Several Macro Environmental Factors Scenario †MyAssignmenthelp

Question: Discuss about the Several Macro Environmental Factors Scenario. Answer: Introduction: Japan faces differences in its FDI attractiveness in past certain years due to their political and economic scenario. This is because foreign companies invest in Japan by analyzing the chances of sale and profit they will earn from the investment. It is seen that Japan has become a volatile country because of continuous disputes and rivalries in the past years. Such political tensions have affected the country for a long time and the country depended on China for its goods. Famous trading agencies of Japan are initiating foreign companies to invest in Japan. Thus, even though the attractiveness for FDI in Japan has been low, yet it seems to increase in recent years. The country also has a low population of 127 million and a GDP of USD 39,089 in 2016 (Export.gov, 2017). This is comparatively low then other countries and does not allow foreign companies a chance to enter in Japan and increase direct sale. The GDP per capita has been decreasing compared to previous years. However, the country is growing technologically which offers a chance to foreign companies to manufacture technologically advance goods. However, the government of Japan has been promoting inward FDI in the country that doubles by 2020 (Japan Economy, 2017). USA economy is a well-developed economy with a GDP per capital of USD 57,436 and a population of 323 million. The economy has also shown an incredible growth of 3.1 percent in the second quarter of this year, which is far from, expected (United States Economy, 2017). The country offers a potential for economic growth in future with the rising technological growth management. This offers a chance to FDI investors to invest in the country and expect direct sales in the country. USA has always been a politically stable economy and highly supportive for carrying out new business. USA has the least risk of political violence, government actions and capital control. USA stands strong in political stability with a score of 0.70. The country also offers the most suitable place for trade regulation, as they do not have a strict import tariff or quota (Selectusa, 2017). This has made USA the largest recipient of Foreign Direct Investment and FDI is increasing continuously in this country. References Export.gov. (2017). Japan - 1-Openness to, Restriction Upon, Foreign Investment | export.gov. Retrieved 16 November 2017, from https://www.export.gov/article?id=Japan-openness-to-foreign-investment Japan Economy (2017).FocusEconomics | Economic Forecasts from the World's Leading Economists. Retrieved 16 November 2017, from https://www.focus-economics.com/countries/japan Selectusa.gov. (2017). Foreign Direct Investment in the United States | SelectUSA.gov | SelectUSA.gov. Retrieved 16 November 2017, from https://www.selectusa.gov/FDI-in-the-US United States Economy (2017).FocusEconomics | Economic Forecasts from the World's Leading Economists. Retrieved 16 November 2017, from https://www.focus-economics.com/countries/united-states