Japan is one of the United States' major trading partners, and the various regulations and policies which the two countries pursue are critical to the long-term success of this relationship. Amid cries of protectionism and similar complaints, there has been increasing pressure on the Japanese to open their markets to American products and companies, while the Japanese assert that the technically inferior American products are simply not in demand in Japan. This research examines the current trade relationships that exist between the United States and Japan, and considers the opportunities for American companies seeking to do business in Japan.
Because of the political overtones that this topic carries, extensive use will be made of research conducted by the government in support of American trade policies. The Department of State and the Department of Commerce both have significant research programs designed to assist American companies. In addition, strong use will be made of publications that focus on trade between the United States and Japan.
The differences between the environment that American companies face and the environment in Japan can be significant. For example, while unions exist in both countries, unions in Japan do not represent entire industries, but workers at a single company. This is in marked contrast to the United States where a single company may have to bargain with many different unions. The Japanese system enables companies to work with a single union, and the unions in Japan are much more interested in meeting the needs of management than such organizations are within the United States.
Much has also been made of the Japanese commitment to quality, and in its innovative management techniques, which include concepts such as quality circles and just in time inventory control. Some of these concepts have been introduced to American companies. Whether or not these practices alone are responsible...