Cross-Cultural Transaction Management Essay Example | Topics and Well Written Essays - 1500 words

Cross-Cultural Transaction Management - Essay Example The Chinese space for individuals to make decisions appear to experience some direct influence from the government, the US has a liberal space for individuals to decide on many issues without a direct influence from the government. Politics around the social scene affects the cultural definition between the two countries with the Chinese culture being closely monitored and dictated upon by the strong political forces. The US democratic model is perhaps one of the most liberalized in the world making it one of the leaders in the most favored nation (MFN) in economic terms. In contrast, the Chinese political setting has been a socialist model that appears to be on the opposite end when compared to democracy, which depicts the setting as intolerant of democratic values and principles. Entering the Chinese market to set up shop is likely to be subjected to tight government bureaucracies than in the US. The government cronies found all over China may pose the greatest challenge to setting out investment due to their political inclination thereby affecting foreign investment. In addition, the highly patriarchal cultural system that is established in the political arena hinders the role of women in Chinese economy.The Motosuzhou management makes are defined by high political influence right from the organization structure. Considerations of the political influence that the Electrowide joint venture may have on the Chinese foreign policy of isolation based on its government structure come into the equation.... that the government has accorded Motosuzhou along side other 1000 companies in terms of liberal decision making, the role of Minister of Finance in the internal structure contradicts this assumption. Socialist model of the Chinese culture that emphasizes on understanding social attributes of the negotiation panel forwarded by Electrowide also consumed a lot of time that would otherwise have made progress in terms of the Americans’ estimation. Gender discrimination of female negotiator in the Electrowide team was not welcome from the Americans causing more frustrations. Negotiations failure between Electrowide and Motosuzhou Joint venture negotiations must contemplate the selection criteria of a partner for success in such negotiations, which were heavily compromised in the Electrowide and Motosuzhou case. During the negotiations, it was not clear what each partner was willing to obtain and offer as part of the joint venture. The Chinese team acted casually and did not utilize the time as the American team expected during the negotiations. Several assumptions were made by both parties which were not the exact positions of the intended entry strategies for the other parties. The accounting policies that the two firms applied in their operations were very different, for instance, in the treatment of manufacturing costs and their allocation in the books. For better performance of the joint venture, it is important that the internal operations of the firms are not very different for purposes of harmonizing the joint operations. As it also appeared in the disparities, Motosuzhou did not strictly comply with audit rules which are fundament in American corporate operations. Thirdly, communication is a basic necessity in the negotiations of a joint venture as well as during