Political, Legal and Collection Risks Associated with the Expansion of International Business Activities
First written in FY2016. 4 of 5 entries say "Worsened", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「Conflicts between countries and regions, including the United States and China, originating in trade friction, market fragmentation, and measures taken by the U.S. administration as part of its foreign and security policies, including additional tariffs and other trade and economic measures, could increase uncertainty over policy and regulatory developments, including possible retaliatory measures by other countries, and further strengthen trade restrictions, economic sanctions and tariff barriers.」
The international business risk section now specifically addresses additional tariffs, retaliatory measures by various countries, market fragmentation, and tighter trade restrictions and economic sanctions. - FY2023WorsenedAnnual report
「With respect to tensions between the United States and China, rapid changes in the business environment arising from market decoupling between countries and regions originating in trade friction, stronger economic security policies in various countries, and increasing polarization of public opinion could have a significant impact on the business, results of operations and financial position of our Group, which has production bases and markets worldwide.」
The international business risk section now specifically addresses economic security policies, decoupling of the U.S. and Chinese markets, and tighter export controls, in addition to trade restrictions and economic sanctions. - FY2022WorsenedAnnual report
「In particular, recent changes in the laws and regulations of various countries concerning trade restrictions and economic sanctions have a significant impact on the business of our Group, which has production bases globally and supplies products worldwide.」
The international business risk section now specifically addresses trade restrictions and economic sanctions, economic security, and the situation involving Russia and Ukraine. - FY2020WorsenedAnnual report
「In addition, as described under the risk of fluctuations in economic conditions, emergency declarations, lockdowns and restrictions on movement imposed by governments in response to the spread of COVID-19 affected our business. Although restrictions are gradually being eased in various countries, renewed spread of the infection could lead to tighter restrictions on economic activity again, potentially having a significant impact on our business, results of operations and financial position.」
In addition to political, legal and collection risks associated with international business activities, restrictions imposed by countries in response to COVID-19 and the possibility of their reintroduction or tightening were identified. - FY2016First statedAnnual report
「Expanding our business in overseas markets is one of our Group's strategies. However, overseas operations may expose us to risks beyond foreign exchange, including political instability, such as war, civil war, conflict, riots and terrorism, uncertainty over economic trends, religious and cultural differences, and local labor-management relations.」
While positioning overseas expansion as a growth strategy, the company also identified obstacles related to investment recovery periods, regulation, remittances and local business practices.