Cultural Perspectives of Doing Business in Japan

The current Japanese citizens enjoy the benefits that come with advanced technology as a means of carrying out modern business. Japan is one of the countries that have the most cutting-edge technology, and this characterizes its development. However, it has maintained its traditional culture. This paper will shed light on the existence of a balance between the new and old elements and dimensions of Japanese culture. While contemporary Japan has a general acceptance of the western ideas, traditional views still remain as the center of society and are used as a guide to the creation and maintenance of businesses in the country. Japan is not any other country, but one with unique society, culture, and economy. It belongs to a group of countries in Confucian Asia alongside China, Singapore, Hong Kong, Korea, and Taiwan. It is always referred to as “The Land of the Rising Sun” with its location in the Pacific Ocean. Globalization may mean that foreign corporations have an interest in investing in the country. 

However, before this can happen, it is imperative to learn some of the cultural uniqueness in Japan. Such learning should be focused on the way the country and her people embrace the modern values while keeping intact the traditional beliefs as a national culture. Some of the convergence can be seen in the culture of winning and losing games and matches. For instance, in martial arts, there is a show of respect even to the opponent demonstrated by bowing. The winning or losing follows logic and has deep meanings to the Japanese people. If someone wins a match and loses face or pride, the victory means nothing. Winning should be done by integrity and respect. The balance is also seen in the way they build their buildings with simplicity and aesthetic sense. Drama in Japan takes the form of stillness and silence and expresses a spiritual world in this culture. Such examples show the manifestation of a culture that has been transmitted from one generation to the other over a long period of time. As will be seen in this paper, the attributes of Japanese culture contradict those of the west which focus on the outcome of any action rather than the process of the arrangement. People that are considered important in the western countries may not be seen as such in Japan. These unique aspects of Japan are therefore important for the US investor who must understand them to make the suitable business judgment. 

What Are the Major Elements and Dimensions of Culture in This Region? 

This paper will discuss eight different dimensions and elements of culture that can be used to understand the enduring traditions and culture of Japan. The main objective is to identify how the people in this nation have transformed to become what they are today. In addition, it will provide the traditional integration of religion into the facet of every Japanese life. 

Communication 

Before delving into the way the Japanese communicate, it is important to understand the language itself. Unlike the European languages such as English, French, or Spanish that are spoken widely around the globe, the Japanese language is only used in Japan or by the natives living abroad. It is excluded from the rest of the world, and this is evidence of the collectivist nature of the Japanese people. This language has several characteristics that make it a challenge for the people who attempt to embrace it. One of them is the accentuation of words and phrases. When a word or a phrase in Japanese is mispronounced, it can change meaning significantly (Dunn, 2013). 

The language uses symbols that may have varying meanings attached to them. It is not as simple to write Japanese as it is for typing English. This is because, in the written Japanese language, many words can be combined to form just a single character. Consequentially, many of the individuals in this country tend to utilize the commitment to memory to communicate in a more efficient way. Most of the negotiations in Japan take the form of verbal communications rather than the typed or written (Takanashi, 2004). 

The Japanese portray the importance of formal and polite communication. They are careful with the expression of politeness while communicating, and this is expressed in their speaking patterns. This is especially when speaking to those of higher social status (Dunn, 2013). With this in mind, it is possible to say that the speech from a Japanese is meant to honor the person to whom it is directed. The polite manner with which the language is articulated is a way of avoiding negative confrontations at all costs. 

Religion 

Religion plays an important role in the life and conduct of the Japanese. The major affiliations in this country are Confucianism, Zen Buddhism, Taoism, and Shintoism ( Ellwood & Pilgrim, 2016 ). The last one is considered as more concerned about rituals than beliefs and thus helping it to coexist with Buddhism for a long time. The basic teachings of these religions are that people must live in harmony with others, and this has made the Japanese culture a harmonious one, which concentrates on the importance of such (Ezzy, 2016). The need for non-confrontation gives rise to a unique way of negotiation between people and businesses. 

