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Japan Module 2

Published on Apr 08, 2016

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PRESENTATION OUTLINE

Country Specific Business Conditions

  • High Culture:
  • Literature- Pre 8th century the Kanji (Chinese characters) were introduced making writing possible. Early work was influenced by the Chinese. After the 19th century, Western literature had a strong influence. Matsuo Bashō is considered to be one of the greatest masters of Haiku poetry.
Photo by JaviC

High Culture continued

  • Classical Music:
  • Gagaku: Ancient court music from China and Korea. It is the oldest type of Japanese, traditional music.
  • Biwagaku: Music played with the Biwa, a kind of guitar with four strings.
  • Minyo: Japanese folk songs.
  • Sokyoku: Music played with the Koto, a type of zither with 13 strings.
Photo by cytech

Folk Culture

  • Religion- Shinto and Buddhism are the two leading religions, however religion does not play a role in everyday life.
  • Popular music - J-Pop is the largest and most mainstream type of music. A J is put in front of any genre of music (indie, club, punk) to differentiate between Japanese and foreign music.
Photo by Danny Choo

Folk Culture continued

  • Diet- consists mainly of rice, vegetables, and fish. Also tofu, fruit, egg and soups are important parts of the everyday meal.
  • Dress- traditional dress of Japan is the Kimono which is worn on special occasions. Everyday wear consists of a more Western/European flare.
Photo by born1945

Social Culture

  • Gender roles- Men hold the majority of high positions. Women are held to higher standard in the business world, not promoted as frequently or as generously.
  • Greeting Rituals- When greeting and departing, it is common for men and women to bow to one another. Seniority and status dictate the length and depth of the bow.
Photo by jessleecuizon

Social Culture continued

  • Power Distance- Japan is a borderline hierarchical society. In business, hierarchy is very important in the decision making process. In education, the Japanese believe everyone is born equal and can accomplish much through hard work.
  • Nonverbal communication- nodding, silence, avoid touching, and no staring.
Photo by Feans

Social Culture continued

  • Individualism vs. collectivism-Japan shows many characteristics of a collectivist society and in business they are very loyal to their companies. However they are more private and reserved than other asians.
  • Uncertainty avoidance- Japan ranks high, always prepared for disaster, highly ritualistic.
Photo by Ame Otoko

Financial Infrastructure

  • Currency-Yen
  • 1Japanese yen=0.0084USD
  • The exchange rate is determained by the SDR, a basket of 4 major currencies
  • Central Bank- Bank of Japan
  • Stock Exchange-Tokyo Stock Exchange
  • Japan became the second largest shareholder of the World Bank in 1984
Photo by ninja gecko

Financial/Legal Environment for Business

  • A foreign company must set up in 1 of 4 modes to establish business in Japan; representative office, branch office, subsidiary company or a limited liability partnership
Photo by swisscan

Physical Infrastructure

  • Japan is famous for their highspeed trains,14,708 miles
  • 715,981 miles of highways
  • 22 ports and harbors
  • 171 airports
  • Power generation-comprised of 4 methods; thermal, nuclear, hydro and non-conventional
  • Over 60.3 million cell phones in use

Recommendations for International Business

  • RTA-ASEAN
  • Current signatories:Brunei Darussalam; Myanmar; Cambodia; Indonesia; Lao People's Democratic Republic; Malaysia; Philippines; Singapore; Viet Nam; Thailand; Japan
  • Coverage: Goods
  • Type: Free Trade Agreement

Recommendations for International Business

  • MNCs should consider exports and greenfield investments
  • Trading across borders: Japan ranks 20
  • Starting a business: Japan ranks 83
Photo by paularps

Recommendations for International Business

  • MNCs will want to take Japans culture into special consideration before entering into market.
  • I would recommend a MNC to enter this market.
Photo by Ame Otoko