countries. A measure of equal access was also proposed by the task force in order to accelerate Japanese market opening.

Existing conditions in many local communities throughout the world are not as simple as many politicians think. These communities are struggling to adapt themselves to socioeconomic and sociopolitical changes within cultural and customary constraints which evolved for hundreds and thousands of years. It is very difficult, if not impossible, to change culture and custom overnight as the U.S. government demands. The Japanese working group strongly believes that culture and customs should not be unified for the sake of economic reasons; rather, its diversity should be encouraged to enrich civilization.

SUMMARY OF CASE STUDIES

Many U.S.-based MNCs were established in Japan during the 1960's, when the market was tightly closed, and are earning much higher profits than most Japanese companies. None of the successful ones have retreated from Japan since their establishment. They have been contributing to the advancement of national economies as well as science and technology in the home and host countries. This fact has been known for many years; however, the claims by failed companies, who aimed at overnight success, have overshadowed the successful cases and resulted in misconceptions toward the Japanese market as a conspicuously tightly closed market.

We recognize that many outdated government regulations should be removed as soon as possible in order to promote emerging businesses. However, those industries, domestic or foreign, who are losing international competitiveness or those trying to protect vested interest, are still in favor of the current regulations. It will take painstaking efforts and step by step deregulation.

Japanese companies carry the heavy burden of regulations as much as foreign-based MNCs. It is a domestic problem and not discrimination against foreign companies. They used to say “when in Rome, do as Romans do.” The proverb is still valid today as the case studies prove.

Summarizing the results of the case studies, we have learned the following basic management practices, which are true regardless of the MNC's origins or the markets where they practice:

  1. Consistent management based on long-range strategy.

  2. Core competencies such as distinguished technology and products.

  3. Careful market study and customer oriented product development.

  4. Mutual trust between the top managements of joint ventures.

  5. Localization of the MNC's management and establishment of trust with customers and local communities.

  6. Fusion of corporate managements and cultures at MNC.

  7. A long-range vision for globalization and “glocalization” (a fusion of globalization and localization.)

Since the 1970's Japan has rapidly relaxed market entry regulations, especially those in high technology industry. Of course there still exist informal barriers resulting from differences in culture and customs. No country exists in the world that completely opens its markets. As every river has to be properly managed locally in order to avoid flooding and to improve irrigation, the minimum level of necessary regulation may not be identical from country to country. Many



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