Why China Plays Hardball Essay

1657 words - 7 pages


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 ...view middle of the document...

It shows an ethnocentric state of thinking in matter of inferring in terms of take it or leave it. 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 economy and legislations of the country to follow (Mickan & Sylvia 2000).

Conversing and interpreting across different cultures

The communication about the context impacts greatly in the process of understanding the message and interpreting it the right way. In cultures of high context, their thoughts and intentions are not overtly conveyed, thus leaving for one to read in between the lines to obligate the message (Deresky & Christopher, 2013). Supporting the argument with a quote from the article “In a market where Chinese companies don’t give yes or no answers, Australians often fail to read what’s being said between the lines.” (Gettler, 2013). From this article, we can see that Chinese negotiators from the high context cultures just does not plainly come out and say no or yes to a proposal. Many indirect answers will be thrown at the dealers creating a sense of false hope, “Of course, an MOU is just that, it’s not an agreement.” (Gettler 2013). Though, in cultures of low context where individual associations and businesses are of complete separate, dealings upon one another would be most explicit creating an exact pinpoint.
Effective managements of a corporation should bring cultural noises when negotiating among nations to a minimum. Deresky and Christopher (2012) initiates the idea that the more differential the cultures, it is likely to create more noise. Traditional models would fight in...

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