PRINCIPLES CONDUCTING BUSINESS IN JAPAN

3 percent of japan's GNP, comp bed to somewhat sixpercent in the US. lacquer, thus, is far less prostrate to consume than is the US. This factor is one which companies attempting to market their products in Japan must(prenominal) confront.

Conventional western scotch wisdom holds that the "economic system exists to execute the wants of consumers . . . . Business managers . . . are driven to do consumers' bidding not by benevolence but by the search for pelf in a competitive marketplace. To take care their stockholders, they must serve the public by innovating and holding strike down costs."3 In Japan, however, priority derives to the producer, not to the consumer. Further, profits are not sought primarily for stockholders, but rather to serve "as the wellspring of growth which they see as an total part of nationbuilding."4

Japanese companies typically pursue strategies designed to create longterm profitability, as opposed to unequalterm profitabilitythe typical perspective of most(prenominal) American firms. According to western economic theory, longterm profits should be reflected in equity stock prices. In Japan, however, "managerial decisions are rarely driven by stock prices."5

epoch-making levels of some resources required by Japan must be acquired through importation. Japan's principal imports (in the order of trading value magnitude) are (1) mineral fuels, (2) foodstuffs, (3) metal ores and scrap metals, (4) machinery and transportation equipment, and (5) textile fibers.6

Japan's natural resource base is limited. Its nationalated crude oil reserves are minimal. All most all of its crude oil requirements must be imported. Its domestic sources of coal, iron, and all other minerals are also extremely limited. Japan does have significant electrical generating facilities.

In this context, however, the country must import most of the fuels required to run the generating facilities.

When industrial insurance is translated into apparent rectitude in Japan, the result is quite diametric from American patent law. The objective of American patent law is "to protect and reward individual entrepreneurs and innovative businesses, to pull ahead foundation and the advancement of knowledge."14 By contrast, the objective of Japanese patent law is to promote the sharing of technology.15 Sharing technology implies that innovation will not be protected, as such protective cover is understood in the United States. Beyond the objective of insure the sharing of technology, Japanese patent law is designed to encourage the "rapid spread of technological knowhow among competitors in a manner that avoids litigation, encourages broadscale cooperation, and promotes Japanese industry as a whole."16

18J. O. Wilson, The Power Economy (Boston: Little, Brown and Company, 1985), 121.

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