According to the United States Department of Commerce, Japan is one of the United States' largest trading partners. It is also the world's third largest economy, with a GDP of roughly $4.6 trillion in 2008. 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.

What follows is an overview of the dozens of tips and guidelines cited by the U.S. Export Assistance Center for companies interested in doing business in Japan (2006).

• Hire a reputable, well-connected agent or distributor. 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.
• Cultivate business contacts through frequent, personal visits. 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.
• Appropriate third parties for introductions into new business 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.
• Unless you have excellent Japanese language skills, hire a professional interpreter, as many Japanese executives and decision makers do not speak English.
• Be selective in choosing a Japanese business partner. Credit checks and a review of the Japanese company's industry standing and existing relations with Japanese competitors are a major part of the process.

Find out more
For information about conducting business in Japan and the Japanese language, contact us. Or, visit this issue's Useful Links for more government, business, and news resources.

Sources:
U.S. Department of Commerce
Export Assistance Center
Doing Business
World Bank Group