Running head: GLOBAL BUSINESS CULTURAL ANALYSIS: JAPAN

Global Business Cultural Analysis: Japan
Albert G. Rodriguez
Liberty University

Abstract
Japan is very similar and very unlike the US. It was amazing to research so many different aspects of one country. The major elements of this country are its culture and how these affect the country itself. How the people process these elements is very important and this is how the Japanese culture develops. From here we move on to see how this compares to US. We look to see how the US compares in their culture when brought next to Japan. Finally we will see how the US manager can be an international manager in Japan. This is mainly done through sensitivity to the other’s culture. This sometimes includes changing the way we act, and other times it is being sensitive to the other culture that is before us.

Global Business Cultural Analysis: Japan
Japan is an island cluster off the coasts of Russia, South Korea, and China. It is specifically located to the east of the Sea of Japan. It is composed of four major islands and over six-thousand minor ones. The four major islands are: Hokkaido, Honshu, Shikoku and Kyushu. It has thousands of shrines, national parks and even imperial palaces. The country of Japan is often called the Land of the Rising Sun.
It has one of the largest populations in the world by country despite being such a small country. It has the highest life expectancy in the world (83.10). The islands are also located on the Pacific Ring of Fire, so Japan has many volcanoes (108 active volcanoes).
It is home to Tokyo a city known for its neon skyscrapers, and crowded streets. Tokyo is also one of the large foreign exchange centers in the world. It is also home to sushi, cherry blossoms, sumo wrestling, origami, martial arts, ninjas and Godzilla.
In this paper we will get into the details of how Japanese culture works and how this compares to the US methods. After this comparison we will look at how the US can conduct business in Japan and still remain on good terms with their clients or vendors.
What are the major elements and dimensions of culture in this region?
Paradigms
As early as 1998 Japan was known as being more ethnocentric (“my culture is better”) than Europe or the United States (Strucker, 160). Yet the Japanese did not stop there. Many are seeing a trend that shows that Japan is trying to be more polycentric (do it their way) or even geocentric (integrate both cultures) in their business world. In the two later states business is made much easier for all parties, since all are trying to work with the opposite culture for the common goal of business.
Dimensions
Communication is the first major component of the dimensions of a culture. The general rules of communication with internationals apply to the Japanese culture. Japanese culture tends to be a high context culture. These types of communicators leave a portion of their message to be interpreted through context, or nonverbal clues. They are also a synchronic culture they see the past, present and future as a mix. There is no “next thing on the agenda”; they are long-term viewers in their planning and communications. It is also interesting to note that the Japanese culture is the least acceptable of emotional reaction in communication. (Kinsey) Religion (or lack of it) is important in every country. In Japan there is a freedom of religion. Yet at the same time there is a state religion: Shintoism. This freedom of religion is found in Article 20 of their constitution (Kobayashi, 691). This is sometimes misused for political ends. Most of the Japanese population is either Shinto or Buddhist.
Shinto is a Japanese religion, they believe in polytheism of sorts. There is ancestor worship as well as gods for almost every part of life. They also have nature worship, fertility cults and divination techniques. The emperor was even considered to be a descendant of one of those gods and so he was considered divine. They consider themselves to be a chosen people.
They do not have a set founder of the religion. They also do not have a written set of Scriptures and no religious laws. Despite their lack of many things this religion ultimately it is a works based religion where the people work to please whatever god or gods or things they believe in.
Buddhism is based on the teachings of Buddha (the “Enlightened One”) which was an Indian prince called Siddhartha Gautama. He believed Hinduism was lacking and so made his own religion based on his experiences.
The main branch of Buddhism that infects Japan is the Mahayana branch of Buddhism and it includes specific traditions within its beliefs. In Japan in particular they have five denominations of Mahayana Buddhism: Nichiren, Pure Land, Tendai, Zen, and Shingon In this tradition one aspires to reach Buddhahood, which is the state of perfect enlightenment. So in order to reach that state one stays in the world to help others reach awakenings.
Many Buddhists believe in various key concepts. One is Samsara or reincarnation. This is where a person lives their lives good or bad and then when they die they are “reborn” into another body to continue to their life in a higher or lower level depending on how they lived their previous life. Many Buddhists divide the “ladder” up or down into many “planes of existence”; some explanations even have up to 31 planes! This belief goes hand in hand with karma. Karma is the belief that whatever we do good or bad will return to us in that same form. This makes Buddhism very works-based just like the previous Japanese religion.
Buddhism has “four noble truths” and all four of them have to do with suffering. They are taught that if they follow an eight—fold path they can rid themselves of pain or suffering. These include the right: view, intention, speech, action, livelihood, effort, mindfulness and concentration. Their final haven is Nirvana which is just another word for cessation. They seek a cessation of pain.
