BUS 401 WK 1 SLP: Globalization and National Culture

National Culture
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National Culture
Globalization has revolutionized the world economies, with a subtle element of conducting business across borders. Countries now have the ability to conduct business transactions with any other country in the world (International employees, 2014). The heightened global ties, most of the countries in the world have bilateral and multilateral trade agreements that allow their citizens to conduct business across the borders (Geert-hofstede.com, 2016). The US conducts business with quite a number of countries in the world among them China. The Chinese market has been one of the fastest growing markets in the world and most countries have invested heavily in the market. This is a general trend that is associated with emerging markets (HR challenges of international business, 2014).
Of great importance is the role that culture plays in the international trade platforms (Steers & Nardon, 2005). The US and China are based on very different cultures which also affect the way that they do business. Professor Geert Hofstede, Michael Minkov and Gert Jan Hofstede, culture has a subtle influence the workplace (Geert-hofstede.com, 2016). For a company that is based in the United States merging or simply working with a Chinese counterpart, there are quite a number differences that are going to come up relative to the different cultural differences.
Using the six dimensions of national culture, there are some intriguing differences between the Chinese culture and that used in the United States. These are differences that are likely to come up when companies in the two countries work together. According to the power distance index, all the people in the society are not equal (Geert-hofstede.com, 2016). As such, those that do not have the power expect and accept their position in the social order. China scores quite highly on this dimension indicating that, most of the people in the society accept inequalities, relative to a subordinate-superior relationship. This means that there is little or no defense against power abuse by those considered superior, as the subordinates rarely question their position without power. In the US however, the score on the dimension is quite low indicating that equality is much more appreciated and in fact demanded by the American culture. People with power and those without are treated equally (Geert-hofstede.com, 2016). There is an American premise that states liberty and justice for all. Unlike the Chinese culture, all the staffs in the organization are equal and they all play an important role in the business regardless of their position on the business...