Discuss cultural differences between US and China.© BrainMass Inc. brainmass.com October 17, 2018, 2:38 am ad1c9bdddf
Cultural Differences between US and China
Over a short span of 28 years, China has witnessed tremendous growth where its GDP grew by an annual rate of 9.7%, this was an increase of 8 fold. During this period the country's ranking rose from being 23rd to being world's 3rd largest economy. China is fast becoming a super power with their negotiations with the Western world. As a result, China's economic rise has increased the trade between U.S. and China. Chinese market has provided a boost to purchasing power of U.S. customers by providing inexpensive imports. However, trade between any two countries is dependent on many factors, which can assist the trade or deter it. There are, at the same time, differences that exist in trading partners. Hence, how two countries manage their differences to create a healthy trade environment is what is important to analyze. For example, Chinese don't follow an organized chain of command. Chinese are more secretive about their financial matters and keep the information to themselves. If Americans want to do business in China, they need to maintain a distance in financial matters. Thus in order for the trade to flourish between China and US, it is important for Americans to build long-term relationships with Chinese.
Main aspects of China's Culture- An Analysis
Chinese culture is extensive, vast, and so substantive in content, so comprehensive in variety, and has so long a history that it is not possible for an outsider to completely understand it. There are numerous aspects of the culture, some of which are:
• Simplicity and Contentment: Chinese do not believe in possession of technological devices and consider that these devices will generate tension and anxiety rather than happiness. Associated with the principle of simplicity is the experience of contentment toward material living.
• Conservatism: For Chinese culture, being conservative is considered a positive virtue.
• Process view of the Universe: From the beginning of Chinese culture, people have recognized change as a primal fact of the universe. In spite of a strong sense of permanence and a permanence and conservatism, Chinese thinkers have developed a process view of the world.
• Intrinsic ness of Humanism: Humanism is intrinsic to Chinese culture. It is so intrinsic to the culture that throughout the history of Chinese philosophy, it is but the history of humanism.
• Family Relations and mutual dependence: Since the inception of Chinese culture, family has been the most fundamental social unit. Family has played an unusually significant role in the culture. In traditional Chinese culture, liabilities, honor, shame, and even crimes of single individual are shard within the family.
• Moderation and harmony: Chinese believe in moderation, or avoiding extremes, whether they are extremes of deficiency or extremes of excess.
Historical: During 1950s China's individual household farms were collectivized into large communes. During 1960s and 1970s the government took decisions to invest in physical and human capital to support rapid industrialization. Prior to 1979, China had a Soviet-style command economy under which state controlled most aspects of the economy. Private enterprises and foreign investments were inexistent These policies had kept China's economic growth stagnant for many years until beginning of 1979 when the government began a series of free market reforms and began opening up to rest of the world. The results of this liberalization are manifold, mostly in terms of GDP growth and size of economy.
Political: China has a centralized political system. The structure of government is vertical, from central government to provincial and local governments. There are predefined levels of authorities where lower ranked subordinates are at bottom level and are expected to report to higher ranked executives. A decision that is made by higher level authority is bound to be accepted by lower level authorities. For example the decision to make Shenzhen in Guangdong as a Special Economic Zone was a decision made at the top political level without any local input. Once the decision was made, the responsibility of the local government was just to implement the order. However, this example does not mean that whatever rules and regulations are formed at central government level would be fully implemented at local level. Due to the size and geographical boundaries of the country, interpretation of rules and regulations is usually localized, i.e. local government agencies decide the way rules and regulations would be interpreted and whether they would enforce them or not. But if a higher government decides to adopt a policy and communicates the same to lower government, it is an obligation for the lower government to implement the decision.
Legal Systems: The Chinese civil legal system is pretty new with a history of only 30 years. There were no law programs in modern China until 1970 and the ...
The expert discusses cultural differences between the United States and China.
The Cultural Challenges of Doing Business Overseas
Steve, an American of Czech origin and a franchisor for Chicago Style Pizza has decided to expand his business into the Czech Republic. Although he was born in the United States, his family and friends in the Czech Republic, speak Czech fluently, and have visited the country of their origin several times. However, he does not feel that he really knows or understands the Czech people well enough to know what they really want.
1 - Are there major differences and incompatibilities between the U.S. and Czech cultures? Will these differences create major business risks for Steve? How might Steve mitigate these risks?
2- Using Will Hofstede's four primary dimensions to help evaluate the Czech business environment? What are the likely results of this evaluation?
3 - What comparative advantage exist in Czech? Can Steve take advantage of these?
4 - What kind of trade barriers would Steve need to be aware of?
5 - How would he assess the cost structure? What could Steve infer about the price and income elasticities of pizza?View Full Posting Details