Cross-Cultural Management Report: US and China Negotiation Analysis

This report delves into cross-cultural management, specifically analyzing the ethical dimensions of negotiations between American and Chinese businesses. It examines how cultural differences influence negotiation tactics, including the use of ethically questionable practices. The report references Hofstede's cultural dimensions to explain these differences, exploring power distance, individualism, uncertainty avoidance, masculinity, long-term orientation, and indulgence. The analysis highlights that Americans are generally less likely to use ethically questionable tactics, but may adapt their approach in intercultural settings. In contrast, Chinese negotiators may employ misinterpretation strategies. The report concludes by emphasizing the importance of cross-cultural understanding in an increasingly globalized business environment, highlighting the advantages and disadvantages each culture brings to the negotiation table, and provides insights on how to navigate these complexities for successful outcomes.

Running head: CROSS CULTURAL MANAGEMENT
CROSS CULTURAL MANAGEMENT
Student’s Name
University Name
Author’s Note

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Table of Contents
Reference: Yang, Y., De Cremer, D. and Wang, C., 2017. How ethically would Americans
and Chinese negotiate? The effect of intra-cultural versus inter-cultural negotiations. Journal
of Business Ethics, 145(3), pp.659-670.....................................................................................3
1. Introduction............................................................................................................................3
1.1 Case Analysis.......................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Current scenario in the market....................................................................................3
2.2 2.2 Hofstede’s cultural dimension theory’s relation with this cultural crossing.........5
2.2.1 Power Distance index (PDI)......................................................................................5
2.2.3 Uncertainty avoidance (UAI).....................................................................................6
2.2.4 Masculinity vs. femininity (MAS).............................................................................6
2.2.5 Long term orientation vs. short term orientation (LTO)............................................6
2.2.6 Indulgence vs. restraint (IND)...................................................................................7
2.3 Advantages taken by the countries due to differences................................................7
3. Conclusion..............................................................................................................................8
Reference List............................................................................................................................9

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Reference: Yang, Y., De Cremer, D. and Wang, C., 2017. How ethically would
Americans and Chinese negotiate? The effect of intra-cultural versus inter-cultural
negotiations. Journal of Business Ethics, 145(3), pp.659-670.
1. Introduction
1.1 Case Analysis
Cross Cultural communication is the thing which we experience in our day to day life
but is not given importance by us. In the following report, I have discussed in depth about
how ethically the Chinese and the Americans negotiate along with discussion about the
effects created by inter cultural negotiations and intra cultural negotiations and advantage of
one country over another country in negotiation .
2. Discussion
2.1 Current scenario in the market
Analysis of the provided article, allows me to remark that in the current market, China
and America are the biggest contenders in the global markets. According to the report, the
trading relations between them are largely growing and the relation amounted to whopping
half-trillion USD in the financial year 2016 and 2017 (Mesman et al. 2016). As the trading
relations are flourishing, I observe that the amount of negotiations between the trading
companies of the countries are also increasing. In the general study, I have identified that the
people from China generally uses the misinterpretation strategy to finish the process of
negotiation (Yang et al. 2017). I personally opine that misinterpretation is conducted more by
Chinese organisation more and more in inter-cultural trading compared to intra cultural
trading.

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Figure 1: Showing the growth and declination of America and China in cross
cultural participations
(Source: Steel et al. 2018)
Another thing in which, I feel China again beats America is the use of ethically
questionable tactics. China is the country which I observed over the ages, is holding high-
context culture, where the business relations are done based on presentation and short product
films of the present and future growth expansions and expectations clarifying all the doubts
of the party/ies. As per Yang et al. (2017), the culture of US is holding a low-context culture,
where most of the business relations and tie ups are made based on verbal quotation and
verbal representation.

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Figure 2: Chart showing the countries with high and low context cultures
(Source: Yang et al. 2017)
The main thing which I feel, as per m analysis of the paper, favours America in the
negotiation whether it is intra cultural trading or inter-cultural trading is the non-biasness of
the members of the trading groups, but in case of China, I feel that there in in-group
favouritism or biasness ion the cases of both intra and inter cultural trading, which most of
the time results in business conflicts between two groups of people.
2.2 2.2 Hofstede’s cultural dimension theory’s relation with this cultural crossing
Hofstede’s cultural dimension theory constitutes several points and their relationship
with this topic are as follows: -
2.2.1 Power Distance index (PDI)

