EGT1 Task 4 China Essay - 2188 Words

There are many advantages to expanding your business to China. Not only is China considered one of the largest economies in the world, it also has a vast emerging market that is still growing (Startup Overseas). Although China has embraced many Western Business ethics and practices, there are still numerous cross-cultural differences that can make it difficult to succeed without sufficient research and knowledge of the culture. Examples of these cross cultural differences include the Chinese’ attitude toward work and workplace, the labor laws, and how Chinese businesses collaborate with other organizations. More differences include how we market and sell a product, and how pricing differs between our two countries. Perhaps the most†¦show more content†¦For example, gifts must be nicely wrapped and may not be opened right away unless prompted to do so. Also, do not give any gifts such as clocks, flowers, or cutting instruments as it is considered disrespectful. Negotiation style is a major difference between the United States and China. In China, social context, personal relations, and non-verbal behavior are very important in negotiation. There are usually many people from the company who attend the meeting to discuss any topics that need negotiation. Americans value legal contracts and documents over personal relationships, and do not put as much stock in body language. American businesses usually only send one or two people do the negotiating on behalf of the entire company. For the purposes of this paper, let us assume that an American Company has seen great success with its toy product. This company is looking to expand its business to China. There is usually a demand for toys in any country and in China, 17.1% (roughly 223 million) of the nation’s population is under 14 years old (Central Intelligence Agency). Research also shows that the total retail sales of toys in China have increased by 14.2% since 2010 (HKTDC Research, 2014). The Design of this toy would have to be carefully rethought, particularly if it is a doll or Barbie type toy. The doll would have to beShow MoreRelatedEgt1 Task 4 Essay2596 Words   |  11 PagesEveringham EGT1 Task 4 In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood. Let us consider China for our example