Comparison of Business Practices in the US and China

Comparison of Business Practices in the US and chinaDiverse enculturations of US and mainland chinaCulture rules nigh on every occurrence phase of your life and like many, you are completely unacquainted of this. If inquired, you would define culture as architecture or language, music, visual arts, literature and you wouldnt be wrong. however you wouldnt be completely right either.The linked States of the States is one of the multi ethnical, multi racial and multi cultural countries in the world. It has a highly diverse culture which has helped in forming its extraordinary value. This diversity in culture can also be sort outed geographicalally where certain groups in different geographical locations work formulated a unique culture among themselves which is quite creaseingly diverse from mainstream American culture. They are Asian-American, Afro-American and Hispanic cultures.China can be listed as a realm that has a very rich culture, certain aspects of which dates bac k to the ancient civilizations 5000 twelvemonths back. This has been passed down from generation to generation thus preserving its identity and richness. It can be declared that its unique, diverse and yet harmoniously blended culture is a priceless asset to the world.The business concern practices of China and USThe world of international business as we all know consists of people from different real and virtual work places in countries. Therefore it is important to know about a countries culture in order to adapt to it and be successful. Culture is complex and multi dimensional, to understand its basic genius we need to consider the Elements of culture.Language the key to culture transmits information. The Americans look at comm whole approximately 15 languages. Their main languages are English, Spanish and Indo European. Chinese birth over 90 languages with 8 main languages where Mandarin is commonly used. A low context cultures communication is precise and direct. But in w rong of High context culture a lot of terms and facts that go unsaid. Practically Americans tend to communicate directly while the Chinese communicate indirectly, which eventually turns out to be a frustrating situation for Americans as they are quite unsure of what the Chinese expect. This is so while the Chinese feel unsettled by their direct approach.There are over 15000 religions in the world. China is a multi religious country which comprises mainly of three religions such as Confucianism, Taoism and Buddhism. They reckon that this world is an illusion and that everything is temporary. Also, that all living things including human beings incessantly go through a appendage of life and death. They also believe in reincarnation. Somehow on the other hand, America comprises mainly of Christian believers and the minorities of around 6% belong to other religions. There are also those who dont practice in any religion.Every country has their values and attitudes that distinguish the m from others. There are different sets of attitudes towards time and time to come. In US time is important and is equivalent to money while Chinas attitudes differ from that. They believe that time is required to make important decisions and look out for long term relationships with their business partners. This creates a contrast contacting their business transactions.Customs in any case are related to to international business. US is physically isolated from all countries except Canada and Mexico. This has contri unlessed to the isolation and the lack of concern towards the rest of the world unless they are peril by another country or state. China however is connected to many other Asian countries and tends to be interdependent and concerned other nations. Americans have their food eaten using the folk and spoon while the Chinese use chopsticks. Americans tend to shake turn over, hug, kiss on the cheek, gesture with ones hands and use the first names while speaking to adults . Chinese however tend to bow or nod and use fewer gestures as possible. These uttermost(prenominal) diversities could be no challenge if each country respects each others culture.We become in a technologically advanced world(a) age. So its fairly obvious that international businesses take place among various countries. So how do people understand and communicate among each other? How do people understand their cultures respectively?Its rather difficult. But International businesses are taking place among each and every country due(p) to the wide dole out technological and demographical advancement of the societies living on earth. So to understand better and improve the standard of living, people should firstly understand the framework of assessing various cultures.These values are explained as Dimensions of culture by psychologist Dr Geert Hofstede. He further went on to explain that this cultural dimension consists of 5 principles.Power distanceIndividualism/ communismMascul inity/ femininityUncertainty avoidanceLong term/short term orientationDr. Hofstede found many similarities and differences among these 5 dimensions. And he elaborated that, building connections with people from around the world is just one dimension of cultural diversity. And therefore we should need to factor it into motivating people, structuring business related projects and developing strategy. the States and China we rein similarities and differences with regard to these 5 dimensions. So for simplicity we could explain the dimensions, in a line graph between both China and the United States.Comparison between China and USA in regard to the 5 dimensions of Hofstedes valuesThe buying behavior of consumersBuyer behavior refers to the decision making process and acts of the buyer in purchasing a particular good or a benefit. The buyer behavior regarding a ingathering may change with the oddball of culture existing in a country. However the steps in the consumer decision making process remains the same and thus can be used as a suitable instrument in analyzing the behavior of consumers in two countries that are culturally contrasting.Figure 1 consumer decision making processIn China, the key cultural drivers of purchasing decision making are philosophies such as Confucianism and Taoism as well as the collectivist nature of society. China being collectivists in nature gives much consideration to the voice of the public as well as face (Mianzi) and relationship (Guanxi) wall sockets.In the USA, individualisation plays an important role in all consumer decisions as well as religion, race and geographic location.ChinaUS conduct recognition and problem kenBoth Confucianism and Taoism focus on family values. Chinese individuals have a deep sense of immediate family bindings. In every family unit, the elders are greatly respected. At the same time youngsters are also given importance and prioritized for being the roots of generation continuation.As a result, when recognizing the needs of family, the needs of their children are given to a greater extent importance.Ex education needs of children are considered crucial in Chinese households as well as childrens healthcare products.As a authentic western country, individualism tends to be the key ingredient that drives buying decisions.Individuals are encouraged to trust their personal judgment and thus when recognizing needs, individual needs are given to a greater