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Featured Language: Japanese
Doing Business in Japan
According to the United States Department of Commerce, Japan is the United States' largest non-NAFTA trading partner. It is also the world's second largest economy, with a GDP of roughly $4.6 trillion in 2004. Measured in dollar terms and at current exchange rates, that is roughly 39 percent of the United States' GDP, although fluctuations in the dollar/yen rate can change this figure significantly.
What follows is only a small fraction of the dozens of tips and guidelines cited by the U.S. Export Assistance Center for companies interested in doing business in Japan.
- It is essential for U.S. companies that are serious about entering the Japanese market to hire a reputable, well-connected agent or distributor, and to cultivate business contacts through frequent personal visits.
- A common mistake made by many U.S. firms is to try to use a list of importers as a basis for "cold calls" on prospective agents. To help dispel reluctance on the Japanese side, an introduction by a "go-between" typically serves to vouch for the reliability of both parties. Appropriate third parties for such introductions include other Japanese firms, U.S. companies that have successfully done business in Japan, banks, trade associations, chambers of commerce, the U.S. Department of Commerce, and the U.S. Commercial Service in Japan.
- Japanese attach a high degree of importance to personal relationships, and these take time to establish and nurture. Patience and repeated follow-up are required to clinch a deal. The Japanese prefer to do business with someone only when they have been properly introduced and have met face-to-face.
- Unless you possess excellent Japanese language skills, it is essential for foreign business executives to be accompanied by a professional interpreter, as many Japanese executives and decision makers do not speak English.
- Be selective in choosing a Japanese business partner. Credit checks, a review of the Japanese company's industry standing and existing relations with Japanese competitors, and trust-building are all part of the process.
For more information about conducting business in Japan, refer to the sources used to develop this article (listed below), or, access this issue's Useful Links.
Sources:
U.S. Department of Commerce
Export Assistance Center
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