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What are the differences between Japanese and American companies?

These are the basic differences:

1) In general, Japanese companies have a system of lifetime employment, while American companies employ workers on an annual contract basis.

2) Whereas in Japan employees are promoted according to length of service, in the United States promotion is mostly based on merit.

3) Japanese workers belong to company unions, while American workers belong to industrial unions.

The decline in the growth rate of the Japanese economy from the 1990s has caused many businesses to question whether they can survive while continuing to support a system of lifetime employment.
An increasing number of companies are assessing the ability and work record of employees before thev make decisions on salary and promotion, such as is done in the United States and elsewhere.