Lessons for Joint Ventures in China

What is trust? The dictionary meaning of trust is a firm belief in the reliability, truth, ability, or strength of someone or something. The second meaning is, confidence placed in a person by making that person the nominal owner of property to be held or used for the benefit of one or more others. But what can we really define as trust? In this paper, I will discuss how trust is used every day in different situations, how we deal with trust in various relationships, and how we as individuals practice trust within ourselves.

In this book, trust is defined as “one’s willingness to be vulnerable to another based on the confidence that the other is benevolent, honest, open, reliable, and competent.” (page xiii) The author recognizes that trust is complex and dynamic. She views trust as the “lubricant” that greases the machinery of the organization. Trust is particularly important where parties are interdependent, or the “interests of one party cannot be achieve without reliance upon another.” In schools “teachers and principals are

Joint ventures (JV) are a popular method of foreign market entry because they theoretically provide a way to join complementary skills and know-how, as well as a way for the foreign firm to gain an insider’s perspective on the foreign market. Since China began its market opening in 1978, joint ventures have been the most commonly used form of foreign direct investment (FDI), with about 70% of FDI in China in the 1980s and 1990s taking the form of joint ventures (Qui, 2005, p. 47). The Chinese company, as well as the foreign investor, has since 1978 been drawn to the joint venture form. Walsh, Wang & Xin (1999) note that from the Chinese

In ADP 6-22 there is a section dedicated to building trust, trust may sound cliché or soft depending on who you are but by developing trust you are in turn developing mutual respect. It says that “it is important for leaders to promote a culture and climate of trust”(ADP 6-22 chapter 6-50)

We established trust by taking small risks one at time, listen for other groups’ interest, come through each other,

The risk of losing this joint venture is a major concern as Richmond Engineering has been working on entering the Chinese market since 1984 and if this deal is tarnished it is hard to say how long it could take for a third chance to come along. Cultural elements are a key element that influences international business negotiations, in China it is important that both parties refrain from embarrassing one another and to meet any differences halfway to ensure a successful negotiation. If Finn can enhance the current relationship to build trust

In any position, “one of your first goals should be to gain trust and credibility from colleagues, clients, customers, and other contacts” (Cardon, 2012). Trusting the company you do business with is critical, a company must follow

When we consider popular social theory, trust indicates a certain belief and a sense of assurance that is based on strong but not logically-conclusive evidence, or based on some ones character, their ability, or truth that someone or something has shown over a period of time or over experiences. Trust makes for a sense of being safe or of being free of fear, enough so that one 's focus can be on other matters (Spirithome, 2005). Key elements of this definition are its dependence on the foundation of character, its ability and a sense of being safe. Trust is also a public good, according to noted sociologist Giovanni Sartor (Sartor, 2003). Sartor stated if there was no trust, co-operation would end, and the whole fabric of society would collapse. Trust can be defined as the “belief that someone or something is reliable, good, honest, effective.” Merriam-

This study digs into the authoritative trust based similitudes and contrasts crosswise over "nonconformist" and "collectivist" administration workers in inns. In particular, the three measurements of hierarchical trust, i.e., honesty, responsibility and steadfastness are thought about over the two examples from the U.S. what's more, India to highlight how representatives see the level of each of the three measurements crosswise over societies. Discoveries propose that the three measurements speak to the trust build crosswise over various national societies. Be that as it may, in looking at the individual measurement of the trust develop, a critical distinction exists between the impression of representatives in the two societies, recommending

Chinese workers believe that close personal relationships are imperative to effective communication. American companies don’t share the same views and some organizations have even related this to workplace fraternization, which can result in disciplinary action. Since we don’t believe that these relationships are necessary, or even appropriate, we don’t form them and this could affect a bi-national workplace and possibly even carry over to business dealings outside of the company. The Chinese believe that, when conducting business with other people, a relationship must first be formed to gain the trust of business partners.

Another value that is very important in Chinese culture is trust. Trust lies at the heart of successful long-term intercultural business relationships. Therefore, Oldtown employee must be prepared in gaining the Chinese Manager in China trust to deal with business. In China, the cross-cultural business relationships, trust plays an indispensable role since partners from different cultures don’t always have the same values or assumptions about how business works. When trust is developed, partners can navigate difficult issues over time by fostering a candid exchange of ideas, issues and agendas. Developing trust can significantly reduce what Westerners often complain of in their dealings with Chinese counterparts: unpredictable behavior and a lack of transparency. As a Chinese executive at Google put it, “In China, your success depends on how well a person trusts you.”

In order for interpersonal trustworthiness to exist in organizations, a leader-follower relationship must first exist between the parties involved (Caldwell et al., 2010, p. 500). Once that leader-follower relationship is established, leaders have to earn trust. Leaders earn trust by their respective actions, morals and virtues. Trust is can also be based on past history. If something was done in the past which questions a leader’s values, morals or judgment, it would be unlikely that the leader would be trusted in the future. One of the most important parts of being an effective leader is building and maintaining trust. Trust can further be defined as a “multi-dimensional construct comprising different dimensions of the trustee’s attributes that the trustor evaluates” (Ingenhoff and Sommer, 2010, p. 341).

Prior to reading the Harvard Business Review on Doing Business in China, I assumed that business was a universal thing around the world. I assumed that business was the same in all countries. I assumed that every country had the same end goals when it came to business. As a result, I assumed that all countries followed a similar template for how business negotiations work. I was under the assumption that business was all about numbers and money; I didn’t expect to see so much energy focused on creating relationships. I originally assumed China was a very strict and numbers based country when it came to business. In my mind, China was this giant country where everything is made and manufactured at a lower price. As a result, I assumed that

ESSAY TOPIC (1) :A joint venture is affected by the cultural distance between two partners. In what ways are joint ventures and types of international collaboration affected by cultural differences?

Trust in people is merely a relationship of reliance and an intrinsic part of human nature. It is established at the family level and expands outward as the child matures. Each being depends on their families to provide as one depends on educators to teach. Furthermore, trust is necessary for institutions such as schools, hospitals, businesses, and even the government to effectively operate. The workforce expects their employers to give a cash-able paycheck in return for their hard worked hours; consumers give a business compensation on the basis of receiving a product or service in return; and individuals put their