Many large Japanese-owned multinational corporations have established successful subsidiaries in the United States, but distinct ethnic and cultural differences have caused communication problems between Japanese managers and American laborers and business people. Many top executives of the Japanese subsidiaries are sent to the United States on a temporary basis from the parent company in Japan. They often do not have adequate skills in English and are often inexperienced in working with heterogeneous groups, such as the racially mixed labor force found in many American factories. Japanese businesses also operate on a culturally ingrained principle of consensus, in which all labor and management personnel participate in decision making. Americans in middle management in these subsidiaries find this principle inefficient and time consuming. The immediate reaction by American business people is that Japanese managers should adopt American management methods. But, in spite of the communication problems, the Japanese management methods may have a great deal to offer in revitalizing the American business economy. Japanese and American businesses should learn from each other the most efficient but "culturally compatible" methods for running businesses in the United States. (HTH)