This document provides an overview of doing business in Japan. It discusses Japan's country profile, political and legal system, economic environment, and key factors for success. The document is a lecture presentation on international business in Japan, containing an introduction, 10 sections on various topics, and references. It aims to educate students on business challenges and strategies for the Japanese market.

1. KINGDOM OF CAMBODIA
NATION RELIGION KING
Build Bright University
“Doing Business in
International Management
TOPIC

2. Lecturer: Dr. Balakrishnan V
M
Group : D21
Prepared by : Bo Vibol
Beang Neariraoth
Ly Pheakdey
Sok Rado
Y Enane
Academic Year: 2012-2013

3. Content
1- Introduction
2- Japan Country Profile
3- Key Words
4- Political and Legal System
5- Japan Market Challenge
- Japan market overview
- Ease of doing business in Japan
6- Economic Environment in Japan
7- Business Structure
8- Factors Should be focused:
9- Conclusion
10- References

4. 1. Introduction
 Doing business is like leading a troop to battle against one country. Thus,
it requires a lot in order to be able to be successful in doing a business.
There are so many ways/tactics and/or strategies in order to own a
business in one country, especially in Japan.
 Japan is the largest market outside the United States—larger than those of
Germany and France combined, and almost three times that of the UK. Yet
it is generally believed that Japan is the most difficult place to do business
among the industrialized nations. In spite of this, many companies have
been successful in Japan, and many more can be. It does require the
discipline to execute well—Japan can extract a high price from those that
don't. 1

6. 3. Key Words
 Global market: is the exchange of goods and services between countries.
This type of trade gives rise to a world economy, in which prices, or supply
and demand, affect and are affected by global events. Ex: Political change
in Asia, for example, could result in an increase in the cost of labor, thereby
increasing the manufacturing costs for an American sneaker company based
in Malaysia, which would then result in an increase in the price that you
have to pay to buy the tennis shoes at your local mall.
 Business: Any commercial, industrial or professional activity undertaken
by an individual or a group.
 Competition advantage: An advantage that a firm has over its competitors,
allowing it to generate greater sales or margins and/or retain more
customers than its competition. There can be many types of competitive
advantages including the firm's cost structure, product offerings, distribution
network and customer support.
 Market: A set up where two or more parties engage in exchange of goods,
services and information is called a market. Ideally a market is a place
where two or more parties are involved in buying and selling.

7. Key Words Con’t
 There are 7 type of market: 1. Physical Markets, 2. Non-Physical Markets,
3. Auction Market, 4. Market for Intermediate Goods, 5. Knowledge Market,
6. Financial Market, 7. Black Market.
 Price: A value that will purchase a finite quantity, weight, or other measure of
a good or service. As the consideration given in exchange for transfer of
ownership, price forms the essential basis of commercial transactions. It may
be fixed by a contract, left to be determined by an agreed upon formula at a
future date, or discovered or negotiated during the course of dealings between
the parties involved.
 Culture: the behaviors and beliefs characteristic of a particular social, ethnic,
or age group: the youth culture; the drug culture.

8. 4. Political and Legal System
 Japan is a parliamentary monarchy governed by a Prime Minister and his
cabinet. The Emperor lost most of his official power after WWII. The
bicameral parliament is called the Diet and is composed of the upper
House of Councillors (Sangi-in) and the lower House of Representatives
(Shugi-in).
 Japan’s legal system has a US style Supreme Court appointed by the
cabinet. The Supreme Court presides over a legal system of lesser
courtsdivided into four arms: High Courts, District Courts, Family Courts
and Summary Courts

9. 5. Japan Market Challenge
 The difficulty of penetrating the Japanese market depends to a great
extent on the product or service involved. Key variables include the
degree of local or third country competition, the number of regulatory
hurdles to be overcome, and cultural factors such as language (both
spoken and written), strict service and quality expectations, and business
practices.
 Generally, tariffs on most imported goods into Japan are low. However,
cultural, regulatory, or other non-tariff barriers continue to exist that can
impede or delay the importation of foreign products into Japan. These
can include Japanese import license requirements, restricted or
prohibited imports, temporary entry of goods, certifications, standards,
labeling requirements, etc.

10. 5.1. Japan Market Overview
 This page summarizes Doing Business 2013 data for Japan. The first
table lists the overall "Ease of Doing Business" rank (out of 185
economies) and the rankings by each topic. It also lists the economy's
distance to frontier (DTF)** measure. The rest of the tables summarize
the key indicators for each topic and benchmark against regional and
high-income economy (OECD) averages.

