Japanese Society & Culture

1. Japanese Society & Culture

2. The Japanese and “Face” Saving face is crucial in Japanese society.. The Japanese believe that turning down someone's request causes embarrassment and loss of face to the other person. . Face is a mark of personal dignity and means having high status with one's peers.

3. Harmony in Japanese Society • Harmony is the key value in Japanese society.  Harmony is the guiding philosophy for the Japanese in family and business settings and in society as a whole. • The Japanese educational system emphasizes the interdependence of all people, and Japanese children are not raised to be independent but rather to work together. • They place great emphasis on politeness, personal responsibility and working together for the universal, rather than the individual, good. . They present facts that might be disagreeable in a gentle and indirect fashion.

4. Japanese Non-Verbal Communication • Since the Japanese strive for harmony and are group dependent, they rely on facial expression, tone of voice and posture to tell them what someone feels. They often trust non-verbal messages more than the spoken word as words can have several meanings. • Frowning while someone is speaking is interpreted as a sign of disagreement. Most Japanese maintain an impassive expression when speaking. • Expressions to watch out for include inhaling through clenched teeth, tilting the head, scratching the back of the head, and scratching the eyebrow. • It is considered disrespectful to stare into another person's eyes, particularly those of a person who is senior to you because of age or status.

5. Japanese Hierarchy • The Japanese are very conscious of age and status. • Everyone has a distinct place in the hierarchy, be it the family unit, the extended family, a social or a business situation. • At school, children learn to address other students as senior to them ('senpai') or junior to them ('kohai'). • The oldest person in a group is always revered and honored. In a social situation, they will be served first and their drinks will be poured for them.

6. Meeting Etiquette • Greetings in Japan are very formal and ritualized. It is important to show the correct amount of respect and deference to someone based upon their status relative to your own. • It can be seen as impolite to introduce yourself, even in a large gathering. • While foreigners are expected to shake hands, the traditional form of greeting is the bow. How far you bow depends upon your relationship to the other person as well as the situation. The deeper you bow, the more respect you show.

7. Dining Etiquette On the rare occasion you are invited to a Japanese house: Remove your shoes before entering and put on the slippers left at the doorway. . Leave your shoes pointing away from the doorway you are about to walk through. . Arrive on time or no more than 5 minutes late if invited for dinner. . If invited to a large social gathering, arriving a little bit later than the invitation is acceptable, although punctuality is always appreciated. . Unless you have been told the event is casual, dress as if you were going into the office.

8. Understanding of Foreign Ways . Japanese understand that it is very difficult for foreigners to work in Japan. They will not expect you to speak or read Japanese, or be conversant with their strict cultural nuances and protocol. . Mistakes are allowed as long as genuine respect is shown at all times. They will usually try to help you but often feel embarrassment at their own lack of understanding or English language ability.

9. Relationships & Communication • The Japanese prefer to do business on the basis of personal relationships.  In general, being introduced or recommended by someone who already has a good relationship with the company is extremely helpful as it allows the Japanese to know how to place you in a hierarchy relative to themselves. • It is important to be a good correspondent as the Japanese hold this in high esteem

10. Business Meeting Etiquette • Punctuality is important. Arrive on time for meetings and expect your Japanese colleagues will do the same. Since this is a group society, even if you think you will be meeting one person, be prepared for a group meeting. • The most senior Japanese person will be seated furthest from the door, with the rest of the people in descending rank until the most junior person is seated closest to the door. • The initial getting to know you time is crucial to laying the foundation for a successful relationship. • You may be awarded a small amount of business as a trial to see if you meet your commitments. If you respond quickly and with excellent service, you prove your ability and trustworthiness. • Never refuse a request, no matter how difficult or non- profitable it may appear. The Japanese are looking for a long-term relationship. • Always provide a package of literature about your company including articles and client testimonials. • Always give a small gift, as a token of your esteem, and present it to the most senior person at the end of the meeting. Your Japanese contact can advise you on where to find something appropriate

11. BUSINESS NEGOTIATION • The Japanese are non-confrontational. They have a difficult time saying 'no', so you must be vigilant at observing their non-verbal communication. • It is best to phrase questions so that they can answer yes. For example, do you disagree with this? Group decision-making and consensus are important. • Written contracts are required. • The Japanese often remain silent for long periods of time. Be patient and try to work out if your Japanese colleagues have understood what was said. • Using a Japanese lawyer is seen as a gesture of goodwill. Note that Japanese lawyers are quite different from Western lawyers as they are much more functionary. • The Japanese seldom grant concession. They expect both parties to come to the table with their best offer. • The Japanese do not see contracts as final agreements so they can be renegotiated.

12. Social-Cultural Enviornment

13. Demographic Trends of Japan Birth, literacy rates, and other demographic trends that influence business activities in Japan.

