Population: 127,417,244

Economy Overview:

Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan advance with extraordinary rapidity to the rank of second most technologically-powerful economy in the world after the US and third-largest economy after the US and China, measured on a purchasing power parity (PPP) basis. (Using market exhange rates rather than PPP rates, Japan's economy is larger than China's.) One notable characteristic of the economy is the working together of manufacturers, suppliers, and distributors in closely-knit groups called keiretsu. A second basic feature has been the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding. Industry, the most important sector of the economy, is heavily dependent on imported raw materials and fuels. The tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self sufficient in rice, Japan must import about 50% of its requirements of other grain and fodder crops. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades overall real economic growth had been spectacular: a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of overinvestment during the late 1980s and contractionary domestic policies intended to wring speculative excesses from the stock and real estate markets. From 2000 to 2003, government efforts to revive economic growth met with little success and were further hampered by the slowing of the US, European, and Asian economies. In 2004, growth improved and the lingering fears of deflation in prices and economic activity lessened. Japan's huge government debt, which totals more than 160% of GDP, and the aging of the population are two major long-run problems. A rise in taxes could be viewed as endangering the revival of growth. Robotics constitutes a key long-term economic strength with Japan possessing 410,000 of the world's 720,000 "working robots." Internal conflict over the proper way to reform the ailing banking system continues.

General Business Practices.

a). Almost 99% of all collections involve using the Japanese language.
There are two mainii Chinese dialects, these are Mandarin and Cantonese. They are used in the majority of business transactions and are the official languages used in court proceedings. b). The Yen is used in business transactions. .
c). If a document is translated into Japanese then the transl;ation has to be certified by the embassy of the home country locate here in Japan.

Collections.

A. Background of Industry. 1. The amount for collections in Japan as recorded by the Japan Credit Association in 1993 was 741 billion dollars, and is expected to be over 900 billion at present. .
It is estimated that about 8-10% is actually put up for collection.. .
2. Debt collection is handled by both collection agencies and lawyers. The majority of consumer claims are handled by collection agencies whereas commercial claims are primarily handled by attorneys. .
3. Collection work is done both on commercial and consumer accounts.

B. Licensing Requirements.

There is no need to obtain a special licence to perform collections in Japan. Presently all of the 16 collection agencies operating in Japan are operating by having established a credit association.

C. General Procedures.

1. Steps involved in a typical collection assignment are as follows.
- A letter confirming the debt and a request for payment is sent to the debtor. .