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...

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…