Cross Cultural Communications And Negotiation Issues

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u08a1 Project – Company Analysis Cross-Cultural Communications/Negotiation Issues That Need to be Addressed to Launch & Maintain Business in China Some cross-cultural communication and negotiation issues that need to be addressed to launch and maintain business in China are: cultural diversity, ethical system, language, and intellectual property. First, our company must understand that China’s and the United States cultures are different and we must understand these differences and take them into account when developing and implementing our strategies. This will give us a competitive advantage. According to Hill (2016), in order for an organization to be successful in other countries, cross cultural literacy is required (p.91). Second, China’s ethical system (I.e., Confucianism) must be considered, which emphasizes “loyalty, reciprocal obligations, and honesty” when dealing with other (Hill, 2016). Third, language must be considered. Although English is the common language of the international business world, people in China prefer to communicate in Mandarin, China’s own language. Having people able to speak both English and Mandarin, would give us a competitive advantage (Hill, 2016). Lastly, intellectual property must be considered. There is high risk of Chinese companies attempting to steal our company intellectual property. According to Hill (2016), massive copyright infringements have costed US companies, such as Microsoft, hundreds of million dollars in lost sales.
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