Final answer:
The company is in the international strategic planning phase, focusing on entry strategy for Japan and China, influenced by the economic development of these nations and their shift towards free-market economies.
Step-by-step explanation:
The company deciding the mode of entry it will use in Japan and China is in the phase of international strategic planning that involves choosing an entry strategy into foreign markets. Significant factors contributing to Japan's economic growth include U.S. aid post-WWII, policies that fostered industrial innovation, and export-focused economic strategies.
Japan's economic strategies led to a transformation from a producer of low-cost goods to a leader in high technology. China's economic growth has been significantly impacted by its shift towards a market economy, which allowed for greater freedom for market forces both domestically and internationally, stimulating foreign direct investments (FDI) and technological advancements.
Japan seeks to take advantage of its geographical location to establish a positive trade situation in the region, particularly with China, by leveraging its substantial population and lower living standards. This indicates a significant international impact of nations embracing free-market economies, which includes increased cross-border investments and enhanced economic interdependence among countries.