The Cost of Doing Business in America and Japan

In: Business and Management

Submitted By kenethia
Words 1363
Pages 6
The Cost of Doing Business in America and Japan

A manager or company has many factors to consider when deciding to conduct business internationally. Besides being sensitive and respectful to the foreign country’s culture, one must also be cognizant of how the culture influences the cost of doing business. To illustrate this point, consider the following scenario of countries A and B:
Both countries [A and B] are characterized by low labor costs and good access to world markets. Both countries are of roughly the same size (in terms of population) and both are at a similar stage of economic development. In country A, the education system is undeveloped, the society is characterized by a marked stratification between the upper and lower classes, the dominant religion stresses the importance of reincarnation, and there are three major linguistic groups. In country B, the education system is well developed, there is a lack of social stratification, group identification is valued by the culture, the dominant religion stresses the virtue of hard work, and there is only one linguistic group. Which country makes the best investment site? Country B does. The culture of country B is supportive of the capitalist mode of production and social harmony, whereas the culture of country A is not. In country A, conflict between management and labor, and between different language groups, can be expected to lead to social and industrial disruption, thereby raising the costs of doing business. The lack of a good education system and the dominance of a religion that stresses ascetic behavior as a way of achieving advancement in the next life can also be expected to work against the attainment of business goals. (Hill, 2011)
Two countries that are undeniably culturally diverse are America and Japan. In order for an American businessman or businesswoman to be successful in executing…...

Similar Documents

Doing Business in Japan

...Doing Business in Japan Nemawashi is a concept in Japanese culture wherein important decisions are derived from a consensus. The original meaning of Nemawashi is “it smooth around roots before planting” (Nemawashi, 04/12/2010, http://japanese.about.com/library/weekly/aa080597.htm). The Japanese use the term in their business culture to mean that there must be an agreement with all prior to making an important decision regarding the business. One advantage of this type of business structure is that it gives everyone involved with the business an opportunity to evaluate all agreements and decisions that are to made. This is similar to an agenda in US business culture in that, all information pertaining to what decision is to be made is is set before everyone and as a business they work together to develop a strategy that works for all. Another advantage is that with the consent of everyone involved it will allow the company to do away with most if not all disputes. With US Corporations the decision making is usually done by head executives. They make a decision and order the decision to be followed from top to bottom. This can be considered a disadvantage, being that a lot of times the top is unaware of the consequences either positive or negative the decision that was made has on the company as a whole until something bad or good has happened within the company. A disadvantage of nemawashi can be the time it may take time for everyone to come to an agreement regarding a......

Words: 633 - Pages: 3

Doing Business in Japan

...Doing Business in Japan Japanese Leading Brands Vs. US Winning Japan Market MBA Iris 2012 Business with Japan January 26, 2013 Overview The Case Study Only a half decade ago the portable computer-laptops industry had thrive with the variable sizes, multifunctions, different weight, thickness and colors, manufactured by different vendors. (DELL, HP, Sony, Samsung, LG, Asus ...) Early 2007 when Apple introduced the first iPhone to the US market, there were already many kind of Smartphones in the market (HTC, Palm, Samsung..) but non of them created such a customer experience as the iPhone did. The iPhone became the ultimate portable office in the pocket of its owner. Sending and receiving emails and instant messages became easier, browsing content at the internet and navigation as well plenty application and capabilities. Everyone realized that the man with the iPhone will win – the iPhone became a big advantage for any business man. In addition, the leisure culture starts changing. The ease of browsing internet content with the iPhone anywhere, accessing Facebook and reading emails was significant. Playing gaming at you free time with the iPhone became an addiction to everyone. Apple with great precision has read the map and introduces the first iPad on 2010 which became a game change in the portable PC industry. With a larger screen size, the iPad was the ultimate......

Words: 2918 - Pages: 12

Motto: Coming to America from Japan

...Home Page » Business and Management Case 3 - Moto- Coming to America In: Business and Management Case 3 - Moto- Coming to America Case 3: Moto: Coming to America from Japan Synopsis: In this Case it was a Moto a very successful man from Japan coming to America to gain knowledge about a company for a possible future business deal. Moto came over knowing English but having the business etiquette of a Japanese man. He had to work hard to gain knowledge of the cultural differences when it came to the US. He met a man named Kubushevsky who was able to teach him different things about the culture and eventually open his eyes to new ideas and experiences. 1. Moto’s purpose for the first meeting was to get to know who he would be working with better and establish some sort of relationship. Moto attempted to do this by learning English and presenting a business card with his accomplishments on it. Also came with a gift for the Crowell. He thought that Crowell would appreciate his achievements and see that he was an important person from Japan. Crowell was only interested in making a business deal. 2. Some communication problems that occurred between Moto and Crowell were that Moto was looking to build a friendship before the deal started. Moto was looking to get to know Crowell and find out what type of person he was. Moto came bearing gifts for Crowell and his wife and Crowell disregarded the gifts saying his daughter would love them not realizing......

