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Effects of culture on business
How does culture affect international business
How does culture affect international business
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Recommended: Effects of culture on business
3.0 Brief intro
-Culture plays an important part in how a country operates. It is an integrated system of behaviour within a given society
-Businesses may be affected by cultural differences when operating out of their home countries.
3.1 Hofstede’s 5 cultural dimensions
With reference to annex (3.1) Purple being Taiwan and Blue being singapore, it is visible that compared to singapore,
1. Taiwan believes in power distance lesser than singapore, with a score of 58 to 74. This shows that Taiwan’s has a hierarchical society which people accept. Everyone has their own place within the society and have no qualms with it. Subordinates expect to be told what to do. Customers are always right in Taiwan as well.
2. Taiwan is more collectivist than
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Subordinates are expected to follow instructions without questions.
-Managers expect to be consulted before any actions are taken and expectations of those lower down the chain tend to be little.
-Older Taiwanese people find it difficult to be managed by younger people in higher positions.
3.3 Elements of culture in taiwan
-Taiwan’s culture comprises mainly of,
3.3.1 Language
-Mandarin Chinese is the main language in taiwan. Mandarin is the language taught in schools and is mainly popular with people under the age of 60.
-Hokkien is most commonly used in public, visible in the transport system.
-Hakka is a variant of the chinese language, spoken by the Hakka in Taiwan.
3.3.2 Religion & beliefs
-Taiwan’s main composition of religion is Buddhism and Taoism. The composition of Taiwan’s religion is as shown in annex 3.3
3.3.3 Values and attitudes
-Most Taiwanese have traditional values, including filial piety, worshipping of ancestors, strong emphasis on education and work, and the importance of “face”.
3.3.4 Education
-Taiwan’s education system emphasises on learning more than understanding. English is compulsory and it is very
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Kirkbride, Tang, and Westwood have presented a compelling comparison between Anglo-American methodologies of negotation and conflict management to Chinese methodologies. For the purpose of their article, Anglo- Americans embody Canada, Britain, American, Ireland, Austrailia, and New Zealand (Kirkbride, Tang, & Westwood, 1991). Although the article is written to determine the methodology of Chinese people only those in Hong Kong, Singapore, Taiwan, and Mainland (Kirkbride, Tang, & Westwood, 1991) are studied. The basis of their perspective derive from Chinese values. These Chinese values are harmony, collectivism, conformity, power-distance, holism, contextualism, time, face, shame, reciprocity, and guanxi (Kirkbride, Tang, & Westwood, 1991).
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