Labor Issues In Japan

• Japanese have adopted American Labor Law

• Japanese Labor Laws are designed to foster a good relationship between labor and management.

• Japanese Labor Laws have proven to be long lasting, harmonious and productive.

• With more neutral labor laws, their job security and unfair labor practices are less confrontational than those of the United States.

Open Door Philosophy

• The unemployment rate of japan is considerably lower than that of the U.S. currently at around 4%

• Studies have shown that Japan has a larger perecntage of population that desire only part-time work compared to other countires.

• *This would be an advantage for a McDonald’s franchise as most employeees are part-time.

• Ref: www.gil.go.jp/english/JLR.htm

Infrastructure Issues In Japan

• The Global Competiveness Report 2008 – 2009, published in October 2008 by the World Economic Forum (WEF), rates Japan as 3rd in the world in terms of business sophistication and innovation.

• Japan also possesses a highly developed infrastructure with cost that are comparatively low.

The down side of Japan’s

Infrastructure

• According to Business Monitor International report, January export numbers for Japan painted a grim picture.

• This report reinforces BMI’s prediction that GDP will contract by 2.3% in 2009.

• The report also noted that Japan, being one of the most highly developed economies in it’s region, has struggled with poor growth since the 90’s with its infrastructure sector.

• The Japanese government has backed a stimulus package to maintain the economy.