Doing Business With Other Cultures China Very few outside fi

Doing Business With Other Cultures

China

Very few outside firms have yet to make a profit in China. One primary reason is that Western-based MNCs do not appreciate the important role and impact of Chinese culture. When dealing with the Chinese, one must realize they are a collective society in which people pride themselves on being members of a group.

France

Many in the United States believe that it is more difficult to get along with the French than with other Europeans.This feeling probably reflects the French culture, which is markedly different from that in the United States.

Russia

The Russian economy has experienced severe problems, and the risks of doing business there cannot be overstated. At the same time, however, by following certain guidelines, MNCs can begin to tap the potential opportunities.

Discussion

Post a few cultural highlights described in your textbook from each country above listed.

Respond to another student, from an American point of view, and state why you think one of the cultural highlights posted would affect MNCs in doing business in that country.

Luthans, F. & Doh, J. P. (2018). International Management Culture, strategy and behavior (10th ed.).

Managing Across Cultures

Doing Business With Other Cultures China Very few outside firms have yet to make a profit in China. One primary reason is that Western-based MNCs do not appreciate the important role and impact of Chinese culture. When dealing with the Chinese, one must realize they are a collective society in which people pride themselves on being members of a group. France Many in the United States believe that it is more difficult to get along with the French than with other Europeans.This feeling probably reflects the French culture, which is markedly different from that in the United States. Russia The Russian economy has experienced severe problems, and the risks of doing business there cannot be overstated. At the same time, however, by following certain guidelines, MNCs can begin to tap the potential opportunities. Discussion Post a few cultural highlights described in your textbook from each country above listed. Respond to another student, from an American point of view, and state why you think one of the cultural highlights posted would affect MNCs in doing business in that country. Luthans, F. & Doh, J. P. (2018). International Management Culture, strategy and behavior (10th ed.).

Solution

Answer:

Expansion in a global market is a very lucretive and it opens new opportunity for growth and profit for the buiness but it is not an easy task, it has to go through many situations like Language barriers, Cultural Differences, Political and Ligal Issues .

Ease of Doing business in a country is ranked from 1-190 based on their different parameteres on their economies. China is ranked at 78th Russia at 35 and France is ranked at 31st place according to WorldBank Group.

Culture is defined as a set of values, practices, traditions or beliefs a group shares, whether due to age, race or ethnicity, religion or gender. Thus based on these factors there are differences in the countries in doing business too. To undrstand this better i would like to draw a pen picture on three different countries China, France and Russia and see how their culture affects the business.

CHINA: According to ChinabusinessReview in the year 2012 USA had an export to China of $109 Billion although it has many barriears these can be explained as below-

a. Overcoming Cultural Barriears China is emerging as a major global economy with major players worth over trillions of dollers. Some taking advantage of the situation but sone are not able to overcome the differences of culture. Mutual respect and belief are the reasons that can build professional relationship with the country. This is contacts rather than contracts. Unlike the western countries China has a very different approach in doing business they tend to build professional relationship through face to face interaction and having lunch or dinner. In this manner there are chances of becoming trustworthy and open the door fr business.

Another way of doing business in having a local contact for translation and to make negotiations with the partners and offer suggestions.

Russia:

Doing business with Russia is also one of the very challenging country. Though the exports have increased over they years and it has opened doors for the different countries it sttill has many huddles that it has because of the cultural differences. The Russians like to be very formal in doing business, They like to have agreements that are being signed and take minutes of discussion. Patience is another aspect that the Russian business partners likely to test which is highly valued in their society another aspect of doing business in Russia is they believe in collectivism and a sense of coperation and togatherness.

Besides these they also follow hierchy in decision making and senion is to take all the business decisions. The communication has high context and follow very minute bodylanguage and behaviour. They are patient and expects the other partners to be patient too.

France:

France is a world leader in exports and has invited various industry players over the years. It is a hub for R&D and has a very strong focus on innovation. French enterprenures tend to focus on long term business and are straightforward with their discussion. As a gesture handshake and kissing on cheeks across gender is common in France.