The second area is the difference in how Japanese and American Companies operate and how the decisions are made. The third is the very real difference in the relations between business and government in the two countries. The fourth general area is the difference in the way business is organized and operates in international trade. Taking these general areas individually, let us speak first about the cultural differences: The Japanese form of politeness avoids open disagreement during discussions for fear of offending the feelings of the other party. When the American has stated his position and the Japanese do not challenge it, he tends to feel that they have agreed with him and later is surprised to find out otherwise. The American manner is different, for we praise the man "who says what he means and means what he says" and this directness would not be considered rudeness by our standards. Very often in early discussions and negotiations there is no true meeting of the minds. Another difference is the attitude of the buyer and the seller. The Japanese buyer seems to feel that he has conferred a great favor on the supplier in agreeing to purchase his goods or services. In contrast, in the United States we feel that there is equal dignity between the buyer and the seller and that neither party has conferred a favor in arriving at an agreement that presumably benefits both parties to the transaction. Another problem is the question of "face", a concept not too clearly understood by the average American who often fails to appreciate in his - 3 -