Topic 6 - Culture and business in Asia Flashcards
Explain the dark side of the Chinese economy as a result of Mao’s communist revolution
Mao’s communist revolution led to:
- Bureaucratic single party system
- State control over key industries
- Wealth acquired through contacts: social inequality
- Large-scale corruption
- Fewer state funds for social spending
Explain the benefits of Mao’s communist revolution
- Central planning giving the government more control over business activity allowing for modernization
- Economic growth which led to China becoming the 2nd largest economy in the world in 2008
- China’s entry into the World Trade Organisation
What is the definition of guanxi and describe its elements
Connexions or relationships among individuals
based on a system of reciprocal obligations and
exchange of favours
- Affective dimension: direct affective ties. Family and close
friends. - Normative dimension: bond between two individuals through
distant relatives and friends. - Instrumental dimension: the relationship is merely a tool to
achieve other objectives.
The combination of these three dimensions determines the nature, strength and stability of any particular guanxi.
Describe the business practises of China
- Relationship focus
- Indirect language
- Very hierarchical
- More reserved
- Polychronic time
- Long term orientation
Is China’s culture in favour of Equality or Hierarchy? Describe this culture
- High differences in status
- Status is assigned
- Respect is a function of ascribed status
- Showing respect to elderly or higher status people is
due
Would China’s culture be considered high-context or low-context? Describe this culture
Language is often indirect and offensive remarks will not be tolerated
Showing negative emotions can disrupt harmony and
cause discomfort
Describe the different elements of expressivity with regards to China’s culture
- Speak softly
- Interrupting is impolite
- Fewer physical contact
- Indirect eye gaze
- Few hand gestures and very subtle facial
expressions
Describe the business culture in Japan with regards to the basic principles of behaviour
- Homogenization
- Hierarchical
- Negotiations usually between people of a similar age and rank
Men prevail over women in the workplace - Collectivistic
- Harmonic society to avoid conflict
Describe the business culture in Japan
- Use of time absolutely rigid
- Meeting held without improvisation or flexibility
- Information must be detailed and error-free
- Personal relationships are very important
- Eye-contact must be kept minimal
- Gifts are very important
What is Koduka?
Offshoring of manufacturing activities of Japanese companies to other countries, especially to other Asian countries with lower labour costs.
What is Zaibatsu?
Huge conglomerates that were family-run until the end of the second world war. The core business was a bank but financial and heavy industries were developed around it
What is Keiretsu?
A reconversion of the zaibatsu with a set of companies with interlocking business relationships and shareholdings. The manufacturer of the final product is supplied of parts by partner companies whom it keeps long term relationships.
What is Kabaushika Kaisha?
The legal form that larger Japanese companies take, it could assimilate to a Spanish Joint-stock company, whose shares are freely transferable with no limit to the number of investors
What is Yuugen Kaisha?
A legal alternative to Kabaushiki Kaisha, but is more suitable for smaller companies because the minimum
capital required to establish them is lower, as the number of investors and management requirements
What is MITI?
Ministry of International Trade and Industry, was the Japanese industry ministry promoted the economic development of the country after World War II. Its role was to determine which industries had to be protected as well as which ones had to develop or being abandoned.
