Globalization and Cultural Insights: Japan
Understanding Globalization and Its Drivers
Historically, nations maintained absolute control over the products, people, and capital crossing their borders. However, today’s economies are increasingly intertwined. This growing interdependence signifies a freer flow of goods, services, money, people, and ideas across national borders. Globalization is the term for this trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. It is characterized by denationalization (where national boundaries become less relevant) and differs from internationalization (where entities cooperate across national boundaries).
The first age of globalization, from the mid-1800s to the 1920s, saw significant labor mobility and unrestricted international trade. Historical events like the First World War, the Russian Revolution, and the Great Depression significantly impacted global economic patterns. Key drivers of globalization include technological advancements such as communication satellites, fiber optics, microchips, and the Internet. The evolution of economic systems, particularly the shift from communism to capitalism in Central and Eastern European nations post-1989, also plays a crucial role.
Two main forces underlie the globalization of markets and production: falling barriers to trade and investment, and technological innovation. These factors increase competition among nations, leveling the global business playing field. Increased competition drives companies worldwide into more direct confrontation and cooperation. Local industries, once isolated, are now increasingly accessible to large international companies. Some small and medium-sized local firms cooperate with each other or with larger international firms to remain competitive. Others revitalize themselves to survive. Globally, consolidation occurs as former competitors link up to challenge others worldwide.
Key Aspects of Japanese Business Culture
Three major aspects of Japanese business culture are important to understand:
- Public Culture: Japanese culture tends to be public. Top Japanese managers are often located in the center of a large, open-space office, surrounded by employees. In contrast, Western executives are often in walled offices. This characteristic extends to traditions like public bathhouses.
- Balance and Harmony: Japanese culture emphasizes a delicate balance between people and the environment. If a product flaw harms customers, a class-action lawsuit is less likely than in other countries. Japanese culture acknowledges that accidents happen. Victims typically receive heartfelt apologies, a promise to prevent recurrence, and a relatively small damage award.
- Emphasis on the Future: Japanese culture values strong ties between people and groups, including companies. Forming long-term relationships is essential. Japanese companies maintain close, continuous contact with buyers to ensure their needs are met. This relationship also serves as a communication channel for suppliers to learn about future product and service preferences.
Juan Álvarez-Rendueles Basagoiti