Final Global Business Plan Paper

Essay by swanier1College, UndergraduateA, July 2012

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Final Global Business Plan

JKL Trading, Inc.

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Final Global Business Plan

Researchers for JKL Trading, LLC have analyzed Japan as a possible country to export products in order to support JKL's goal of spreading the company overseas as part of its globalization plan. Our team discovered Japan's political environment is stable. Most business disputes settle out of court avoiding legal fees. Expropriation is not a problem in Japan. Japan does have regulations restricting the establishment of business facilities. Indirect regulations do influences prices on certain products. The majority of regulations in Japan protect Japanese companies from outside competition. The United States and Japan entered into an agreement in 1971 for businesses conducting trade between both countries that allow companies to avoid double taxation.

Last year, Japan was devastated by a large earthquake and tsunami. The Fukushima Daiichi nuclear power plant sustained significant damage leaking radiation into the atmosphere.

Fixed-income and emerging markets face the most repatriation risk. The combination of all three disasters cost Japanese insurers 30 billion dollars. Insurance firms may sell domestic assets, overseas equities, and overseas bonds to cover the cost of claims. In the event insurance company's sell the United States treasuries, fixed-income markets are at risk. The disaster delivered strong support for the yen, considered a safe-haven currency. Repatriation of funds risk is high now but should recover as Japan recovers from the disaster (The Wall Street Journal, 2011).

The research team found Fast Retailing is the most competitive company JKL will face in Japan. Fast Retailing owns the Uniqlo fashion chain. Currently Uniqlo has the biggest number of stores in Japan. Currently Uniqlo has 777 stores in Japan. August 31, 2009 the sales rose 16% or about $7.4 billion during a time when retailer stock is down. Shares were trading at a...