Some of their rituals include yoga and meditation, where they clear their minds of all things. They have 5 specific precepts that apply to anyone that wants to live a happy better life: do not take life, no stealing, no sexual misconduct, no lying, and no intoxicants (drugs or alcohol). Some Buddhists go into a “monk life” and dedicate their whole lives to this. Ethics in a country are very important in every country. Japan is perceived to be a very ethical country. It is viewed as one of the least corrupt countries in the world. “Transparency
International ranked Japan as the 17th least corrupt country out of 176 in the most recent Corruption Perceptions Index – third highest in Asia – and Japanese companies as the fourth least likely to pay bribes overseas.” (Pickworth, & Williams, 142) There are laws in place to prevent Japanese bribery (Penal Code article 197) both from receiving and giving bribes with a penalty of five years in prison. They have also been members of the Organization for Economic Co-operation and Development since 1964. Values and Attitudes. General. The values and attitudes of a culture can be split up into many realms. Japanese are known for meeting delivery deadlines and for being on time for meetings. In the same breath, in those meetings Japanese are very slow to make a decision. They want all the details that can be included in any analysis, they do not like surprises. They will even socialize in meetings as part of the negotiation process so they can get to know the new business person (Alston, 9-13). Japanese workers are famous for their late hours and hard work. The Japanese people have a strong sense of nationality and are typically loyal to their employers. While this is commendable in a certain aspect, it is also deplorable in another.
Death from overwork. The Japanese language even has a word for death from overwork (karoshi). There are some companies that encourage their employees to nap on the job to increase their productivity and the government may even get involved to force the workforce to take some days off a year. Some even believe this is a link for the nation’s population rate going down (McCurry). It seems their loyalty to an employer pushes them to lead a life that is work based. It is interesting to note that in the past it was common for Japanese companies to offer “life-time” employment, where you would be an employee for the rest of your life of that company. Women in workplace. Women have seemingly been underused in the Japanese culture for the workforce. The government is trying to change this by encouraging more women to join the workplace. Since Japan is running out of bodies to help, women are being called to help out as well. The Prime Minister Shinzo Abe is pressuring companies to hire women and promote them. Women are and have been looked down upon as a lesser race in the workplace. Since that has occurred many business will not let them advance despite their better qualifications and will not let them get higher pay simply because they are a different gender (Lewis). Etiquette and Manners. Customs are very important to a culture. These are the ways that the people of the country act. Language. The Japanese language has fascinated many people. Despite being so near to China and Korea, the Japanese people have remained with a different language. Their official language is Japanese which was apparently taken or adapted from their warrior class. It seems to have similarities to some surrounding languages but it is still a language of its own accord. The Chinese introduced their character writing to the Japanese over 1,500 years ago making their language one of the most complicated in the world. They have an enormous vocabulary. They also have two phonetic writing systems that were developed after the ninth century. (Bestor) Summary of History. The history of Japan is rich in culture. It is the same history that includes samurai and emperors. Many times they were in war. The unification of Japan as a country unit began through ruthless rulers and bloodshed. In these early years Japan was ruled by samurai and feudal lords. During the 16th century traders and missionaries from Portugal reached Japan for the first time. This allowed the ruler Oda Nobinaga to obtain European technology and firearms which made his particularly devastating. Through this he conquered many other feudal lords’ territories and tried to unify Japan.
A “modern era” started for Japan when Emperor Meiji came to the throne in 1868. In his rule Japan established themselves with a new government that basically removed their old internal turmoil. This new government was made with a constitution in 1889. They built a rich country on many different fronts like textile industry, machinery or tool manufacturing and chemical engineering. They even held some control in Taiwan and Korea for a time. During World War I Japan had an unexpected boost in business due to European traders being cut off yet this also caused issues with inflation. (Gordon, 9, 61-64, 139-143)
In the 1930s Japan tried to invade China and failed and so they turned their sites to the United States. The US had supported China in their battle against the Japanese. When negotiations did not come out the way the Japanese desired they attacked the US at Pearl Harbor. They also attacked Malaysia, Singapore and Hong Kong. In 1945 the US dropped atomic bombs on the cities of Hiroshima and Nagasaki. The Japanese agreed to an unconditional surrender on August 15th of that same year. While the Japanese did have a major setback with that attack, after the war the Japanese nation slowly recovered and now flourishes as an economic power. (Gordon, 204-207, 217-221, 245)
In 1947, Japan adopted a new constitution and was granted membership in the United Nations in 1956. Social Structures and Organizations. The Japanese as a culture has been viewed as collectivist in the past and for the most part this still holds true. They are viewed as more family-oriented than the US and still very interdependent. (Sun, 324) Japan’s population is enormous and most of its population lives on one of its islands called Honshu. They are mostly composed of Japanese people with pockets of foreign workers which include Chinese, Filipinos, Brazilians and even some Peruvians. Despite some foreign workers the Japanese see themselves as a monocultural society. Education. Education in Japan is similar to the same grade progression as the US. They have six years for elementary, three years of junior high, three years of high school and four years of university. Japan is one of the best educated countries in the world. Parents instill the importance of education from childhood; because of this emphasis Japanese students are more determined than many other students worldwide. Schooling is free from first to ninth