Issues In International Business For Cultural Analysis

Cultural Analysis and its Components of China

Discuss about the Issues in International Business for Cultural Analysis.

In the border of East Asia, a most populated and highly growth country is located that is called China. It is one of the largest countries in the world where more than one million people are living. Traditions and customs culture of the country’s people vary geographically or ethnically. According to the society of Asia, around 56 group of ethnic minority are representing only in China in which the bigger group is the Han Chinese. There are some vital elements of culture of Chinese such as architecture, ceramics, music, literature, martial arts, philosophy, religion and much more. China is the oldest continuous civilization in the world. China is one of the best countries to do international business with others. It is also doing business with Singapore and maintaining best supply chain across the country. Some issues also happen while doing the business with Singapore. China also includes some cultural analysis to do the business accordingly. People like more the atmosphere and socialism in China. There are more than 50 different nationalities are living in China in which the majority of the Han Chinese is around 94%. After 1970, China has involved as a member of the Asia Pacific Economic Cooperation (APEC) as well as Asia Pacific Trade Agreement (APTA) (Chan & Tong, 2014).

It is necessary to know about the living culture of the country. Basically, in China, standard of living of people is considered as the culture of the society in the country. It indicates the feature of a common people in the society by their nature of living. Chinese culture is consistently different from other country which is the third larger country in the world. Intercultural communication is basically known as communication between people in a background of different culture analysis. The motive of the report is to give a proper framework in regards of an analysis of cultural communication in China (Klocke & Machado, 2014).

There are different types of cultural analysis in China in which traditional culture is one of them. Previously the business was running very slow in China. Over the last three decades, the growth of China was not so developed. However, in 1980, the majority of growth has increased consistently over the country because many students were graduated. Then many students were employed and the country is growing consistently. Previously, there was lack of latest tools and technology by which people had to face some critical situation and they were not meeting their daily requirement. Now the country is producing various products and now it becomes the best exporter country in the world (Sun, D’Alessandro & Johnson, 2014). The development of China considered that there is equality among people, political, social and legal rights and China’s construction protects these rights. Recently, anti-discrimination law is trying to prevent discrimination on the race ground, marital status, gender, homosexuality, and physical disability. China has various factors of low wage rate including unemployment and poverty issues in China. The study discloses the Hofstede cultural analysis dimension to develop the organization in the culture of China (Becker, 2016).

Traditions

Geert Hofstede has considered the sense of economic cultural analysis of China. China has an Eastern as well as Western cultural analysis which derived basically from East Asia. The country has to be maintained the cultural analysis and it must make production as per needs of people to run the business properly. Basically it has the target on high cost as well as less cost segmentation of market and makes measurement of suitable and more preferable goods in the Chinese market. Economically, the country is still facing some problems such as unemployment and low wage rate which causes bad effect of the country. The government is trying to solve this issue consistently for the well growth of the country (Warner, 2014).

Social culture indicates the standard of living of people of the country the pattern changing of the buying consumer’s behavior, life style and attitude which becomes a key factor as consumers now becomes conscious of health. The country wants to be a most valuable analysis of culture. People and society internally a similar term because success of the country is totally depends on people of the society. If people do not maintain growth, it may lead the bad effect of the country. Social culture is more or less good in China because people are getting their daily requirements as well as it is providing goods and services to the other country across the world. The cultural analysis of China is improving consistently. There is a unity in social culture of China because people are living in a same standard. Though some people cannot get luxurious things, they are able to make their own satisfaction (Tong, 2014).

The country is having both verbal and written communication in the society. Though low wage rate is the basic problem of the country, the society’s people are maintaining the communication skills across the country. The concept of internal communication describes the effect of employment in China. The country is involved more outside country for doing transaction of goods and services. Now China is the biggest exporter country in the world. The country must follow some communication skills to make sale with another country. The country also does business in face to face communication skill for making more profit from another country (Yeung, 2016).

The country follows the culture of physical environment. As China is a highly populated country, the growth influences the challenge of natural environment. Physical environment includes macro environmental analysis which includes political, economical, social and technological culture of the country. Politically, the country has approval with the government of doing business with Singapore. This environment culture shows the good effect of the country with the help f good economic system of China. Chinese market is running by the society’s people. If people do not buy the product, it cannot grow up consistently. Now the country is having some latest tools and technologies to produce more goods and make more profit across the region. Physical environment of the country is totally depends on people of the society because the country’s growth is in the hands of people. Now the country’s growth is globally spreading and doing business with Korea, Japan, Beijing, India and much more (Chan & Tong, 2014).

