in 2022 and Japan’s was only
$4212.95 billion in 2023. The GDP Purchasing Power Parity helps managers understand how much
income locals have (Dunung, 2020). The GDP Purchasing Power Parity in the United States is almost
double what it is in Japan. The United States Purchasing Power Parity is $80, 412 in the year 2023 and
only $45,573 in Japan in the year 2022. GDP Per Capita is the value of the GDP divided by the population
of the country (Dunung, 2020). The GDP Per Capita is higher in the United States coming in at $77, 192
in the year of 2022 whereas Japan only came in at $46,268.42 in the year of 2023.
Legal and Regulatory Profile
When looking at importing products into other countries there are important legal and
regulatory requirements that need to be considered. To import products into Japan they need to have
the correct packing, marking and labeling as they are all required to be able to pass through customs as
well as they must be declared to the Director-General of Customs as well as having an import permit for
the goods (International Trade Association, 2024). Japan does prohibit items that include narcotics,
firearms, explosives, counterfeit currency, pornography and products that violate intellectual property
laws but in our company’s case of selling high-quality phone cases this should not affect us
(International Trade Association, 2024). Some items coming into Japan may require an import license
those items would include hazardous materials, animals, plants, perishables and sometimes high value
items and those import licenses are usually only valid for four months from when they were issued
(International Trade Association, 2024). Regulations and standards are not the same for both the United
States and Japan. Japan will have more standards that the company will need to adhere to because they
are importing into them than if they were selling products within the US.
Section Three: Market Considerations
Monetary Considerations
Looking at the exchange rate on December 9th, 2024, $1 in the United States is equal to 150.19
Japanese Yen (1 USD to JPY - US Dollars to Japanese Yen Exchange Rate, 2024). What this means is that
when you are spending money in Japan every United States $1 is equal to 150.19 Japanese Yen. An
example of that would be if something is $20 USD then it would be 20x150.19= 3,003.8 Japanese Yen.
Exchange rates can affect any business expanding into Japan from the uncertainty on what the Japanese
Yen exchange rate is going to be for $1 USD. Because of the uncertainty of exchange rates, businesses
need to stay informed on the exchange rates and know when they potentially need to start looking into
different suppliers when rates are not in the favor of their business (HBS, 2022).
Category The U.S. Dollar Japan
Exchange Rate $1 150.19 Japanese Yen
(1 USD to JPY - US Dollars to Japanese Yen Exchange Rate, 2024)
Management and Logistics Considerations
Management and logistics practices that best address human-resource considerations in Japan
are different than those in the United States. One of the biggest differences when it comes to
management in Japan and the United States is when it comes to decision making. The United States
managers communicate by order and command and Japan likes indirect communication (Yang, 2014).
When it comes to labor laws, Japan has more strict ones than the Unites States especially when it comes
to time off. One example of time off is maternity leave where in the United States there is 12 weeks of
unpaid time off and in Japan there is 6 weeks prior to the due date and an additional 8 weeks after the
birth paid out at minimum of 66% of that employee’s salary (Schneiderman, 2017). Another huge one is
paternity leave where the US has no guarantee of leave and Japan can be one or both parents up until
the child turns one for again minimum of 66% of their salary, Japan also has paid vacation requirements,
and higher unemployment benefits than in the US (Schneiderman, 2017). Japan also has strict working
hour limits and minimum wage laws (Tham, 2024). When it comes to the impact on policies and
procedures companies are going to need to follow all staff and labor laws of Japan when implementing
their policies and procedures to make sure they are not violating and labor laws. Since they differ so
much from the United States it is best for the business to research all of them and make sure they are
complying when it comes to opening a business in Japan.
Mode of Entry Considerations
There are a many different types of entry that a business could make when entering the
Japanese market. These options include exporting, licensing and franchising, partnering and strategic
alliance, acquisition and Greenfield Venture (Dunung, 2020, p. 11.1). When it comes to my business that
sells high quality cell phone cases I think that exporting or licensing and franchising would be the most
appropriate mode of entry into the Japanese market. The advantages of exporting into Japan are very
low risk and fast entry however, the disadvantages are low control, local knowledge, the possibility of
having a negative environmental impact of transportation (Dunung, 2020, p. 11.1).The advantages of
licensing and franchising include both fast entry and low risk like exporting does but it also is low cost
and when it comes to disadvantages it is less control, licensee could become a competitor, as well as
having to have solid contracts in place (Dunung, 2020, p. 11.1).
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