Business Etiquette in Japanese Negotiations

Business Etiquette in Japanese Negotiations

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 more effort than a mere

phone call to a secretary. Traditionally, Japanese will not do

business with people whom they do not know well. It comes down to an

issue of trust. In order to avoid having to go through introductions

level by level through the organization, it is very helpful to use a

third party or Sh kai-Sha. A Sh kai-Sha is a person who will contact

the Japanese company and act on your behalf. When selecting a third

party intermediary, it is important that he is well respected by the

organization with which you wish to do business. The Japanese will

associate your firm with the Sh kai-Sha; hence it is much easier for

them to enter into negotiations. In addition, one should hire an

interpreter independent of the company with who you are dealing with.

Interpreters can be a valuable tool in both the business and social

gatherings that will occur.[1]

The last obstacle to prepare for when conducting business in Japan is

women are still at a disadvantage. The role of women is to take care

of the home. In recent years, Japanese women have advanced somewhat in

the business world but they are not accepted as much as in the