Japanese Business Culture Essay

2053 Words 9 Pages
Japan is the third-largest economy in the world, an island of nations within East Asia. Japan is the world’s tenth largest country by population, with 127.3 million people. A major economic power that continues to experience growth resulting from industrial and technological breakthroughs. In the last decade, Japan has experienced growth through globalization that affected it citizens by employment and wages. As a vital key to conducting business in Japan it is essential for a corporation to understand etiquette and protocols as well as the religious beliefs that may or may not impact business. Japan has solidified itself a global economic power and concentrated contributor through automotive, advanced technology, and textile industries. …show more content…
As a result, weak economies in Europe, America and other parts of Asia impeded Japan's economic progress. “Statistics illustrate there are only four industries in Japan—transport machinery, electric machinery, primary metals, and chemicals—that are more productive in absolute value than the same industries in the United States.” (Morrison & Soesastro, 1998).
Unpredictable currency exchange rates represent another aspect of globalization within Japan’s economy. In the 1990, (Morrison & Soesastro, 1998) states variables in exchange rates were the most important factor in altering prices of economies around the world. In Japan, the exchange rates involved an incredible 224 percent rise, from ¥260.24 against the United States dollar just prior to the Plaza Accord of 1985 to ¥80.3 at the peak in 1995. Other major Asian countries the yen has shown great appreciation with increase of 608.1 percent rise against China’s dollar. (Morrison & Soesastro, 1998). As a result, Japan’s government was forced to cushion the blow using stimulus packages and deficit relief programs that in long term weakened the fiscal infrastructure.
On March 11, 2011 after the massive earthquake and tsunami, Japan economic stability suffered drastically. This disaster halted operations of major manufacturers such as Nissan, Toyota, and Sony. The shipments of vehicles and products were damaged and…