grades and in general it begins on April 1st and ends on March 31st of the following year. They have a trimester system with breaks between semesters. In 2002 Saturdays were given as off days for students, before then students had 6 day schooling weeks. Through this education over 95% of Japanese people are literate and graduate from high school (Wieczorek, 101-102). Government. General. The Japanese government is a parliamentary government with a constitutional monarchy. In other words there is an emperor who is the chief of the state and is put into office by lineage and a prime minister who elected (currently Shinzo Abe). The emperor himself is very limited in power; he is more of a symbol for the Japanese state, a symbol for the people and the state. They have a constitution that was adopted in 1946. They have a judicial branch (courts), an executive branch (prime minister) and finally a legislative branch (“the Diet”). The Diet is in Chiyoda, Tokyo. There is a House of Representatives that are voted in by the Japanese people every four years as well as a House of Councilors who are voted in by six year terms. The prime minister, the executive branch, is appointed by the Emperor after being designated by the Diet, from its members. The court system has a Supreme Court followed by three lower levels of lower courts. Japan has forty-seven divisions which are overseen by elected governors, legislature and administrative bureaucracy. This is further reduced to towns, cities and villages. There is the hope that a reclassification and amalgamation of these divisions will save the Japanese government some much needed money (Mabuchi, 16-17) Japan has a security pact with Australia (March 2007) and with India (October 2008). It has close relations with the US having a formal alliance with us called the US-Japan security alliance. Japan has one of the largest military budgets in the world, but it is restricted by Article 9 of its constitution, which renounces Japan’s right to declare war or use military force in international disputes. The prime minister of Japan, Shinzo Abe, specifically mentioned the desire to drop this article and be more active in regional and international security. Just like education, health care is greatly provided by the Japanese government. It is provided by both national and local governments. There is a universal health insurance that provides relative equality of access; patients are free to select the doctors or hospitals of their choice. There may be government fees but it is mostly covered by the government. National Debt. A major issue in Japan is its national debt. “With a high public debt, a large primary deficit, low growth and a history of persistent deflation, Japan is vulnerable to a loss of market confidence in the sustainability of its public finances.” (Guillemette, 98) One of the major challenges in Japanese government is how to resolve this debt issue. In 2013 the government presented a “three-arrow” strategy to deal with this issue: flexible fiscal policy (example: consumption tax increase in 2014), new growth strategy (examples: increase in female labor participation, product-market reforms), and a bold monetary policy (the goal is to achieve 2% inflation target). There seems to be some progress in this endeavor but it is a long term project so we will see how it progresses through the years.
Business in General.
Japan’s Economic past (summary). Japan has a history of striving to be economically “at par” with the rest of the world. In Japan’s Edo period (1603-1868) they began to construct transport methods by road and water. They also began making contracts. They have emerged as one of the most developed nations in Asia. They had a period of amazing economic growth in the 1960s – 1980s. So much that it was called the Japanese post-war economic miracle.
Current Business / Exports / Imports. “Japan is the third largest economy in the world today based on GDP based after the United States and China.” (Coleman,127) Yet per the latest updates and forecasts Japan is doing ok at best. Their Gross Domestic Product (GDP) has gone up but their growth as a nation has gone down. Their government spending is likely to decrease due to their national debt and their exports sector is slowly recovering. The Yen is strengthening, yet the forecast is that the foreign currency remains weak. One of the challenges Japan faces is a low foreign direct investment (FDI). “Japan has the lowest FDI as a percentage of GDP of all the members of the Organization for Economic Cooperation and Development (OECD).” (Country Report, 3) Per various sources Japan still has a high tax rate (corporate tax rate is 41% and individual tax rate can be as high as 50%, consumption tax of 5%), and seemingly a heavy government regulation in various sectors of business. These discourage any foreign investments into their country. Japan’s top three business sectors are automotive, industrial machinery, and construction. Their automotive business is still one of the largest in the world. It is home to auto construction companies like: Toyota, Honda, Nissan, Mazda, and Mitsubishi. Industrial machinery is the construction of many different types of electronic and “techy” machinery. This is done by a highly skilled work force. Industries in this type are Nintendo, Canon, Sony, Panasonic, Toshiba, and Sharp. Finally construction has reduced from its higher years but is still a good portion of their GDP (6.5%). Japan also provides about 15% of the global fish catch, second only to China. Japan imports various things. Its main imports include raw materials for their exports, fossil fuels, and some food (like beef). Japan is one of the leading nations in scientific research like in technology, machinery and biomedical research. In that research Japan also spends an enormous amount of money, it is the third largest spender in the world in research. Japan has produced many awards including Nobel laureates, Fields medals and a Gauss Prize. Barriers in Japanese trade have lessened greatly over the years through negotiations. Japan boasts of the world’s lowest average level of tariffs on industrial products. Yet at the same time it has the highest agricultural tariffs in the world as well as in financial services. Laws on child labor. Japan has laws that protect children from various things. Children can receive free education until about 15 years of age. Employers are forbidden to employ children until they are over 15 years old. Any child under 18 years of age cannot be employed in a dangerous line of work. There are laws that punish child prostitution and child pornography. (Umeda) Yen. The yen is the currency of Japan. The currency code is JPY and the symbol is ¥. This is the third most common currency used in the world and it is commonly used in Japanese business.
