Doing Business with the Japanese

• A Japanese response “I’ll consider it” may actually mean “no.”
• Negatively phrased questions typically get a “yes” if the Japanese speaker agrees. For example, a question such as “Doesn’t Company A want us?” will be answered “yes” if the Japanese thinks that Company A indeed does not want you. In English, the answer would be “No, they do not want you.”
• Incorporate the words “I’m sorry” into your vocabulary when you go to Japan. However, don’t be ingratiating out of fear of offending; just be polite.
• Hard-sell techniques will fail in Japan. Instead, find the points on which you and your Japanese counterparts agree, then build upon those. A positive, persuasive presentation works better with the Japanese than does a high-pressure, confrontational approach.
• Negotiations are begun at the executive level and continued at the middle level (working level).
• Connections are very helpful in Japan. However, choose your intermediaries carefully, because the Japanese will feel obliged to be loyal to them. Do not choose someone of lower rank than the person with whom he or she will be negotiating. Intermediaries should not be part of either company involved in the deal.
• If you don’t have a connection, a personal call is better than a letter or e-mail.
• Use an intermediary to convey bad news.
• Using a Japanese lawyer rather than a Western one indicates a cooperative spirit.
• The Japanese usually use the initial meetings to get to know you, while at the same time asking to hear about your proposal. Agreements of confidentiality are vague.
• Contracts are not perceived as final agreements. You or they may renegotiate.
• Because age equals rank, show the greatest respect to the oldest members of the Japanese group with who you are in contact.
• You will not be complimented on good work, because the group and not the individual is rewarded. It is a bad idea to single out Japanese workers.
• The Japanese will not explain exactly what is expected of you.
• Most Japanese go through job rotation, in which they change jobs within the same company every few years. In this way, the employees get to know the company and its work force well.
• Suggestion boxes, so often ignored in the United States, are useful in Japan, because Japanese employees stuff them full of suggestions.
• Do not make accusations or refuse anything directly; be indirect.
• At work the Japanese are very serious and do not try to “lighten things up” with humor.
• When working with Japanese who know English, or when using an interpreter, be patient. Speak slowly, pause often, and avoid colloquialisms. Your interpreter may seem to be taking more time with the translation than you did with your statement; this is because she or he is using lengthy forms of respect.
• Do not be surprised if your interpreter translates Japanese into English almost simultaneously but waits until English speakers are finished before translating into Japanese. Unlike English, Japanese is a very predictable language. By the time a Japanese businessperson is halfway through a sentence, the translator probably knows how the sentence will end. Indeed, it would be very impolite of a Japanese to end a sentence with an unexpected choice of words.
• At times, you may need to pretend you are sure that your Japanese colleague or friend has understood you, even if you know this is not the case. This is important for maintaining a good relationship.

Business Entertaining

• Business entertaining usually occurs after business hours, and very rarely in the home. You will be entertained often, sometimes on short notice. While the first evenings will probably be spent going from bar to restaurant to “hostess bar” (not a good idea for businesswomen), you may suggest alternatives later. These may include sumo wrestling or karaoke (“empty orchestra”) bars, where you sing along with prerecorded music.
• When you are taken out, your host will treat.
• Allow your host to order for you (this will be easier, too, since the menus are in Japanese). Be enthusiastic while eating, and express your thanks afterward.
• While business entertaining is primarily for building friendships rather than for doing deals, you may discuss business during the evening.
• If you are invited to a Japanese home, keep in mind that this is a great honor: show your appreciation.
• For social occasions, it is appropriate to be fashionably late.
• When entering a Japanese home, take off your shoes at the door. You will wear one pair of slippers from the door to the living room, where you will remove them. You will put them on again to make your way to the bathroom, where you will exchange them for “toilet slippers.” Do not forget to change back again.
• In a home, you will sit cross-legged, or with your legs to the side, around a low table with the family. You may be offered a backrest.
• Meals are long, but the evening usually ends at about 11:00 p.m.
• Never point your chopsticks at another person. When you are not using them, you should line them up on the chopstick rest.
• Use both hands to hold a bowl or a cup that you wish to be refilled.
• Eventually, you will wish to invite your hosts out. Be insistent, even if they claim that a foreigner should not pay for anything.

 

Greetings

• The Japanese are very aware of Western habits and will often greet you with a handshake. Their handshakes will often be gentle; this gives no indication of their assertiveness of character.
• The handshake may last longer than customary in northern Europe or North America.
• The bow is their traditional greeting.
• If someone bows to greet you, observe carefully. If you are greeting an equal, bow to the same depth as you have been bowed to, because the depth of the bow indicates the status of the relationship between you.
• As you bow, quickly lower your eyes. Keep your palms flat against your thighs.

Titles/Forms of Address

• In person, use last names plus San, meaning “Mr.” or “Ms.” Do not immediately assume that the Japanese will call you by your first name.
• In correspondence, it is more respectful to add –dono or –sama to the last name.

