Conducting Business in Japan

business in japan. L. Jones Doing Business in Japan In today's increasing era of globalization, more and more foreign companies and individuals are discovering the wonderful, profitable, and sometimes, challenging world of doing business in Japan. However, although many have been lured by the boom time of the recent past, leaner times require a thorough knowledge of the business and cultural environment. The simple fact is, those who understand the milieu of Japanese life will in general do much better than those who do not.

Of course, one of the first steps in considering doing business in Japan involves understanding the infrastructure of the country. Although Japan is widely touted as a technological wonderland (to some degree, rightly so), there remain significant public sector improvements to be made -- along with the accompanying investments. Unfortunately, Japans infrastructure has not kept base with its rate of economic growth (ITC).

This is a significant factor in the investment opportunities/requirements in the region, for it is estimated that funds will be required in the trillions of dollars to bring it up to speed (ITC). Although, relative to the economic growth of the nation (over the sum of the 1990's) has vastly outstripped the infrastructure growth, it must be noted that the level of infrastructure is still more than adequate for virtually any business enterprise in the nation.

Japan enjoys modern and efficient railways, highways, pipelines, sea ports, airports, communications, and electrical equipment that rival any in the developed world. Of course, one of the crucial aspects of doing business in any foreign country is understanding the form of Government, as well as its relative stability. Fortunately, in the case of Japan the Government is not only relatively friendly to outside business (albeit with some significant restrictions), but it is also profoundly stable.

It is characterized as a constitutional monarchy, with its capital located in the immense city of Tokyo. It is made up of 47 administrative divisions, known as prefectures. Its legal system is modeled after the civil law systems of Europe, with a decidedly "English-American" influence (Abacci), and offers universal suffrage to its citizens at the age of 20. Japan is governed by Prime Minister Yoshiro Mori, although Emperor Akihito is the chief of state. There is a cabinet under the Prime minister, as well as a Legislative branch of government.

In short, there is much that businesses and individuals from America and Great Britain will recognize in terms of governmental similarities. Once the decision is made to do business in Japan, it must be emphasized that there are significant cultural differences that must be taken into consideration. The simple fact is that good cross-cultural communication is essential to the success of any business enterprise, and that good, or bad "cultural communication" can often make or break a deal. Doing "Japanese-style" business involves a good knowledge of Japanese etiquette.

For instance, business life in Japan is still significantly more formal than is found in many of the top companies in the United States in particular. In fact, although more and more American businesses have adopted "casual attire" for instance in the workplace, this is still rare in Japan. In fact "dressing down," could be interpreted as laxity or disrespect. There are also significant points of "good conduct" that may seem at first like so much minutiae.

However giving a good impression is of paramount importance in Japanese society, and by extension, in Japanese business. For example, when sitting down to a business meeting, the placement of participants will be according to status. It is therefore appropriate to wait to be directed to a seat if one is unfamiliar with the positions of those present. Additionally, it is common for everyone to wait to be seated until the highest ranking individual present sits.

To ignore or be ignorant of this custom could be considered rude at the least. Unlike the United States, it is customary to bring a small gift to present to the meeting's hosts. An appropriate item may be a souvenir or other small item that represents your local area. Additionally, should you be presented with a gift, it is appropriate to express appreciation if it is unwrapped, and to offer thanks but wait to open a wrapped gift until you leave.

Additionally, the role of exchanging business cards is extremely prevalent in Japan. Be prepared to accept and offer a business card to those you meet professionally, and be sure to offer, as well as accept the cards with both hands, and never think of writing anyone's name.