Taoism has held spiritual roots in the hearts of few Japanese. However, the political practices and strategies have direct linkage to the teachings of this religion (Katayama, 2000). This is the only religion in Asia that proclaims the idea of god living among men ( Ellwood & Pilgrim, 2016 ). This presupposition is evident with the regards to the views of the Japanese emperor. The belief was rampant during World War II when the US had to deal with the people who believed that their foe was a living god. In fact, it affected the way the leadership of the US interacted with the Japanese after the end of the war. 

Confucianism has outstanding principles of morality, loyalty, and humanity towards other people at individual and political level (Ezzy, 2016). This religion teaches that moral life exists only in the context of particular personal ties. The Confucianism religion places high regards to the family ties with filial piety being of importance in addition to the care of children. It teaches people to take care of the elderly. 

The country was closed for the better part of history and was void of external intrusion. With the advent of globalization, however, the other religions from the west have started taking hold within Japan. Nevertheless, the major traditional religions will remain intact and become an important aspect of the culture for the better part of the future. 

Ethics 

The discussion about ethics in the culture of Japan reveals an important nature of the relationship of people in the country­, which is collectivism. The workforce is taught to be loyal to the companies with the reward of lifetime employment. They exhibit ethics of duty and work excellence, thus becoming a highly productive lot of employees. This aspect also makes the workers feel that it is their duty to protect the company. This makes them refrain from any behavior or notion that may shame the organization. 

The ethical skills of cooperative interpersonal relationships are evident in many aspects of the productivity culture of the Japanese people. According to Rastogi (1988), the people in this country believe in working hard and offering themselves to their organizations for it to be successful. They choose to be the slaves and make sure that their actions are complementary with the rest of the workforce to create a team that will enable the company to go higher. Although this is important to the productivity of the company, it can have negative implications. The leadership or the top management can act in an unethical manner. This is because they are above reproach and the workers cannot question their superiors’ actions. Even if those in the higher levels of corporate ladder make unethical decisions, they can get away with them, without the fear of being ousted by the employees. 

This ethical thinking is also a factor of the religions discussed above (Dunn, 2013). Some of the areas that relate to the teachings and rituals of spirituality in Japanese business is seen in the way they prepare for their meetings with the tea ceremony, and also in the different rites, they view as paths to enlightenment. Thus, it is evident that the Japanese ethics is tied to collectivism and religion. 

Values and Attitudes 

The Japanese have always upheld the notion that the interests of their nation must come before personal ones. It is this belief that has led to the collective thought that has shaped the spirit of the country since its formation. The value of closeness and harmony is entrenched in all facets of the Japanese culture. It starts at a young age when all children are taught the basics of living in peace and harmony with others and with nature itself (Morton & Olenik, 2005)). Consequently, the Japanese grow with an attitude of respect and thus avoiding public conflicts. The teachings also lead to the people growing with the attitude of knowing the importance of their environment. That is why Japan is one of the cleanest countries in the world. 

The Japanese attitude towards work is exceptional. The young people are taught to embark on work and that it is so important element on which the survival of the nation depends. This attitude leads to the culture of productivity (Rastogi, 1988). The internalization of the importance of duty and work is sometimes used to describe the workaholic nature of the people in this country. They work for long hours and intensively and this is rooted in their values and attitudes. 

The effort put to having an excellent work connects the attitude with the Japanese education. The country values learning and have stayed at the top of the world with regards to this. As a result, they invest heavily in their system of education. 

Manners 

The uniqueness of the Japanese culture is also evident in the way they conduct themselves in society. The people in this country have several bits of manners in various facets of their lives. First, Japan has strict rules on etiquette concerning footwear. It is not only at home that shoes are removed, but also in temples, some restaurants, Japanese inns, castles, and other historic places and always removed at the entrance which marks the border. The shoes should point toward the door and not into the building. Japanese talk with politeness and low tones ( Takanashi, 2004) . They view loud conversations as loss of control and embarrassing to the other party. 

The Japanese value the concept of ‘face’ so much such that they cannot stand shaming the other person ( Katz, 2008) . They will do anything possible to hide their frustration towards the negotiator and even mark it with a smile. 

