preview

Egt1 Task 4 Essay

Better Essays

Stephan Everingham
EGT1 Task 4

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely …show more content…

On the other hand, the American could be confused when his partner tries to bring in a third-party to resolve a seemingly insignificant dispute. Understanding that these differences are cultural distinctions rather than character flaws would help things go more smoothly.

There is also potential for friction with the way that risks are handled. In America, we tend to be greater risk-takers than they are in China. American managers often see this as a difference in bravery, but this is not the case. Chinese people are just more likely to avoid decisions whose outcomes are uncertain. They are more methodical and calculated. Sometimes that means a Chinese person would miss an opportunity that could have been taken but he would not see that as such a problem as an American would.

When decisions are necessary, especially risky ones, Americans do things differently than Chinese people do. Americans like to get involved and, if possible, make the decisions themselves. They are less likely to avoid the situation for fear of embarrassment or uncertainty. If they are uneasy about their authority to make a decision, they are content to defer or delegate. The Chinese are more likely to make decisions in groups where many people participate. This is somethine to consider when doing business with the Chinese because the way we would handle things in America might make them feel slighted or

Get Access