How are these elements and dimensions integrated by locals conducting business in the nation?
Communication
Communication is integrated in local businesses every day. In this aspect they will be attractive to other Asian / Pacific customers / vendors, but will need to be careful to others countries and cultures who are not like them in their communication.
In their Japanese education, they learn English as part of their curriculum since it is the most common language in the world, at the moment.
Religion
Religion is somewhat odd in Japanese culture. While their state religion is Shintoism they combine their Shinto ideas with Buddhism. Religion itself is rarely discussed in day to day life. The majority of the Japanese people do not worship regularly or even claim to be religious. Many claim to be spiritual instead of religious. (Betros) It simply seems like a pushing away from the old way of religion and into a new form of agnosticism and relativism, where they believe there is a “god” and they devise ways to attain him / her.
Corruption
Despite the acts by the Japanese government to prevent corruption there are still some issues in house. There are still some cases where public officials are setting up corporations to win bids for deals, this is called kensei dango. This funnels the profit to the public official, where the public official should be separated from the bids granting process.
There is also the issue of amakudari which is when a government official retires to positions in the business where they used to regulate. (Pickworth, & Williams, 144-145) They are deemed experts of the area, but they also use their knowledge to guide the company through loop holes in the area they once led.
Values and Attitudes
The values and attitudes of the Japanese are integrated into their culture in various ways. A Japanese business person’s sense of time is “on time” but slow at the same time. They will be in a business meeting on time but desire more time to socialize and more information to the most base of details to satisfy their own comfort level. They are hard workers and loyal to their employers this shows itself in the amount of time they will give to an employer.
Etiquette and Manners
Etiquette and manners are widely used in the Japanese culture; it is integrated into who they are. Their language is something they use every day; it is learned in the school system as well as at home and even at work.
In terms of business etiquette in Japan it was very hard to get one solid document on the various things that should be done. The very first impression I received from all the documents I surveyed was that the Japanese are forgiving if a business manager does not know their etiquette so long as they try and are polite in the process. A surprising element in every article was the “business card.” Every single point of reference mentioned that a business man needs to have many, neat business cards, that are treated with respect, the card itself and the handing to the Japanese person. Business cards are never to be thrown to another person. The business man also needs to be prepared to sometimes give more than one business card to same person.
Always dress business formal, business casual is not looked on well in Japan. Gifts are accepted in this culture but they need to be wrapped, and given with both hands. Gifts also need to be received with both hands. If a business meeting is taken to a restaurant insist on payment even if they fight against the offer. Be early for the business meetings and if you are going to be the slightest bit late call ahead of time to let them know.
It is customary to bow as a greeting although some have adapted the handshake. Also honorifics like “san” are used in the culture to denote position or politeness. The Japanese culture highly regards honor and so we should avoid embarrassing anyone in public so they can save face. There are some oddities mixed into the culture (to us) like shoes that are easy to take off, no blowing your nose in public, and no pointing. The rest of the etiquette would follow the same in most countries be on time, be polite and gracious.