extent preference rather than collective needs.Information searchIn China, the buyers prefer word of mouth information to other sources. This aspect is related to collectivism. Buyers want to be the same as others in their respective group so that they will be accepted. Acceptance is a vital factor for them. collectable to this, they inquire from their friends, acquaintances or relatives regarding a certain product. This is how conformity of a product is decided.In mainstream culture of US, buyers receive information mainly t hrough digital networks due to the various advancements available in electronic medias and the flexibility of US individuals to adapt to new technology.Meanwhile in varied sub cultures located across geographic boundaries traditional means are also used in getting informed regarding a certain product.Evaluation of alternativesIn terms of public reputation (Mianzi) issues, Chinese individuals wish to put up a good face for the others in their respective group to show their wealth and certain other factors. This issue distinctively promotes purchase of luxury products. But it has been also found out that there is more involvement in evaluation of alternatives when purchasing a product for social value rather than for private consumption.Americans usually do not bargain in front of a store owner. The social environment could affect the consumer behaviour in America. For example they would prefer eating corn flakes and ham instead of rice. Americans tend to seek goods with variety and have impulse purchases. This is so because they subsist a faster life than of Asian countries.Post purchase evaluationBuyers usually show concern post purchase and feel that an alternative would have been preferable. In this case, brand switching occurs the next time which the customer purchases.But, if they receive the social recognition intended for which they originally bought the product or receive a positive feedback from the society, the brand switching decision would not necessarily be taken.Americans usually would try something new when purchasing the next time. However if they are fully satisfied with a product they shall preferably buy it the next time as well. But their decision is rather unpredictable.Future economical development of China and USIn 1978, china was one of the poorest countries in the world. Their real per capita GDP in China was one-fourth of US real per capita GDP. Since then every year China was able to grow at 8% every year. As a result they are now one-fifth of the US level and at the same level as Brazil.China was under the communist rule since the revolution in 1949. After the leadership in 1978 china moved past from the central planning and government oriented policies towards a more decentralized economy. China is now a market economy making it a hale role for development of the state. The United States were always a market economy and the economy represents very small roles played by the government.When focusing on the exercising rates and wages of the Chinese labour force it is relatively cheaper in a global context. This could lead China to being one of the strongest economic forces of the future and it could also be a significant factor for many international businesses. In china it is believed that work-life is about integration and harmony within work forces. A balanced work life and family life is not a significant aspect in China. Chinese employees do not interact socially but are more domestic oriented. US emp loyees on the other hand are more work oriented. But it also differs according to their social class. For model the lower level employees work seven extra hours a week which is equivalent to an average days work. The Chinese employment relationship powerfully influences the work place to be family like while US prefers to have a professional working environment. The concept work trying play hard applies directly to the US work force.China has the largest population in the world being 1.357 billion as at 2013 where as the US population only counts to 316.1 million as at 2013. Firstly, internal migrants have supplied abundant labour to the Chinese economy. Secondly a large number of Chinese are 60 years or older and Finally, Chinese families have only one child based on their three decade old policy. These factors will in future represent a crisis since these effects are hard to reverse back. The US population mostly consists of senior citizens. That is, 13% of the population are mo re than 65 years old and is expected to increase to 20% by 2050. Also the population of young people is expected to rise in contrast to China.Since 2002 US is the largest economy in the world. China achieved a rapid festering in 2010 where it became the second largest economy, beating Japan. Since then US and China are the agonistic nations of the world. The predictions of future economic rates as at 2019 are that the US GDP would be 22.1 trillion dollars compared to China with 14.8 trillion dollars. US is more service oriented where as China has a balance between Service and IndustriesThe Unemployment Rate in China as reported by the Ministry of Human Resources and kindly Security of the peoples republic of china has remained unchanged being 4.10 percent in the third quarter of 2014.Compared to China, even though the rate of unemployment in USA is high 6.2% USA has achieved a drastic drop in its unemployment rate compared to its figures in the last five years, Which is a highly favorable for its economic growth in the future. However, china has not made any measures to address their rate of unemployment.Chinese still poses less prospective than Americans to Say They Live advantageouslySuperficially at odds with the countrys growth and sense of economic positivity, the Chinese have not grown more likely to feel they can live intimately on their authentic income over the past six years. In 2012, 58% said they were able to get by on their current earnings, an get along that has remained relatively fixed. About a third (32%) is finding it verydifficult to earn just enough money to live on, and this rate has similarly continued basically constant. This would have the appearance _or_ semblance to suggest that economic progress has not yet directly translated into a more monetarily secure population, or, on the other hand, that as the Chinese sense wealthier, they find themselves attaining new requirements. And, one in 10 Chinese claim that they are living c omfortably on their current revenue, a percentage that has shown no growth over time.Americans continue to maintain a much better average than the Chinese regarding their individual revenues. A plurality (38%) in 2012 said they were living comfortably on their current revenue additional 34% said they were getting along. A quarter of Americans have found it very difficult to live with their current income. Although they are greater than the Chinese on this metric, Americans opinions of their capability to live a comfortable life have been affected by the recession. They are a trim back amount to be expected now than in 2007 to feel they can live comfortably on their present-day income and more probably to feel it is thought-provoking to live on it.Reference ListHofstedes Cultural Dimensions Cross-Cultural Skills from Mind Tools. 2014.Hofstedes Cultural Dimensions Cross-Cultural Skills from Mind Tools. 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