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Finance for International Business

Introduction to FDI in Japan Pharmaceuticals

The Japanese government has incorporated rules for corporate governance and the establishment of national tax and governance for FDI inflow in the country. Financial risk is important due to the involvement of positive efficiencies and risk components such as stability yardstick of currency risk and interest rate that impacts the contraction and growth of the host country and potential FDI. Foreign direct investment in Pharmaceuticals Company in Japan has been assessed by using political and financial risk to identify investment decisions. Japan has been ranked 29^th in ease of doing business with a friendly regulation outlook (World Bank, 2019). Country risk harms MNC profitability and operations in the host country. 

Political Risk

1. Blocked funds

Blocked funds occur in the case when the host country has restricte....