Comparison: International Business Negotiation
Comparison: International Business Negotiation
(China & USA)
Word count: 3134.
Introduction:
With the globalization of world businesses, China has become an appealing market for foreign investors. The problem of cross-cultural management arises as the cooperation between China and its culturally different Western partners continues to increase at an unprecedented rate. This paper presents an understanding on the general cultural differences between United States of America and People 's Republic of China (PRC) by applying the cultural dimensions of Hofstede and Bond: power distance, collective vs. individualism, feminity vs. masculinity and uncertainty avoidance in each culture is considered to give a better indication of the likely differences that will certainly be confronted at the negotiation table.
Our essay tries to recognize some of the distinctive traits that Chinese culture and American culture will display when negotiating. These include sensitivity to time, emotional control, team organization, negotiating objectives and different levels of cultural importance applied to a relationship building.
Cultural differences in negotiation
Negotiations are crucial to business alliances; Firms are increasingly forming international partnerships as a response to industrial globalization, these processes can become more complicated if there are language barriers, differences in cultural values, customs, and lifestyles, such as United States of America(USA) negotiating with the People 's Republic of China (PRC) (stark et al., 2005). According to Appendix 1 cultural clusters, Chinese culture belongs to the Confusion Asia, whereas USA 's culture belongs to the Anglo culture ( Gupta, Hanges & Dorfman , 2002). There are various differences in culture between these two countries.
To elucidate the differences between China and the US, we will refer to Hofstede 's four cultural dimensions of power distance, individualism/collectivism,
(China & USA)
Word count: 3134.
Introduction:
With the globalization of world businesses, China has become an appealing market for foreign investors. The problem of cross-cultural management arises as the cooperation between China and its culturally different Western partners continues to increase at an unprecedented rate. This paper presents an understanding on the general cultural differences between United States of America and People 's Republic of China (PRC) by applying the cultural dimensions of Hofstede and Bond: power distance, collective vs. individualism, feminity vs. masculinity and uncertainty avoidance in each culture is considered to give a better indication of the likely differences that will certainly be confronted at the negotiation table.
Our essay tries to recognize some of the distinctive traits that Chinese culture and American culture will display when negotiating. These include sensitivity to time, emotional control, team organization, negotiating objectives and different levels of cultural importance applied to a relationship building.
Cultural differences in negotiation
Negotiations are crucial to business alliances; Firms are increasingly forming international partnerships as a response to industrial globalization, these processes can become more complicated if there are language barriers, differences in cultural values, customs, and lifestyles, such as United States of America(USA) negotiating with the People 's Republic of China (PRC) (stark et al., 2005). According to Appendix 1 cultural clusters, Chinese culture belongs to the Confusion Asia, whereas USA 's culture belongs to the Anglo culture ( Gupta, Hanges & Dorfman , 2002). There are various differences in culture between these two countries.
To elucidate the differences between China and the US, we will refer to Hofstede 's four cultural dimensions of power distance, individualism/collectivism,
References: 1. Blackman. C, 1997 "Negotiating China: case studies and strategies" St. Leonards, NSW. Australia, Allen & Unwin 2. Hofstede G 3. Hall, Edward T. 1959 "The Silent Language" Garden City, NY: Doubleday 4. Fisher 5. Stark A, Fam K, Waller D, Tian Z, 2005 "Chinese Negotiation Practice: A Perspective from New Zealand Exporters" Cross Culture Management Patrington, Vol.12, Iss.3, pp.85. Retrieved: 24 January 2006, from ABI/INFORM database. 8. Gupta V, Hanges P, Dorfman P, 2002, "Clusters: Methodology and findings" Journal of World Business, Vol.37, Iss.1, pp.11. Retrieved: 24 January 2006, from ABI/INFORM database. 12. John C. Lere and Kris Portz, 2005, "Management Control Systems in a Global Economy" CPA journal, Retrieved: 27 January 2006 from http://www.nysscpa.org/cpajournal/2005/905/essentials/p62.htm