September 17: Common Economics

When I travel I always try to observe differences in commerce between different countries. For instance, the variety of cars available in Mexico and Japan just doesn't compare to California. Californians own more cars than any other people, therefore every car maker in the world wants to get into that market. Anyway, there are lots of interesting things to observe in Japan. One friend commented that normal economics just don't work in Japan. Or rather, the rules that Americans learn in their economics class seem to differ from the rules taught in Japan.

One of the first things I witnessed upon coming to Japan this time, was a gift shop. Everyone knows that Japanese people love to give gifts for just about any occasion. This time, my friend, Miho, was moving into a new apartment, so she wanted to give something to her new landlord (no matter that the premise itself is a little backward). So, we went to one of the big department stores found at every subway station in Tokyo. We proceeded to gift floor where one can buy anything from handkerchiefs to sausages. Most of the popular gifts fit into the category of Japanese sweets.

We had no more than stepped off the elevator, when about four different people called out "Irashaimase" from behind their respective counters. This was only the beginning for the overzealous service staff. As we browsed around, each counter had its own greeter to welcome us. After we finally decided on some overpriced finger-cakes, there was another person waiting to wrap our gift. Another person to ring it up and give us our change. And another to thank us etc. It's hard to explain, but it is a well known fact that the Japanese service sector is relatively unproductive.

Now, of course, I wouldn't allow myself to be biased by my Western background, so I asked some Japanese people about the matter. Many people say that these extra workers are really necessary in Japan. If the excess service is something that Japanese people prize, then the customers are really getting what they demand. The extra service has some value-added factor to it.

One of my professors here believes that the Japanese economy is more producer driven, while the U.S. is definitely customer driven. I have not decided for myself yet, but there are definitely a lot of differences here.

Next time: Why aren't there as many franchises here?