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 May 13, 2025

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Tale of Two Countries

Tale of Two Countries

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Executive Summary

The purpose of this study is to study the case of A Tale of Two Countries. India and China are the two emerging economies though it represents a similar culture analysis from Hofstede for both countries they differ from each other in every aspect. With assistance of literature review we review the query of significant correlation between the high scores on power distance and Hinduism in India and atheism in China, the literature suggests that the significant correlation is strong. Caste system in Hinduism is the main driving force of this correlation, there have been many limitations to observations of Hofstede whereas Confucianism has a major influence on business behavior in China.

Introduction

Most businesses make apparently substantial efforts at globalizing their product to conquer the local competition and create new markets. This phenomenon is well illustrated by the latest surge of firms joining the Indian and China markets. This unprecedented economic growth and India and China’s future potential will cause many more global companies to enter the Indian and Chinese markets. Although it is obvious that global brands are joining those growing global markets, they still fail to meet their expected performance goals because their audiences or consumers do not appreciate the cultural difference. This trend of weakness may lead to the general lack of research into initiators and the method of developing customer-brand ties in intercultural contexts. In view of the global economic downturn, its financial effects, and the productivity of the Outsourcing of American jobs to Asian countries there is also substantial specular and controversy about the long-term viability of the Indian out-shoring industry. For this reason, it is common business practice for multinational companies that increase profit margins to attractively procure technical expertise at a low cost. The success and the interpersonal relations of such business practices rely on their behaviors. Business leaders tend to underestimate the time and skills of effective operation of international projects and to believe that procedures can be easily replicated in other countries–like unintended supplier behavior, unsatisfactory product delivery, and higher costs than expected (Hur, Kang, and Kim, 2015). The basic structure of the five social aspects to examine society and interaction of the Five-Factor Model that has strengthened the interest of psychologists in the relationship between personality and community is the most important aspect of Hofstede’s study. To put it simply, the cultures of a global corporation are competing globally against the influence of regional foreign ethnic communities or because of their sensitive climate, not even in the entire corporate organization, cannot create a unified culture. Hofstede’s work has also been inspired by the answer to the question whether such effective forms of management and/or receipts of strong culture in a different cultural context can be adapted and employed (Dissanayake et al., 2015).

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Power Difference is described as the degree to which the less powerful members of organizations and entities (such as the family) agree that power is being unequally distributed. This is inequality, but defined not from above, from below. This reflects inequality. This indicates that both the members and the leaders accept the level of inequality of society. Of reality, dominance and poverty are very basic facts in any culture. Every life is unjust, but some culture is more unfair. This state is not actually subverted by men but is recognized as a cultural norm by the population. In this kind of culture, administrators depend on the loyalty of their team members and workers want their roles and desires to be clearly addressed. India is a strong example of a high power society because its caste system splits the Indian people into five groups, each group being lower than the class below. Such castes describe an Indian citizen’s control from birth and cannot pretend to become any caste. Religion explains significant differences in the rights of a crediting nation, which in turn has a positive effect on several factors that represent an improvement in the standard of living of a population. Why could faith affect such a thing? Religions have had a lot to say about creditors ‘ rights traditionally, suggesting that in Catholic nations, borrower rights are better protected. The emphasis on debtor and borrower rights is a contrast between the influences of faith in starting a company. Christianity, Islam, and Judaism forbid usurpation, even if each understanding of the term has changed in his own manner over the years. It is easy to understand that an incapacity to charge interest will preclude the readiness to lend money, restricting the facility for businessmen to start new businesses. Therefore, in countries where predominant religion limits interest-filling ability, we expect that a new business will be more difficult to start (Haggard and Haggard, 2018). The country culture aspects of power distance and the avoidance of uncertainty are established by means of a diverse data analysis focused on philosophical reasoning and correlation analysis. In its footnote for China, Hofstede notes that the power distance rating is based on observation and wide-ranging literature but does not include any further data. This method is the Chinese PDI’s origins but why is the outcome so strong as other East Asian countries which are also affected by Confucianism?(Beugelsdijk, Kostova, and Roth, 2017). In several aspects Hofstede’s approach: his key claims are that interviews are not the right way to study cultural differences and those nations are not the best units. It would also be dubious in logic to assign the performance of individual workers of one organization to the national scores of an entire country.