Customs 

Japanese customs are purely based on manners. In this country, greeting happens through bowing. The act varies depending on the formality of the situation. In casual scenarios, the bowing takes the form of a small nod of the head while informal ones, deep bends at the waist is a show of respect. However, most Japanese do not expect foreigners to know the rules of bowing, and therefore a bow of the head is usually enough (Takanashi, 2004). It is uncommon to find people shaking hands in Japan. The Japanese prefer formal and conservative attire during business deals. In this country, the number "four" is attributed to bad luck or death and thus should be avoided. This is especially when giving gifts to Japanese. Presents in sets of four are prohibited as it means wishing someone to die. Tipping is highly disregarded in this society. Giving someone money as a form of gratitude is seen as degrading in Japan and that person will even go ahead and chase after the giver to return the tip. 

Education 

The country has low illiteracy level of about 1 percent. According to Goodman (2010), approximately 95 percent of Japanese students complete 12 th grade. The education system in Japan has high standards for completion. For example, calculus is a mandatory subject for the junior high school curriculum, which in some countries is available only from college. The country has a centralized system incorporates three levels of government, municipal, prefectural, and national playing significant roles in providing, financing, and supervising the services (Goodman, 2010). 

The Japanese revere manners and this is entrenched in their system of education. Students are not allowed to take exams until the age of ten or fourth grade. The first three years in school are set to establish a foundation of character and manners for the children. Some of the lessons taught involve being respectful to people and being gentle to animals and nature. They also learn how to be empathetic, compassionate, and generous. In the Japanese schools, janitors and cleaners are not employed as the students take care of their environment themselves. 

Social Structure and Organization 

The Japanese social structure is one that attracts celebration and criticism at equal measure. The culture of this country holds high the reverence of the elderly. The mortality rate in Japan is low, and this makes the society have a large population of older people. This generation comprises the individual who has retired after working in a company for decades. The loyalty comes with a reward of being placed high in society and accorded great respect (Gratton, 2013). The older generation is believed to be responsible for rebuilding Japan which was on the verge of collapse after World War II using their collectivism and a common goal. 

The part of the social structure that attracts criticism is the position of women in society. The people believe the role of females should be a subordinate one and that they should submit to patriarchy. It is not common to find women leaders in this country, including in businesses. However, globalization is promising for the female gender as western ideas of feminism are creeping in. The Japanese generation Y is a social group that encourages a western culture to hold in the country. They have developed structures that resemble those in western countries. This seen in the sector of entertainment this generation is prepared to change the traditional belief of gender roles and practices of the older generation. In decades to come, the transformation will be evident in every facet of life in this country that will be impossible to recognize for the older generation. 

How Are These Elements and Dimensions Integrated by Locals Conducting Business in The Nation? 

The collectivist nature of the Japanese makes the above-discussed dimensions of culture to be ingrained in every facet of their lives. The area of importance for this paper is that of business. 

Communication 

When dealing with Japanese businessmen, it is essential for global parties to remove their Aristotelian logic during negotiations. These people employ the use of rhetorical styles of communications when conducting business (Kameda, 2014). The mode of communication in Japanese is subtle and non-offensive. Thus, there will be many hidden meanings in their responses to questions. It is imperative for the negotiator to interpret the meanings behind the answers and lack of this can lead to failed consultations. 

The language of this country itself is another aspect of business communication. The nature of written Japanese makes the people have difficulty in conducting business in its written form. Thus, they try to rely on memory for negotiations to solve the problem. This also helps the other party because it prevents misinterpretation of symbols. It will make the native have an unencumbered flow of information as well. The harmonious relationship during the business discussion is an important factor in Japan. The negotiator must have the ability to read feelings of the other party. Japanese do business by trying to understand the needs of the other and trying to fulfill them with the aim of creating a lasting relationship. 

Religion 

Religion shapes every aspect of the Japanese lives as they believe in the presence of gods in natural objects. This also guides them in their daily business interactions where businessmen try to find harmony in every practice they partake. Confucianism teaches about loyalty and frugality, which have allowed for the growth of the Japanese economy (Katayama, 2000). It also helps in the maintenance of business relationships in the country. Buddhism points out the importance of suffering. This means that the Japanese businessman has endurance during the difficult situations in the business. 

