Japan has traditionally exported manufactured goods to wealthy Western markets but is now shifting focus to emerging economies. As domestic and Western markets stagnate, Japanese companies are tailoring products for middle-income consumers in countries like Brazil, India, and China. Firms are designing appliances suited to local needs and tastes, such as fridges with large bottle compartments in Indonesia and quiet, energy-efficient air conditioners in India. Automakers like Toyota and Nissan are also producing affordable, locally-produced vehicles. However, Japanese firms face challenges in managing a more global workforce and adapting their rigid, consensus-driven corporate culture.

1. Japan Japan once prospered by exporting to rich countries. Now geared towards emerging markets. Firms who lost money in 2009 revived by selling to new global middle class. Sony reversed its recent loses as its revenue from emerging markets grew by 40% - sales in Brazil nearly doubled. Countries outside North America and Europe will account for 80% of global growth between 2000 and 2050. Western consumers have become more frugal. Japan stagnant for 20 years and population shrinking. Corporate Japan is looking to new places. Traditional exports ill suited for emerging markets. Costly, complex and easily undercut by simpler gadgets from South Korea, Taiwan and China. Japan has long used poor countries merely as production bases and then shipped products to rich ones. This no longer works.