14. Language/Literacy Rates • Japanese society is ethnically and linguistically sound with 99% of the population speaking Japanese. • Literacy rate is ranked 16th in the world at 99% for the Total Population • This is prevalent for both the male and female population.

15. There is a 99% chance I can read that!

16. Birth rates • Japans estimated population is 127,000,000 people. • Japan is the most rapidly aging country in the world: By 2005, one-fifth of the population will be aged 65 years or older. • Fertility has dropped to 1.3 children per woman, well below replacement level. Somewhat balanced out by a high life expectancy. • The number of middle aged people (45-61) has risen by 42 percent during the last twenty years. They tend to save more.

17. Labor Rate Problems • The labor force will shrink by an average of 0.7 percent a year between 2000 and 2025. • The lack of “new blood” in society could lead to protectionism and excessive caution, just at the point when Japan needs ideas and innovation to remain competitive. • Another major piece of Japanese corporate culture, the seniority system, causes older workers to be overpaid. There are as many as 17 million workers “unemployed within companies”—collecting paychecks while doing little in return.

18. Financial Wealth Trend • MGI analysis suggests that the net financial wealth of Japanese households will decline 0.2 percent annually between 2003 and 2024. • This comes after an increase of about 5.5 percent per year between 1975 and 2003. • By 2024, it is estimated will cause total household net financial wealth to fall nearly ¥ 1,000 trillion (or 47 percent) less then what it could have been if Japan had continued at historical growth rates.

19. Ways to “Combat” HIIIIYAAHHHHH

20. Improvements • To improve its financial outlook, Japan needs to focus on instituting economic, institutional, and regulatory reforms that can generate increased domestic competition and stronger rates of productivity growth. • These can help combat some of the demographic trends that Japan faces in the near future concerning the next 20 years.

21. Promoting Global Business/Formal Trade Barriers Analyzing Japan’s governments efforts to attract foreign investment and identifying formal trade barriers.

22. United States Investment • Japan is the 3rd largest exporter of US goods. • The stock of U.S. foreign direct investment in Japan in 2002 was $65.7 billion, up from $58.2 billion in 2001. This continues to rise on a year to year basis. • Deregulation in Japan from 1992-2002 has resulted in 14.3 trillion yen of economic benefits for the Japanese people, equivalent to ($1,200) per capita. • However, overall the world's second-largest economy exports everywhere but is reluctant to open its own markets to foreign products.

23. Consequences of the Trade Barriers • The imbalance (extreme Japanese surpluses) has strained relations with every trading nation and produced the first trade retaliation by the United States against Japan in the postwar period (WWII). • Japan has a serious credibility problem. Market penetration by American goods has not increased despite repeated and well-publicized plans of action from the Japanese Government which wanted to buy more from abroad and increase domestic consumption.

24. Imports • Japan imports many of its natural resources. • However, in the 1990’s it started to favor domestic industries over imports of other goods. • Both domestic and foreign investments are carefully controlled by government regulations, which keeps the investment flows small.

25. Trade Barriers • Potential exporters to Japan have confronted many obstacles. • Despite the “claimed” openness of the Japanese markets, a growing list of foreign exporters complained their access to the markets was hindered by trade tariffs. • Fruits and alcohol continue to bear the highest tariffs in Japan. • Prices for bulk bottled wine were 5.3 to 9.2 % higher then any other comparable country.

26. Geographical Influences

27. Geographical Influences • Japan is a shimaguni (island country) • Four main islands--Honshû, Shikoku, Kyûshû and Hokkaidô--and thousands of smaller surrounding ones • it is smaller than the single, although large, state of California. • The Japanese islands are covered by mountains, most of them heavily forested, and crisscrossed by short, swift rivers.

28. Geographical Influences (Cont’d) • Relatively little of Japan's land mass is suitable for agriculture -- only about 15 percent, the same land that is also most suitable for living • Earthquakes are common • The mountains of Japan contain 10 per-cent of the world's most active volcanoes.

29. Climate for the most part in the temperate zone

30. Major Industries • Machinery and equipment • Metals and metal products • Textiles • Automobiles • Chemicals • Electrical and electronic equipment

31. Major Imports • Ships • Automobiles • Steel • Plastics • Machinery • Cameras and electronics

32. Major Exports • Automobiles • consumer electronics • Computers • Semiconductors • Iron and steel.

33. Main Natural Resources and Agricultural Products • Access to Ocean • Agricultural Resources • Mineral Resources • Human Resources

34. Access to Ocean • Fishing and shipbuilding are a large part of Japanese industries. • Japanese fishing vessels travel all over the world.

35. Agriculture • Japan's main agricultural product is rice, and most rice eaten in Japan is home-grown. • The agricultural economy is highly subsidized and protected. • Japan normally produces a slight surplus of rice but imports large quantities of wheat, corn, sorghum, and soybeans, primarily from the United States. • Japan is the largest market for U.S. agricultural exports.

