China and India

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India and China: Differences in Culture and Business Practice
Indian Culture and Business Practice
The culture in India possesses several features that influence costs of doing business, and enterprises’ potential for economic development, and business practices. With regard to starting one’s own business, such practices as nepotism and gift giving are the norms of business operation (Ardichvili et al., 2011). This deep-rooted cultural tradition of gift-giving, bribes and widespread bureaucracy and corruption account for fairly high cost of entry level into the business world and make it harder for new entrants as well, as a result making business environment highly bureaucratic and non-participatory (Lindsay, 2012). Additionally, Indian business culture places high value on nepotism, friendship, clanship, and favors (Ardichvili et al., 2011). Such practices make it hard for new entrepreneurs to enter the market and succeed. Another cultural trait that characterizes majority of India people is the inclination to avoid risk taking and the desire to stay on a safe side. Also, traditionally, the Indian government acts as a gatekeeper than a facilitator of business development (Makhlouf, 2010). Considering the impact of examined aspects of Indian culture on business, the conclusion can be made that the influence of Indian culture increases the costs of doing business, hinders economic development and entrepreneurship initiatives, and contributes to unethical business practices.
Chinese Culture and Business Practice
China’s culture related to business practices is influenced by paternalism, collectivism, and the reliance on personal contacts (Ardichvili et al., 2011; Xiao, 2011). Cultural paternalism is manifested in that the Chinese...

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...e culture is responsible for smaller costs of doing business, greater potential for country’s future economic development, and stronger ethical business practices.

Ardichvili, A., Jondle, D., Kowske, B., Cornachione, E., Li, J., & Thakadipuram, T. (2012).
Ethical cultures in large business organizations in Brazil, Russia, India, and China. Journal of Business Ethics, 105, 415-428.
Lindsay, V. (2012). Outlook: Getting to know Indian business. Retrieved from Marklouf, H. (2011). Entrepreneurship in India and China. Journal of Asia Entrepreneurship and
Sustainability, (6.2), 59-66.
Xiao, Z. (2011). The problem with China’s business culture. Harvard Business Review.
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