the obstacles of doing business in japan
Chance
Japan is very much open for business, Japan remains the world‘s third largest economy, after the U.S. and China, with a GDP of roughly $5.9 trillion.
During 2011 the Japanese yen strengthened significantly against the U.S. dollar, reaching a 15-year high of 75.86 yen to the dollar in October 2011. American goods and services have never been more affordable for Japanese buyers.
In 2011, the top exporters to Japan were China, US, Australia, Saudi Arabia, UAE, South Korea, and Indonesia. The top importers from Japan were China, US, South Korea, Taiwan, and Hong Kong.
Japan is one of the world‘s most prosperous and stable democracies.
Challenge
Japan's large government debt, which is over 200 percent of GDP, persistent deflation, and an aging and shrinking population are major complications for the economy.
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.
The earthquake and tsunami are obviously triggering substantial rebuilding efforts, but no one knows just how fast the construction crews can progress. Total building activity will be stronger than in recent years, but the actual pace that can be achieved in 2012 is uncertain. What does not get rebuilt in 2012 will spill over to 2013, so it’s more a matter of timing than ultimate magnitude.
Electricity is still a
Japan is very much open for business, Japan remains the world‘s third largest economy, after the U.S. and China, with a GDP of roughly $5.9 trillion.
During 2011 the Japanese yen strengthened significantly against the U.S. dollar, reaching a 15-year high of 75.86 yen to the dollar in October 2011. American goods and services have never been more affordable for Japanese buyers.
In 2011, the top exporters to Japan were China, US, Australia, Saudi Arabia, UAE, South Korea, and Indonesia. The top importers from Japan were China, US, South Korea, Taiwan, and Hong Kong.
Japan is one of the world‘s most prosperous and stable democracies.
Challenge
Japan's large government debt, which is over 200 percent of GDP, persistent deflation, and an aging and shrinking population are major complications for the economy.
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.
The earthquake and tsunami are obviously triggering substantial rebuilding efforts, but no one knows just how fast the construction crews can progress. Total building activity will be stronger than in recent years, but the actual pace that can be achieved in 2012 is uncertain. What does not get rebuilt in 2012 will spill over to 2013, so it’s more a matter of timing than ultimate magnitude.
Electricity is still a