ABSTRACT
A business partnership is seen by Japanese firms as a kind of marriage, that is to say a long-term alliance. Most Japanese manufacturing companies successful in the export field are involved only in assembly work—to a far greater extent than their European and American competitors. Foreign firms’ ability to compete on the Japanese market would probably only be permanently improved if the Japanese government were to take steps to remedy the social and employment disadvantages suffered by the small subcontracting firms, with their substantially lower wages and special working conditions. Japanese carmaker which has contractual ties with 168 “primary suppliers”. The Japanese distribution system is rightly seen by foreign manufacturers as a high barrier to their penetration and development of the Japanese market. The reason lies in quite specific structural characteristics and trade practices, which are important elements in a system that has grown up organically over the years.
