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Comparing China with the West: What Hofstede taught us about Cultural Consequences.

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Comparing China with the West: What Hofstede taught us about Cultural Consequences.
Introduction
The world today is a smaller place than it has ever been, thanks to the rapid and ongoing development of the global economy; we have become a borderless and cyber-connected community (Hofstede 2001; Kottak 2008; Mead, 2009). This has resulted in greater links and more and more interchanges between different nationalities. The ease at which we can physically communicate and travel has allowed for the free movement of goods and services across borders increasing trade and investment in foreign countries. International commerce, travel, migration and the media are the forces behind globalisation (Kottak, 2008; Craig and Douglas, 2006). Globalisation has a phenomenal effect on the business world; it opens up businesses to potential new markets, allowing them to increase their supply of consumers. Setting the stage for international collaboration (Hofstede, 2003) and while doing so, it is reshaping the global economic outlook (World Investment Report, 2005). In despite of this, Osland (1990) points out, that one of the barriers to international business success ‘Is the one erected by culture’ (p.4).
Each civilization breeds its own social-political-economic systems. Essentially, each culture has its own method to conducting business. Such methods are intrinsically cultural bound. In order to understand how the different systems work one must first understand the values that underlie it. Thus, managers, employees, business partners and other corporate stakeholders must recognise that the methods they use, to make their decisions, solve their problems and deals with other people are all done by reflecting on their cultural backgrounds and perspectives (Mead, 2009; Mott, 2004; Hofstede, 2005). As acknowledged above, globalisation leads to problems in cross-cultural communication. We live in a world where a cultural competency is essential for global business profitability.
Over the years there have been many studies conducted on culture. In the 1950’s



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