This discussion paper has been prepared to provide some insight into the commercial and cultural differences which affect business negotiations with the Japanese. As a destination for New Zealand exports Japan has become increasingly important in recent years. In 1986 New Zealand sold $1.7 billion worth of goods to Japan. While over three quarters of this trade has been in the form of raw materials and primary products such as unwrought aluminium, forest and dairy products, fish, fruit, vegetables and wool, there is a steady expansion in the export of finished consumer goods. The rapid expansion of trade relations with Japan requires an increased understanding of not only the political and economic behaviour of Japan and the Japanese but also the ways of living, modes of thinking and other cultural differences of the people. It is hoped that the information and knowledge from this paper can be used to assist in developing marketing strategies for Japan.