Japan and the US
Business in Japan
- Fourth largest goods trading partner
- Total goods traded in 2013: $204 billion
US exports: $65 billion
US imports: $139 billion
= a US trade deficit of $74 billion
Porter's Diamond
Do's and Don'ts
Japanese Fax Machine Industry
Factor conditions: relatively high number of electrical engineers per capita.
Demand conditions: market was very demanding because of the written language.
Related and supporting industries: Large number of related and supporting industries with good technology, for example, good miniaturized components since there is less space in Japan.
Rivalry: Domestic rivalry in the Japanese fax machine industry pushed innovation and resulted in rapid cost reductions
For doing business in Japan
- Business Cards
- Bowing
- Seating
- Names
Trade and Investment Patterns
Japan's Trade Agreements
Trading in Japan
- Japan’s exported goods have changed over time
- Large manufacturing base
- ASEAN as a whole
- Vietnam
- Switzerland
- India
- Peru
- Singapore
- Mexico
- Malaysia
- Philippines
- Indonesia
- Chile
- Thailand
- Brunei
Culture
- NeoMercantilist country
- Size of the economy
- Third largest economy
Japanese Phrases
Major Exports
Hello
Pleased to meet you
My name is alex
Goodbye
Sorry
Konnichiwa
Hajimemashite
Alex desu
Sayonara
Gomen nasai
Culture
Values
Major Trading Partners
Absolute and Acquired Advantage
Absolute
- Cars, electronics devises, computers
Acquired
- Process technology in steel
Culture
Dress
Yofuku
Wafuku
Tatami Mat
Income Distribution
- GINI Index
- 0 = perfect equality
- 1 = perfect inequality
Currency and Exchange Rate
- Japanese Yen
- Third most traded currency
after the Dollar and the Euro
- Currently, the exchange rates
between Japanese yen and
other currencies are:
- Against US dollar: 118.4834 ¥/$
- Against Euro: 148.651 ¥/€
- Against British pound: 185.719 ¥/£
Inflation and Debt
Culture
- Inflation rate was 3.30% in August, 2014
- In 2013, the Japanese public debt exceeded one quadrillion yen (US $10.46 trillion)
- “Abenomics" program
- an additional 10.3 trillion yen of economic stimulus spending
Fashion Trends
Lolita
Punk
Economy
- Japan is mostly a free market economy
- Index of Economic Freedom
- ranks 24th within the 177 countries analyzed
Cosplay
Legal System
Culture
Cuisine
Civil Law:
- "guilty until proven innocent"
- Rules-based
- 99.9% conviction rate
History
Feudalism
- Meiji Restoration 19th Century
The Meiji government also created a conducive business environment for private businesses to thrive.
Exclusionism
- Edo Period
Commodore Perry