Current Social Issues It is important for a business manager to know the current issues of a country. This not only keeps him up to date in the country he is doing business in but also allows him to be intentional in his care for his business neighbor. Guns. Japan has virtually no crimes with guns. How have they accomplished this? They have accomplished this by forbidding almost all forms of gun ownership. It is the world’s least firearms-filled nation, almost no one owns a gun. There are restrictions on buying and maintaining a gun. To own a gun is an extremely rigorous process. Japan basically starts with laws to stop gun possession and provides exceptions to that rule. To receive one you even have to pass background checks, shooting tests, and even mental and psychological tests! Yet its murder rate is second lowest in the world. Even the police try not to use their guns except for in extreme situations (Fisher) Population Issues. Birth Rate. Japan’s decreasing birth rate is a very concerning matter. A lower birth rate means a lower population in the future to maintain the country as an economic powerhouse. The Japanese government has seen this issue and has attempted to make women equal in the workplace trying to make up for the lack of population. The population under the age of 40 seems to be uninterested in a relationship that leads to marriage or sex to the point where the Japanese media is calling it sekkusu shinai shokogun or Celibacy syndrome. In 2013 the Japan Family Planning Association (JFPA) made a study on various age groups and found the results to be astounding: “45% of women aged 16-24 were not interested in or despised sexual contact. More than a quarter of men felt the same way.” (Haworth). There are great fears that Japan may actually fade out of existence because of its lack of population. Some studies blame this on the recent catastrophes in Japan; others blame it on Japan’s tireless work hours, or lack of “lifetime” job security. Others still view the “equal-opportunity” of working to blame. They feel that a family would “get in the way” of being successful career-focused women. The understanding in the job world is that if you are woman and you marry there is an expectation that you will get pregnant, and so if a woman marries the chances of promotions stop. This seems to be true when 70% of Japanese women leave their jobs after their first child. This issue is very real and only seems to worsen with time for Japan. The changes in the demographic outlook of Japan creates many social issues like workforce population and funding for social security benefits to an aging population on the backs of the smaller younger population. The government is looking into how to help alleviate this problem; some suggestions have been more immigration or birth incentives. Suicide Rate. As if the birth rate were not enough of an issue, Japan also suffers from a high suicide rate. Some in Japanese culture believe that suicide has value in an expression of atonement (similar to that of samurai belief). This is seen from the popular high levels Japanese to the lower. There are many claimed causes for these suicides: end of lifetime employment, depression, illness, elderliness, “hikikomori” (isolation from society), debt and even mental illness. The government has vowed to cut its suicide rate by providing better counseling and to monitor certain sites. “More than 70 Japanese people a day kill themselves, and the rate per 100,000 people is double that of the US, whose population is twice the size of Japan’s. (McCurry) Prostitution. Japan has had prostitution laws in its country since 1958. Yet many of these sex locales or businesses place the front of a restaurant or a club. There are signs advertising this business in the open in Tokyo’s red light district. They are advertised as a pink business. While it is illegal, it is not punished. They have sex slaves, prostitution (many from China), “pink salons” and soaplands (where “customers” are “massaged” in private rooms). Pornography is a multi-billion industry in Japan. Sexual sin is not avoided in Japan even with the enormous amount of work hours they put into their jobs. Pollution. Many portions of Japan have experienced a great urbanization and industrialization over the past 50 years. In the beginning of this “boom” Japan had no concern for the environment. This caused many issues like: mercury pollution in Minamata and Niigata, air pollution that brought asthma, bronchitis and acid rain, food poisoning, water pollution, soil contamination, toxic waste, oil spills, deforestation, depletion of fisheries and even some nuclear issues. Starting in the mid-1960’s Japan began to get serious on its fight against pollution, to preserve the portion of land they had. (Desai, 295-296) On April 28, 1964 Japan became a member of the Organization for Economic Co-operation and Development, a worldwide forum of countries which are committed to various goals including environmental issues. Japan has also created the Environmental Management Bureau whose purpose is to overcome Japan’s pollution problem. The Japanese legislature has also made many regulations pertaining to air pollution (cutting back harmful toxins into the air by factories, automobiles, and others) water pollution (stopping pollution by factories and the citizenship into the waters of Japan), soil contamination, noise pollution (regulating noise made by factories, aircrafts, cars and construction), vibration pollution, offensive odor regulations (mostly against factories), and ground subsidence. They have implemented recycling, waste management, dumping laws (Ministry). Japan has a very beautiful environment to protect. Depending on where in Japan you are there can snow as well as very warm and humid summers. They have a range of seasons. They also sometimes have typhoons visit them which bring heavy rains. They also have nine forest regions on their islands with over 90,000 species of wildlife living within its trees. Terrorism. In 1970s there was a terrorist group formed called Japanese Red Army. It was founded in 1971 in Lebanon and committed various terrorist acts including kidnappings, bombings and a hijacked plane. The founder Sigenobu was finally captured in November of 2000. In the 1990s Aum Supreme Truth, a Japanese cult was founded. They released chemical nerve gas in various Tokyo subways. They killed 12 people and injured about 6,000 in the process. Various of those captured have been sentenced to death in Japan. They have not been attacked by Muslim terrorists as of yet, the reason