Why China Plays Hardball Essay

1661 Words Apr 13th, 2014 7 Pages
Introduction

This report analyzes the cross-cultural negotiations happening between Australia and China through organizational business transactions. With today’s modern trades, negotiators aim to attain a “win-win” situation between one another under a rational and wholesome environment. It is a necessity for multinational corporations to have a cross-cultural based management. Differences of cultures across the globe would induce large organizations to embrace themselves with a variety of counter strategies, as it can majorly impact the firm’s performances if left unattended. Hofstede (1983) established that the differences between each nation create diversity, which exist in various aspects mainly: Power distance, uncertainty
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Parochialism is demonstrated in the article where Gettler (2013) states “There have been lots of instances where Chinese factories have substituted components into a production run.” leaving global corporations indecisive and not retain a trustworthy source between the organization and the Chinese manufacturers. Parochialism and ethnocentrism should be avoided when trying to retain as a successful manager in negotiating towards other global industries.
China is to be seen as a progressive developing nation, even though it seems to be insufficiently incomplete in areas of economic and legal matters. It is encountered that many transactional dealings happening in the investor’s home nation may be easily dealt with than communicating and negotiating with China (Harris 2010). Therefore, before investing and negotiating with another global corporation, background researches should be analyzed and learn the customs before entering also known as ethical relativism. As lack of the cultural sensitivity may leave you end up with a huge loss of money and time efficiency. Harris et al (2004) provided examples of further information that need to be learnt such as national economic levels incase of a recession, educational levels which investors are dealing with, government rules and policies when entering and dealing with the nation. Education levels can affect the investor’s expectancy of what to deal with, in addition to the consistency of the nations

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