Japan remains an export powerhouse, yet domestic consumption has increased in importance. This is a result of a strengthening economy, a more buoyant stock market, improving dividends, confidence from increased corporate profitability and other related trends. Compared to the past, the Japanese economy also is much more closely linked with Asia (both in terms of exports and imports) and Japanese firms now routinely consider India and Southeast Asian countries when evaluating investment destinations. Japan has become a key driver of growth in Asia as a market, investor, and source of knowledge.

The desire to revitalize Japan’s service sector is creating opportunities for U.S. and other foreign businesses and investors. Foreign businesses may be able to supply services that improve the productivity and efficiency of Japanese service providers. Businesses may also locate attractive opportunities as the Japanese government moves to deregulate, privatize, and liberalize in an effort to enhance the level of competition in Japan’s service sector as well as to bring in new ideas and methods.

JETRO, or the Japan External Trade Organization, is a government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. JETRO assists foreign companies by providing them with information on the investment environments of regions throughout Japan and help them to arrange and carry out visits to these regions. It also provides information and support to foreign companies looking for successful entry and expansion in the Japanese market. It provides a wide-range of services, such as timely market intelligence, extensive business development support, and relevant business events, designed to encourage new business between foreign companies and Japan.

Role of JETRO in Japan and overseas are:

• Promoting foreign direct investment (FDI) into Japan
• Facilitating economic growth in developing countries through trade promotion
• Cooperating in Economic Partnership Agreement (EPA)
• Assisting Japan’s small and medium-sized enterprises (SMEs)
• Supplying Japan with foreign economic information
• Promoting cross-border business tie-ups in high-tech and other key industry sectors
• Helping Japanese firms expand overseas and aiding efforts to protect intellectual property
• Researching developing economies (IDE)

A variety of support measures for small and medium-sized companies are in place, including support for low-interest financing, subsidies, and preferential tax measures.