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COUNTRY RISK ANALYSIS: TELSA MOTORS AND JAPAN

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Essay / Research Paper Abstract

This 7-page paper discusses what Telsa Motors will need to consider if it is considering entry into Japan. Focuses on political risks, double taxation risks, competitive risks, repatriation of funds risks and marketing risks. Bibliography lists 4 sources.

Page Count:

7 pages (~225 words per page)

File: AS43_MTtelsjapa.doc

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Unformatted sample text from the term paper:

that could be a barrier to success. This is the case with Telsa Motors, which is making a play to enter Japan. Telsa Motors, located in Californias Silicon Valley, designs, manuractures and manufactures electric vehicles and electric vehicle powertrain components. Telsas main claim to fame right now is its Roadster (which has sold for well over $100,000) and its Model S sedan. Telsa is a new company, having been founded in 2003, but its becoming a "name" in terms of electric vehicle transport. In this paper, well examine what Telsa Motors needs to consider before setting up a business in Japan. Political, Legal and Regulatory Risks Japan is a parliamentary monarchy that is governed by a prime minister and his cabinet (Grant Thornton, 2010). Furthermore, Japanese political parties tend to change constantly (Grant Thornton, 2010). Though the general population can vote for individuals to serve in the Diet (Japans version of Congress), the prime minister can dissolve the Diets upper and lower houses at will (Grant Thornton, 2010). The Japanese court system isnt too different from the U.S. court system - the difference, however, is that most proceedings are conducted in Japanese (Grant Thornton, 2010). Added to this, we need to consider that certain types of business entities (such as branch offices and certain types of subsidiaries) require that residents of Japan be appointed to run the business (Grant Thornton, 2010). As such, Telsa Motors shouldnt count on merrily waltzing its way into Japan to set up business. It would be far better, at this juncture, for the company to set up a joint venture or partnership with a Japanese ...

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