for this is their extreme restrictions of Muslims into Japan. Very little immigration is allowed from Islamic states into Japan. Arabic is taught in very few places in the island, their ways are not encouraged in the least. Unfortunately very recently two Japanese citizens were killed by the Islamic states. With this act, the prime minister seems to desire to target the Islamic states together with the rest of the world. They desire to get terrorism out of the world and understand that it is a global threat that needs to be addressed by the global community. Recent Tragedies. On March 11, 2011 an earthquake with the magnitude of 9.0 took place near Japan. This caused an enormous tsunami to hit Japan. It was the fourth largest tsunami on record and killed about 16,000 people. This cost many lives, many injuries and much money (estimated 25 trillion yen or 300 billion dollars). This tsunami disabled the power supply and cooling for three nuclear reactors in Fukushima Daiichi causing the nuclear accident on the same day. It released his radioactive elements into the air and water causing massive evacuations. Each of the reactors had its own set of issues, mostly set off by the tsunami. This caused public opposition to the nuclear reactors which called on the Japanese to shut them down. To remedy this outrage to nuclear power in the future the Japanese government has called for nuclear risk and safety assessments or “stress-tests”. (World Nuclear News) In 2011 4% of their power was supplied by nuclear power, which gave 9.2% of their electricity power. The rest of Japan’s power was fueled by petroleum, coal, natural gas, or hydropower. So to shut down these reactors was to lose a lot of their efficient “home” energy or energy that did not require an import. Recently the Japanese government has lifted the evacuation order from Fukushima which was one of the first towns near the crippled nuclear reactors that was crippled by the tsunami incident from 2011. It has also restarted its first nuclear reactor in Sendai with its new safety rules in place in August of 2015; another one is scheduled to start up again in October. All seems to be going well although there are concerns of volcanic activity nearby. As recent as September 10th of this year, Japan had issues with flooding. Natural disasters seem like an occasional normal for Japan. This is a sad reality of living in a fallen world. Land disputes. Kuril islands is a chain of islands is to the north of Japan. There has been a long dispute with Russia about what country these islands are property of. Russia calls them southern Kurilis and Japan calls them the Northern Territories. These islands are still in dispute since the times of World War II. These islands are rich with fishing grounds, rhenium deposits and possible future tourist attractions. Japan is also in dispute with South Korea over the Liancourt Rocks, with China and Taiwan over the Senkaku Islands and with China over the EEZ (Exclusive Economic Zone) around Okinotorishima. (Schoenbaum, 26-29)
How do both of the above items compare with US culture and business?
Paradigm
The American culture is an interesting one. We have elements of pride in our culture (ethnocentric) yet at the same time we are willing to bend and sometimes break to gain business from another culture. I believe this is a good aspect of American culture.
Communications
It is quite interesting to note that the US is quite literally the polar opposite of the Japanese in communications. We like explicit and specific information (low context), we like it clear and concise so that we can move on to the next item on the agenda. We give our full attention from one item to the next (sequential). We have an agenda and fill out our schedules with what needs to be done next in the work day or week. We also accept emotional reactions in communications.
Religion
In terms of religion the US used to be considered a mostly Christian country. From the surveys taken the majority (70%) would still consider themselves some form of Christian even though some of those forms are not really Christian (example: Mormon or Jehovah Witness). The issue with this is that it has fallen 8% from only 7 years ago and mostly transferred to unaffiliated (atheist, agnostic or nothing) (Smith, 4).
We also see an odd mixture of agnosticism and relativism in the US. Many want to be on God’s “good side” and so they do what they believe will get them into His good graces. Yet they continue doing whatever they want without even attempting to find out what God wants from us.
Ethics
Ethics seems to be important to both governments, unfortunately sin exists in both governments as well and so corruption and bribery still exist. There is a strong force from both governments to remove this and that is noble and encouraging.
Values and Attitudes
The American’s sense of time is very different from the Japanese. We are always on the run, moving to the next item on the list. Sometimes we are efficient with our time but sometimes we miss details and many times completely overlook socializing for the sake of completing the task.
The American can sometimes overwork and can sometimes be loyal to their employers like the Japanese. Yet there is also a sense that there is another opportunity around the corner if the employer is abusive or not meeting an employee’s needs.
The US has come a long way from viewing women as lower in the corporate world. Many women in the US hold high positions in companies with high pays this holds the same in our government.
Etiquette and Manners Our language is English. Our manners are different in many ways from the Japanese culture. Most places are fine with “business casual” for example and many times we make decisions on the turn of a moment while a Japanese person will take much longer.
Education
Education in the US is somewhat different than in Japan. While there is an emphasis in the US for education the need is not truly seen until a student is well past the student years and into their work years, at which point it is either too late or the student needs to play catch up. While public schools can also be free here. We both have a focus on education yet the student in the US just does not care for school (Wieczorek, 103-108).
Government
The US has a federal republic with three branches of government similar to that of the Japanese. We do not have an emperor or any formal symbol of the state. Legislative (2 branches), executive (President) and judicial (court system) is similar to Japanese government. The US also has an enormous national debt problem.
