Cross-Cultural Difference netween the United States and China

This assignment focuses on the impacts of foreign direct investment (FDI) in China. Inasmuch as this assignment will explore factors that make China an attractive FDI destination; it will also examine positive as well as negative impacts of FDI on the Chinese economy. Inclusive in this assignment will be an evaluation of positive and negative impacts of FDI on the economy of China, coupled with a discussion on corporate social responsibility (CSR). UNCTAD (2003) defines FDI as … an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy ([the] foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor... (UNCTAD 2003: 231). While the above definition reflects on what FDI is; the justification for choosing to explore FDI in China is drawn from multiple studies that also explored FDI in China.

When it comes to conversation, it is appropriate to ask about the person’s life, but not to become too involved in their privacy (Greetings in China). When conducting business, a handshake is expected to be accompanied by a business card. Have plenty, because they are extremely popular, but try to make them appropriate for the location with one side being in English and the other side being in Chinese. To go along with this, be aware that business affairs are lengthy in China, largely resulting from the fact that relationships enforce contracts due to the lack of a government to do the... ... middle of paper ... ...usiness Law, Top 10 Legal Tips for Doing Business in China. (n.d.).

In China, many businesses are limited in acquiring resources; therefore it is necessary to obtain goods through any means necessary. The resource dependence theory and the anomie theory seek to rationalize why firms resort to bribery while attempting to secure resources and by the local administrative factor. “The resource dependence theory proposes that firms make strategies in order to seek resources in the environment; while the anomie theory argues that the unethical firm behaviors are actually fostered by the local institutional environment” Zhou et al., 2013, p. 461. If a company cannot obtain the necessary resources to operate legitimately than for the firm to continue to operating, oftentimes the compan... ... middle of paper ... ...hat ethical decision making can flourish” (Hartman, et al., 2014, p. 162). Zhou et al.

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).

In this assay I will give some informations about chinese negotiating methods and how western people can manage it, where they have to be careful. I chose this topic because in my opinion this is very important for doing business in China where you can see heavily the cultural differences between China and western countries. My assay will give information about this topic from the the first contact over the negotiation process to what may happen after the contract is signed. Getting in contact with Chinese companies Before you can negotiate with anyone you need to know with whom you can do business in China. There are different ways to get in contact with Chinese companies.

Additionally, these recruiting practices may also prove to be an indicator that gauges the extent to which the Chinese-side business development has caught up to developed world standards set by the most economically dominant nations. Driving forces in the MNC-local party relationship As China has entered into the reform era and taken up the path to marketization and opening its economy, relationships ha... ... middle of paper ... ...d. Works Cited Farrell, Diana, and Andrew J. Grant. "China's Looming Talent Shortage." International Management in China; (2005).

Scarborough, Jack: Comparing Chinese and Western Cultural Roots: Why ‘East is East and …’, Business Horizons 41(6), 1998, p. 43 - 50. Wang, Yuan / Zhang, Xin Sheng / Goodfellow, Rob: Business Culture in China, 1st edition, Singapore: Butterworth-Heinemann, 1998. Wilson, Jonathan / Brennan, Ross: Market entry methods for western firms in China, Asia Pacific Journal of Marketing and Logistics 15(4), 2003, p. 3 - 18. Yang, Jiaqin / Lee, Huei: Identifying key factors for successful joint venture in China, Industrial Management & Data Systems 102(2), 2002, p. 98 - 109.

As Chandrasekhar (2009) mentions, Best Buy controls its advertising at the corporate level. While this can be beneficial for consistency, this can limit their potential in markets if a local store or another nati... ... middle of paper ... ...hy Best Buy Failed in China. Retrieved from http://www.cnbc.com/id/41882157 Lee, T. (2013, August 2). Best Buy CEO Indicates Company Will Stay in China. Retrieved from http://www.startribune.com/business/218123261.html Spenner, P., & Freeman, K. (2012).

Culturally skilled leaders are essential for the effective management of emerging global corporations. They should have persons in management that are capable of operating effectively in a global environment and they must be respectful of cultural diversity. In China, the conflict in management has been addressed as a major problem for the global-player, such as US and Chinese joint ventures. Joint ventures are designed to improve and eliminate misunderstanding of global-culture differences in management. Some Chinese and American companies try to adapt to one another, but it is not easy.

VAT reform in China: impact on construction and real estate. International Tax Review, 24(1), 22. Gelardi, A. G. (2013). Value Added Tax and Consumer Spending: A Graphical Descriptive Analysis. Asian Journal Of Finance & Accounting, 5(1), 1-20.