Japan business travel information

Doing business in Japan

Japan has been experiencing deflation, an annual drop in prices since 1999. In 2008, however, the whole world has been turmoiled by the rising oil, food and commodity prices. Japan’s inflation rate, except for fresh fruit, fish and vegetable prices, rose 1,5% in May 2008. This was the highest rate since 1998.

For a decade now, Japanese consumers have grown accustomed to dropping prices. With prices suddenly going up, consumer spending is expected to drop, spelling further trouble for the economy. Indeed, in the second quarterly report of 2008 issued by the Bank of Japan, 58.7% of those surveyed said they expect to cut their spending this year. This is the highest figure on record since the survey started in 1997. The Bank of Japan will be hard-pressed to rein in inflation which has become a global phenomenon.

The Japanese Economy experienced an amazing growth phase after World War 2 and up until the 1980s. Japan became the second largest economy in the world after the United States. Nonetheless, in the 1990s the country experienced a decline in the growth, and some of its structural problems still hold it back.

Thanks to low tax rates, an abundance of economic freedom, and a system ruled by the private sector, Japan’s economy is the second largest economy in the world and the largest in Asia, based on real GDP, market exchange rates, and nominal GDP. Japan uses planned development of science and technology, and has a very strong work culture, which contributes to the country as a whole. It also emphasizes on a good relationship between the industrial sector and national government.

Japan has some characteristics that have marked its swiftly rise from the heritage of the Second World War, to superiority in the 1980s. In particular, manufacturers, their suppliers and distributors work closely together in informal but tight structures named keiretsu, with close support from several financial institutions and the government. For most of the last fifty years, large Japanese corporations have also provided guaranteed employment for life to ’salarymen’, typically male employees who work the highest number of hours on the planet in return for that commitment.

For continued growth rates and stability in the Japanese economy, the government has recently been considering a number of incentive ideas to manage inflation, increase service sector productivity, focus on fiscal consolidation, and modify the tax system and labor market. With a gross debt of 180% of GDP, additional measures to reduce the enormous budget deficit are becoming increasingly urgent. An improvement in the budget balance of between 4% and 5% of GDP (on a primary budget basis) is needed just to stabilize the government debt-to-GDP ratio, a first step towards the government’s goal of lowering the ratio in the 2010s.

The first priority is to further cut government spending, which has fallen by 2 percentage points as a share of GDP during the past five years, mainly through trimming public investment and the government wage bill. Disbursement reductions should be accompanied by reforms to improve efficiency in the public sector.

Business etiquette and protocol

If your are planning a business trip to Japan it is a good idea to know at least a little about the culture and etiquette in Japan. Use these business etiquette tips as a guideline only. There are too many social, personal and business nuances in Japan to be considered. There is no uniform approach possible for all occasions.
For more in-depth information I suggest you buy and read the "Global Business Etiquettes" book.

• Communication:
  Use formal names, professional and academic titles. Rank is very important and should be respected at all time.
  The Japanese are not direct and this to the extreme, they prefer subtlety to directness. If there is a request that can’t be agreed upon, the Japanese will reply with a sentence like "it’s under consideration".
  Never interrupt somebody.
  Dress formal and conservative.
  


• Meetings and negotiations:
  When making appointments use the 24-hour clock time format to avoid misunderstandings.
  Be very punctual, if you suspect you will late, call and explain the situation.
  Never cancel a meeting at the last minute.
  Shaking hands is accepted as you are a foreigner but the custom is to bow, the deeper the bow, the more respect you show for the other.
  Always give a small gift to the most senior person at the end of the meeting, as a token of your esteem.Remain standing until invited to sit down or others do so.
  First appointments are more socially oriented, Japanese would like to know you a bit better at first.
  Keep your presentation as short as possible, to the point, accurate and precise, do not exaggerate.
  Follow up a meeting with a letter or an e-mail with all agreements outlined.
  The Japanese do not see contracts as a final agreement so it is possible the contract will be renegotiated.


• Table manners:
  If unsure on how to behave, mimic the behavior of someone equal in rank.
  Wait until you are appointed a seat.
  Avoid alcohol if possible, otherwise drink little. Your glass will be refilled when you empty it.
  If making a toast, stand up.
  Eat not too much but finish your bowl untill the last grain, ohterwise the others think you want more.
  Keep your hands above the table when eating.
  After finishing eating, place your chopsticks on the chopstick rest or on the table.
  Thank your host at the end of the meal.
  

Some phrases in Japanese

Japanese is the official language of Japan. There is a form of the language considered standard: hyōjungo, meaning "standard Japanese", or kyōtsūgo, "common language".

The Japanese language is written with a combination of three scripts: Chinese characters called kanji and two syllabic scripts made up of modified Chinese characters, hiragana and katakana. The Latin alphabet, rōmaji, is also often used in modern Japanese, especially for company names and logos, advertising, and when entering Japanese text into a computer. Arabic numerals are normally used for numbers, but traditional Sino-Japanese numerals are also common.

Of course, when you don’t master the Japanese language you should take along a interpreter but it can always be useful to know some Japanese words:

English	Japanese characters	Phonetic pronunciation
How are you?	お元気ですか？	o genki desu ka
I’m fine, thanks. And you?	はい、元気です。あなたは？	hai, genki desu. anata wa?
What’s your name?	お名前はなんですか?	o-namae wa nan desu ka
My name is ...	...です	... desu
Pleased to meet you	初めまして	hajimemashite
Good morning	お早うございます	ohayō gozaimasu
Good afternoon	今日は	konnichiwa
Good evening	今晩は	konbanwa
Good night	おやすみなさい	oyasumi nasai
Goodbye	さようなら	sayōnara
Bon appetit	いただきます	itadakimasu
Cheers/Good health!	乾杯	kanpai
I don’t understand	わかりません	wakarimasen
Please write it down	書いてください	kaite kudasai
Excuse me	すみません!	sumimasen
How much is this?	いくらですか	ikura desu ka?
Thank you	どうも	dōmo
You’re welcome	ありがとうございます	arigatō gozaimasu
Where’s the toilet?	便所はどこですか。	benjo wa doko desu ka
Yes / No	はい / いいえ	hai / īe
How do you say ... in Japanese?	．．．を日本語で何と言いますか。	...o nihongo de nanto īmasu ka?

Visa for Japan

For visitor from 63 countries it is no neccessary to apply for a visa when your stay contains only a limited number of days.

A list of these countries you can find on the website of the Ministry of Foreign Affairs of Japan:
www.mofa.go.jp

On this website you can also read how you can apply for a visa when your stay is longer than the indicated number of days or you are from a country that is not included on this list.