1. A clearer understanding of the historical roots of the Japanese economy will enable the businessperson to better comprehend and appreciate the business culture of this nation. It is important neither to underestimate the role the government plays in setting economic policy nor to minimize the importance of the keiretsu (powerful business alliances).
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2. Be sure to consider currency rates and risk when entering into business with Japan. Establishing business in Japan can be very expensive for foreign companies due to the high value of its currency. On the other hand, however, companies selling to Japan have seen the value of their sales go up dramatically, and the price competitiveness of their products has also improved.
3. Western companies wanting to do business in Japan should understand the Japanese keiretsu system and know specifically how their potential Japanese business partners fit into it. These keiretsu are strong networks of long-term alliances. They share capital, research and development, customers, vendors, and distributors. In the past, they did not typically have business relationships with companies that were not members of their keiretsu, but these barriers are breaking down.
4. Japan has the second highest per capita income in the world after Switzerland. However, its real standard of living is comparably lower due to the high cost of consumer products and land. This translates into an opportunity for foreign companies, because Japan’s large and sophisticated consumer market is interested in buying high-quality but lower-cost foreign goods.
5. Beginning in the 1980s, the rapid growth of Asian countries caused Japan to re-focus its attention on Asia, and an increasing share of Japan's trade and investment was done with Asian countries. This has had economic ramifications for Japan's traditional trading partners in North America and Europe. As Japan becomes less dependent on these markets for export of its manufactured goods, it may be less willing to offer trade concessions to North American and European countries.
6. Due to the large trade surpluses and the high savings rate of Japanese consumers, Japan has invested significant amounts of capital abroad in the form of direct investments in plants overseas, foreign government bonds, securities in foreign countries, and real estate. While some of these investments have been less successful than others, the trends underlying this foreign investment still exist and Japanese companies will continue to invest outside of Japan.