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Submitted by

Name ID Mail ID
Shamsul Arefin Khan 18201003 irfunkhan37500@gmail.com

Syed Shafeul Azam 18101014 syedshafeul066@gmail.com


Farhan Bin Hasan 18101006 farhanbinhasan03@gmail.com
Md Isteaq Hossain 18101031 ishtiakhossainrohan77501@gmail.com

Submitted to: Asmiyat Ahmed


Course ID: INB-301
Section: 01
Submission Date: 30th march, 2020

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Abstract
Business relations in China are steeped in tradition, and it is uncommon for
Chinese businesses to work with companies they are not familiar with, therefore
working through an intermediary is vital. The Culture Exchange understands these
traditions, allowing you will go into business showing cultural awareness and
sensitivity to foreign practices. Bangladesh is considered to be one of the most
interesting business and economic cases in the world today. Despite suffering from
intense conflicts, political instability, domestic strife, inadequate infrastructure and
the financial crisis, the nation of Bangladesh continues to grow its economy by six
percent each year

Table of Contents

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1. Introduction.................................................................................................................................4
2. Cultural Factors in Doing Business in China.................................................................................5
2.1 Guanxi....................................................................................................................................6
2.2 Confucianism.........................................................................................................................6
2.3 Face........................................................................................................................................6
2.4 Collectivism............................................................................................................................7
2.5 Meetings & Greetings...........................................................................................................7
2.6 Giving gifts.............................................................................................................................7
2.7 Numbers.................................................................................................................................8
2.8 Structure and hierarchy in China..........................................................................................8
3. Cultural Factors in Doing Business in Bangladesh.......................................................................8
3.1 Greetings................................................................................................................................9
3.2 Meeting structure in Bangladesh.........................................................................................9
3.3 Communication...................................................................................................................10
3.4 The concept of ‘face’...........................................................................................................10
3.5 Giving gifts...........................................................................................................................10
3.6 STRUCTURE AND HIERARCHY IN BANGLADESHI COMPANIES...........................................11
3.7 Punctuality...........................................................................................................................12
4. Comparison between the culture of Bangladesh and China.....................................................12
5. The Hofstede Cultural Dimensions............................................................................................13
5.1 Power Distance Index..........................................................................................................15
5.2 Individualism vs. Collectivism.............................................................................................15
5.3 Uncertainty Avoidance Index..............................................................................................16
5.4 Masculinity vs. Femininity...................................................................................................16
5.5 Long-Term Orientation vs. Short-Term Orientation...........................................................17
5.6 Indulgence vs. Restraint......................................................................................................17
6. Conclusion..................................................................................................................................17
References.....................................................................................................................................19

1. Introduction
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All the people have different attitudes and perceptions so when being asked what is
culture for them, the answer will always have different aspects. Despite the we all
believe we have impulsive knowledge on what culture mean defining it is more
complex. According to Kroeber and Kluckhohn’s research culture may be defined
in more than 160 ways.
Different aspects of culture help different people to find the best field for them. But
there’s a case when culture affects the whole society not only individuals.
According to Francis Fukuyama “the most crucial area of modern life in which
culture exercises a direct influence on domestic well-being and international order
is the economy. Although economic activity is inextricably linked with social and
political life, there is a mistaken tendency (€¦) to regard the economy as a facet of
life with its own laws, separate from the rest of society.”

The comprehensive culture’s impact on international business might be found in


every international company as culture affects HRM, International marketing,
supply chain, operations management, corporate strategies and especially way of
doing business.

On the other hand, culture’s influence may be found mainly in values, beliefs and
behavior. We can simply view three cultural differences across values, beliefs and
behavior.

In a globalized economy, cultural sensitivity is essential. As more companies grow,


and the global marketplace becomes more accessible for small businesses,
multinational and cross-cultural teams are becoming more common. This means
that it is crucial, now more than ever, for businesses to understand the culture of
their foreign market if they wish to succeed internationally.