 

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Nations are not the best way to measure cultural aspects but are often the only way to carry out such analysis. Surveys should not be the only instrument for study and each author accepts suggestions to identify more dimensions. He denies the allegation, arguing that they have hundreds of centuries-old roots and that there is no lack of credibility in modern replications. There is also a suggestion that some measurements may be affected by politics (Eringa et al., 2015). Research suggests that China’s relationships have been affected by Confucian ideals and that Confucian principles have influenced in particular business practices. Confucian principles may help to understand the effect on Chinese business ties. Confucian philosophy’s principles were directed at maintaining unity in society. Such ideals are rooted in a bureaucratic and authoritarian structure, in which people must always honor their elders who in turn have to defend and take care of themselves. That individual should follow the above in a Confucian society: family relations are expanded to a broad social base in which moral responsibility reigns. There are many Chinese people who hold Confucian beliefs without Confucius training in the concepts of interpersonal relationships in modern China (Nagy and Konyha, 2018). Specific bargaining methods also vary among cultures, affected by cultural factors, and challenging negotiating strategies in China have a major influence on business transactions: contracts are formed through existing Guanxi ties, as opposed to the Western notion that partnerships arise from negotiations. Paying for a lavish dinner or lodging is a chance to face it. Confucian values remain to a large extent and have a significant impact on business. In order to ensure optimum business relations and effective communication with the Chinese, a business person who expects trade with China will have an important role to play in this Confucian based relation process. A businessman should always be aware of these values, be aware of them and adjust their behavior (Hsieh and Scammon, 2015).

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Conclusion

India and China’s potential for future will lead many more worldwide businesses to experience unprecedented economic growth in India and China. The most important aspect of Hofstede’s studies is the basic structure of the five social aspects that explore the culture and interaction between the five-factor models, which has reinforced psychologists ‘ interest in the relationship between individual and group. Therefore, the work of Hofstede is motivated by the answer to the question of whether such effective management methods and are receipts of strong culture can be modified and used in a different cultural context. Hinduism and its caste system are the characteristics of this correlation.  Confucian principles remain largely and affect the business greatly. An entrepreneur who wants to increase its business with China must play an important role in this Confucian process to ensure better business relations and effective interaction with China. Employers should be aware of, be respectful of and change these values.

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References

Beugelsdijk, S., Kostova, T. and Roth, K., 2017. An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies, 48(1), pp.30-47.

Dissanayake, D.M.S.B., Niroshan, W.W.A.E., Nisansala, M.H., Rangani, M.L.D., Samarathunga, S.K.R.A., Subasinghe, S.E.I., Wickramaarachchi, D.N., Nirasha, K., Wickramasinghe, D.N. and Wickramasinghe, W.W.M.E.G.P.M.B., 2015. Cultural comparison in Asian countries: An application of Greet Hofstede’s cultural dimensions.

Eringa, K., Caudron, L.N., Rieck, K., Xie, F. and Gerhardt, T., 2015. How relevant are Hofstede’s dimensions for inter-cultural studies? A replication of Hofstede’s research among current international business students. Research in Hospitality Management, 5(2), pp.187-198.

Haggard, D.L. and Haggard, K.S., 2018. The impact of law, religion, and culture on the ease of starting a business. International Journal of Organization Theory & Behavior, 21(4), pp.242-257.

Hsieh, Y.J. and Scammon, D.L., 2015. The role of Chinese culture in international marketing. In Proceedings of the 1993 Academy of Marketing Science (AMS) Annual Conference (pp. 171-175). Springer, Cham.

Hur, W.M., Kang, S. and Kim, M., 2015. The moderating role of Hofstede’s cultural dimensions in the customer-brand relationship in China and India. Cross Cultural Management, 22(3), pp.487-508.

Nagy, S. and Konyha, C., 2018. The Effects of Hofstede’s Cultural Dimensions on Pro-Environmental Behaviour: How Culture Influences Environmentally Conscious Behaviour. Club of Economics in Miskolc TMP, 14(1), pp.27-36.

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