Risks in Japan

The framework is that of a multinational company that might be considering establishing operations in Japan. The risks are political and economic, and both qualitative and quantitative measures of risk should be included (e.g., political unrest but also sovereign debt ratings). In terms of sources, they should be fairly recent, say nothing older than 2016 (especially for economic and financial data) but it’s fine if you want to show trends over the last ten years or longer.Here are some general guidelines:-Look at recent Wall Street Journal, Financial Times, or The Economist articles for current events that have put the country in the news and discuss what the current climate is for multinational investment.-Check out the following sources: Country Commerce, Country Watch, Business Source Premier, plus the several World Bank-related sites available through the library.-Other useful sources of information are: International Monetary Fund, OECD, http://europa.eu/, the sites of the country’s central bank, Professor Harvey’s website at Duke University (http://www.duke.edu/~charvey/)-Include in your country reports the latest information on macroeconomic variables (present and projected): for example, type of economy (capitalistic, socialistic), short and long term interest rates, last three years’ inflation rates, GDP, unemployment rates, etc.-Describe the type of currency regime (pegged, floating), the recent pattern of exchange rate changes (a chart of the last year from an internet source would be helpful), whether there are futures or forwards available on the currency. Also, discuss the importance of foreign capital flows for the country.-Sovereign debt (and its rating, past, and present) is usually important.-Government facts are valuable: a form of government, party in power, chief rivals, economic philosophy, and current issues.-Demographic information is important: for example, religious backgrounds, general education level, average age, population, social benefits.-It is said that there are FOUR major factors that attract foreign direct investment: 1)Stable property rights 2)Peaceful industry-labor relations 3)Political stability 4)Cost advantages in wages, taxes, and infrastructure-The report must NOT be a laundry list of purposeless numbers. Make sure to explain why it is that you mention any statistics. What are you trying to illustrate? What conclusions do you reach?The report should be about 10 pages (double-spaced, 12 letter font) of well-thought-out text plus as many relevant tables and graphs as you consider appropriate. Feel free to mention others’ opinions (presumable experts on the matter) but do not forget to cite references.