Culture is the ideas, customs, and social behavior of a particular person or society.
But how does culture affect international business?
In a business context, culture relates to what behavior is common and accepted
professionally in one location, compared to another. What may be acceptable
business practice in one country, may be very different from the approach that is
used by businesses overseas. Therefore, recognizing how culture can affect
international business is something that should be understood in order to avoid

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misunderstandings between colleagues and clients, and also to make sure that
businesses are presenting themselves to their new market in the best way they can.

Different cultures have different attitudes to organizational structure

2. Cultural Factors in Doing Business in China


With the globalization of business word, China has become an attractive market for
foreign investors and entrepreneurs. However cultural differences present
significant barriers between Chinese and western partners. To be successful it is
crucial to understand and respect China’s long history and culture. Let’s highlight
some important key areas one may encounter while doing business in China.

2.1 Guanxi

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China is a relationship-oriented society. Guanxi or the network and interaction, is
vital for business. By building Guanxi, the company minimizes risks, failures and
setbacks. The Chinese prefer to deal with people they know and trust. First, among
the partners should be established interpersonal relationship, before they can begin
to work together. Moreover, it is not just relationship between companies but also
between members of these companies. The more you will have areas of
intersection with the Chinese (family, hobbies, life inspiration), the easier it will
address issues in business.

2.2 Confucianism
Confucianism affects business practice a lot: all relationship is deemed to be
unequal. It is necessary to show respect to age, seniority or educational
background. Management style tends toward the directive, which reflects basic
Confucian concept of the hierarchical nature of society. It is not executed that
subordinates will question the decision of superior-that will be disrespectful. The
manager should be seen as a type of father figure who receives loyalty and
obedience from colleagues. In return, the manager is expected to take an interest in
all aspects of colleague’s life.

2.3 Face
The concept of Mianzi or “Face” is important for the purpose of business
interaction. “Face” is a combination of dignity, pride and public reputation. A
slight mistake can make the Chinese “lose face” and it can offend them. The
easiest way to cause someone to lose face is to insult the individual, to criticize in
front of others or to treat her/him as an underling when official status in an
organization is higher. “Giving face” means showing respect to someone, giving
compliments and doing things that increase self-pride. This should not be done in a
showy manner but with utmost sincerity and honor. If the concept is carried in a
well-mannered way, it enables the person to gain loyalty, respect and even a
positive aspect in business negotiation. “Saving face” refers to maintaining a good
self-image. You can help somebody to save face by helping to avoid embarrassing
situation. The person whose face you saved will never forget a favor, and will be in
your debt.

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2.4 Collectivism
Chinese culture is collectivist oriented. The group, rather than individual, is
honored. This results in tighter teamwork, more consensual decision making, more
obedience and spread information sharing. The Asian tradition of slow-decision
making is due in part to the people’s group orientation. Many people feel obligated
to get the other’s involved in important decision, even of the are certain of
outcome. Rewards and blame equally shared among all members of the team.
However, while the Chinese are cooperative within their own group, organizations
are usually display a competitive orientation in their dealing with other
organizations.

2.5 Meetings & Greetings


When meeting businessmen in China, foreigners should display sincerity and
respect. Handshaking has to be very lightly and followed by exchanging of
business cards, preferably with English text on one side and Chinese on another. It
is important to receive cards with both hands and study. When Chinese greet
someone, they do not look straight in the eye, but lower their eyes slightly. This is
a sign of deference and respect. Meetings are often long and seemingly without
clear objectives. Often, they are exercise in relationship building and the aim of the
meeting is to move the relationship forward, rather than any specific business task.
Chinese people do not want to be rushed. It can take several, very long meetings
before any tangible progress is made. In addition, the Chinese are very interested in
long-term commitment.

