Comparison of Business Practices in the US and China

Comparison of Business Practices in the US and mainland chinawarewarewargon several(a) socialisations of US and mainland ChinaCulture rules nigh on every crabbed phase of your vitality and like many, you be completely unacquainted of this. If inquired, you would typeset close as architecture or language, music, visual arts, literature and you wouldnt be wrong. Nevertheless you wouldnt be completely right either.The United States of the States is superstar of the multi ethnical, multi racial and multi cultural countries in the world. It has a highly versatile gardening which has helped in forming its unique mensurate. This diversity in nicety apprize as well be distinguished geographically where certain groups in different geographical locations keep formulated a unique culture among themselves which is quite contrastingly diverse from mainstream American culture. They are Asian-American, Afro-American and Hispanic cultures.China can be listed as a farming that has a very teeming culture, certain aspects of which dates back to the ancient civilizations 5000 long time back. This has been passed down from times to generation thus preserving its identity and richness. It can be stated that its unique, diverse and yet harmoniously blended culture is a priceless addition to the world.The business practices of China and USThe world of international business as we all know consists of inner circle from different real and virtual bring menages 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 proportionalityal, to encounter its basic nature we need to consider the Elements of culture.Language the key to culture transmits information. The Americans look at commonly about 15 languages. Their main languages are English, Spanish and Indo European. Chinese have over 90 languages with 8 main languages where mandarin orange is commonly occasiond. A lo w context cultures chat is precise and direct. but in terms of High context culture a lot of terms and facts that go unsaid. Practically Americans pass to transfer promptly while the Chinese communicate indirectly, which flushtually turns out to be a frustrating situation for Americans as they are quite shy 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 outlandish which comprises mainly of triad religions such as Confucianism, Taoism and Buddhism. They call up that this world is an illusion and that everything is temporary. Also, that all living things including human worlds constantly go through a process of life history 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 dupet practice in any re ligion.Every country has their values and attitudes that distinguish them from others. There are different sets of attitudes towards time and future. In US time is important and is akin to money while Chinas attitudes differ from that. They believe that time is required to make important finalitys and count on out for long term relationships with their business partners. This creates a contrast alter their business transactions. utilisations too are related to international business. US is physically isolated from all countries except Canada and Mexico. This has contributed to the isolation and the lack of stir towards the rest of the world unless they are threatened by a nonher 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 utilise the folk and spoon while the Chinese use chopsticks. Americans tend to invoke hands, 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 utmost(a) diversities could be no challenge if separately country respects distributively others culture.We have sex in a technologically ripe(p) global 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 preferably difficult. But International businesses are taking place among each and every country due to the wide spread technological and demographical advancement of the societies living on earth. So to understand better and improve the standard of living, people should first of all understand the framework of assessing various cultures.These values are developed as Dimensions of culture by psychologist Dr Geert Hofstede. He further went on to explain that this cultural dimension consi sts of 5 principles.Power distanceIndividualism/ collectivismMasculinity/ muliebrityUncertainty avoidanceLong term/short term druthersDr. Hofstede found many similarities and differences among these 5 dimensions. And he elaborated that, Building connections with people from around the world is mediocre one dimension of cultural diversity. And thereof we should need to factor it into motivating people, structuring business related projects and developing strategy. ground propels and China we find similarities and differences with realise to these 5 dimensions. So for simplicity we could explain the dimensions, in a line graph mingled with 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 situation good or a service. The buyer behavior regarding a crossway may change with the type of cultur e existing in a country. However the steps in the consumer decision making process clay the said(prenominal) and thus can be employ as a suit able-bodied 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 state-supported as well as face (Mianzi) and relationship (Guanxi) issues.In the USA, identity coquets an important role in all consumer decisions as well as religion, race and geographic location.ChinaUSNeed recognition and fuss awarenessBoth 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 gi ven greatness and prioritized for being the roots of generation continuation.As a provide, 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 intersection points.As a developed western country, individualism tends to be the key ingredient that drives buying decisions.Individuals are encouraged to trust their in-person judgment and thus when recognizing needs, individual needs are given to a greater extent favourence rather than collective needs.Information searchIn China, the buyers prefer word of mouth information to other sources. This aspect is related to collectivism. Buyers loss to be the same as others