To link to points within the Supporting Articles, click on the following links. Western companies wanting to do business in Japan should understand the Japanese keiretsu system and know specifically how their potential Japanese business partners fit into it. These keiretsu are strong networks of long-term alliances. They share capital, research and development, customers, vendors, and distributors. In the past, they did not typically have business relationships with companies that were not members of their keiretsu , but these barriers are breaking down.
Japan has the second highest per capita income in the world after Switzerland.
However, its real standard of living is comparably lower due to the high cost of consumer products and land. Beginning in the 1980s, the rapid growth of Asian countries caused Japan to re-focus its attention on Asia, and an increasing share of Japan's trade and investment was done with Asian countries. This has had economic ramifications for Japan's traditional trading partners in North America and Europe. As Japan becomes less dependent on these markets for export of its manufactured goods, it may be less willing to offer trade concessions to North American and European countries. Due to the large trade surpluses and the high savings rate of Japanese consumers, Japan has invested significant amounts of capital abroad in the form of direct investments in plants overseas, foreign government bonds, securities in foreign countries, and real estate.