 

Gestures

• Japan is a high-context culture; even the smallest gesture carries great meaning. Therefore, avoid expansive arm and hand movements, unusual facial expressions, or dramatic gestures of any kind.
• The American “okay” sign (thumb and forefinger curled in an O) means “money” to the Japanese.
• Some Western gestures convey nothing to the Japanese. These include a shrug of the shoulders or a wink between friends.
• Pointing is considered impolite. Instead, wave your hand, palm up, toward the object being indicated, as the Japanese do.
• Beckoning “come here” is done with the palm down.
• Moving the open hand, with the palm facing left, in a fanning motion in front of the face indicates a negative response.
• Sniffing, snorting, and spitting in public are acceptable, but nose blowing is not. When you must blow your nose, use a disposable tissue and then throw it out.
• To get through a crowd, the Japanese may push others. There is also a gesture meaning, “excuse me,” which involves repeating a bow and a karate chop in the air.
• The Japanese do not approve of male-female touching in public.
• Men do not engage in backslapping or other forms of touching.
• In conversation, the Japanese remain farther apart than do North Americans.
• Prolonged direct eye contact is not the norm.
• A smile can mean pleasure, but it can also be a means of self-control, as when it is used to hide disapproval or anger.
• Keep a smile, even when you are upset.
• Laughter can mean embarrassment, confusion, or shock, rather than mirth.
• Silence is considered useful.

 

Gifts

• Gift giving is very common in Japan. Business gifts absolutely must be given at midyear (July 15) and at year-end (January 1). They are often given at first business meetings.
• Make sure your gift was not made in China.
• For the Japanese, the ceremony of gift giving is more important than the objects exchanged. Do not be surprised by either modest or extravagant gifts.
• Take your cue from the Japanese with whom you are working. Allow them to present gifts first, and make your gift of the same quality as theirs.
• The Japanese do not usually open gifts directly upon receipt. If they do, they will be restrained in their appreciation. This does not mean that they do not like your present. Again, follow their lead.
• Good gifts are imported Scotch, cognac, or frozen steaks; electronic gadgets and toys for children of associates; or items made by well-known manufacturers. Elite, foreign namebrands are always best.
• Always wrap your gifts in Japan or have them wrapped by hotel or store services. It is best to buy the paper there, so as not to choose a paper that is considered tasteful in your home country but unattractive in Japan (for example, black and white paper is unacceptable). Rice paper is ideal.
• If you are invited to a Japanese home, bring flowers, cakes, or candy.
• Avoid giving gifts with even numbers of components, such as an even number of flowers in a bouquet. Four is an especially inauspicious number; never give four of anything.

Dress

• Men should wear conservative suits. Avoid casual dress in any business meeting.
• Because shoes are removed frequently, many people wear shoes that slip on.
• Women should dress conservatively, keeping jewelry, perfume, and makeup to a minimum. Pants are becoming more common. High heels are to be avoided if you risk towering over your Japanese counterparts.
• Summer is usually very hot in Japan, so bring lightweight cotton clothing. Be sure to have plenty of changes of attire, because the Japanese are very concerned with neatness.
• If you wear a kimono, wrap it left over right! Only corpses wear them wrapped right over left.

Business Cards

• Business cards are extremely important for establishing credentials. Have them prepared in advance and checked by a Japanese business representative. It is best to have one side printed in your native language, with extra information such as membership in professional associations included; the reverse side should be in Japanese. If your status changes, have new cards printed immediately.
• Cards are presented after the bow or handshake. Present your card with the Japanese side facing your colleague, in such a manner that it can be read immediately.
• Read the card presented to you, memorizing all the information. Ask for help in pronunciation and in comprehension of the title; if you understand without help, make a relevant comment.
• Handle cards very carefully. Do not put them in your pocket or in your wallet if you plan to put it in your back pocket. Never write on a person’s business card (especially not in his or her presence).

Cultural Note

• Should you have occasion to visit a Japanese person who is ill, never bring him or her white flowers. The color white is associated with death. Also, avoid giving a potted plant, which suggests that the sick person will soon be planted in the ground.

