Business Culture in China Essay - 275 Words

Business Culture in China (Essay Sample) Content: Business Culture in ChinaName:Institution:Instructor:Date of Submission:Table of Contents TOC \o "1-3" \h \z \u Historical Background PAGEREF _Toc420764159 \h 3Current Scenario PAGEREF _Toc420764160 \h 4Influence on UAE Economic Environment PAGEREF _Toc420764161 \h 4Conclusion PAGEREF _Toc420764162 \h 5References PAGEREF _Toc420764163 \h 6Historical BackgroundBusiness cultures usually differ around the world. However, the Chinese and western business cultures differ the most (Mungenats, 2007). China has got its own unique historical background, which has also affected how it carries on with its business (Zhong, n. d). The Chinese business scenario is greatly affected by the countryà ¢Ã¢â€š ¬s traditions. Being the most populous country in the world, and with almost everyone being Chinese, the country has got a uniform business culture. The people love to be respected and care a lot for the most basic things such as sitting positions. For instance, the guest of honor must be given a special seat at the table (Verstappen, 2010). This seat needs to be at the center of the table, and it should be facing the door (Verstappen, 2010). Such traditions have been preserved by the Chinese for years, and they are still on today.The Chinese business culture is under the influence of deep traditions, which date centuries back (Muse, 1997). Unlike many other countries around the world, China has always been a communist country (Muse, 1997). This contrast has made China a very different business economy from the rest of the world, and it could be a major reason for the countryà ¢Ã¢â€š ¬s successful commerce (Muse, 1997). It is worth noting that China was not open to foreign trade and investment before 1979 (Faure, 2006). The main cause of this was the strict communist approach that the country used to run its economy. The communist approaches required that trade and investment be done within the Chinese borders and by Chinese firms. There was no open investme nt plan for foreigners due to their capitalist approaches to business.During the earlier days, business in china was transacted in the traditional Mandarin language and other related dialects (Faure, 2006). This made it difficult for foreign business people to penetrate the Chinese market. There were no commercial laws in China, which made it difficult to transact business in a formal way. However, with time, the country started adopting commercial laws that governed the way business was carried out. During the industrial revolution and the years that followed, other nations were developing faster than China. There was the need to adjust to a more accommodating approach in order to catch up with the rest. Other countries were much ahead in terms of technology, and China had to adopt as fast as it could, especially through business and commerce. However, business was carried out under a lot of political patronage by the government, which continued to own most of the big firms around the country.Current ScenarioSince the introduction of the "openness" to the outside, policy in 1979, foreign presence in the country increased (Li, P., Li, J., Mark, 2007). The Chinese market is open to foreign investment. However, it is worth noting that this investment portion is subject to government sanctions (Shen, 2004). The Chinese government decides the amount of investment a foreign company or individual can do in the country to avoid foreign domination of business (Collins Block, 2013). Nevertheless, the Chinese economy has grown to become one of the largest in the world today by GDP (Beamer, n. d). It is also the most populous nation in the world with over 1 billion people (Beamer, n. d). This makes it an attractive investment haven for foreign businesses, which are keen on the large consumer base.China now has a brand new economic structure, with a convertible currency, unlike before (Beamer, n. d). The convertible currency allows foreign investors to do business in th e country, as much as they are licensed. In addition to this, the Chinese government also allowed people to start private businesses, to enhance economic growth (Beamer, n. d). The private businesses made it possible for more individuals to get employment and improved the countryà ¢Ã¢â€š ¬s GDP. More people in the country were able to afford items, making business more conducive in China. An increased number of companies have been developed and China is experiencing a steady growth of foreign investors, which greatly contributes to its fast rising economy.Even though the country has been able to develop its economy, it is worth noting that there are still a number of factors that are different from other parts of the world. For example, the peopleà ¢Ã¢â€š ¬s customs make them have a different approach to business (Chee West, 2007). They would shop in a different way and expect to be treated in a way that they identify with. In addition to this, there is still the problem of start ing up, which is a factor of language barrier and government terms that are complicated at times.Influence on UAE Economic EnvironmentThe United Arab Emirates is experiencing an economic boom, just like China. There are a few things that influence the economy, from what China is doing. First of all, just like China, the UAE Dirham is also a freely convertible currency. This makes it possible for foreign investment to be carried out in the country and abroad, by both local and international entities. It is also important to note that the UAE business approach is that of m...