Political Japan is regard as “the most closed investment market in the developed world
Entering into 21 century, the 2003 commercial law remove its limitation of international business which became a turning point in Japanese economic development. Foreign stock ownership in companies listed at the Tokyo Stock Exchange rose to 28 percent It attract massive international top brand to muscle in the competitive market. In 2011, Great East Japan Earthquake triggered the country’s worst disaster of the post-war era which was the strongest earthquake ever recorded in Japan. Japanese earthquake occurred when the Japanese government struggling with the fiscal deficit. At present Japan's debt already accounts for around 200% of GDP. Within developed countries its higher debt levels than other countries. But following the earthquake, the Japanese government must increase of budget, this will undoubtedly make Japan's fiscal situation worse. It hard forecast the government attitude for foreign business but taxation would be a weighty burden for H&M and hardly adapted to the change of policy.