japanese business and culture
...locally or exported. This is helping the development of industry and the creation of jobs. Japanese affiliated companies now account for 9% of the total value of America’s exports. Japan’s agricultural sector is highly subsidized and protected. They are self-sufficient in rice, but must import about 50% of its requirements of other fodder crops. Their fishing industry on the other hand is very active. Fish is a very important part of the Japanese diet and is fourth in the world in its yearly catch of fish. Despite Japan’s GDP and per capita, Japanese business leaders have turned pessimistic about their economic prospects. Many of Japan’s business leaders are saying that their economy remains “fragile and vulnerable.” Business in Japan as well as the country’s big manufacturers, such as Honda and Toyota, which earn most of their profit overseas are not doing well. The lack of confidence for Japan’s large companies will continue to add to a suffering Japanese economy. Investors bid up government bond prices recently sending yields to records lows. This action reveals that Japanese investors are forecasting rough times in the near future. Consumer spending helped Japan’s economy to grow, but recent numbers have showed that consumer spending is declining. Wages are falling, and companies are scaling back on their hiring plans. These recent actions among Japanese business reveal that now may not be the best time to engage in Foreign Direct Investment in Japan. However, given the nation’s high productivity and high level of disposable income, the Japanese market proves to be a potentially attractive investment for many businesses. Although Japan’s economy has been in recession, Japan’s government is committed to structural reform, making Japan’s business environment more attractive for international businesses interested in FDI. Japan is in fact attractive for FDI, Japan has one of the highest levels of personal safety and is also politically stable. Safety, freedom, and democracy are three words that business executives like to hear when looking to invest their business abroad. Therefore, given the growth of GDP, its secure and stable social environment, and its commitment to social reform, I feel that Japan’s economy proves to be stable and attractive for managers to do business in Japan. Japan is the first Asian country to have a parliamentary system. Japan's government is a democracy with a titular monarch called the emperor. The emperor has no legal powers but orders great respect and represents the head of the nation. The imperial family of Japan has been in lineage for almost 2,000 years, unlike no other royal family. The Japanese lawmaking body is called the Diet. The Legislative body is made up of two chambers, the House of Representatives and the House of Councilors. The House of Representatives is made up of about 500 members and serve four years. The House of Councilors is made up of only 252 members and serves six years. The House of Representatives has greater powers than the House of Councilor. The executive branch of the Japanese Parliament chooses its own members as Prime Minister. The Prime Minister heads this branch and is usually a member of the political party. In May of 2001, Koizumi Junichiro became the Prime Minister. Other ministers of areas such as finance and economic planning assist him in his duties. The judicial branch consists of a supreme court, district courts, higher courts and smaller courts. There is a chief justice who is appointed by the associate justices. Anyone is welcome to attend a trial in Japan. In Japan, the judge makes the decision based upon the evidence. It seems that Japans attractiveness to foreign direct investment is greater than other Asian countries. But their exposure to FDI is lower than many other countries and their domestic activity also seems lower than the most important country competitors. The most fundamental measure for FDI in Japan is Mergers and Acquisitions (M&A). There has been strong increase in M&A over the past few years. "The greatest growth overall occurred in the form of stock acquisitions and business transfers, including spin-offs of company business divisions" (M&A in Japan, 1). "A growing number of international companies state that the rapidly changing regulatory and economic environment in Japan is creating attractive opportunities for M&A activity to acquire assets, expand market access or develop other are operating capabilities in Japan" (M&A in Japan, 4). If Japan continues to modify their laws and policies there will greater flexibility to carry out these transactions while reducing tax liability. If the Japanese economy wants to become more flexible, they will have to accept these opportunities. "Foreign direct investment can increase the rate of productivity growth in the host economy. The higher productivity rates will lead to stronger real growth in the economy" (Fauver, 1). FDI will raise Japan's increase competition, productivity, reduce costs and create new products. Since the Japanese government is aware of how important foreign direct investment is they will need to make changes as soon as possible in order to increase foreign direct investment. The barriers in Japan seem to be falling. "The main lever to increasing investment has been the deregulation since the "Big Bang" - under which the government sought to stimulate the stagnant economy by modernizing and liberating the financial system - began to reverberate three years ago" (Kirk, 1). Although this is just the beginning, Japan is going to continue to progress gradually. It seems that now is the time to enter the Japanese market and do business. Business is becoming more and more important for international companies in Japan. Although doing business in Japan or with Japanese companies can be frustrating, it can be rewarding with the proper planning and implementation. But, all you need is patience and your relationship with these companies may become beneficial and profitable. Although it is a small country by land area, Japan has the eighth largest population in the world, with 125.6 million people. This makes Japan one of the most densely populated countries in the world. Most Japanese live on the heavily developed east coast or in the southern region, where most of Japan's largest cities are located. In fact, four out of the five live in cities or large towns. Over one quarter of the population of Japan lives in Tokyo and the immediately surrounding prefectures. The metropolitan areas around the three cities of Tokyo, Osaka, and Nagoya are now home to nearly 45% of all Japanese. The Japanese people come from various locations. People from mainland Asia came to live with natives of the Japanese islands and nearby pacific islands. Later visitors from China and Korea influenced the language and culture. Each region has its own customs, festivals, folk tales and foods. For example, people in the Kanto region, including Tokyo, often eat natto, a dish of fermented soybeans, while people from the Kansai region encompassing Osaka eat it only occasionally. Each region even has a different dialect, with whole words and expressions changing from place to place. Since 1868, the capital of Japan has been Tokyo. Perhaps the world's largest and most populated metropolitan area, Tokyo is also among the cleanest and the safest. An international magnet for business, it is rich in cultural diversity as well. There is a variety of restaurants, markets, shops, and other entertainment characteristic of any cosmopolitan center. Tokyo is the seat of the National Government and home to Their Majesties the Emperor and Empress of Japan. As the political and economic heart of Japan, its impact is widely felt throughout the world. Recent statistics on Japan's direct investment flows indicate that the heartening upswing in foreign direct investment is continuing: While annual FDI to Japan ranged from only $1-3 billion in the early 1990s, foreign investment surged in the latter half of the decade. Over the past 3 years, Japan's investment grew from $10.9 billion in 1998 to $21 billion in 1999, and is estimated to have reached approximately $25 billion in JFY 2000. M&A transactions have also grown dramatically during that same period. Japan has many kinds of work environments. Some of Japan's compani...