globalEDGE International Business Blog

It is well known that the auto industry has taken a hit across the globe. With sales and production down and several plant closures, it seems that things are looking grim. However, several Japanese automakers are thriving, not internationally, but in China.

With global production down for almost every automaker, Japanese cars have had positive growth in China at rates up to over 60%! While global production has dropped over 16%, Honda’s Chinese production increased by 20%. This dramatic difference could be what keeps Honda alive during these tough times. But Honda is not the only success story. From this time last year Toyota's Chinese production is up 37%, Mazda's rose 56% and Nissan's is up 62.9%. Even with these increases, Toyota’s global production sank 4% this year and Nissan fell over 8% as well.

Times are certainly tough for international business, but knowing where to be has a huge impact on success. Japanese automakers have found that China is the place for them, and it has definitely paid off.

Tokyo was unsuccessful in becoming the host for the 2016 Summer Olympics but it is a city known for its success in many other areas, business in particular.

The damage the stronger yen is causing to Japan's export reliant economy has been large. The new government in Japan took an anti-interventionist policy, which has caused speculators to strengthen the yen even more. It made sense when the Japanese economy was healthy, but now with deflation and a decline in exports, an intervention is just what they need. While the cheaper imports are good for the consumer, Japanese Finance Minister Hirohisa Fujii sees this steep increase as signs of trouble. His concern may weaken the yen, making it easier for companies to export. While trade protectionism between the U.S. and China is a concern, the yen will keep increasing unless an invervention occurs. This short video explains the situation a little better.

As mobile technology improves, many of the cell phones people are using are becoming outdated at an increasingly-faster rate. This is especially the case in Japan, where the latest cell phone can be usurped by another within a few weeks. In fact, the Japanese are so far advanced in cell phone technology that they've had a difficult time taking their cell phones global. So, what does one do with a bunch of outdated phones that nobody wants? Recycle them for their precious metals!

Want to know more about how the top Japanese companies do business?

The Fall 2009 class at Sophia University in Tokyo, Japan has written and narrated a series of podcasts which explain many aspects of Japanese firm management, in addition to presenting the students' perspectives on the issues.

In the current economic downturn, it isn’t surprising to see workers avoiding vacations. Many need the money, and may even be unsure of whether or not they will have a job the next day. But, if they spend all their time working and saving their money, and not spending it, this creates a problem. In Japan, the issue has actually taken a noticeable toll on the economy. Japanese workaholics, or sarariman, often work late nights and stash away their money. Japan, then, needs to find a way to get Japanese households spending their $8 trillion in savings.

The United Kingdom recently unveiled a new plan to revamp its inter-city rail system, awarding Hitachi a contract to develop new, more efficient and lightweight trains, called the "Super-Express". The 7.5 billion-pound upgrade comes in the midst of the worst global recession in decades, but transport secretary Geoff Hoon is confident that investing now will pay off, both in the short term job creation and the long term infrastructure boost.

The average Frenchman works about 18 hours per week, the average Italian – close to 17. Even Europe’s biggest workaholics – the British – don’t work as much as Americans (21 hrs a week for the average British compared to 25 for the average American). Europeans have been astonished by the amount of time Americans are willing to spend in the office -  how can Americans not want to take off a whole month in the summer to go on a vacation? Well, workers in Japan are even more extreme when it comes to work. If you are thinking about getting a job in Japan – think again! Japanese workers are known to work about 12 hours a day! Yes, you can leave at 5.30pm when the day is over but you might get many bewildered and disapproving looks.

Most teenagers dream about owning their own car. For some, it is a realistic expectation that in the near future, they’ll own a car. For others, it’s a long-term goal. Regardless, few can deny the convenience, comfort, and freedom of owning their own car. Japanese youth, however, seem to have other dreams. Japanese automakers say the youth in Japan are more interested in technological goods such as cell phones, computers, and many other Japanese technological marvels. For more on Japanese business, visit its page on globalEDGE!

Japan, the world’s second-largest economy, has a shrinking population of working adults and is expected to lose 70% of its workforce by 2050. This forecast is based on Japan having the world’s highest proportion of people over 65 and lowest proportion of children under 15. A recent article in the Washington Post explains that Japan’s social and corporate cultures are the catalysts of this trend.