Portfolio Perfor Mancereporting

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3.1.4 Five promises for attracting foreign business

In order to attract foreign investment, Japanese government makes five promises. They are offering foreign languages at stores, providing foreign investors free public wireless Lan, creating airports receive business jets, providing foreign investors well education environment to their children and the Japanese government and local government will offer foreign investment consultant services.

3.2 Restrict foreign direct investment in Japan

3.2.1 Monopolistic industries

Though Japan has a lot of government policies to promote foreign direct investment, some business area are monopolised by the Japanese government. According to the Japanese foreign investment guide(2015), the monopolistic sectors are including water supplier, postal services, arms, atomic energy, explosives, aerospace and aviation industries. Besides, in telecommunication industry, foreign investors can not hold exceed 30% of the rights to vote.

3.3 Right to private ownership and establishment

According to Japan business law handbook(2014), foreign private companies have the right to set up and own business in Japan and have the right to take party in the remunerative activities. As a result of that, Australian company can form both joint venture and a wholly-owned subsidiary in Japan. Based on the article 821 from the 2005 company law, Japanese government have the duty to ensure that foreign investment companies operate business in a lawful manner.

References:

Michael Beer, 1998, Organizational behavior and development, Goodyear Pub. Co., Viewed 26 September 2015

Inazo Nitobe, 1905, Bushido, the Soul of Japan: An Exposition of Japanese Thought, Evinity Publishing Inc, Viewed 26 September 2015

Taro Aso, 2015, Aso says Japan is nation of ‘one race’, The Japan Times News, Kyodo, Viewed 26 September 2015

http://www.japantimes.co.jp/news/2005/10/18/national/aso-says-japan-is-nation-of-one-race/#.VgjiVrRMV-s

The Constitution of Japan, 1946, Chapter 3 Rights and Duties of the people, Article 20, Viewed 26 September 2015

Japan-Australia Economic Partnership Agreement, 2014, Australian Government- Australian Trade Commission, Viewed 28 September 2015

http://www.austrade.gov.au/Australian/Export/Trade-Agreements/jaepa

Japan External Trade Organisation, 2015, Investing in Japan-Incentive Programs, Viewed 28 September 2015

http://www.jetro.go.jp/en/invest/incentive_programs.html

Japanese foreign investment guide, 2015, Japan: Foreign investment-Sectors where investment opportunities are fewer, Viewed 28 September 2015

https://en.santandertrade.com/establish-overseas/japan/foreign-investment

Japan Business Law Handbook-Volume1-Strategic Information and Basic Laws, 2014, Right to private ownership and establishment, International Business Publication,USA, Viewed 28 September 2015