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The power distance index can be explained as the extent by which, the members of certain
organisations or institutions expect the power to be divided equally among themselves. In
this, the higher index degree refers to the hierarchy in the society and lower index degree
refers to less distribution of power. In this respect, Beugelsdijk, Maseland and Van Hoorn
(2015), states that China has higher power distance index compared to America and this gives
them the more negotiation power.
2.2.2 Individualism vs. collectivism (IDV)
In this part individualism explains itself as the degree in which people of the society
are integrating into specific groups. Whereas collectivism stands for society where extended
families along with others are tied to groups with tightly integrated relationship. In this
respect, America is far more advanced with respect to china.
2.2.3 Uncertainty avoidance (UAI)
Uncertainty index is explained as the Society’s tolerance for the ambiguity. In this
context, I have observed that people generally avert or embrace any event which is unknown
to him/her. Any high degree in the index, according to me indicates to the society following
strict guidelines about, strict behavioural code and demands only truth from the person in the
society. In this respect, I can say that American societies has got an advantage over the
Chinese societies.
2.2.4 Masculinity vs. femininity (MAS)
In this part, I would define Masculinity as any sort of reward for success,
achievement, heroism and so on. Whereas, I would quote Tsai and Men (2017), to idealise
that Femininity stands for co-operation, caring for others and so on in the society. In this
respect, my analysis of the article reveals that both countries are almost equal with an
efficiency of around more than 60% for both.

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2.2.5 Long term orientation vs. short term orientation (LTO)
In this, long term orientation refers to problem solving and adaptations as a necessity
of the society. Whereas short term orientation refers to the honouring of the traditions. If a
society showing short term orientation, then there is less or no economic development (Yang
et al. 2017). In this respect, I would categorise China as long-term orientation with major
economic development in the society compared to the American ones.
2.2.6 Indulgence vs. restraint (IND)
Indulgence refers to the measurements of the society allowing the individuals associated with
this, to express themselves freely. On the other side, restraint, according to me refers to
binding of individuals with strict rules so that they cannot express themselves freely. In this
respect, I would like to highlight the quotation of Adler and Graham (2017), which reflects
that USA is ranked among the indulging ones and china is ranked among the restraint ones.
Figure 3: Chart showing parameters for Hofstede’s Cultural Dimension
theory in different countries
(Source: Ting-Toomey and Dorjee 2017)
2.3 Advantages taken by the countries due to differences

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American economy is considered as one of the most developed economy. The
Chinese traders can take advantage of their trading, by which I perceive that they can make
trading relations with American traders with the help of their negotiation skills and can make
their economy to grow at a massive rate with the income of the foreign money. Influenced
from the views of Zhang and Shi (2017), I can say that another thing that will give advantage
to the Chinese people is that, Americans are partially impatient and will try to make
negotiations to consume short duration of time, resulting in Chinese people to use their
misinterpretation strategy to move the negotiation towards positivity in that short duration of
time. As an outcome, Mullen-Rhoads (2018), states that the most important advantage that
America will enjoy is the benefit of being in trading relation with china is that, china is the
country where everything is manufactured and has gained a hierarchy in the field of
production.
3. Conclusion
The cross-cultural management is one of the important thing according to me, which
helps to cope up with rapid economic growth as well as global development. Here I can see
that that both the economies of China and America is depending on each other. Trading
relation between both the countries are developing them as one of the top economic
powerhouses in the world. I feel that it is evident that China using ethically questionable
tactics and misinterpretation strategy in the negotiations. All these are giving China more
advantage over America.

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Reference List
Adler, N.J. and Graham, J.L., 2017. Cross-cultural Interaction: The International Comparison
Fallacy?. In Language in International Business (pp. 33-58). Palgrave Macmillan, Cham.
Beugelsdijk, S., Maseland, R. and Van Hoorn, A., 2015. Are Scores on H ofstede's
Dimensions of National Culture Stable over Time? A Cohort Analysis. Global Strategy
Journal, 5(3), pp.223-240.
Mesman, J., van IJzendoorn, M.H. and Sagi-Schwarz, A., 2016. Cross-cultural patterns of
attachment. Handbook of Attachment: Theory, Research, and Clinical Applications, third ed.
Guilford, New York, NY, pp.852-877.
Mullen-Rhoads, R.E., 2018. E-negotiations between Chinese and US business leaders: a brief
review of the literature. International Journal of Teaching and Case Studies, 9(3), pp.221-
240.
Steel, P., Taras, V., Uggerslev, K. and Bosco, F., 2018. The happy culture: A theoretical,
meta-Analytic, and empirical review of the relationship between culture and wealth and
subjective well-being. Personality and Social Psychology Review, 22(2), pp.128-169.
Ting-Toomey, S. and Dorjee, T., 2017. 7 Multifaceted identity approaches and cross-cultural
communication styles: Selective overview and future directions. Handbook of intercultural
communication, pp.141-177.
Tsai, W.H.S. and Men, L.R., 2017. Consumer engagement with brands on social network
sites: A cross-cultural comparison of China and the USA. Journal of Marketing
Communications, 23(1), pp.2-21.

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Yang, Y., De Cremer, D. and Wang, C., 2017. How ethically would Americans and Chinese
negotiate? The effect of intra-cultural versus inter-cultural negotiations. Journal of Business
Ethics, 145(3), pp.659-670.
Zhang, J. and Shi, Y., 2017. The application of vague language in international business
negotiations from a cross-cultural perspective. Theory and Practice in Language
Studies, 7(7), pp.585-589.