In: Economics
Choose and research the cultural environment of a country that it is not the United States. Appraise the cultural forces and implications of making business in this social culture
Country choosen- China
Through the industry term globalization, China has become an enticing market for foreign investors and businessmen. Nevertheless, cultural gaps between Chinese and Western partners pose major barriers. It is important to recognize and appreciate China's long history and culture in order to be effective. Let's highlight some key areas that one may encounter while doing business in China.
China is a relationship-oriented society. Guanxi is essential to industry, or the network and interaction. The company minimizes risks, failures and losses by constructing Guanxi. The Chinese prefer to deal with people they know and trust. First, among the partners should be established interpersonal relationship, before they can begin to work together. Moreover, it is not just relationship between companies but also between members of these companies. The more you will have areas of intersection with the Chinese (family,hobbies,life inspiration),the easier it will address issues in business.
Confucianism profoundly influences business practice: all partnerships are considered unequal. Age, seniority or educational background must be respected. The style of management tends towards the Order, which represents Confucian basic principle of the hierarchical existence of society. It is not executed that the subordinates challenge the superior's decision-it would be disrespectful. The manager should be seen as a sort of father figure receiving colleagues loyalty and obedience. In return, it is hoped that the manager will take an interest in all facets of colleague life.
Ideally, anyone planning a big venture in China would spend time researching their approach to life and business there. Reading about the world, watching movies and videos, talking to other Americans who have spent time doing business there, spending time with Chinese nationals who are visiting or moving to this world, these are helpful things, but they can not duplicate the value of immersion on-site. Explaining a culture to the uninitiated in words alone is very difficult. Because culture is predominantly based and conveyed linguistically, each language group has a very different cultural bias, contributing further to the confusion. An American company planning in China will take notice of those discrepancies, paying special attention to the region where he or she wants to work.