The options for American firms wishing to enter the Japanese market are as follows:

100 percent ownership Establish a new plant of office (wholly owned subsidiary).

100 percent buyout of a Japanese firm (takeover).

Partial ownership Establish a joint venture (subsidiary) with a Japanese fi

The dominant form of ownership amongst American business operations located in Japan is 100 percent ownership. However, as a measure of testing the waters, many American businesses opt for a joint venture as a vehicle to entry. If this strategy proves to be successful, then there is a strong tendency for firms to strengthen control over business in Japan. When this decision is made, most firms change their business form, moving toward 100 percent ownership.

Both high labor costs and the difficulty of hiring people have been cited as major problems operating in Japan. As more foreign firms have come into Japan, demand for suitable staff has remained greater than the supply. However, the biggest problems firms experience in gaining entry into the market includes a body of both official and unofficial rules and regulations. The extent and nature of these depend to some degr

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Approximate Word count = 595
Approximate Pages = 2 (250 words per page double spaced)