Current Social Issues Guns. The US is basically the opposite of Japan when it comes to gun. We feel it is the right of a person to defend themselves against others, be it someone personally attacking, another country attacking or even if the government itself does something against the person. This is upheld in the second amendment of our Constitution. Unfortunately with that comes more access to guns even to those that should not own it and use for wrong reasons. Recently there has been a (wrongful) fight against the second amendment of the Constitution. So it may seem that the US may be headed in the same direction (eventually) as the nation of Japan. Birth rate. While there were concerns for the US birth rate for a handful of years (2006-2012) it seems like with recent studies the US is finally in a position of having children again. Some people link this upturn with the economy “picking up” again as the recession seems to be lifting. (Shah) The US also suffers from a somewhat high level of suicide rates. The lack of hope in a suicide can only be countered with the only true hope of Jesus Christ. Other Current Issues. Since “9/11” the US has been “fully” aware of the existence of terrorism. It seems like we initially fought against it by invading the Middle East and working to stop a portion of it. Now it seems like the US has backed off of the terrorism fight. This president in particular seems cowardly or perhaps even in league with the Muslim extremists. I am hoping the next president will have the same fire as the prime minister of Japan to rid the world of terrorists. There is an understanding and knowledge that the threat will not go away until the coming of Christ but at this point it feels like the US is covering up the threat with problematic deals with the largest provider of terrorism (Iraq) and with talk. Natural disasters. As with every other country we suffer the weight of a world that is infected with sin. We have natural disasters every handful of years. I find it admirable that the US always tries to find a way to help those in need from these natural disasters. I think that is a great policy to have.

Hofstede’s Cultural Analysis Hofstede’s cultural analysis leads to a better understanding of a nation’s or a culture’s basic values. Here the paper will attempt to compare Japan and the US based on his criteria. Power Distance. It is the extent to which less powerful individuals accept inequality of power in their society and consider it normal. Japan is a high power distance country through its hierarchy models. Some research would suggest that position is lessening. The US is lower on the spectrum of power distance than Japan. Individualism. It is when a culture is full of individuals that look after themselves. Japan is viewed as more collectivist or low individualistic whereas the US is highly individualistic. Yet some studies show that Japan and the US are moving closer together in the index. The strain in the workplace in Japan is causing some to become more individualistic, while the understanding that a man cannot make it on his own is also falling on the US workplace, making the US more collectivist (Bergiel, 72). Masculinity. This is the degree that a culture focuses on the traditional role of a male in the workplace. Despite the prime minister’s attempts to integrate women into the workplace Japan is still a very “masculine” country as noted above. The US on the other hand is less on the scale than Japan is. Avoiding Uncertainty. This is where people of the nation feel uncertain by their lack of knowledge or in ambiguous situations. Japanese are on the higher end of the scale with this. They tend to avoid any ambiguity as noted above with their desire to have every detail of a business arrangement divulged. The US on the other hand is more risky than Japan. The US will measure a risk and take it if it seems reasonable but Japan will attempt to avoid risk altogether. Long-term approach. This is the view of the culture to long-term or short-term, instant versus delayed gratification. Japan is traditionally a long-term oriented country. But as mentioned above they are having several population issues (“celibate generation” and suicide) which may force them to look more short-term. Traditionally the US has been much more short-term in its view than Japan. Indulgence vs. Restraint. Japan is known for its restraint. This is even to the point where the government is considering using some of the household savings of the elderly to help with social security and financial services. The household savings was 1,500 trillion yen in 2010 (Economist, 2010). Unfortunately the US is known for the opposite an indulgence in every way.
What are the implications for US businesses that wish to conduct business in that region?
Communicating with Japanese
In terms of communication I think we need to be very, very careful. The Japanese people are complete opposites of us in pretty much every way when it comes to this aspect. This should not cause us to ignore the Japanese in communication instead we need to try to communicate in their style to gain their favor and business. There are several ways that communication can still happen between the two cultures, in order to do that we need to: understand some of their culture, cultivate tolerance for their culture, avoid verbal clutter (slang, jargon, acronyms, humor) keep the communication simple and if needed ask for help! (Smith)
We should also note that since the Japanese are private about their religious practices we should be very cautious when speaking about religion to them. As Christians I believe we should attempt but only after we have a “comfortable” relationship with the other Japanese party.

Values and Attitudes towards Japanese
In the values and attitudes of the US versus the Japanese we need to be sensitive. For example the US culture is impatient with time. If we simply understand from the beginning that a business agreement with a Japanese businessman will take time we may be able to win some business from them. Impatience will not win their business.
I believe with business we have to be sensitive to the issue at hand. Since we are already more aware of this issue from our own battles at home, we should be careful with business negotiations and sensitive to what a Japanese manager may want. There can be a healthy interaction with both men and women at any level of business.
There are some aspects where the US and Japan are similar and so I believe there is no real task to be done. For example, while Americans seem to be more outspoken about their religion, as a nation we are not really one religion but many. Another example is in ethics, we are similar in our desires to have a non-corrupt business environment but sin continues to flourish in this world.
