Compare and Contrast United States and Japan's Domestic and Essay

Compare and Contrast United States and Japan's Domestic and International Market - Essay Example United States of America is the largest export partner of Japan, where as Japan is the third or forth largest trade partner of the United States depending on the criteria, if the member states of European Union, which are trade partners with the United States, are considered to be the members of one entity or more. The correlation between these two countries in their global as well domestic front has been discussed here under: DOMESTIC MARKETS: The domestic marketing policy of the United States focuses more on the businesses; it focuses on the sectors that every business covers, where as the domestic market policies of Japan focuses on the technology and innovation that can be utilized for the better product development through out the businesses. Japanese system of employment believes in sharing the benefits gained by the employees thus motivating them for better and innovative performance. Whereas, American system more likely focuses on fixed wage system and abrupt termination at w ill, incase of the conduct leading to a loss to the company, such approach proves to be very anti-innovative. In stable domestic markets American style will be beneficial both for the companies and the economies but when it comes to highly volatile and dynamic environment, the Japanese employment system should be preferred. That’s why it is said that the success that Japan enjoys is because of the way it compensates its employees (Dennis et al 1991). These differences lead to divergences in the labor market structure of both the countries as well. After the stock market crash in 1990, Japan suffered a set back in its economy, which took ten years for it to eventually recover, in 2004. After that Japan’s domestic marketing strategy focused on the research and development of the new technology that would be promoted in the public sector, so that all the businesses can prosper. This approach led for the recognition of its innovative techniques in all over the world. As fa r as the comparison for the domestic markets is concerned, United States excels in the traditional research where as Japan has a more innovative advantage over the global market. As compared to the American products, Japanese products and processes, which include semiconductors, automobiles, transistors, optical fibers, high end DVD & multimedia recorders and manufacturing systems, are more innovative and are highly demanded. Manufacturing has been the most substantial element of Japan’s economy since the World War II. Though the monetary value of United State’s manufacturing export is normally way more than Japan’s, but the proportion of the manufacturing export out of the total export is generally much lower than that of Japan. America has been focusing on its automobiles’ industries. After the stock market crashed, it bought the shares of most of the Japanese automobiles companies, which was a proof in itself that Japan had the higher end of technology in that field. Japan’s major exports still comprises of automobiles’ parts. According to an Organization of Economic Cooperation and Development (OECD), Japan holds the second position in the manufacturing sector after The United States of America. Japan had almost 470,000 manufacturing companies which was even more than that of United States (above 350,000). The United States of America’s domestic markets are a very complex paradigm, but