How Does The Convergence Of Business Practice Change China And The U.S.?

2704 words - 11 pages

Have you seen all those funny commercials that Pepsi is comparing itself with Coke? I believe that most people in the United Stated have seen or at least heard about it before. But in China, you will never see any commercial that compare similar products in different brands. Why do businesses in China and the United State present themselves differently in the media and public? And how will businesses in these two countries influence each other by working together? This will be my major discussion.We all know that United States has the largest national economy in the world. Through globalization, its culture and business practice strongly influence businesses and people's lives in many other countries today. At the same time, one of United State's biggest business partners- China, its economy is growing rapidly and its market has become more and more appealing for foreign investors since its economic reforms in the late 1970s. China's economic relation with US has expanded significantly with China joining the World Trade Organization in 2001. Over the years China has become the most potential market for American exports. As the number of multinational company increased between the U.S, and China, the problem of cross-cultural management has arisen. In this paper, I will try to discuss the difference in culture, economy, and political system of the two countries, and how they will influence each other in the business world.Before knowing how businesses in these two countries will influence each other, it important to find out the differences between them. Since culture is one of the biggest parts of international business, I will first explain the general cultural differences between the U.S. and China and how they influence the business behaviors by applying some of the cultural dimensions of Geert Hofstede in chapter eight of our text. According to Hofstede's research, U.S. is a low context country whose "behaviors, values, and attitudes are associated with capitalist, efficiency-oriented societies." It also ranks first in individualism. "Individualism stands for a society in which the ties between individuals are loose: everyone is expected to look after himself or herself and his or her immediate family only."(Hofstede) Therefore, American workers usually rely on their own view to determine what they should do on the job and they tend to work alone to achieve personal goals. They also make little different between ingroup and outgoup communication. When trying to achieving goals, fighting about jobs and trying to climb up in the hierarchy ladder is a very common thing in the United State. And when facing conflicts, American business will prefer to solve problem by using evidence and bring things to the public. This is why U.S. is highly reliance on lawyers.On the other hand, China is a high context country whose "behaviors, values, and attitudes are tranditionally-based." Opposite to the United State, it is strong in collectivism. "Collectivism...

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