IntroductionExternal influences influence the types of products developed, the nature of market positioning and segmentation strategies, the type of services offered, and the choice of company to acquire. The growing complexity of business today is highlighted by the fact that more and more countries are developing the ability and willingness to compete aggressively in world markets. The external influences that affect a business venture in the global market vary from country to country. Creating a new business venture in an area like Japan would require an analysis of its cultural and economic environment. The Japanese market is considered the most profitable market in the world. The biggest problem is how to get into it. Japan is known around the world for its economic successes, but Japanese society remains an enigma to many outside its borders. The analysis conducted in this paper will present the positive and negative aspects of opening a company in the Japanese market. Brief HistoryJapan, an island nation, is a series of island chains in East Asia between the North Pacific Ocean and the Sea of ​​Japan, east of the South Korean Peninsula. It is slightly smaller than the state of California. With an estimated population of 127 (July 2004), Japan is three times more densely populated than Europe as a whole and twelve times more densely populated than the United States. 2 While retaining its centuries-old culture, Japan rapidly absorbed Western technology in the late 19th and early 20th centuries. After its defeat in World War II, Japan recovered to become an economic power and a staunch ally of the United States. While the emperor maintains his throne as a symbol of national unity, real power lies in networks of powerful politicians and bureaucrats... middle of paper... countries can create financial problems for a new entrepreneur in the world. global market. Dealing with two or more monetary systems can also complicate international business operations. Bibliography1. Daniels, John D, and Radebaugh, Lee H., and Sullivan, Daniel P., International Business: Environment and Operations (Upper Saddle River, NJ: Prentice Hall, 2004)2. Sherwood, Sonia (2004, July) Spotlight on Japan, entrepreneur. Retrieved September 28, 2005, from http://countrystudies.us/japan/3. Facts About Japan, The CIA World Factbook, retrieved September 28, 2005, from http://worldfacts.us/Japan.html4. Spotlight on Japan, The Discriminating Consumer, retrieved September 28, 2005, from www.entrepreneur.com/mag/articles/japan5. David, Fred R., Strategic Management: External Evaluation (Upper Saddle River, NJ: Pearson Prentice Hall, 2005).