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The friendly wall

You have come to understand that doing business in Japan is often quite difficult - even though your personal experience with the Japanese people has been wonderfully friendly. So, what's going on?

Traditionally, foreign investors have been locked out of Japan. And, although the situation is evolving (foreign investment has been increasing rapidly of late), in many ways Japan is still a bureaucratic country. A number of business matters that require no formal approval in Europe must still be officially approved in Japan. Originally designed to erect entry barriers against newcomers to established Japanese industries, the country has developed a dense network of regulations, permissions, certifications, and procedures.

These complex regulations are slowly being eased, but they are rarely eliminated. Depending on your objectives and needs, professional help (from lawyers or experienced management consultants, for example) can often find ways for you to do business - especially in new industries.

Peter Villax
Vice president
Hovione
"My understanding of their value systems helps me negotiate."
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