Kikkoman Corporation is a Japanese-based organization best known for making soy sauce. Its history stretches over several hundred years, and its product line includes products well beyond soy sauce. The company has facilities, offices, and subsidiaries located throughout the world which gives it an international presence, but which also protects it from the regulations that "foreign" companies face. Within the United States, the company has avoided problems with federal regulations by operating through its Kikkoman International subsidiary, and the company does not market its pharmaceutical products in the United States. This research examines Kikkoman Corporation and the trade issues it does face in the United States.
Kikkoman is most famous for its soy and other sauces; the company began making soy sauce during the 1600s, and the same families who began the Kikkoman product line several centuries ago continue to be active in the business today ("About Kikkoman," 1999, p. 1). However, Kikkoman participates in markets which are well removed from soy sauce, including wine and pharmaceuticals. In addition, the company has forged relationships with Del Monte and other companies which have given the company greater access to international markets ("Corporate Profile," 1999, p. 1).
Today, Kikkoman soy sauce is produced in the United States, Europe, Singapore, and Taiwan as well as in Japan, and the company's American subsidiary (Kikkoman International) recently began construction of a second plant in Folsom, California (the subsidiary is headquartered in San Francisco, also in northern California) ("Corporate Profile," 1999, p. 1). This means that the company is able to avoid many of the trade issues with regard to exporting and importing goods which companies lacking an American subsidiary face.
Japan's economy remains heavily regulated, which reinforces business practices that restrict competition and keep prices high. Pr...