Doing Business in Japan

Introduction

Japan is situated in north eastern Asia between the North Pacific and the Sea of Japan. The area of Japan is 377,873 square kilometres, nearly equivalent to Germany and Switzerland combined or sightly smaller than California. Japan consists of four major islands, surrounded by more than 4,000 islands.

Japan's population is over 126 million. Most Japanese reside in densely populated urban areas. Japan's capital city is Tokyo. The population of the Tokyo Metropolitan Area including the city, some of its suburbs and the surrounding area is approximately l2million.

Discussion and Analysis

Constitution

Japan is a constitutional monarchy where the power of the Emperor is very limited. As a ceremonial figurehead, he is defined by the constitution as 'the symbol of the state and of the unity of the people'. Power is held chiefly by the Prime Minister of Japan and other elected members of the Diet, while sovereignty is vested in the Japanese people.

Legal System

Legal system of Japan is in a framework of a parliamentary representative democratic monarchy, where the Prime Minister of Japan is the head of government, and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the two chambers of parliament; the Diet with the House of Representatives and the House of Councilors. The Judiciary is independent of the executive and the legislature. In academic studies, Japan is generally considered a constitutional monarchy.

Political System

The 1946 Constitution envisages a parliamentary cabinet system based on separation of powers with the Emperor as the symbolic head of state without governmental powers. Supreme legislative power is vested in a bicameral legislature called the Diet, composed of the 480-member House of Representatives elected for four years unless dissolved by the Prime Minister and the 247- member House of Councilors elected for six years with half of the seats being up for election every three years. The House of Representatives consists of 300 members elected from single seat constituencies and 180 members by proportional representation by party from 11 electoral blocs. The House of Councilors consists of 98 members elected by proportional representation by p arty nationwide and 149 members from 47 multi-seat prefectural constituencies. The former's decisions prevail with respect to the choice of the Prime Minister, the budget and the ratification of treaties and can override the latter's by a two-thirds majority with respect to other matters, except for constitutional amendments, which require a two-thirds vote in both houses. Executive power is vested in the Cabinet, consisting of the Prime Minister who is elected by the Diet and other ministers of state(Norbury, 121).

Economic System

Japan's economy has yet to achieve a sustained recovery since the collapse of the “bubble economy ” in the early 1990 ' s. Japan ' s GDP grew at an anemic pace of 1 % a year in contrast to the heady growth of 4 % a year during the 1980s. The failure to break out of this long -term slump has resulted in the ...