Cultural Diversity and Business Practices: China vs. Germany Report

This report analyzes the cultural differences between China and Germany using Hofstede's Insights model. It explores how these differences influence economic development and business practices. The report highlights the impact of Confucianism in China and the collaborative business culture in Germany. It examines the roles of modesty, solidarity, courtesy, and loyalty in Chinese business practices, as well as the importance of planning, perfection, punctuality, and privacy in Germany. The analysis reveals how cultural nuances affect business etiquette and overall economic success in both countries, providing valuable insights into cross-cultural business dynamics.

RUNNING HEAD: CULTURAL DIVERSITY
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Name of the Student:
Name of the University:
Author’s Note:

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The aim of this report to analyse two culturally different countries by using Hofstede
insight model. The cultural differences between China and Germany will be analysed in this
report. The way cultural differences influence the future economic development and business
practices will be analysed in this report.
Hofstede’s insight model:
China Germany
Power distance 80 35
Individualism 20 67
Masculinity 66 66
Uncertainty avoidance 30 65
Long term orientation 87 83
Indulgence 24 40
To analyse the cultural difference between the two countries, Hofstede’s insight model is
the most effective tool. This table refers that in the masculinity and long term orientation index,
there are similarities between these two countries (Hofstede Insights, 2019). Rest of the indexes
refer that there are differences between these two countries (Hofstede Insights, 2019).
Differences in future economic development:
The economic development of a country is influenced by culture. The economic
development of China is influenced by Confucianism ideology. This ideology endorses savings
and a high value on education. The culture of co-operation is beneficial for Germany to maintain

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a successful relationship between the private sector and the government (Anderson, 2012). By
using culture, this country is becoming a leading country in this world.
Differences in business practice:
The business culture of China, influenced by Confucianism, endorse the values of
modesty, solidarity, courtesy and loyalty (Katie Hope, 2014). Cultural differences influenced by
the business practices of China. The characteristics of the business culture of Germany is
planning, perfection, punctuality, and privacy. It can be said that the business etiquette of
Germany is influenced by the culture of this country.
Thus it can be concluded that cultural differences influence the future economic
development and business etiquette of a country. Due to cultural differences, the business culture
and economic development of China and Germany are different.

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References:
Anderson, R. (2012). German economic strength: The secrets of success. Retrieved 6 March
2020, from https://www.bbc.com/news/business-18868704
Hofstede Insights. (2019). Country Comparison - Hofstede Insights. Retrieved 6 March 2020,
from https://www.hofstede-insights.com/country-comparison/china,germany/
Katie Hope, K. (2014). Doing business the Chinese way. Retrieved 6 March 2020, from
https://www.bbc.com/news/business-29524701