IX. BUSINESS TRAVEL A. Business Customs An understanding of and sensitivity to Japanese business and social practices is of great importance in establishing and maintaining strong and successful business relationships in Japan. Unfamiliarity or indifference to local business practices may indicate a lack of commitment on the part of the exporter, and may lead to misunderstandings and bad feelings between both sides which could result in the loss of business opportunities. One should not assume that because meetings and correspondence are carried out in English, Western social and business norms apply. Japanese society is complex, structured, hierarchial, and group-oriented with strong emphasis on maintaining harmony and avoiding surface confrontation. The Japanese are not religious (in the Western sense) and practice situational ethics. Building relationships requires mutual trust, confidence, loyalty, and commitment for the long term. The concept of mutual social obligation ("giri") is extremely important in Japan, though weaker among younger Japanese. The obligation to repay a favor only applies if there is a strong bond between the parties. A longstanding successful business relationship may allow each side to grant each other favors to be repaid later, even if not strictly according to a written contract. Existing obligations may surpass bare economic interests, which explains why merely having a superior product at a good price may not be enough to establish a new buyer-seller relationship. Group decision making in Japan differs from that in the United States and has been generally described as from the bottom up; not from the top down. There are exceptions to this general norm, especially in family businesses founded since the end of the war and in smaller second tier firms. However, in most cases, decisions are made by consensus. Even in the large family firms, where decisions are made at the top, the process is usually managed so that company members have a sense of participation. Gift giving is expected in Japan. Gifts which represent a regional location in the United States or company-logo gifts are appropriate. Quality is important, but the gift does not have to be expensive. The packaging of the gift is as important as the gift itself and should be done professionally. Gifts are not usually opened in front of the giver, without obtaining permission. In Japan, sets of four are considered unlucky (the number 4 is pronounced the same as the word for death). Gifts that can be shared by the members of a group are usually more appropriate and practical. Business travelers to Japan should have bilingual business cards, most commonly with the English on one side and Japanese on the reverse. They can be printed in all major U.S. cities. Business cards are exchanged upon meeting someone, and is essential to formalize the introduction process and establish the status of the parties relative to each other. Japanese bow when greeting each other, although most Japanese dealing with foreign business executives will expect to shake hands. A nod of the head or slight bow in acknowledgement of a Japanese bow is appreciated. Japanese business executives do not normally deal on a first name basis in business relationships, and initial business and social contacts are characterized by politeness and formality. The group decision-making process in Japan may make it impossible to receive a prompt decision from a prospective business partner. Recognizing that it takes a longer time to cultivate business relationships in Japan than in the United States, American business executives should not come to Japan expecting to settle their business in just a few days or they will depart in frustration, having made no progress. In meetings, one should not interrupt when someone is speaking; this is considered very rude. The Japanese also rely heavily on nonverbal communication, although there is less eye contact. They tend to look to nuances, inferences, and signals to convey intent. Thus, while American negotiators are inclined to focus on tactics and press for agreement as a negotiating objective, the Japanese side prefers to probe, feel out the other party, and be relatively certain of the other side's position before presenting a proposal on which both sides can agree. One source of confusion in business communication may come from the Japanese word "hai" which is often used to mean "yes, I understand what you said" rather than "yes, I agree." Using a professional interpreter in business meetings is highly recommended, although expensive, even if the Japanese side is supplying one and even if the Japanese side speaks good English. This shows proper preparation, gives an opportunity to observe the other side more closely, and assures better communication. Japanese businessmen are accustomed to written contracts in international business dealings. A written contract, even if less detailed than a contract between two U.S. companies, is essential to meet legal, tax, customs, and accounting requirements. However, contractual commitments, once made, are to establish a long-term relationship. It is therefore quite difficult to find a new Japanese business partner since the old partner may lose face. Therefore, a company should consider carefully whether to grant exclusive rights in Japan to an unknown Japanese company. B. Travel Advisory and Visas There are no State Department travel advisories for Japan. Japan is noted for its stability, low crime and safe streets. A valid U.S. passport is necessary to enter and travel in Japan, and by Japanese law non-residents are required to carry their passports at all times. A visa is not needed for short-term business visits up to 90 days (with a round-trip air ticket). A visa must be obtained for longer stays, or if one plans to work in Japan, from one of Japan's consulates in the United States. A work or investor visa may take up to two months to receive. Immunization and health certificates are not required upon entrance. Foreign residents in Japan longer than 90 days must obtain an Alien Registration Card, available free of charge from the municipal office of the city or ward of residence in Japan. Upon arriving in Japan, passage through both immigration and customs is usually automatic as long as passport and air ticket if arriving without a visa are in order. Passengers should exchange U.S. dollars for yen before leaving the airport, especially if arriving at night or on a Sunday. C. Holidays The following is a list of holidays which are observed annually in Japan. If a national holiday falls on a Sunday, the following Monday is a compensatory day off. May 4 is also a national holiday, although it has no specific title. In addition to the above public holidays, many Japanese companies and government offices traditionally close for several days during the New Year's holiday season (December 28 - January 3). Many also close during "Golden Week" (April 29 - May 5) and the traditional "O-Bon" (Festival of Souls) period for several days in mid-August (usually August 12 - 15). January 1 New Year's Day January 15 Adult's Day February 11 National Foundation Day March 21 Vernal Equinox Day April 29 Greenery Day May 3 Constitution Memorial Day May 4 (Declared Official Holiday) May 5 Children's Day September 15 Respect-for-the-Aged September 23 Autumnal Equinox Day October 10 Health-Sports Day November 3 Culture Day November 23 Labor Thanksgiving Day December 23 Emperor's Birthday D. Business Infrastructure Japan has highly developed hotel, rail, bus, rental car, cellular telephone, telecommunications (except Internet) and taxi industries catering to any need of the business traveler. For additional information on traveling to Japan, contact the Japan National Tourist Organization (JNTO) at (212) 757-5640 and obtain the free brochure "Your Traveling Companion: Japan."