As mentioned in a previous post, Japan currently has the second most number of McDonalds in its country with over 3600 restaurants, just falling behind USA, making it a vital part in McDonalds chain of restaurants all over the world. Japan's economy is currently in a recession with deflation and other issues occurring. Recently, the Japanese government has approved a $116 billion dollar stimulus package to revive the economy. The package is estimated to boost Japan's economy by 2%,create 600,000 jobs and raise income levels in Japan. This will impact McDonalds greatly because this package will increase the consumer confidence level in Japan. The economy of Japan is in a recession and thus people will be less likely to eat out or spend money on fast food restaurants such as McDonalds. With this $116 billion dollar package, more jobs will be created and income levels will rise, when the consumers have increased amount of income and they have more confidence in the economy, they will be more willing to spend in on McDonalds instead of just eating home and being conservative.
Link to Article:
http://www.bbc.co.uk/news/business-20981874
Link to Article:
http://www.bbc.co.uk/news/business-20981874
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