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How Government Policies Affecting Business of Sunrype Juice

  • Date Submitted: 04/10/2011 07:16 PM
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How government policies affecting business of Sunrype Juice
Among these three countries, Japan had most stabilized inflation rate over past four years, which was only varying within three percent. Comparing to Thailand's 9 percent and Pakistan's 23 percent in 2008, Japan has much more stable economy among three countries. Hence, the economy environment is more ideal for our venture in Japan. Unlike other countries, the interest rate in Japan did not fluctuate significantly during the economical crisis in 2008. The interest rate was stabilized at positive or negative 2 percent over past four years. This fact emphasized that Japan has much more stable and better economical environment.  
No matter importing to which country, all three countries have their own very strict food or drink importing regulations.   Therefore, there is no difference regarding custom regulation when importing our products. For fresh fruit, Japan has the lowest import duty with 30% among three countries. Therefore, we will have the lowest cost when importing our products to Japan.
In order to create revenue, every government enforces various taxes.   However, among these three countries, Japan has the least taxes. Comparing to Thailand's 7% and Pakistan's 16%, there is only 5% consumption tax in Japan. Because the lower tax rate gives us the greater margin, we can set our products'   prices higher to obtain more profit in Japan. Japanese Yen is the third most traded currency in the world, therefore in term of convertibility, Yen is the easiest currency to convert comparing to other two countries' currencies. As we doing business in Japan, we can easily exchange our money into US dollars or Canadian dollars to pay suppliers who are not in Japan.
In conclusion, in terms of government policies, there is significant advantages for us to establish our venture in Japan comparing to other two target countries.

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