It is common for a Japanese to perform rituals that may seem obscure to the outsider before every business negotiation. As this may seem strange to the westerner, it is a way of creating harmony and goodwill, which is every Japanese businessman’s wish to achieve (Kameda, 2014). Thus, it is important for the outsider to learn about the impact of religion in their negotiations. 

Ethics 

The ethical framework of the Japanese culture is a potential source of misunderstanding when dealing with businessmen from outside. While it is important to have loyal employees, the blind following accorded to the organizations may be criticized for taking advantage of the workers. The act of not questioning the bosses may be seen as a violation of human rights in other dimensions. The employees may refrain from asking questions for fear of offending the leader. However, this is encouraging unethical behavior that will remain unchecked. 

Another ethical conflict may arise in the delivery of bad news to people. The Japanese culture avoids using straightforward words and encourages reading between the lines (Seow-Ling et al., 2008). The ambiguity of statements delivered by Japanese bosses may be seen as a way of hiding the truth from the people in the western culture. It can be seen as an intentional way of muddling bad news and thus seem unethical to westerners. 

Values and Attitudes 

The values and attitudes of the Japanese depict that of collectivism, and this is entrenched in the workplace. In fact, the English word for “work” can be interpreted as hata-raku in Japanese which means “putting yourself in someone’s shoes (Kameda, 2014).” This has made the business people work towards a common goal together. In this society, the attitude towards work makes the people be frugal in their business and do so for the sake of others and the country at large. 

These values underline every negotiation in the country. The closeness and harmony values help them to have an idea of good competition. This leads to coexistence and encourages good morale. The attitudes also control pricing as a practice of good competition where the businessmen see themselves as obliged to help customers and to maintain harmony. They do not have cutthroat prices. 

Manners 

They strive to enhance negotiations by creating an environment that is pleasing to their visitors. They uphold the importance of the first impression, and this is evident in the way the young Japanese are taught even the most basic actions of presentations toward business negotiation. They also consider the importance of creating a lasting impression, which even overshadows the need to make profits. This is seen in the way they handle their business meetings, which do not come to order until after the completion of the tea ceremony. 

Customs 

When making business deals, many Japanese believe that they are representing their company and their country, and not only themselves. They make connections knowing the good manners will not only help them but their company’s image, which they fear shaming. This thought process guides the Japanese in all their business conduct and customs. Before considering how the negotiation will benefit them personally, the Japanese will first consider how the deal will impact his organization and even go far as weighing how it will be of importance to the country as a whole. 

During business negotiations, the Japanese maintain a formal and conservative look. Therefore, the party interested in doing business with these people need to be the same as a show of respect for their customs. Maintaining a low-key conversation is important in giving someone ‘face’ and preventing their embarrassment ( Katz, 2008) . 

Education 

Education is an important facet of the Japanese culture and through which every other element is passed. The lessons learned from the first-grade aids in the entire upbringing of the individual and act as guidance in business ethics and manners. Education is used as a platform to gain social mobility and success in high-tech companies in the country. The vocational training in business is important, and the most popular and this is reflective in the amount of work available in the country. The students are able to be creative and form high-tech companies. As the country is highly based on science and technology, education in these subjects is important as it creates a competitive and productive workforce. Employees mostly look for the people with these qualifications. 

Social Structures and Organization 

The country's business environment is highly hierarchical, and this means the decisions will follow the order of seniority (Gratton, 2013). This means that the social structure is also applicable in the work environment. The lines of authority are supposed to be clear and well-defined. However, the business environment in this country is mainly male-dominated. The gender equality concept is still alien to the Japanese culture, and this leads to the marginalization of women in the businesses. Organizations still uphold the conservative views and become unaccommodating to the females ( Katz, 2008) . Many Japanese women do not work, while those who do lack equal opportunities for promotion and wages like men. Japanese businessmen are not acquainted with working with businesswomen, and this can be a benefit or loss. A woman may receive gentleness and all the information needed as this is the right way for men to treat females in Japan. However, the businesswoman may find it difficult getting accustomed to the culture of participation in the country as compared to a man. 

