Wage gains at Japan’s smaller firms at risk as Iran war drags on
Many of such companies lack the pricing power to fully pass rising costs on to customers because of intense competition and entrenched business practices.
Wage increases at smaller Japanese businesses are facing potential setbacks due to the ongoing conflict involving Iran. These companies often struggle to transfer escalating operational expenses to consumers. This difficulty stems from fierce market competition and established business norms that limit their ability to adjust prices effectively.
The stability of wage growth in Japan's crucial small and medium-sized enterprise sector is being threatened by external geopolitical events.
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