Etiquette and Manners When it comes to language many Americans I have encountered believe all nations need to bend to English. While it is a much more common language, I believe a good manager will make the effort to learn even a small portion of the Japanese language to show his interest in their culture, it is an easy step to know their culture more. We can do this easily by learning correct honorifics and use them in our conversations with Japanese business partners.
The same is true with their heritage or history. I also believe it is important to make the effort to learn the etiquette nuances to make a good impression on Japanese workers or customers.
Government
There is a good intent to reduce the major debt problem they have but they are still not out of the problem yet. As a manager I would be careful with making any contracts with the Japanese government, and if any are made reserve against it because of the possibility of default on the business payment. The manager also has to be aware of Japan’s attempts to better their economy. Again this is an issue of simply being informed of the place where the manager is doing business.
Yen
In using a different currency one has to be careful. Investing money into any currency has its own risks involved. The yen in specific has been in a little bit of a roller coaster (August-September). While we do want to use the foreign currency to help the business flourish we just have to keep a constant eye on the rates and understand the market well before investing. If is possible we should try to do business in whichever currency is strongest.
Current Issues As an international manger we need to be sensitive to their current issues. In communication we need to be silent when it comes to their country’s struggles like their population or pollution problems. We also need to be concerned for any issues that are current like natural disasters. Yet at the same time I believe we can use these current issues to show our general concern for the Japanese people as a whole and as business partners.
SWOT Analysis SWOT Analysis is a useful tool for analyzing a business or a country. I will be doing the SWOT specifically against Japan and the US; specifically from the US perspective. Strengths. Despite their communication difficulty many Japanese know English. This makes writing and talking over the phone much easier since there is a common language between the two communicators. They are the third strongest economy in the world and this gives them power. They have a great economy in many exports that they do. They are also experts in many of their exports. They invest a great amount of money on research and development. Its barriers to trade have been reduced. All these are great business strengths. Another high strength is the level of their education. They have a very good education system on a global scale and a good portion of their country’s inhabitants finish their education without dropping out. Japan is viewed to be a very ethical country. This makes working with her an easy transaction since they are the 17th least corrupt country out of 176. Weakness. A weakness to the American person is the learning curve with all the etiquette that is “required” to do proper business with a Japanese person. While a Japanese manager will allegedly be merciful at the attempt of the cultural etiquette it will still be difficult not to make a “wrong move” that will give the wrong impression or cause itself to be misinterpreted. The speed and detail of their business is another weakness. As mentioned above they are very slow when coming to a decision and within that slow process they require details to a degree that is probably too much. Another weakness is the corruption (kensei dango and amakudari) within the Japanese government. This causes any investor to think twice before investing in Japan for any reason. This can be coupled with their large national debt issue. Opportunities. There has been a desire to increase the women in the workplace. This is a great opportunity for Japan to increase its workforce. This can and should create new ideas, new plans and new management. The yen right now is the third most common currency in the world and it is commonly used in Japanese business. Unfortunately it is not doing well right now but this may be an opportunity to invest, since Japan has a plan in place to help the yen and it seems to be working (per above). Threats. Japan is an island chain and it limits the amount of investing that should be done in it. It is very hard to start a corporation in an island chain and grow to the point of going global. The only factor that may offset this (depending on the business) is the internet and its many possible uses or the possible gain of more land through its land disputes. Another threat as mentioned below is the low Foreign Domestic Investment made by other countries into Japan and also the low investment of Japan into other countries. The population of Japan is also a major threat. Their decline in population due to suicide, overwork and celibacy of the younger generation if not thwarted will cause major issues for the future of Japan’s workforce.
FDI Analysis Foreign Direct Investment is an investment made by a company based on a country’s portfolio. Japan has historically had low levels of FDI (Kravtsova, 11). Japan’s FDI has increased but Europe and the US have pulled back from foreign investment. Many believe the only way to turn this around is through policy changes that encourage other countries to want to invest in Japan (Balgar, 170-171). It still remains the lowest FDI as a percentage of GDP of all OECD countries (as mentioned above).
Conclusion
This study on Japan has been a very interesting study. It has forced me to look at Japan as a way that I can invest my business efforts. While this paper by no means gives an “expertise” view it does give general outlooks for a great country.
This knowledge is very useful for two reasons. First, if I were ever to be a manager for Japan I have a bank of knowledge that I can reference to understand their culture better. Secondly it also opened my eyes to the extreme differences a culture can have as compared to mine. Basically if there is any interaction (business, friendship, or religious) I feel this is a good exercise to implement in one’s life so that we are knowledgeable of our audience. We should not come into a relationship blind and in charge, rather I like the way Jesus says Christians are called to be in the world in Matthew 10:16b – “Therefore be as shrewd as snakes and innocent as doves.” This is a great method to do that.

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