THE LAND OF THE RISING SUN

Doing business in Japan

November 17, 2018
University of St. La Salle
Graduate School of Business
HISTORY
➤ A military-led dynastic government in 17th century isolated
the country from foreign influence
➤ Opened its port through the Treaty of Kanagawa in the 19th
century
➤ Occupied much of East and Southeast Asia in the 1930s
➤ Attacked US forces in 1941
➤ Recovered to become an economic power after defeat
➤ Major economic slowdown in 1990s
➤ 2011 earthquake and tsunami hobbled its economy
HISTORY
➤ Called Nihon/Nippon
➤ “Where the sun originates”
➤ Chinese name is “Cipangu”
POLITICAL ASPECT

parliamentary and constitutional

Government type monarchy

latest approved 6 October 1946,

Constitution adopted 3 November 1946, effective 3
May 1947

Civil law system based on

Legal system
German model

Administrative
47 prefectures
divisions
POLITICAL ASPECT - EXECUTIVE

Chief of State Emperor AKIHITO

Head of Government Prime Minister Shinzo ABE

Cabinet appointed by prime minister

the leader of the majority party or majority

Elections coalition in the House of Representatives
usually becomes prime minister
POLITICAL ASPECT - LEGISLATIVE

Legislative branch Bicameral

“Sangi-in” House of Councilors (242 seats)

“Shugi-in” House of Representatives (465 seats)

POLITICAL ASPECT - JUDICIARY

Highest courts Supreme Court

Supreme Court chief justice designated

by the Cabinet and appointed by the
Judge selection monarch; associate justices appointed
by the Cabinet and confirmed by the
monarch

8 high courts
Subordinate courts 50 district courts
438 summary courts
POLITICAL DISTURBANCES
➤ Sinking economy
➤ Ageing society
➤ Sinking birthrate
➤ Radiation
➤ Unpopular government
➤ Socialist Party
➤ 1/3 of women are in poverty
➤ Gives weak protection to its young
CULTURAL ASPECT - PEOPLE AND SOCIETY

Population 126,168,156 (July 2018 est.)

Japanese 98.1%,
Chinese 0.5%,
Ethnic groups Korean 0.4%,
other 1% (includes Filipino,
Vietnamese, and Brazilian)

Shintoism 70.4%,
Religion Buddhism 69.8%,
Christianity 1.5%, other 6.9%
CULTURAL ASPECT - PEOPLE AND SOCIETY

total: 47.7 years

Median age male: 46.4 years
female: 49.2 years (2018 est.)

Population growth -0.24%

Urbanization 91.6% of total population

Unemployment 5.1% (2016 est.)

➤ The decrease in population and increase in the
average age of Japanese consumers will slowly
have an effect on the working age population,
creating a tax burden on the smaller number
of individuals in the labour force
(Euromonitor, 2014).
➤ There is a significant cultural difference between
Japan and North America when it comes to doing
business. Improper etiquette, misinterpretations or
misunderstandings can lead to inaccurate or
confused deals.
CULTURAL ASPECT - AGE AND STATUS
➤ Age is revered in that country and can be synonymous with
rank in a business setting.
➤ Be sure to greet the most senior person before you greet
others. Likewise, offer your business card to the senior person
first.
CULTURAL ASPECT - BUSINESS CARDS
➤ The exchange of business cards (meishi) is an essential part
of initial meetings in Japan and follows a strict protocol.
➤ For Japanese business professionals, a business card (Meishi,
pronounced "MAY-SHEE") is an extension of their identity.
➤ Directness vs. in between the lines
➤ Facts vs. emotions
➤ Speed versus consistency
➤ Gift giving
➤ Aggressiveness vs. Subtlety
➤ Group vs. Individual
CULTURAL DIMENSIONS