Comparison of Business Culture in Japan and USA 

Understanding the cultural differences and similarities is essential when multinational companies are making critical investment decisions. Organizational cultures are affected by the prevailing local cultures. The prevailing culture in a country has a direct impact on organizational culture and environment ( Dore, R., 2013) . Japan and the USA have different cultural values despite their strong international relations. The cultural differences between the two countries have affected the business environment in the two countries. To analyze the cultural differences between the two countries, the research paper will use the Hofstede analysis as shown in figure 1. The Hofstede Model will use the six core factors highlighted in figure 1. 

Figure 1 showing a comparison of business cultures in Japan and the US using Hofstede cultural analysis ( Dore, R., 2013) . 

Power Distance 

Power distance describes the rate at which the less powerful members of the society, organizations, and institutions in a country can accept and expect that authority and power are distributed unequally. Japan, at an intermediate score of 54, is highly hierarchical ( Dore, R., 2013) . The Japanese are very aware of their hierarchical position in the society and business setting and act appropriately. Due to their hierarchical culture, decision-making processes in businesses are quite slow because every decision has to be approved by all hierarchical layers. However, their education system involves a strong notion that every citizen is equal and any individual can get ahead as long as they work hard. 

On the contrary, the US has a low score of 40. The US is less hierarchical. The US has a culture of equality and freedom that allows people to go against some of the hierarchies in society. Additionally, the decision-making processes are faster than in Japan because employees are a low level can approach the executive (Meyer & Thaijongrak, 2013). Regardless of the different inequalities in American society, people are attempting to reduce the inequalities in the society. 

Individualism 

Individualism describes the level of interdependence among members of a society. Japan, at a score of 46, shows many traits of a collectivist society. In the Japanese business culture, the harmony of a group is placed above the individual needs. However, Japan is not as collectivist as some of her Asian neighbors such as Korea and Japan. Since Japan has a paternalistic society, family assets and name are inherited by sons from their fathers (Meyer & Thaijongrak, 2013). Additionally, the Japanese are fiercely loyal to their companies and businesses. Also, they are very loyal to their local communities and extended families. 

With a score of 46, the US is one of the most individualistic countries globally. The American culture has an explicit emphasis on justice and liberty for all people. Most of the communication is direct, informal, and participative. The American society is loosely attached where people are expected to look after themselves and the immediate families while having limited expectations from the authorities. In the corporate world, their employees are supposed to display initiative and be self-reliant (Meyer & Thaijongrak, 2013). Due to the blend of different cultures, some ethnicities are paternal, others are maternal while the majority focus on equality for all genders. Decisions are often made regarding how they benefit a particular corporate. There is little emphasis on the collective good of the entire society. 

Masculinity 

Masculinity describes the level at which the community and society are driven by the need for success, competition, and achievement. A low masculine score translates to a higher feminine score. The feminine dimension describes how the main values in a society are driven by the need for quality of life and caring for others. Japan, at a score of 95, may be one of the most masculine countries globally (Meyer & Thaijongrak, 2013). Nevertheless, due to the collectivist culture, traits such as competitiveness and assertiveness are mildly suppressed. In the corporate world, employees are highly motivated especially when they are competing against other corporates. The masculine nature of Japan’s business culture is shown by their need for perfection and excellence in material services, material production, and presentation. 

The US has a high masculinity (62) but lower than Japan’s. in school, children are encouraged to reach their maximum potential. The greatest motivation in the American culture is being successful. In the corporate sector, employees are supposed to show their potential by achieving their individual strategic goals. Americans aim to achieve a higher status through monetary rewards ( Pudelko & Tenzer, 2013) . After an individual gets a promotion, they are highly likely to move into a fancier neighborhood. Due to the high rate of individualism and masculinity, there are rising inequalities in the US. 

Uncertainty Avoidance 

Uncertainty avoidance describes the way the society reacts to the fact that the future is unknown: it also includes whether they should allow the thing to happen or attempt to control future outcomes. Japan, at a score of 92, is one of the countries globally with the highest uncertainty avoidance ( Pudelko & Tenzer, 2013) . Due to constant threats from natural calamities, Japan learned to be always prepared. In the corporate sector, they spend adequate effort and time in feasibility studies and analyzing risk factors before any decision is made or before starting a project. 