Negotiating with Russians and Americans

Russians

• It is said that Russians are great “sitters” during negotiations. Traditionally, Russians regard compromise as a sign of weakness. Some even see compromise as morally incorrect. Russians would rather out-sit the other negotiator—and gain more concessions from the other side.
• Be certain that all members of your negotiating team know and agree on exactly what you want out of the deal. Write this down (perhaps adding a few “nice to haves” that can be given away later) and bring it with you. Do not show the Russians anything other than unity among your team.
• Be factual and include all levels of technical detail.
• “Final offers” are never final during initial negotiations. Be prepared to wait; the offer may be made more attractive if you can hold out.
• Until you have a signed a formal agreement, do not get overconfident about the deal at hand. And never expect that you can renegotiate later for a better deal. This contract is as advantageous as you will ever get.
• The Russians may request that some funds be paid to them directly in cash, or to an account in a foreign bank. This may be because of their historic concern over the oppressive Russian tax system and the rarity of being paid in cash. Be prepared to propose various options.
• One Russian tactic is to allow (after long negotiations) the foreign partner to own 51 percent of a joint venture. However, contracts usually require unanimity among the partners for major decisions anyway, so 51 percent is not a controlling interest.
• Include a clause requiring the joint venture partners to submit to arbitration in a neutral country if they can’t come to an agreement. Sweden is the most popular choice for third country arbitration.
• Russian regulations represent the biggest liability to a successful joint venture. These regulations are in constant flux (reforms are being made all the time), so don’t count on your Russian partner to have a full grasp of the legal issues involved. Get your own expert in Russian law. Don’t be surprised when something you did yesterday is disallowed tomorrow; some laws are nebulous, and their interpretation is subject to change.
• Appearances can be deceiving. Russian firms may look prosperous and full of potential. Select a partner based upon full knowledge of the assets it owns or controls.
• Since it is not customary for Russians to disclose their home phone, or other personal telephone numbers, no official residential phone books are issued at all. However, various directories are produced, and many of them are accessible free on the Internet.
• In many countries—such as Japan—people tend to respond to a question by saying “yes.” In the USSR the tendency used to be just the opposite; managers and bureaucrats said “no” at every opportunity. However, Russian executives now often say yes to proposals—even if they lack the authority to do so. They make promises to buy time, and expand the contacts they want with foreigners.
• Historically, there were many reasons why Russians said no to business proposals. One was that innovation was traditionally discouraged. Also, Russians were afraid that if they gave the go-ahead and a project failed, they would be held responsible. Another reason had to do with the position of an individual in a rigid, hierarchical bureaucracy. You rarely met a Russian bureaucrat who had the power to push a project forward without the agreement of others. But one individual could cancel a project, all by himself or herself. Often, the ability to say no was the only real power many bureaucrats possessed; not surprisingly, they used it frequently.
• Peace, international relations, the changes in Russia, and difficult economic situations are all common topics of conversation. People will ask what you think of Russia and what life is like in your home country.

Americans

• Business is done at lightning speed in comparison to many cultures. U.S. salespeople may bring final contracts to their first meeting with prospective clients. In large firms, contracts under $10,000 can often be approved by one middle manager in one meeting.
• Send all relevant information electronically to prospects prior to your visit, and be prepared to process invoices through their paperless online systems.
• Appointments are made by e-mail, conferences are broadcast live over the Web, information and presentations are archived on corporate intranets so employees can access them worldwide at their leisure. Speakers and presenters should remember that their recorded words may ring over speakers, through the Web, for years to come.
• Executives should keep up to date with new electronic gadgets and means of communications in the United States. Hot zones (wireless access) are proliferating; you can access e-mail and surf the net from a multitude of locations—including your airplane seat. The gadgets will only get faster and smaller, so stay current.
• The use of handhelds, cell phones, and associated devices are common in business meetings. Taking calls while others are in the room can be highly irritating to international visitors—but be aware that it is common practice.
• In response to an increase in the vehicular accident rate, some states (for example, New York and New Jersey) have made it illegal to talk on a hand-held cell phone while driving.
• While knowing the right people and having many contacts in an industry is valuable, it is not seen as being as important for a salesperson as a good history of sales. Sales staff are evaluated and compensated on their “track records” rather than the potential for exploiting their contacts.
• The “bottom line” (financial issues), new technology, and short-term rewards are the normal focus in negotiations.
• U.S. executives begin talking about business after a very brief exchange of small talk, whether in the office, at a restaurant, or even at home.
• Whether a colleague is a man or a woman should be ignored, except when it comes to personal questions. Women should not be asked if they are married. If a woman mentions that she is married, you should simply ask a few polite questions about her husband or children.
• Remember that the United States is the most litigious society in the world. There are lawyers who specialize in every industry and segment of society, from corporate tax attorneys to “ambulance chasers” (personal injury lawyers).
• The standard U.S. conversation starter is “What do you do?”—meaning “What kind of work do you do, and for whom?” This is not considered at all rude or boring. Actually, to many U.S. citizens, you are what you do.
• Compliments are exchanged very often. They are often used as conversation starters. If you wish to chat with someone, you can compliment something that person has (e.g., clothing) or has done (a work or sports-related achievement).
• Until you know a person well, avoid discussing religion, money, politics, or other controversial subjects (e.g., abortion, race, or sex discrimination).
• Some common topics of conversation are a person’s job, travel, foods (and dieting), exercise, sports, music, movies, and books.
• Before smoking, ask if anyone minds, or wait to see if others smoke. Smoking is generally prohibited in public places: in airplanes, office buildings, in stadiums, and even in bars. Large restaurants in some states usually have a section where smoking is permitted. Many hotels designate rooms as smoking and nonsmoking.
• While business people always have business cards, they are not exchanged unless you want to contact the person later. Be sure to include your e-mail address, Web site, etc., on your card.
• Your card will probably be put into a purse, wallet, or back pocket. People may write on your card as well. This is not meant to show disrespect.