Question

In: Economics

Examples of cultural differences that we (United States people) should be aware of before doing business...

Examples of cultural differences that we (United States people) should be aware of before doing business with China. Examples might include nonverbal differences, differences in gift-giving in business practices, etc.

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Expert Solution

Ans- Differences in American and Chinese business customs are largely influenced by differences in American and Chinese mentalities. Americans place a great deal of emphasis on the self and personal identity, while the Chinese focus more on a collective national identity.

Some of the examples of cultural differences between United States and china are mentioned below:-

1) Chinese society is all about the group, while Americans celebrate the individual. The United States is a place in which individuals can shine, while in China, any success is regarded as a success for the company or the team. A Chinese person will consider how their actions may affect the group as a whole rather than looking out only for themselves.

2) Hierarchy is important to the Chinese and respect will be shown to those higher up in the structure. American companies tend to have much flatter structures, with workers at all levels having access to those at the top. In China, a worker low down the pay scale would not expect to have direct contact with their superiors.

3)Chinese in urban areas are used to a lack of personal space. Cities are densely populated, polluted and crowded, especially on public transport. Americans are more accustomed to physical space and will become territorial if they feel crowded, snapping at people who push in line and staking out little kingdoms for themselves, whether it’s their car, desk or aeroplane seat.

4)Americans are very fond of being direct in communication. This won’t work well in Chinese business culture, where indirect communication is the norm. Bluntness, persuasion, and aggression are often used in American business culture to pursue an advantage in negotiations, but these tactics can make Chinese business partners shut down and retreat.


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