International Management: Japan

Japan is already a staple in the American business-world. The United States exported $66.2 billion worth of goods two years ago while importing $128.8 billion. These exchanges ranked Japan as the fourth largest trading partner to the United States. “Savvy observers agree that an active engagement with the Japanese market remains critical to the success of American business, both big and small alike, as well as to U.S. states seeking trade and investment with Japan.” (Doing Business in Japan) Despite the devastation of the 2011 earthquake, Japan remains the world’s third largest economy. American firms should take advantage of this market while it is down, keeping in mind that Japan is a distinct market that must be approached carefully.

Japan is made up of four main islands off the East coast of Asia: Hokkaido, Kyushu, and Shikoku. It also includes over 3500 smaller islands ranging over 2,360 miles. Japan’s landmass is dominated by 80% mountains, many of them being volcanic. Because of Japan’s shape and size, everyone lives within seventy miles of the coast. Tokyo is the most dominant part of the country as it holds one-third of the population and produces 20% of Japan’s manufacturing. (Petry) According to Human Geography: Culture, Society, and Space, “[the] Tokyo area is among the chief producers of steel, using iron ores from the Philippines, Malaysia, Australia, India and even Africa; most of the coal is imported from Australia and North America; the petroleum from Southwest Asia and Indonesia. The Kanto Plain cannot produce nearly enough food for its massive resident population. Food must be imported from Canada, the United States, and Australia as well as from other areas in Japan. Thus Tokyo depends on external trade for all things ranging from food to energy.” (deBlij) Japan’s culture has direct correlations to its geography and the love of natural beauty. Many garden and architectural designs have been inspired by Buddhism and other spiritual...