Words: 372 - Pages: 2

Doing Business in Japan

...Doing Business in Japan The U.S. Commercial Service provides guidance on doing business in Japan and offers valuable assistance to help U.S. businesses exporting to Japan. Why doing business in Japan? As the world’s fourth-largest buyer of American products, Japan is a market that American companies should not overlook, but approach with a thoughtful strategy. Japan is a technology powerhouse, a “proving ground” for consumer requirements, and stands in the vanguard with respect to the sweeping changes recently seen in developed market demographics. Most U.S. state economic development agencies are also well aware of the important foreign direct investment coming into their communities from Japan. While the reasons U.S. firms engage with Japan are diverse, savvy firms recognize that underestimating the strategic and tactical importance of the Japanese market may disadvantage them not only in Japan, but in the United States and third-country markets as well. Japan is back in the business news headlines in 2013, owing in part to a rising stock market, a sharply lower yen, and stirrings of domestic demand for both personal consumption and capital investment. The new economic policy linked to these developments is known as “Abenomics”-- a three pronged strategy of bold monetary loosening, fiscal stimulus centered on infrastructure spending, and growth-oriented structural reform. While the implications and ultimate success of this strategy in reigniting growth in Japan are far...

Words: 8200 - Pages: 33

The Cultural Aspects of Doing Business in Japan

...Running head: BUSINESS IN JAPAN The Cultural Aspects of Doing Business in Japan Jane Doe Saint Leo University TABLE OF CONTENTS Abstract………………………………………………………………………………………3 Introduction……………………………………………………….………………………….4 Why do businesses globalize?.....……………………………………………………………4 Doing Business in Japan……………………………………………………………………..5 Understanding Japan’s business culture……………………………..………………………5 Setting up in Japan…………………………………………………………………………..6 Meeting and Greeting……………………………………………………………………….7 Religious Considerations……………………………………………………………………8 Customs and Courtesies……………………………………………………………………..8 Conclusion…………………………………………………………………………………...9 References………………………………………………………………………………….10 Abstract Many business owners today have been making their way abroad in hopes to expand their production and keeping up with recent trends of globalization. The differed cultural aspects of a foreign country should be greatly considered when trying to build a strong professional relationship with business associates from the host country. Doing extensive research and understanding their different business cultures are the first step a company should take before taking a major leap in a foreign soil. Japan has recently been the country of choice for Western entrepreneurs to invest and expand their business ventures. The Japanese economy has become more diverse because of their size and structure of companies, producing a complex web of inter-locking......

Words: 2129 - Pages: 9

Doing Business in Japan

...Doing Business in Japan xxxxxxxxxxx Harvord University Doing Business in Japan Nemawashi is a concept in Japanese culture wherein important decisions are derived from a consensus. The original meaning of Nemawashi is “it smooth around roots before planting” (Nemawashi, 04/12/2010, http://japanese.about.com/library/weekly/aa080597.htm). The Japanese use the term in their business culture to mean that there must be an agreement with all prior to making an important decision regarding the business. One advantage of this type of business structure is that it gives everyone involved with the business an opportunity to evaluate all agreements and decisions that are to made. This is similar to an agenda in US business culture in that, all information pertaining to what decision is to be made is is set before everyone and as a business they work together to develop a strategy that works for all. Another advantage is that with the consent of everyone involved it will allow the company to do away with most if not all disputes. With US Corporations the decision making is usually done by head executives. They make a decision and order the decision to be followed from top to bottom. This can be considered a disadvantage, being that a lot of times the top is unaware of the consequences either positive or negative the decision that was made has on the company as a whole until something bad or good has happened within the company. A disadvantage of nemawashi can be the time it may...

Words: 641 - Pages: 3

Doing Business in Japan

...Tile Industrial Cluster in Global Economy Mei-Hor Lo, Dechang Han Business School, Nankai University, Tianjin, China Email: matthew@gearex.com.tw Received November 2013 Abstract In this paper, we discuss the competitive paradigm between globalization and local development in the ceramic tile industrial cluster, based on the Porter’s theory in exploring the factors of the global competitiveness. We analysis the theory of cluster and competitive theory to compare two ceramic tile clusters in different contexts for tracing the mechanism and path constructed ceramic industry international competitiveness and strategy formation. In the study, we discuss what changes come into play addressing the radical changes in world markets, both for ceramic tiles and for surrounding ceramic tile supportive industries. These issues will be discussed with amount of literature reviews through the various perspectives to explore more comprehensive insight to China ceramic tile industry. Keywords Ceramic Tile; Industry Cluster; Agglomeration; Competitive Strategy; Resource Based View 1. Introduction As the world’s largest producer, consumer and exporter of ceramic tiles, the sheer scale of China’s volumes has been driving world growth in production, consumption and exports for over 15 years [1]. China’s advantages in globalization and international tile industrial transfer and especially the advantage of the low-cost labor force are reducing. Although China has apparent influence on......