Economics

According to the business report 2011, Singapore is considered as the best business transaction country in the world. On the other hand, China is also the best business doing country after Singapore. The regulatory environment of China is less favorable for doing business in the country. Both countries are paying taxes continuously but the growth of Singapore is better than China. A company set up analysis between Singapore and China indicates the registration of Singapore Company takes only 2 to 3 business procedures day. On the other hand, China takes 2 to 3 months of time because of their difficult involvement procedures. Singapore is considered as the 4^th rank according to the banking sector such as PWC, IFS and World Bank in the country While China is ranked on 114 possessions according to the banking sector. Singapore has 8 ranks in Forbes Magazine 2014 while China is on rank 97 in such report. The trade freedom of Singapore is on the top place in the world while China is on 107 ranks (Li, 2012).

According to Forbes 2010, for best business country, Singapore is treated as rank 4^th while China is on rank 85. Singapore has best IT protection system in the country. IT protection system has much improved in Singapore region while China faces some difficulties of low wage rate across the country. Singapore is treated as the second freest economy region in the world. The market in Singapore faces much competition because the production is high in the country. On the other hand, China is highly populated country but the growth is not more than Singapore. Singapore is growing consistently and the production process increases as well as margin of profit is also increasing every year. In china, the economic system has to improve and they must have to avoid the issue of unemployment and low wage rate issue. It has been found that the growth of China is not so far in comparison to the marketing growth of Singapore (Jondle, 2012).

Hofstede cultural dimensions analysis is considered as a cross-cultural dimension framework which describes the cultural effectiveness of the society on its value member. Geert Hofstede has made his model for examining the world-wide survey result of the employee’s value in Singapore as well as China. Hofstede has founded 6 analyses of cultural dimensions which are mentioned bellow (Taras, Steel & Kirkman, 2012).

Figure 1: Hofstede Culture Dimensions

Society

Source: (www.geert-hofstede.com/singapore)

Hofstede described that every individual is not same by their nature in Singapore as well as China because their standard of living is not equal in both countries. Culture attitude of both countries are expressed by this dimensional model. Distance of power is considered as the effort of some little powerful members of an organization in the country who have expectation of unequal distribution of power across the country. Singapore has much growth according to the dimensional culture of Hofstede. It scored 74, more than in comparison to China. This power is centralized by some rules and regulations (Hofstede, 2013).

Hofstede has given efforts at some nature of distinctive of the Dutch people in this area. In this area, Singapore (20) and China did not reach at this area of dimension. Due to this score of Singapore, most of the people have expectation of caring only for themselves and their family. Singapore is a much growing country in comparison to China. For this, the model influences more economical growth in Singapore market. In This area, the dimension indicates the working performance individually in Singapore as well as China (Hofstede, 2016).

Masculinity is also considered as Femininity which is the third area of Hofstede culture dimension analysis. It makes a deal with individual achievement and cares for others. High scores represent masculine which gives effort on winning and competition. The cultural difference between Singapore and China has got in this area which shows that China is in need of more development while Singapore is already a well developed country. In this area, high score considered as Masculine and low score considered as Feminine. In this area of culture dimension, Singapore scored 48 while China make lower. It means that Singapore is in the Masculine side in this area of Hofstede dimension (Hofstede, 2016). 

In such Hofstede area, Singapore has made higher levels (8) comparing China (less than 8). This area includes about the deals between uncertainty and society. High scores indicate the uncertainties removal by the regulations method and procedures in the society of both countries. People avoid many rules in Singapore because they are in little need of structure. However, PDI is high across the country. People of Singapore call their society as a “Fine Country” (Jeng & Kuo, 2012).

This is the second area of Hofstede cultural dimension analysis where Singapore again scored higher (72) in comparison to China (less than 72). Deals between society and some traditional approach come in this area of Hofstede in the country. It shows the cultural quality of both countries as long term investment like sustain effort, perseverance, slow result and much more (Jeng & Kuo, 2012).

Communications

It is the concluded culture dimension of Hofstede where a challenge occurs that confronts power of humanity across the region. Children are getting proper education in China as well as Singapore. However, Singapore has much growth in comparison to China. This dimension removes the issue of this indulgence across the countries (Bhakta, Lee & Kaye, 2016).

Conclusion

From the above discussion it has been recommended that China is doing business internationally with Singapore and making more profit across the region. It is generally doing the business of import and export with Singapore as well as other countries. Singapore and China both are very advanced country in the earth of Asia. However, some business cultural analysis is different of both countries. Singapore is much developed country as well as china is one of the highly populated well developed country. Some elements between Singapore and China are different because their production and standard of living are different. In coming days the growth of both countries much grow up if it follows the cultural dimensions of Hofstede in the country. Geert Hofstede has made his model for examining the world-wide survey result of the employee’s value in Singapore as well as China. Though Singapore is a well developed country, it is has a little need to develop the structure. However, both countries have best standard of living and satisfy the people needs in the society. Both countries are doing business internationally and the profit margin increasing every year as well as business relation is also maintained properly by both countries accordingly. If both countries follow the concept of Hofstede dimension properly, they can get much improvement in their business domestically as well as internationally.

References

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