The sale of Britain’s Tannoy hi-fidelity loud-speaker system to Japan is something of a ‘coals to Newcastle’ story. Tannoy is exporting a sizeable part of its production to the most active hi-fi market in the world, Japan, where its executives spend a quarter of the year. To sell cosmetics to Japanese women is a difficult business for foreign cosmetic manufacturers. Consequently, foreign-made cosmetics have got only 2 per cent of the total market, worth $56 million. Marks & Spencer has made a sole distribution contract with Daiei, the largest supermarket chain in Japan. In 1977 Japan imported technology from West Germany, the UK and France worth a total of US $165 million; this including technology for transportation equipment, chemicals, general machinery, and electrical machinery. Those successes were achieved not only by the strategies and efforts of the companies concerned, but also by the increasingly favourable environment for imported goods and the general operations of foreign companies in Japan.