Words: 5061 - Pages: 21

Doing Business

...August 31, 2014 Mohamed Eissa Doing Business in Global Markets and the Effect Technology Has On The Industry There is no one nation, even with all of todays advanced technology, that can produce all the products its people want or need. Since the beginning of time nations have traded with other nations to get things their people wanted or needed. One reference that comes to mind is the many ships carrying gold, silver and other valuable goods that traveled from Europe to South America to trade their goods for spices. Exporting simply means selling a foreign country or companies goods and Importing means buying a country or companies goods. There are 194 countries that make up the global market. Some of these nations such as Venezuela and Russia have abundant natural resources but have little technological know- how, while other countries such as Japan and Switzerland have few natural resources but are rich in technological know- how. Through the process of free trade they can buy or trade their goods or money for things their countries need or want. Free trade is the movement of goods and services among nations without political or economic barriers. Countries also exchange more than goods and services, such as medical advances, space exploration and even labor. There are two theories of this exchange. The first is the Comparative Advantage which states that a country should sell to other countries the products it produces most effectively and efficiently,......

Words: 990 - Pages: 4

Doing Business in Japan

...Master in Business Management, C1 Doing Business in Japan 2013 Introduction Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south. The characters that make up Japan's name mean "sun-origin", which is why Japan is sometimes referred to as the "Land of the Rising Sun". Japan is an archipelago of 6,852 islands. The four largest islands are Honshu, Hokkaido, Kyushu and Shikoku. Together, these four islands hold about 97 percent of Japan's land area. Japan has the world's tenth-largest population, with more than 126 million people. Honshū's Greater Tokyo Area, includes the de facto capital city of Tokyo and several surrounding prefectures. It is the largest metropolitan area in the world, with more than 30 million residents. Japanese culture has evolved greatly from its origins. Contemporary culture combines influences from Asia, Europe and North America. Traditional Japanese arts include crafts such as ceramics, textiles, lacquerware, swords and dolls; performances of bunraku, kabuki, noh, dance, and rakugo; and other practices, the tea.ceremony, ikebana, martial.arts, calligraphy, origami, onsen, Geisha and games. Japan has a......

Words: 2275 - Pages: 10

Doing Business in India

...fax 978-750-4470; Internet www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax 202-522-2422; e-mail pubrights@worldbank.org. Copies of Doing Business 2012: Doing Business in a More Transparent World, Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010: Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and Doing Business in 2004: Understanding Regulations may be downloaded at www.doingbusiness.org. ISBN: 978-0-8213-8833-4 E-ISBN: 978-0-8213-8834-1 DOI: 10.1596/978-0-8213-8833-4 ISSN: 1729-2638 Printed in the United States Doing Business 2012 India 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 5 Starting a business ..................................................................................................................... 14 Dealing with construction permits ........................................................................................... 29 Getting electricity......

Words: 27341 - Pages: 110

Business Implication in Japan

...Different Social and Taboo Cultures and Business Etiquettes and How it Influences the Workplace When going to your workplace, DO NOT eat while on the streets or in public transportations. Breakfast and dinner is normally consumed at the person’s respective house or apartment. Men wear conservative business suits and women are encouraged to keep jewelry to a minimum. Women should not wear high heels if the result is towering over their male counterpart. Bow when meeting, thanking, apologizing or saying goodbye. The 45-Degree Saikeirei Bow is used for moments for sincere apology or to show the highest of respect. The 30-Degree Keirei Bow is used to show respect to superiors. The 15-Degree Eshaku Bow is used for Semi-formal and used for greetings when meeting with people for the first time Call people especially your co-employees with their last name especially when in the workplace and for formality purposes. Add “-san” as a suffix to their last name as a sign of respect. When meeting someone for the first time, especially in the workplace or in a gathering, it is important to give a business card using two hands (Avramova, 2015). It is also important to bring a business exchange gift (especially during a large gathering or informal meeting). It is improper to give flowers as they used in funeral services. Buying any in a set of four is deemed unlucky as well as the number 9. When in a meeting or large gathering, DO NOT introduce yourself. Wait for your superior or......

