Introduction and Research Question
Thinking about the world today in comparison to 40 years ago, it has become much more globalized, in other words, the world is increasingly interconnected. Before the 1970’s, it was almost unheard of for multinational corporations (MNC’s) to operate or do business abroad due to the lack of technology. Due to the decrease in tariffs and trade barriers and advancements in technology, society is becoming much more globalized; businesses are starting to expand their markets abroad-- selling, marketing, and operating subsidiaries overseas. As a result, businesses all over the world are constantly networking, fusing, and competing amongst each other for available resources. Therefore, it is becoming increasingly important for businesses to understand and identify ways in which they can adapt to be successful in foreign cultural environments. The most successful international companies in the world such as: Apple, Google, and Walt Disney all share one thing in common, which is an international presence. Their international successes are due to their cultural adaptability in foreign environments, and this is viewed as a key driver to their overall successes. Globalization may be the biggest factor as to why we are starting to see businesses expand their markets abroad. Due to the rapidly changing globalized world in the 21st century, culture is becoming a key determinate of the success or failure of a business (Jarsa et al., 2011; Gilsdorf, 2015). Even though some scholars such as (McSweeney, 2015) argue that culture has little to no influence on business activities in the workplace, it is proven time and time again that culture has heavily impacted the field of international business and will continue to do so in the future. Since businesses are becoming more internationalized, a greater awareness of the differences in cultures and what other countries value in the workplace in order to prevent cultural faux pas are needed. Firms in different geographical regions have varied cultural values, norms, assumptions, and modus operandi. As such, management techniques, HR practices, and business etiquettes must strive to account for these cultural differences. This paper is designed to give readers a greater understanding of the ways in which culture impacts and effects business activities and influences work values in the contemporary workplace. A further investigation will compare and contrast two countries’ cultures: American versus Chinese. This paper will be beneficial for businesses looking to operate or do business abroad, but more importantly MNC’s considering doing business between America and China. It is hoped that after reading this paper, readers will also understand some of the ways in which countries are culturally dissimilar and where these differences lie. Furthermore, it will enable a greater understanding of how to manage these cultural differences as more firms become internationalized. On a smaller scale, one should be aware of …show more content…
Statistical data will be gathered in American and Chinese cultures. This paper is organized as follows; first, an outline of background information about culture and how it has impacted international business will be presented. Then an explanation of the study that was carried out by the researcher will be given, followed with the results from the research. Following this, conclusions on how culture has impacted the modern workforce will be discussed. Finally, the researcher will set out a number of ways in which multinational businesses looking to expand abroad can avoid cultural
Thinking about the world today in comparison to 40 years ago, it has become much more globalized, in other words, the world is increasingly interconnected. Before the 1970’s, it was almost unheard of for multinational corporations (MNC’s) to operate or do business abroad due to the lack of technology. Due to the decrease in tariffs and trade barriers and advancements in technology, society is becoming much more globalized; businesses are starting to expand their markets abroad-- selling, marketing, and operating subsidiaries overseas. As a result, businesses all over the world are constantly networking, fusing, and competing amongst each other for available resources. Therefore, it is becoming increasingly important for businesses to understand and identify ways in which they can adapt to be successful in foreign cultural environments. The most successful international companies in the world such as: Apple, Google, and Walt Disney all share one thing in common, which is an international presence. Their international successes are due to their cultural adaptability in foreign environments, and this is viewed as a key driver to their overall successes. Globalization may be the biggest factor as to why we are starting to see businesses expand their markets abroad. Due to the rapidly changing globalized world in the 21st century, culture is becoming a key determinate of the success or failure of a business (Jarsa et al., 2011; Gilsdorf, 2015). Even though some scholars such as (McSweeney, 2015) argue that culture has little to no influence on business activities in the workplace, it is proven time and time again that culture has heavily impacted the field of international business and will continue to do so in the future. Since businesses are becoming more internationalized, a greater awareness of the differences in cultures and what other countries value in the workplace in order to prevent cultural faux pas are needed. Firms in different geographical regions have varied cultural values, norms, assumptions, and modus operandi. As such, management techniques, HR practices, and business etiquettes must strive to account for these cultural differences. This paper is designed to give readers a greater understanding of the ways in which culture impacts and effects business activities and influences work values in the contemporary workplace. A further investigation will compare and contrast two countries’ cultures: American versus Chinese. This paper will be beneficial for businesses looking to operate or do business abroad, but more importantly MNC’s considering doing business between America and China. It is hoped that after reading this paper, readers will also understand some of the ways in which countries are culturally dissimilar and where these differences lie. Furthermore, it will enable a greater understanding of how to manage these cultural differences as more firms become internationalized. On a smaller scale, one should be aware of …show more content…
Statistical data will be gathered in American and Chinese cultures. This paper is organized as follows; first, an outline of background information about culture and how it has impacted international business will be presented. Then an explanation of the study that was carried out by the researcher will be given, followed with the results from the research. Following this, conclusions on how culture has impacted the modern workforce will be discussed. Finally, the researcher will set out a number of ways in which multinational businesses looking to expand abroad can avoid cultural