Business Business The social cultural status of a people usually differs based on several factors. These factors are; geographicaland environmental conditions, the intellectual and civilization levels, the technological advancement of the people, as well as their political maturity. All these factors (Doney, Cannon & Mullen, 1998) have a significant impact on the economic status of that country and by extension, the global economy as whole. The diversity of the social cultural aspects determines the economic activities undertaken by the people, their lifestyle and the way they perceive certain products and services (Douglas, 1994).
This attitude determines the buying habits of the people, which in turn influence the general economic status of that country. The more people there is in a country, best oriented to diverse products, services and practices, the more the economy of that country is diversified. The more the diversified the economy, the higher distribution of risks involved. The USA and the China social cultural trends are different. While the American people have a culture of independence and freedom, the reverse is true for the china people who uphold the collective lifestyle approach.
These differences (Doney, Cannon & Mullen, 1998) have also influenced their economic aspect. While most of the Americans ventures into business individually, there is a group tendency in China. The China people are more interested in the technical fields such as construction where group work is a prerequisite. Contrary to this, the American people are interested in the fields where they can perform individually (Geert, 1993). where the China people revere the formal social relationship with a hierarchy nature; the Americans are interested in the informal social relationships that underlines equity. The nature of friendships in these two countries is by far different.
The China people prefer a small number of friends with close and tight connections. On the other hand, the American people have a preference of many friends, with not a so tight connection, who changes from time to time (Doney, Cannon & Mullen, 1998). This has significantly influenced the way the two countries performs business. The China business community will forge a tight connection with their clients for repeat purchases. On the Contrary, the American business people keep serving different clientele.
This has seen China get more contracts from the other countries they have worked with previously than America. This aspect has promoted the robust growth of the China economy at a robust rate. The approach to conflict resolution and the search for truth are different between the two countries. While the American people approach a situation by direct confrontation, the China people avoid that. They avoid criticism and try to be friendly (Doney, Cannon & Mullen, 1998). Applied in the business perspective, the China people address their stakeholders in a friendly way, thus maintaining a stable relationship.
This is different in the American context that emphasizes on seeking redress through direct confrontation (Douglas, 1994). The China people, therefore, can retain their business stakeholders for long and take the advantage that comes with it. It thus follows that their business establishments are more stable. However, there exist some similarities in the social-cultural aspect of the two countries. The people in these two countries have a culture of trying new things (Douglas, 1994). This has made them advance highly in the technology front.
There are a lot of inventions and innovations that the two countries have carried out. This has greatly revolutionized the global economy, through the provision of new goods and services, as well as new processes and ways of doing things. References Geert, H. (1993) Cultural constraints in management theories, Vol. 7 Academy of management review. Douglas, H. (1994). Principles of Language Learning and Teaching. Eaglewood Cliffs: prince Hall Regents. Doney, V., Cannon, G. & Mullen, D. (1998). Understanding the Influence of National Culture on the Development of Trust, Vol.
23, Academy of management review.