Japan
Final Project
INT-113- R3115-International Business
Rebecca McGlothlen

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.

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.

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.

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.

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.

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.

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.

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

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

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

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