Japan is a parliamentary constitutional monarchy that protects its economic interests through positive relationships with other countries. Since Japan has low corruption rates, it offers opportunities for successful foreign direct investment (FDI) without considerable financial risk. The country is characterized as a collectivistic high-power distance society emphasizing group interests and hierarchy. It is one of the least uncertainty-tolerant nations with a long-term orientation, leading to the perseverance of values and wealth. A high level of masculinity explains the fundamental values of competition and success and causes a clear role distinction between women and men. Japan relies heavily on human labor and has the world’s lowest unemployment rates due to its work ethic and effective immigration laws. As an APEC member, the country supports the trading between the Americas and Asia-Pacific countries, but the shipping between Japan and the US might be financially unjustified due to considerable travel distance.
India is a federal parliamentary constitutional republic facing the problems of inequality and nationalism, resulting in conflicts and social discontent. English is the language of international business relations in India, so the country is favorable for foreign investors despite its high corruption rates and the lack of government transparency. India is an individualistic country with a high degree of independence and moderate tolerance to uncertainty, while the values of success and prosperity characterize it as a masculine society. The social structure is hierarchical with a high power distance level and intermediate long-term orientation influenced by religion. The fast-growing economy is based on the combination of capitalist and socialist production modes, which contributed to the formation of the middle class. India has a progressive economy and rich labor market, but the limits of its government on foreign business owners negatively affect FDI.
India
Political Status
India is a federal parliamentary constitutional republic with the President as the Head of State. The democratic country struggles with inequality and nationalism, causing conflicts and social discontent. While India offers valuable opportunities for FDI and the convenience of the English-speaking business environment, it has an unfavorable position in the Corruption Perceptions Index. Political financing in the country is not transparent and fair, as the government lobbies corporate interest groups and stimulates corruption in the public sector. However, the situation might change in the future, as the country began to follow the trend of open government and transparency after introducing the Right to Information Act. Additionally, in response to the global climate crisis, India will play a crucial role in sustainable development as it currently suffers from the effects of climate change. The growing economy will demand more energy in the future, so the government might invest in renewable energy or seek FDI support for sustainable development efforts.
Social Development
Indian society is characterized as individualistic, masculine, and moderately tolerant of uncertainty. However, as a highly religious country, India promotes the values of humility, abstinence, and caring for others. Power distance level defines the hierarchical and top-down social structure, with an intermediate level of long-term orientation. In 2019, India had a rank of 129 out of 189 on the Human Development Index (HDI), which means that the country struggles with inequality and deprivation (UNDP, 2019). Horizontal inequalities are expressed by Scheduled Castes and Scheduled Tribes’ underperformance based on indicators such as access to education, digital technology, and healthcare. Since economic development depends on human capital, stigma and exclusion undermine the professional potential of Indian citizens and thus, decrease FDI opportunities demanding a skilled workforce.
References
UNDP. (2019). Human Development Report 2019. Beyond income, beyond averages, beyond today: Inequalities in human development in the 21st century. United Nations Publications.