The US, at a low score of 46, has low uncertainty avoidance. Therefore, the US has a fair acceptance of new innovative products, ideas, and willingness to change or try new things pertaining to food, technology, or business practices. Furthermore, they are more tolerant of different opinions or ideas from other people and encourage freedom of expression in comparison to countries that score highly in the uncertainty avoidance dimension ( Liang, 2013) . Additionally, Americans tend to be less emotionally expressive and require fewer regulations in comparison to countries that score highly in uncertainty avoidance. 

Long-Term Orientation 

The dimension describes the rate at which the society maintains links with its past when approaching present and future challenges. Japan, at a score of 88, has a high long-term orientation. Their lives are guided by ethical examples and virtues. Their high long-term orientation in business is observed by their high rate of investment even when there are economic downturns ( Rugman & Verbeke, 2017) . Also, they would prefer a steady growth in market share rather than focusing on quarterly profits. The corporate culture in Japan focuses on serving the society and stakeholders instead of making profit every quarter. 

On the contrary, the US has a low score of 26. The US often analyze new information according to up-to-date information and technology. Although most Americans are not pragmatic, they have a ‘can-do' mentality. Additionally, most Americans have strong notions regarding what is ‘evil' and what is ‘good.' Every citizen has strong opinions regarding the privacy of citizens, abortion, gun control, use of drugs, and euthanasia ( Liang, 2013) . In the corporate world, business performance is always measured on a short-term basis. Although businesses have long-term strategic goals, the focus is on profit and loss statements that are released every quarter. Moreover, employee focus on achieving quick results and goals in the workplace. 

Indulgence 

Indulgence describes the rate at which people attempt to control or manage their impulses and desires. A low indulgence translates to a higher restraint. With a score of 42, Japan has a strong culture of restraint. Cultures with a low indulgence score tend to have a higher level of pessimism and cynicism in comparison to countries with a high indulgence level ( Katz, 2015) . Furthermore, restrained societies focus on controlling desires and leisure time. At the corporate level, the behaviors are controlled by social norms. Additionally, restrained societies have a perception that being indulged is ‘morally wrong.’ 

In comparison to Japan, Americans have a high indulgence score of 68. Most Americans make use of their freedom of expression ( Katz, 2015) . They have less restraint contrary to Japan. Cultures with a high indulgence score tend to be more optimistic about their activities. Furthermore, most Americans have little emphasis on controlling desires and leisure time. Most people prefer doing anything that makes them happy. The American culture has a notion of ‘work hard’ and then ‘play hard.’ The high indulgence has also affected their social lives. in as much as the US government has spent adequate resources fighting drug addiction, the country has the highest rate of drug addiction in comparison with all the developed countries. 

Implications for US Multinationals Investing in Japan 

After analyzing the culture and Hofstede analysis of Japan, the research paper came up with a SWOT analysis and FDI analysis. 

SWOT Analysis 

Strengths. The country has a transparent and well-developed tax model. Due to their culture, the country is stable and democratic especially because of the dominance of the Liberal Democratic Party and Prime Minister Shinzo Abe. Additionally, the country’s policy on foreign direct investment (FDI) has few restrictions and is quite liberal ( Park, 2018) . Also, they have a non-discriminatory and advanced legal system. 

Weaknesses. The cultural and language barriers between the US and Japan may hinder US multinationals from investing in the country. Furthermore, Japan has a higher tax burden in comparison to its neighbors. Moreover, loyalty to companies and close ties between conglomerates such as Sony and the government may disadvantage US multinationals from competing favorably in the market ( Park, 2018) . Additionally, the country is at a high risk of natural disasters such as tsunamis and earthquakes. 

Opportunities. Due to their culture of hard work and need for perfection, consumers have higher levels of disposable income in comparison to most of its Asian neighbors. Therefore, they would provide a large market for goods produces in the US. Also, due to their high uncertainty avoidance, they are always willing to try out new products ( Nicholas, 2016) . Furthermore, the country is one of the main markets for emerging global consumer products. Moreover, technological advancement and e-commerce provide a unique opportunity for US multinationals. 

Threats. Employees are loyal to their companies, and US multinationals may face a difficult time attracting the best employees. Their culture and nationalism caused the country to develop trade restrictions that would make it difficult for US multinationals to compete favorably in the Japanese market ( Nicholas, 2016) . 