2.6 Giving gifts


Chinese are inveterate gift givers. Gifts express friendship and can symbolize
hopes for good future business. However, it is important not to give presents in the
absence of a good reason or a witness. This may be construed differently.
The above few examples of cross-cultural differences and business etiquette
demonstrate areas where business people can face challenges. Avoid cultural
conflicts in order to maximize business trip and leave a good impression.
2.7 Numbers
For them number does matter so always need to pay attention to numbers and their
significant or avoid as appropriate:
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 8 is the luckiest number in Chinese culture. If you receive eight of
something, consider it a gesture of good will.
 6 is considered a blessing for smoothness and progress.
 4 is a taboo number because it sounds like the word “death” and is
considered unlucky.
 73 means “the funeral”
 84 means “having accidents”

2.8 Structure and hierarchy in China


Hierarchy in China, both in business and privacy, is purely vertical and highly
respected. Moreover, Chinese people will be careful to save face in order to protect
individual reputations, influence and dignity. Some of these values have slowed
down over the last decade and modern Western business approaches are gaining
ground. As a result, they don’t want to lose face, Chinese are often risk averse.
Hierarchical differences must be respected and trying to circumvent them will
almost always retard decision-making.

3. Cultural Factors in Doing Business in Bangladesh


Bangladesh, one of the most promising emerging markets in the world, unlocks
numerous business opportunities to foreign investors.
Offices in Bangladesh are heavily male-dominated. However, they will treat their
female business partners with respect.
The title matters the most in Bangladesh, so make sure to match the positions of
the people attending the meeting. If you are a director or a higher-level manager,
they will take you seriously.
The process of closing a deal in Bangladesh can be lengthy. Be prepared to attend
several meetings as Bangladeshis rarely make business decisions based on one
encounter only.
While your primary purpose is to get a ‘yes’ from them, to get there you need to
build trust and having a mutual connection will give you a clear advantage.

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A referral through a mutual associate will help you make initial contact with future
business partners. Emer hub can be your partner while doing business in
Bangladesh and we can assist you further in dealing with Bangladeshi business
associates.

3.1 Greetings
Men shake hands to greet in business meetings, and if there are any women
present, they will most likely give you a polite nod. Keep in mind that you must
not extend your hand to a Bangladeshi woman unless she initiates the first move.
The appropriate time to exchange business cards is after introduction. Make sure
you use your right hand when giving and receiving business cards and treat the
cards with respect.

3.2 Meeting structure in Bangladesh


It is essential to know how a business meeting works in Bangladesh to save you
from uncomfortable situations and also to help you communicate effectively.
First and foremost, do not schedule any meetings for 1 p.m. as Bangladeshis will
pray at 1.15 p.m. and eat after the prayer.
A meeting in Bangladesh begins with small talk. It is a must to start by building
rapport; this may include personal questions about health, family, etc.
To formally start, the most senior in the group usually begins or leads the
conversation about the objective and content of the meeting.
Also, keep in mind that punctuality is not very common and meetings often don’t
start at the scheduled time, and they can also consume way past the scheduled end
time.
The agenda generally serves only as a guideline for what are the goals the meeting
should achieve.
Don’t rush the meeting because you must first make your potential business
partner comfortable with you and being too forceful conveys a rude message

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3.3 Communication
Bangladeshis are indirect speakers, although it depends on to whom they’re
talking. For close friends or relatives, they may speak in a direct manner.
They also tend to express themselves in long sentences, and the true meaning of
what they want to say often becomes clear only when put in context with non-
verbal cues.
Being an attentive listener is one of the notable characteristics of Bangladeshis. In
communication, they are courteous and also love flattery.
It is also acceptable to speak about your educational qualifications as they
genuinely value it. Just make sure that you talk humbly without sounding superior.

3.4 The concept of ‘face’


Respect is an essential part of doing business here. Bangladeshis value a high level
of professionalism, so it is vital to remain calm and avoid showing strong
emotions.
The concept of ‘face’ plays a crucial role in the Bangladesh business culture. Its
essence is to respect a person’s social standing, honor, and reputation. For this
reason, it is vital to remain diplomatic and save your business partner from any
kind of embarrassment.