36. Mineral Resources • important energy sources are coal, liquefied natural gas, nuclear power, and hydropower. • Today Japan enjoys one of the most energy-efficient developed economies in the world. • Deposits of gold, magnesium, and silver meet current industrial demands, but Japan is dependent on foreign sources for many of the minerals essential to modern industry. Iron ore, coke, copper, and bauxite must be imported, as must many forest products.

37. Mineral Resources (cont’d) • Generally, Japan is resource poor. • Japan's economic successes depended on imported raw materials • Energy resources alone account for 14% of its total imports. • With virtually no domestic oil supplies Japan imports much crude oil from the Persian Gulf area . • Oil is used to meet nearly 60% of Japan's total energy needs

38. Human Resources • Much of Japan's economic success could be accredited to its well-educated and well-trained labor force. • Japan has a population of approximately 127 million. • It's literacy rate is 99 % • The largest minority group is the 800,000 Koreans which make up only 0.6 % of the total population.

39. Human Resources (cont’d) • It's population is culturally homogenous • All social and ethnic minorities account for about 4 % of the population or about 5 million people. • Other minority groups include the Chinese, Okinawans, Ainu, and foreign residents.

40. The Japanese political system is constructed where the prime minister is head of the government, the current prime minister is Taro Aso, he is from the liberal democratic party . The government also consists of an emperor, the current emperor is Akihito. The Japanese government consists of multi party system. Such as the, Liberal Democratic Party, Democratic Party, Social Democratic, and Communist Parties. At the current moment the government is going through a change the current prime minister has only been in office for three weeks. The Japanese constitution was established on May 3, 1947. Their legal system is based on the German civil law system with English American influences. Japan is the current leader of the G8 summit that joins with, France, Germany, United States, Australia, Canada. The G8 deals with issues and how to fund them like, global warming, world economy, Africa.

41. Continued: Japan has many foreign relations their most important is with the United States. Their most common debate is based on national security. On the other hand they have friction with neighboring countries like North Korea, China. Japan is also a member of the United Nations, Organization for Economic Cooperation and development and the General Agreement on Tarids and Trade Japan the more they have become a western style country they have adopted the lifestyle as well. With less regulation on business, supporting the free market, allowing more entrepreneurial opportunities in the eastern hemisphere. Low crime rates, corruption, inflation foreign currency regulations. Yet they have some high tax regulations and high tax rates which would have to be managed better when affiliation with other countries is met. In conclusion, I believe Japan would be a great country to be involved with business domestically and internationally. The have a drive to a free market and deregulation of business. With that in mind their willingness to advance and succeed in a western lifestyle is high. Their political system allows the Japanese to produce with new technology into the twenty first century. With their involvement in the United Nations and G8 Summit says there are not afraid to reach across the table for new ideas and innovations for a more working united world.

42. Sites Used http://dir.yahoo.com/Regional/Countries/Japan/ • http://wwics.si.edu/events/docs/ACFE9.pdf • http://www.mckinsey.com/mgi/publications/demographics/japan.asp • http://www.japan-101.com/culture/culture_demographics.htm • http://www.mapsofworld.com/japan/demographics-japan.html • http://www.asianinfo.org/asianinfo/japan/education_literacy.htm • http://query.nytimes.com/gst/fullpage.html?res=9B0DEFD81E38F933 • A05750C0A961948260 • http://books.google.com/books?id=otgWLARRc5cC&pg=PA454&lpg=P • A454&dq=japan+formal+trade+barriers&source=web&ots=DfPTfGW • n43&sig=KT2rdnyGeg2P82Pd4_1M6UOaMF0&hl=en&sa=X&oi=boo • k_result&resnum=8&ct=result#PPA454,M1http://www.cyborlink.com/besite/japan.htm • http://www.buyusa.gov/japan/en/doing.html • http://www.japan-guide.com/e/e622.html • http://www.thejapanfaq.com/FAQ-Primer.html5 • Pictures from Google.com • http://fita.org/countries/japan.html • https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html#Govt http://www.time.com/time/global_business/japan

43. Work Sited Continued • http://afe.easia.columbia.edu/japan/japanworkbook/geography/japgeo.html • http://wiki.answers.com/Q/What_are_the_major_exports_and_imports_of_Japan_and_SOuth_Africa • ships, automobiles, steel, plastics, machinery, cameras, and electronics •  http://wiki.answers.com/Q/What_are_the_major_exports_and_imports_of_Japan_and_SOuth_Africa • http://answers.yahoo.com/question/index?qid=20070515091752AAPxhog • http://countrystudies.us/japan/106.htm • http://www.harpercollege.edu/mhealy/g101ilec/Japan/jpe/res/jperesfr.htm • http://www.harpercollege.edu/mhealy/g101ilec/Japan/jpe/res/jperesfr.htm •  http://www.state.gov/r/pa/ei/bgn/4142.htm • http://www.harpercollege.edu/mhealy/g101ilec/Japan/jpe/res/jperesfr.htm