FDI Analysis of Japan 

Japan’s foreign direct investment in 2017 was approximately $10.43 billion ( Park, 2018). The main countries investing in Japan are the US, Switzerland, France, Singapore, and the Netherlands. The five countries account for about 80% of Japan’s FDI ( Park, 2018) . Due to their culture of constant improvement and kaizen among other work principles, many multinationals often invest in Japan’s electric machinery, real estate, transportation equipment production, services, general machinery, and finance. Japan's key strengths in FDI is that they are a global leader in research and development and advanced technologies. However, the main barriers to investing in Japan are the business culture and linguistic barriers. Less than 5% of their population speaks English. Also, there are health and environmental concerns regarding the Fukushima nuclear plant and the frequent natural disasters. Regardless of the various challenges, Japan remains one of the main investment destinations globally. 

Other than being the third largest economy globally, Japan has a strong domestic market due to their strong purchasing power. Their economy has been rock solid for many decades due to their investment in technology, research, and development. Also, due to their geographical location, investing in Japan offers direct entry to other major Asian markets ( Guerard, Xu, & Gültekin, 2012) . Japan's business environment is stable and supported by a stable political environment. Due to their work ethic, employees are highly skilled and loyal to their businesses and organizations. Furthermore, the ageing population is opening up new opportunities for services and products focusing on the older age groups. As a way of promoting FDI, the country has designated national strategic special zones for multinationals. Also, Prime Minister Shinzo Abe has been eager to simplify the administrative procedures and regulations ( Guerard, Xu, & Gültekin, 2012) . Also, the country has been keen to attract global talent by encouraging highly skilled professionals to get Green cards that will allow them to get permanent residence in the country. 

Implications for US Multinationals 

Before US multinationals invest in Japan, they must make strategic plans. Of all industrialized countries, Japan has the least FDI due to their culture of preferring goods produced locally. Also, due to the fact that less than 5% of their population speaks English, the country appears to experience intellectual isolation ( Nicholas, 2016) . Furthermore, their collectivist culture led to the prospering of the traditional financial conglomerates that dominated the entire Japanese industry and made it difficult for foreign investors. However, the traditional barriers to business are slowly breaking down ( Nicholas, 2016) . Additionally, due to their hierarchical culture, there is a dense network with offices, regulations, procedures, permissions, certifications, and authorities with various approval processes that may not need approval in other developed countries such as the US. Most of the barriers were designed to hinder foreign companies from entering the Japanese market. 

Due to their culture, business relationships are essential during foreign investment, especially in Japan. US multinationals must build strong relationships, nurture the relationships, and evaluate who they build business relationships with while avoiding particular business relationships ( Guerard, Xu, & Gültekin, 2012) . US multinationals should understand that business relationships in Japan are rarely defined by law, business partners should develop a close personal relationship. Also, Japanese partners may not reveal everything they know or feel regarding a particular issue or their future plans. Therefore, US multinationals must work to understand Japanese dynamics and culture. There are several occasions when Western companies celebrated a business partnership with Japanese businessmen only for the agreement to collapse a few days later because the Western views did not address Japanese’ needs and concerns. Therefore, US multinationals must plan ahead, evaluate the risks, and build business partnerships that address the strategic views and needs of the Japanese people. 

Industrial groups or keiretsu are essential business relationships existing in the entire country. Most of the industrial groups later developed to become some of the main conglomerates in the country such as Sony. Due to economic challenges, most of the industrial groups merged and the significance of the business groups reduced. However, business relationships still play a critical role in Japan's economy and businesses. For all the US multinationals, it is essential to evaluate the keiretsu structure and align the company’s business plan according to the acquired knowledge ( Nicholas, 2016) . In traditional Japan, organizations would only carry out businesses with other companies in the same keiretsu. Even in modern day Japan, during competitive bidding, in some situations, traditional ties may take priority over receiving the best prices. All in all, US multinationals must understand the region and keiretsu where the company will be investing. 