3.5 Giving gifts


It is usual to offer and understand the value of gift-giving especially when closing
a deal. Here are some of the things that a person must remember when giving a gift
to a Bangladeshi:
• Use both hands when offering a gift
• Avoid gifting white flowers or frangipanis as Bangladeshis typically use
them at funerals
• Refrain from alcoholic drinks
• If intend to gift food, the safest option is to give sweets/chocolates
• Money is never considered as a gift
• Do not open a gift in front of the giver
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Note that Bangladeshis often find the thought more meaningful rather than the
material gift itself. Also, if you have a good rapport with your associates, they
might ask to take a photo together.

DHAKA: (from left) Mahmudur Nabi Khan Chowdhury, Assistant General Manager, Ajayi Recitativo-Al
Qazi, Group Chief People Officer of amra Companies and Kadri Lehi, Country Manager of Emer hub
Vietnam.

3.6 STRUCTURE AND HIERARCHY IN BANGLADESHI


COMPANIES
 Bangladesh is a hierarchical society where people are respected for their age
and position.
 Face and self-esteem are an essential part of Bangladeshi culture, therefore
any individual criticism in business situations must be done carefully and
with sensitivity.
 Within the Bangladeshi workplace, senior colleagues and especially elders
are obeyed and respected.  Discussions are almost always lead by the most
senior person.  Final decisions rest with the highest-ranking executives,
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therefore it is important to maintain strong relationships with senior figures
in Bangladeshi business.

3.7 Punctuality
Time is not strict in Bangladesh. In fact, the general population is quite casual
when it comes to time: it is customary to be late to meetings, friends may be late
by as much as two hours in social settings and time is offered freely unless they
want to avoid you as much as possible.

Bangladesh is indeed an interesting country. Its history, culture, sights and people
have contributed to the world and so much to the development of Bangladesh. As
long as you respect its customs and traditions and be acceptable of their behavior
then you should do rather well.

4. Comparison between the culture of Bangladesh and


China
 Both Chinese and Bangladeshis emphasize on strong personal relationship
and building long term relationship among each other.
 In both countries, communication is formal and follows a hierarchical
structure.
 The business practices represent detail-oriented activities in the two
countries.
 The Chinese value punctuality whereas Bangladeshi may compromise with
strict timing.
 Chinese prioritize on the values of solidarity, loyalty, modesty and courtesy
and Bangladeshis are polite and courteous.
 The Chinese nod while Bangladeshis are comfortable with a handshake
 The Chinese and Bangladeshis take time in the decision-making process
 The Chinese emphasize on numerous meetings before coming into
conclusion while Bangladeshis may sum up decisions in a single effective
meeting.
 The Chinese promote collectivism in workplace while Bangladeshis are easy
going with individualism.

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 Disagreement will not be clearly expressed by the Chinese; however,
Bangladeshis may refuse business deals face-to-face.
 Chinese greet openly regardless of gender difference, in contrast greetings
usually take place between members of the same sex among Bangladeshis.

5. The Hofstede Cultural Dimensions


Hofstede’s cultural dimensions theory is a framework for cross-cultural
communication, developed by Geert Hofstede. Gerard Hendrik (Geert) Hofstede
(born 2 October 1928 in Haarlem) is a Dutch social psychologist, former IBM
employee, and Professor Emeritus of Organizational Anthropology and
International Management at the University of Maastricht in the Netherlands, well
known for his pioneering research of cross-cultural groups and organizations.

Hofstede’s model describes the effects of a society’s culture on the values of its
members, and how these values relate to behavior, using a structure derived from
factor analysis. The theory has been widely used in several fields as a paradigm for
research, particularly in cross-cultural psychology, international management, and
cross-cultural communication.

