Essay about Egt1 Task 4

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A. Cross-Cultural Differences Company X is considering expanding its business to China. However, prior to moving into a new and foreign market, Company X must understand the various cross cultural differences that are relevant to properly conducting business in China. By being more sensitive to and understanding the cross-cultural differences, Company X's transition into the new market should be less challenging and improve its chances of acceptance. Language, work ethic and material culture are three cultural differences that should, first, be understood prior to pursuing opportunities in China. Language is a barrier that will greatly influence the ability of Company X to conduct business in China. Included in this category…show more content…
For example, employee loyalty can be described and improved by reciprocating favors. Developing business relationships are expected to take more time in the Chinese culture as opposed to how they are developed in the united States. In the U.S., businesses and clients typically meet in a formal setting and focus on the business requirements and solutions whereas, in China, first, second and even third meetings might be in informal settings where business is not expected to even be discussed. The legal system is another issue to be considered when doing business in China because it is still viewed as being in a developing stage. Contracts, for example, are highly influenced by this difference. In the Chinese culture, contracts describe how relationships will be developed whereas in the United States, the contract is a binding agreement that spells out the specific terms, conditions and expectations from each party involved. As Company X pursues the possibility of expanding business to China, it must understand that the Chinese business culture does not place as much emphasis on the binding force of a written contract. B. Compare U.S. business practices to practices in your proposed country for each of the following: Product, Price, Promotion and Place The marketing mix should be taken into consideration as Company X considers expansion int the China market. It is important to

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