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In Japan, people greet each other by bowing. A bow ranges from a small nod of the head to a long, 90 degree bend at the waist. If the greeting takes place on tatami floor, people get on their knees in order to bow.
When bowing to someone of higher social status, a deeper, longer bow indicates respect. Conversely, a small head nod is casual and informal. However, most Japanese do not expect foreigners to know proper bowing rules and so a nod of the head is usually sufficient.
It is also common to bow to express thanks, to apologize, to make a request or to ask someone a favor.
Shaking hands is uncommon among the Japanese, but again, exceptions are made for foreigners.
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English Links
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how-to-bow
Introduction to the Japanese business etiquette with animated films.
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