Business Culture: China vs. the Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heflin).
Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum utility. Today’s world’s leading markets are the United States of America and People Republic of China. The United States market growth is not a “jump” growth, instead it grows in steady manner. On the other hand, China’s market is not a very significance market until several decades ago where all suddenly, the market leaps from an insignificance market to highly imperative market and it seems unstoppable. Although both of the markets and its potential for growth is considerably dominant but the ways of managing its business are very distinct; both societal and institutional differences and values differences. American workers are more individualize.
American workers focus on their individuals and lives in the world of distrust, where their only source of trust is the contract. Further, the business culture of American is very effective when doing business as they tend to be frank about their position and persuasive which promotes their ability to make immediate response to decision making. The interpersonal problem are rarely occurs in working arena because American holds the business objective as top priorities. Lastly, due to their directness style of doing business, some occasion it seems very impolite.
But their directness style of doing business is their main strength which helps promotes the higher work efficiency. On the other hand, Chinese worker are centered on relationship. Chinese focus on relationship with others and live in the world of trust. Chinese trust people around them in their work place. Often, Chinese did not require signing contract in every agreement unlike American where all agreement must be in contract. By trusting others credibility, it helps create a friendly working environment and promotes intimate relationship among the workers.
However, their main weakness is their business culture, where they are quiet and reserved which will reduce their credibility when dealing with American. They weakness also made them a weak immediate decision maker. As for interpersonal problem, Chinese are very concern about the good relationship, and hold it as their top priorities. Chinese would not do any agreement or trade that could harm their relationship with others. Lastly, Chinese are very polite and indirect. They try as hard to prevent the relationship from breaking down.
Due to their sensitiveness for the relationship, occasionally, trade agreement can not be complete in the timely manner, but looking on different perspective, it could also helps the trade agreement to be accepted from both business parties effortlessly due to the good relationship in a long term. Both United States and China have their strength and weakness in doing business with their unique ways but the present position of their market proves that both distinct ways of management works well in the business arena. It cannot be decide which managing method is the best method to run the business but it is clearly reveals that the international trading becomes more common than decades ago due to the tremendous advantage that it provides. It is crucial for next generation business to understand the importance of international business because we are moving into the “One world” where all difficulties of doing business oversea had been overcome and other side of the world is just a stroke away. Work CitedHeslin, Thomas E. The Roadmap: An Overview of Business.
Bloomington: Sage Marketing Communications LLC, . Mason, Robert M… ‘Cross-Cultural Differences.’ Cross-Cultural Differences between Chinese and Americans. 1998. Ten 3 East-West.
17 Jan. 2005.