The world economy is dependent on trade between countries. As globalization of the world's economy increases, companies depend on international negotiations to build strong relationships and extend their services to a larger market. Since World War II, Japan and the
United States have become dependent on one another's markets to fuel their economy. Japan is the second largest supplier to the U.S. and the United States is the largest supplier of imports to Japan. As a result, companies strive to teach Japanese business etiquette to their international negotiators.
International negotiators encounter many cultural differences when they are conducting business in Japan. In addition to language differences, there are different values, opinions and sentiments.
There is a strong sense of hierarchy in Japan accompanied with many rules for etiquette in a business environment. Americans who wish to strike a deal with Japanese partners should understand and appreciate the hierarchical system that is in place. Though foreigners are not expected to be aware of the exact behavior in every situation, the
Japanese appreciate it when a foreign business associate exhibits a general understanding of Japanese ways.
The biggest concept for Westerners to grasp is that Japanese view negotiations as the beginning of a long relationship, where the formal agreement is a mere testament to that association. Americans, on the other hand, tend to view negotiations as a competitive way to sign a binding contract between two parties assigning specific rights and obligations to each party. Relationships are not of high importance in western culture. Trust, however, is a huge ingredient necessary to conduct business in Japan. It is viewed as the building block to all long term relationships. Before beginning negotiations, foreigners need to alter their thinking to build trust with their Japanese contacts. Setting up a business meeting in Japan takes
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