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International Commerce

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In the realm of international commerce, before a given corporation begins to conduct business overseas, it must first get acquainted with the cultural values of the region (or regions) it endeavors to inhabit. This is particularly so when Western corporations eye Asian cultures that have traditionally embraced core values different from their own. In China this is certainly the case, where two millennia of culture inform the views and practices of over one billion people. The worldÆs most populous nation, China plays host to a range of cultural values and norms that are at times inconsistent with those recognized by its Western counterparts. How these differences can impact multinational corporations looking to do business in China is the subject of intense debate and study.

In a greater sense, the fundamental tensions that can arise between Western businesses and far Eastern locales serve to illuminate the folly inherent in modern attempts to divine a ôuniversalö code comprised of ôobjectiveö truths that may then be applied to the world (Li 28). From a purely business-driven perspective, foreign corporations as well as local populations will surely be better served when divergent core cultural values are taken into account from the outset of an international business venture. When this is the case, it can become evident that though cultures can and do conflict, this is not to say that they cannot find a common ground in spite of their differences. On the contrary,

. . .
affect international business relations in a variety of ways. Research has shown, perhaps unsurprisingly, that Chinese culture is generally more ôconservative and less open to change than US cultureö; similarly, ôUS culture has been characterized as promoting innovation, change and experimentationö (Tinsley, et al. 711). As a result, Western multinational corporations often observe that in matters of business etiquette, the Chinese appear inhibited, meek or submissive. It is often noted that among Western businesses, particularly those in the US, an atmosphere of controlled chaos can be beneficial. Irreverence, innovation and daring are viewed as precursors to breakthroughs that can lead in turn to greater success in the marketplace. A fundamentally collectivist culture, the Chinese will likely gravitate toward a business climate that eschews these ideals; Chinese cultural values will encourage surface harmony and general consensus over individualism and assertiveness (Wong, et al. 9). This distinction is brought into relief when one considers negotiation practices in the United States versus those in China. In keeping with the trends discussed above, studies have shown that ôUS negotiators are more likely to subscribe
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Approximate Word count = 1207
Approximate Pages = 5 (250 words per page)

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