The "Dos and Don'ts" and "Need to Knows" for a German visiting Japan on Business

  - II -  

  Jana Carstens  

Table of contents

  page  

Table of contents .................................................................................................. I

List of abbreviations & acronyms....................................................................III

1  Introduction 1  Introduction....................................................................................................1

2  The postwar-history of Japan 2  

3  Need to knows 4  

3.1  Facts Figures 4  

3.2  Tokyo 5  

3.3  Working conditions 6  

4  Differences between Japanese and Germans 8  

5  Dos and Don ts 10  

5.1  Business customs 10  

5.2  Private habits 12  

6  Conclusion 13  

  Bibliography.......................................................................................................III  

  Appendix..............................................................................................................V  

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List of abbreviations & acronyms

ACCJ American Chamber of Commerce in Japan

app. approximately

ASEAN Association of South East Asian Nations

cf. confer

e.g. for example (lat. exempli gratia)

f. and the following page

p. page

w/o without

WW II World War II

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1 Introduction

Japan is the biggest Asian trade partner of Germany. It is also the second largest importer of American goods and services after Canada. 1 “As an expensive, highly competitive, highly

complex and not yet fully open market, Japan remains an extremely challenging place to do business.” 2 “One of the major weaknesses of [foreign] executives dealing with Japan,

particularly in joint ventures, is their failure to recognize and react positively to the constant need to nurture and adjust their relationships with their Japanese partners.” 3

Etiquette is a minefield and a mistake can cost a businessman a contract. So it is important to know about the business customs of a country you are doing business with. No one who travels East with the intention to do business should do so without informing himself about the business structure, practices, customs and habits. It is very common that business people are sent from their company to exotic regions like Japan without being taught in cross-cultural business or the country-specific customs and manners. The more exotic one country, the more preparation is necessary.

In most Asian business cultures, harmony is valued above everything else. 4 Problems can

arise out of the international cooperation and misunderstandings due to language and gestures. 5 When it comes to a faux pas, it can have serious consequences: the image of the

company can be destroyed, the contract will probably not be settled and the cooperation can be deranged. Not the different manners, but the different mindsets make international cooperation difficult: far-eastern distance hits the western backslapping mentality. 6 “Building

relationships … should emphasize mutual trust, confidence, loyalty and commitment for the long term, both among individuals and companies.” 7 1 Ministry of Finance, 1997, call date: 15.01.2004.

2 ACCJ, 1996, p. 2.

3 De Mente, 1994, p. 101.

4 Cf. Scheunemann, C., 4/2003, p. 18.

5 Cf. Obmann, C., 10/2003, p. 78.

6 Cf. Obmann, C., 10/2003, p. 78.

7 ACCJ, 1996, p. 19.

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In this paper I will point out interesting facts and figures about Japan, its history, its capital as well as its working conditions. Furthermore, I highlight strange Japanese customs and habits and present special differences between Germany and Japan. For a German visiting Japan on business, this information is essential to have. Although Europeans will never understand the culture and tradition of the Japanese, they need to arrange with it in order to do business. I will not mention facts about Japan’s economy and the consumers’ behaviour, which are also important for doing business, because of the limited size of this paper.

The postwar-history of Japan 8

2

1945-1952: Occupation of Allied Powers. Japan’s media was subject to a rigid censorship especially of any anti-American statements and controversial topics such as the race issue.

1947: A new constitution went into effect: The emperor lost all political power and was solely the symbol of the state. Universal suffrage was introduced and the human rights were guaranteed. Japan was forbidden to ever lead a war again and to maintain an army. Religion 9 and the state were clearly separated.

1947-1950: After WW II, Japan was devastated and everything was damaged (industry, transportation network etc.). A shortage of food continued for several years.

1950: National police was established as a replacement for the American troops.

1952: A peace treaty went into effect and the occupation ended.

1953: After the Korean War, Japan’s economy flourished and resulted in a quick rise of the living standards and changes in society, but also in severe pollution, caused by the booming industrialization.

8 Cf. Japan-Guide: History – Postwar, call date: 29.12.2003.

9 Shinto – “the way of the gods” – is Japan’s major religion besides Buddhism. Christianity is observed by app. one percent of the population.

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1954: The Japanese government transformed the National police into a Self Defence Force (SDF) 10 , accompanied by large public demonstrations and despite the anti-war article

in the constitution. It was argued, that maintaining a force only for self defence would not contradict the constitution.

1956: Entry into the United Nations was approved and Japan’s relations to the Soviet Union were normalized.

1973: The oil-crisis shocked the Japanese economy, which was (and still is) heavily dependent on oil. The reaction was the shift to high technology industries, for which Japan is known for today.

1987: The stock-market crash had a deep impact on the Japanese economy. Lots of people got unemployed.

1989: Emperor Akihito became (and still is) Japan's 125th emperor. He is married to Empress Michiko, the first empress who did not come from the nobility. Their eldest son is Crown Prince Naruhito. The imperial family resides in the Imperial Palace in Tokyo.

1998: Japan and Korea agreed on the “Japan - Republic of Korea Joint Declaration”, which is a symbol for a cooperative relationship between them and should be the basis for a better understanding of their history and tradition. 11

2003: Japan is willing to strengthen the cooperation with the ASEAN-countries such as Malaysia, Thailand and the Philippines. Therefore, Japan is about to open its market much more than before. Koizumi, the prime minister of Japan, was reelected. 12

10 Military service is not mandatory in Japan.

11 Cf. The Ministry of Foreign Affairs of Japan, call date: 10.01.2004.

12 Cf. Embjapan, call date: 10.01.2004.