Notably, US multinationals must understand Japanese business etiquette. During a business meeting, a US multinational must carry professionally prepared meishi or business cards. During the first meeting, it may appear ‘disrespectful’ not to exchange meishi. Furthermore, not carrying enough meishi may translate to being unprofessional or unemployed. Moreover, US multinationals must carry adequate documentation that will impress the Japanese businesspeople with power, size, facts, fame, and achievement of the US multinational (Lamprecht, 2015). Additionally, the documentation should be in the Japanese language. Furthermore, US multinationals must be well prepared and on time for meetings. In most situations, Japanese businesspeople have high uncertainty avoidance, and they will carry out thorough research of the US multinational's website. They may even print the website to analyze it. Also, it is essential to carry out adequate research regarding the people and companies at the meeting. Inadequate market research is perceived to be impolite. Without adequate research, the US multinational may be placed in a weaker position. 

In addition, there are seating arrangements according to the relationships. Therefore, US multinationals must respect the sophisticated seating protocol during the meeting. The seating protocol is determined by decorations in the room, seniority, the door’s position, guest-host relationship, and other factors (Lamprecht, 2015). If the US multinationals are unaware of the seating arrangement, it will be critical to consult Japanese professionals regarding the seating arrangement. When visiting a company, a foreigner is highly likely to be ushered to an honored guest position within a boardroom. US multinationals should know how to behave with their Japanese hosts. There are simple rules regarding public behavior such as: 

No one should blow their noses publicly 

There are comments or gestures that may cause embarrassment or provoke anger 

Kissing is not a form of greeting 

No one should throw objects such as meishi, books, paper, or any other important object and ask them to catch it. 

All in all, US multinationals should understand that policymaking in Japan is a bargaining process involving bureaucrats and politicians. All legislation is proposed by lawmakers and then discussed transparently. The country has passed various laws that will ease the burden of investing in Japan. Some of the actions include strengthening consultation services, removing language barriers, enhancing educational environment for international schools, improving internet access, and accepting business jets at all local airports ( Bloom, Sadun, & Van Reenen, 2012) . 

Conclusion 

Japan and the US have a technological and economic relationship characterized dynamism and increasing growing cooperation and competition. This research paper has shed light on the existence of a balance between the new and old elements and dimensions of Japanese culture. While contemporary Japan has a general acceptance of the western ideas, traditional views still remain as the center of society and are used as a guide to the creation and maintenance of businesses in the country (Dore, R. P., 2013). Organizational cultures are affected by the prevailing local cultures. The prevailing culture in a country has a direct impact on organizational culture and environment. Japan and the USA have different cultural values despite their strong international relations. The cultural differences between the two countries have affected the business environment in the two countries. 

As discussed in the paper, the attributes of Japanese culture contradict those of the West which focus on the outcome of any action rather than the process of the arrangement. People that are considered important in the western countries may not be seen as such in Japan. These unique aspects of Japan are therefore important for US investors who must understand them to make the suitable business judgment (Dore, R. P., 2013). As a collectivist society, Japan’s workforce is taught to be loyal to the companies with the reward of lifetime employment. They exhibit ethics of duty and work excellence, thus becoming a highly productive lot of employees. This aspect also makes the workers feel that it is their duty to protect the company. Additionally, values of closeness and harmony are entrenched in all facets of the Japanese culture (Dore, R. P., 2013). It starts at a young age when all children are taught the basics of living in peace and harmony with others and with nature itself. Moreover, the internalization of the importance of duty and work is sometimes used to describe the workaholic nature of the people in this country. They work for long hours and intensively and this is rooted in their values and attitudes. 

The Japanese culture may be one of the most misinterpreted cultures among industrialized nations. Due to the strict business etiquette, most multinationals find it risky to invest in Japan. However, the success of various multinationals such as Microsoft, Mercedes Benz, Apple, and BMW proves that the Japanese market is penetrable. Although the Japanese culture is quite different from that of the US and other western nations, it does not make it difficult to invest in Japan if the multinational offers quality services and goods. In fact, particular characteristics of the Japanese culture such as loyalty and stable long-term relationships due to their conservatism is very beneficial for US multinationals ( Bloom, Sadun, & Van Reenen, 2012) . Rather than attempting to struggle against the Japanese culture, US multinationals should focus on swimming with the cultural tide. 

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