11. Description Rank
Ease of Doing Business Rank ▲ 24
Starting a Business 114
Dealing with Construction Permits 72
Getting Electricity 27
Registering Property 64
Getting Credit 23
Protecting Investors 19
Paying Taxes 127
Trading Across Borders 19
Enforcing Contracts 35
Resolving 1
5.2. Ease of Doing Business
Rank

13. 6. Japan Market Overview
Con’t
 Main Import:
- Consumer Goods 16.3%
- Food 10.9%
- Fuels 20.3%
- Industrial Supplies 22.6%
- Machinery 23.8%
- Transportation 4.5%
- Other 1.6%
Country of partners:
- China 22%
- USA 11%
- Australia 6%
- Saudi Arabia 5%

14. 6. Economic Environment in
Japan
- In’t economic crisis in 2008 was a little bit hit Japan economic who was the 2nd world
economic leader.
- In 2008 were: -1.2% of growth and in 2009 -5.2%, mainly due to a decline of the
economic activity in the United States (its 1 trade partner), in Europe (which attracts 15%
of the total exports from the country) and in Asia (mostly in China).
- Moreover, the price rise in energy and food products has contributed to the drop of the
domestic demand.
- Supported by the dynamism of the Chinese economy, Japan's growth, estimated at 2.8%,
has rebounded in 2010, stimulated by exports as well as the resurgence of private
consumption.
- The perspectives for 2011 were less optimistic due to the slowdown in exports and a less
favorable business climate. The earthquake that hit Japan on March 11, 2011 and the
tsunami that followed led to a more negative review of these estimates. The cost of the
disaster is expected to exceed 300 billion USD, not to mention the significant concerns
regarding the nuclear power plant in Fukushima, whose consequences are not yet well
known. According to experts, the Japanese economy should not recover before 2012.

15. Economic Review in Japan
Con’t
Main Indicators 2009 2010 2011 2012 2013
GDP (billions USD) 5,032.98 5,458.87 5,821.95e 5,920.56 6,058.06
GDP (Constant Prices, Annual %
Change)
-6.3 3.9e 1.4e 2.1 1.7e
GDP per Capita (USD) 39,459 42,820 45,659e 46,507e 47,679
General Government Balance (in % of
GDP)
-7.0e -7.5e -8.3 -7.4e -7.3e
Inflation Rate (%) -1.4 -0.7 0.2 0.2 0.4
Unemployment Rate (% of the Labor
Force)
5.1 5.1e 4.9 4.7 4.5
Current Account (billions USD) 141.66e 149.73e 131.05e 116.94 -
Current Account (in % of GDP) 2.8 2.8 2.4 2.1 -Source: IMF - World Economic Outlook Database

16. 7. Business Structure
 Representative Office
 Brach Office
 Subsidiary Office
 Limited Liability Partnership ( LLP )
 Type of Business Structure in Japan
The main business structures by which foreign companies generally
establish a business presence in JAPAN are :

17. 8. Factors Should be focused
 Hence to be successful in doing business in Japan, we should take
strong notice to the following 6 stages:
1. Connect Customer Needs Tightly to Your Home Office Staff
2. Great Visibility Essential for Great Support
3. Take a Proactive Role in Sales and Marketing
4. Be a Superb Listener
5. Get the Pricing Right
6. Provide Excellent Training to Japanese Staff

18. 9. Conclusion
 Japan is an enormous market, one of the world largest in term of economic
scale.
 Japan’s industries are globally competitive and as can be seen in the
automotive sector.
 Japan is the one country among East Asian which has market grows
rapidly, because the economic integration between countries in region
continue to strengthen.
 Government Policies can make the foreign investors strongly confident to
indulge in Japan market.

19. 10. References
 Internet and Publications:
1. http://www.htm.co.jp/Bsixsteps.htm
2. http://data.worldbank.org/data-catalog/GDP-ranking-table
3. http://www.indexmundi.com/japan/population.html
4. United Nations World Population Prospects, 2006 revision. UN. Table A 17
5. UN Statistics Division. 1 April 2010
6. World Factbook: Japan". CIA.
7. "World Population Prospects". UN Department of Economic and Social Affairs.
Archived from the original on 21 March 2007
8. http://www.globaltrade.net/f/business/Japan/Business-Environment.html
9. IMF - World Economic Outlook Database
10. http://www.investopedia.com/terms/b/business.asp
11. http://www.investopedia.com/articles/03/112503.asp
12. http://www.managementstudyguide.com/what-is-market.htm
13. http://www.worldbusinessculture.com/Business-Facts-and-Figures-on-Japan.html