Issues in International Business

Running head: ISSUES IN INTERNATIONAL BUSINESS
Issues in International Business
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1ISSUES IN INTERNATIONAL BUSINESS
Table of Contents
1.0 Introduction of Host Country and Rationale of Choice.............................................................3
2.0 Cultural Analysis of Host Country............................................................................................4
2.1 Religion and Food..................................................................................................................4
2.2 Language................................................................................................................................4
2.3 Social Stratification...............................................................................................................4
2.4 Political Life..........................................................................................................................5
2.5 Values and Etiquettes............................................................................................................6
3.0 Business Culture of Host Country.............................................................................................6
3.1 Business Communication......................................................................................................6
3.2 Gift Giving Culture................................................................................................................7
3.3 Teamwork..............................................................................................................................7
3.4 Meeting and Greeting............................................................................................................7
3.5 Business Relationship and Business Negotiation..................................................................8
4.0 Hofstede’s 5 Cultural Dimensions Analysis..............................................................................9
4.1 Power Distant Index..............................................................................................................9
4.2 Individualism VS Collectivism..............................................................................................9
4.3 Uncertainty Avoidance Index..............................................................................................10
4.4 Masculinity and Femininity.................................................................................................10
4.5 Long Term VS Short-Term Orientation..............................................................................10

2ISSUES IN INTERNATIONAL BUSINESS
5.0 Conclusion...............................................................................................................................11
References......................................................................................................................................12

3ISSUES IN INTERNATIONAL BUSINESS
1.0 Introduction of Host Country and Rationale of Choice
Success of international business is largely dependent on development of the host
country. The economic growth and business environment of the host country form the foundation
of success of the international business (Covin & Miller 2014). The host country chosen for
international business for this study is China. The economy of China has rocketed its way
towards becoming the second largest economy in the world. Such emerging economic condition
can enhance the level of profit for the international business. On the other hand, flexible
government rules and regulations drive flexible business environment for international business.
Middle class people of China have grown significantly, which demonstrate moderate
purchasing power for the customers. Recently, Chinese customers have huge inclination towards
foreign products and services (Qian et al., 2013). In this way, there is huge scope of international
business in this country. Therefore, this county is chosen for doing international business. Apart
from that, business partners of China are highly communicative during time of making business
contract. Therefore, it becomes easy for the international companies to make deals with the
Chinese business partners. Chinese people are highly achievement oriented, which can help the
international organizations achieving business success while hiring such people in business
operation (Li & Liu, 2014). The customers of China also have huge inclination towards online
purchases. Such customer trends would also enhance the international business scope in China.
Hence, China has been chosen as the host country for international business expansion.
This study will analyze the cultural component of China, where some unique cultural
components of the country will be highlighted. Apart from that, the study will also analyze the
business culture of China and compare this business culture with the business culture of