in their respective group so that they will be accepted. Acceptance is a vital factor for them. due(p) 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 through 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 fixed across geographic boundaries traditional means are also used in getting informed regarding a certain product.Evaluation of choicesIn terms of public reputation (Mianzi) issues, Chinese individuals wish to put up a good face for the others in their respective group to put down their wealth and certain other factors. This issue distinctively promotes purchase of lavishness products. But it has been also found out that there is more than social function 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 demeanor in America. F or 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 spirited 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 future(a) 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 earlier buy it the next time as well. But their decision is rather unpredictable.Future economic development of China and USIn 1978, china was one of the poorest countries in the world. Their real per capita GDP in China was af ter part 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 transmutation in 1949. After the leadership in 1978 china moved outdoor(a) from the central planning and government oriented policies towards a more alter economy. China is now a trade economy making it a strong 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 instruction on the employment 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 momentous factor for many international businesses. In china it is believed that work-life is about integrating and harmony within work forces. A balanced work life and f amily life is not a significant aspect in China. Chinese employees do not interact socially but are more domestic oriented. US employees on the other hand are more work oriented. But it also differs according to their social class. For Example the subvert 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 hard play hard applies directly to the US work force.China has the largest world 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 list 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 broadly speaking consists of senior citizens. That is, 13% of the population are more 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 increase in 2010 where it became the second largest economy, beating Japan. Since then US and China are the agonistical 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 Social 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 phoebe bird 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 in time poses less prospective than Americans to Say They Live ComfortablySuperficially 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 current income over the past six years. In 2012, 58% said they were able to get by on their current earnings, an arrive 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 seem 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 wea lthier, they find themselves attaining new requirements. And, one in 10 Chinese claim that they are living comfortably on their current revenue enhancement, 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 reduced standard 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 dispute to live on it.Reference ListHofstedes Cultural Dimensions Cross-Cultural Skills from perspicacity Tools. 2014.Hofstedes Cultural Dimensions Cross-Cultural Skills from Mind Tools. ONLINE getable at http//www.mindtools.com/pages/article/newLDR_66.htm. Accessed twenty-second October 2014. ledger of Communication Volume 48, Issue 4 December 1998 Wiley Online Library. 2014. Journal of Communication Volume 48, Issue 4 December 1998 Wiley Online Library. ONLINE obtainable at http//onlinelibrary.wiley.com/doi/10.1111/jcom.1998.48.issue-4/issuetoc. Accessed 22nd October 2014.Chinese Culture, China Culture Center, Facts, Ancient Custom and Tradition. 2014. Chinese Culture, China Culture Center, Facts, Ancient Custom and Tradition. ONLINE Available at http//www.chinahighlights.com/travelguide/culture/. Accessed 25thOctober 2014.Chinese Traditions and Culture. 2014.Chinese Traditions and Culture. ONLINE Available athttp//www.chinese-traditions-and-culture.com/. Accessed 27th October 2014Lesson in American Culture and American Values. 2014. Lesson in American Culture and American Values. ONLINE Available at http//www.inter nationalstudentguidetotheusa.com/articles/culture.htm. Accessed 28th October 2014.Need Recognition. 2014. Need Recognition. ONLINE Available at https//www.boundless.com/ marketing/textbooks/boundless-marketing-textbook/consumer-marketing-4/consumer-decision-process-40/need-recognition-200-4088/. Accessed 1st November 2014.Opinion Briefing U.S. vs. China Strengths and Weaknesses . 2014. Opinion Briefing U.S. vs. China Strengths and Weaknesses . ONLINE Available at http//www.gallup.com/poll/162965/opinion-briefing-china-strengths-weaknesses.aspx. Accessed 2nd November 2014.China has the worlds fastest growth in living standards China.org.cn. 2014. China has the worlds fastest growth in living standards China.org.cn. ONLINE Available at http//www.china.org.cn/opinion/2013-10/24/content_30391004.htm. Accessed 2nd November 2014.Chinas Population requisite The Looming Crisis Brookings Institution . 2014. Chinas Population Destiny The Looming Crisis Brookings Institution . ONLINE Av ailable at http//www.brookings.edu/research/articles/2010/09/china-population-wang. Accessed 2nd November 2014.The Changing Demographics of America 40th Anniversary Smithsonian. 2014. The Changing Demographics of America 40th Anniversary Smithsonian. ONLINE Available at http//www.smithsonianmag.com/40th-anniversary/the-changing-demographics-of-america-538284/?no-ist. Accessed 2nd November 2014.Journal of Consumer Psychology Vol 12, Iss 2, Pgs 69-176, (2002) ScienceDirect.com. 2014.Journal of Consumer Psychology Vol 12, Iss 2, Pgs 69-176, (2002) ScienceDirect.com. ONLINE Available athttp//www.sciencedirect.com/science/journal/10577408/12/2. Accessed 2nd November 2014