Analyse the business environment of Japan Essay

Analyse the business environment of Japan - Essay Example In order to drive this growth, National Innovation System (NIS) plays a very important role. Innovation is one of the key drives that have led Japanese business corporations to this state of success. This paper presents a detailed study of the activities of NIS which helps to evaluate its impact on the business environment of the country. Business environment in Japan The Japanese business environment has been reflecting huge success during the late 1980s. The success of Japanese business enterprises is affected by the formation of the enterprise to a large extent. Three main types of companies can be recognized in Japan under Japan’s commercial code and another form of company is separately recognized under the Yugen Gaisha Law. Therefore, four different forms of a business company exist in Japan. These are Go-mei Gaisha (or commercial partnership), Go-shi Gaisha (or limited partnership), Kabushiki Kaisha (or general corporation) and finally Yugen Gaisha (or limited liability corporation) (Japanlaw, n.d.). ... Cheap exports made by Japan include particularly electronic devices, cars and computers (Japan-guide, 2013). This characteristic of Japanese business corporations is imparted by the human resource of these organizations. Human resource is considered a very important aspect in Japan. Hence, companies dedicate attention towards maintaining good human resource management system and employees provide the commitment of sustaining a long-term relationship with their respective corporations. Strong industrial relationship is one of the main factors that affect the performance of Japanese business firms in international context (Asetuc, 2003). This leads to improvement in the skills and employees might utilize their potential to the fullest extent for the growth of their organization. With globalization, Japan has been increasingly participating in the global business scenario. Japan is known on the global platform for its cheap exports. Japan mainly imports agricultural or intermediate good s, such as, culinary materials, wood, oil and other raw materials. Since the manufactured goods (imported) yield higher price than the raw materials imported by Japan (that requires lesser payments), Japan has a trade surplus. However, globalization makes the manufacturing units all around the world more cost efficient (Gu?jonsson, 2009). Thus, Japanese firms are currently facing intense competition in the global front. National Innovation System (NIS) Government component of the NIS The National Innovation System (or NIS) refers to the system of flow of information as well as the rapid transfer of technological knowhow amongst people residing in different parts of a country. It has been recognized by the Japanese government