Words: 1741 - Pages: 7

Moto: Coming to America from Japan

...Moto: Coming to America from Japan Moto arrived in Chicago in the middle of winter, unprepared for the raw wind that swept off the lake. The first day he bought a new coat and fur-lined boots. He was cheered by a helpful salesgirl who smiled as she packed his lined raincoat into a box. Americans were nice, Moto decided. He was not worried about his assignment in America. The land had been purchased, and Moto’s responsibility was to hire a contracting company and check on the pricing details. The job seemed straightforward. Moto’s firm, KKD, an auto parts supplier, had spent a year and a half researching U.S. building contractors. Allmack had the best record in terms of timely delivery and liaisons with good architects and the best suppliers of raw materials. That night Moto called Mr. Crowell of Allmack, who confirmed the appointment for the next morning. His tone was amiable. Moto arrived at the Allmack office at nine sharp. He had brought a set of kokeshi dolls for Crowell. The dolls, which his wife had spent a good part of a day picking out, were made from a special maple in the mountains near his family home in Niigata. He would explain that to Crowell later, when they knew each other. Crowell also came from a hilly, snowy place, which was called Vermont. When the secretary ushered him in, Crowell stood immediately and rounded the desk with an outstretched hand. Squeezing Moto’s hand, he roared, “How are you? Long trip from Tokyo. Please sit......

Words: 2406 - Pages: 10

Moto: Coming to America from Japan

...Case on Moto: coming to America from Japan Q. 1 What was Moto’s purpose and agenda for the first meeting with Crowell? How does he try to implement his agenda? Moto’s purpose for the first meeting with Crowell was to build the good business relationship with president of Allmack. He was trying to build the first impression. With the purpose of building the good relationship in the first meeting, he presented his business card to Crowell as well as gift which he brought all the way from Japan. And Moto arrive at the Allmack office sharp on the time of meeting. He researched about the company efficiently beforehand so that it would be easy to carry on the business meeting effectively. Q. 2 What communication problems were there between Moto and Crowell? As in the case, Moto thought that Americans were nice because he found that salesgirl helpful and her smile at Moto. But later in the case, there were many confusions regarding culture of both the countries. There were many cultural and communication differences between them. Before going to America for meeting, Moto researched and learned about the culture and history of America but Crowell was not familiar with the culture of Japan. In Japan, people regard exchanging of business card as an important instrument to learn about their clients but Crowell was unaware of this and he did not make an attempt to look at the card given by Moto and put it in his pocket instead. Moto was hurt and embarrassed when he presented the......

Words: 787 - Pages: 4

Doing Business in Japan

...Doing Business in Japan In researching the Nemawashi consulting system I found that Nemawashi is the Japanese consensus building approach. The literal translation into English is “wrapping around the roots”. I discovered that Nemawashi is about working together to create clear and implementable goals by agreement of all involved parties. Some advantages of this system are: it allows everyone to be accountable instead of 1 person, or a select few. It allows a clear understanding amongst all parties. Everyone knows what is to be done and why. An individual is bound to support an initiative in which they helped to develop. Makes everyone accountable and builds a sense of ownership. Another advantage is that all parties are in consensus from the start, as to what the goal is; which in turn, reduces time which would have been spent in meetings. That time can instead be spent on designing/implementing the product or idea. Implementing Nemawashi practices in American business could be difficult due to the differences in the American business culture. The Nemawashi process often happens in a casual setting such as dinner or a sporting event. Unlike us Americans, this is the time in which the Japanese use to discuss business ideas and strategies. Research states, this is the time in which the Japanese feel more comfortable in which to speak freely on difficult topics. By time the actual meeting takes place 80% of the decision making process is complete. Now this can pose a problem...

Words: 851 - Pages: 4

Japan and America Car Production

...in Figure 1. | Time Needed to Make a Car | Production of Grain | | Time | Production | Time | Production | America | 1 Year | 4 Cars | 1 Year | 10 Tons | Japan | 1Year | 4 Cars | 1 Year | 5 Tons | b. Graph the productions possibilities frontier of the American and Japanese economies. c. For the US, what is the opportunity cost of a car? Of grain? For Japan, what is the information in a table analogous to Table 1. For Japan: The Opportunity Cost of a Car is 2 and Grain is 2.5 with no trade. For the US: The opportunity cost of a car is also 2, and grain is 5. Opportunity Cost | | Car Per Year | Grain Per Year | America | 2 | 5 | Japan | 2 | 2.5 | d. Which country has an absolute advantage in producing cars? In producing Grains? Neither country has an absolute advantage in producing cars, however America has the absolute advantage in producing Grain. e. Which country has comparative advantage in producing cars? In producing grains? US has the comparative advantage in grain, neither in cars. f. US 2 cars, Grain 5 tons, Japan 2 Cars, Grain 2.5 tons g. Without trade neither country will have an advantage. With trade, each country can spare workers to help produce more of the good that needs to be traded. Since US can produce more grain than Japan, they would want to trade grain to Japan for cars, and vice versa with Japan. 4. Consider the following events: Scientists reveal that consumptions of oranges decreases the risk of......

Words: 406 - Pages: 2

keyboard_arrow_up | Lace Bodycon Waisted Bowknot Midi Dress | Doll & Em