Individuals in cultures demonstrating a high power distance are very deferential to


figures of authority and generally accept an unequal distribution of power, while
individuals in cultures demonstrating a low power distance readily question
authority and expect to participate in decisions that affect them. Power distance is
one of the dimensions of Geert Hofstede’s cultural dimensions theory. The other
dimensions include individualism, masculinity, uncertainty avoidance index, long-
term orientation.
Cultural Dimension China Bangladesh Definition

Power Distance High High The extent to which the less powerful members of
institutions and organizations within a country expect
and accept that power is distributed unequally
Individualism Low Low Focuses on the degree to which the society reinforces
individual or collective, achievement and inters

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personal relationships
Masculinity High High The degree to which society reinforces or does not
reinforce the traditional masculine work role model of
male achievement, control, and power.
Uncertainty Low High The level of tolerance for uncertainty and ambiguity
Avoidance within the society
Long term High low Focuses on the degree to which society embraces
orientation persistence, has a sense of shame, orders relationships
by status and observe this order.
Indulgence Low Low The extent to which people try to control their desires
and impulses, based on the way they were raised.
Relatively weak control is called “Indulgence” and
relatively strong control is called “Restraint”

China

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Bangladesh

5.1 Power Distance Index


The power distance index considers the extent to which inequality and power are
tolerated. In this dimension, inequality and power are viewed from the viewpoint
of the followers – the lower level.
High power distance index indicates that a culture accepts power differences,
encourages bureaucracy and shows high respect for rank and authority. While, low
power distance index indicates that a culture encourages organizational structure
that are flat and promote decentralized decision-making.
In this case, both Bangladeshis and Chinese fall in the high-power dimension.
Hierarchy is important in both Chinese and Bangladeshi society and differences in
age and status are observed through language conventions.

5.2 Individualism vs. Collectivism


The individualism vs. collectivism dimension considers the degree to which
societies are integrated into groups and their perceived obligation and dependence
on groups.
Individualism indicates that there is greater importance on attaining personal
goals. A person’s self-image in this category is defined as “I.” Whereas,

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collectivism indicates that there is greater importance on the goals and well-being
of the group. A person’s self-image in this category is defined as “We”.

Hence, the Chinese embrace the collectivism dimension and Bangladeshis practice
individualism. In comparison, Chinese practice greater team working, job
enrichment and empowerment than Bangladeshis in the workplace.

5.3 Uncertainty Avoidance Index


The uncertainty avoidance index considers the extent to which uncertainty and
ambiguity are tolerated. This dimension considers how unknown situations and
unexpected events are dealt with.
High uncertainty avoidance index indicates a low tolerance for uncertainty,
ambiguity, and risk-taking. In contrast, low uncertainty avoidance index indicates a
high tolerance for uncertainty, ambiguity, and risk-taking.

In this case, both Bangladeshis and Chinese fall in the high Uncertainty Avoidance
index. Strict procedures exist for the decision-making process. Decisions are made
by all the relevant people after several meetings and subordinates are not expected
to express their opinion.

5.4 Masculinity vs. Femininity


The masculinity vs. femininity dimension is also referred to as “tough vs. tender,”
and considers the preference of society for achievement, attitude towards sexuality
equality, behavior, etc.
Masculinity comes with the following characteristics: distinct gender roles,
assertive, and concentrated on material achievements and wealth-building.
Femininity comes with the following characteristics: fluid gender roles, modest,
nurturing, and concerned with the quality of life.

As a result, The Chinese represent femininity with more gender equality in the
workplace and greater emphasize on intrinsic factors. Thus, Bangladeshis
comparatively represent masculinity.

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5.5 Long-Term Orientation vs. Short-Term Orientation
The long-term orientation vs. short-term orientation dimension considers the extent
to which society views its time horizon.
Long-term orientation shows focus on the future and involves delaying short-term
success or gratification in order to achieve long-term success. Long-term
orientation emphasizes persistence, perseverance, and long-term growth. On the
other hand, short-term orientation shows focus on the near future, involves
delivering short-term success or gratification and places a stronger emphasis on the
present than the future. Short-term orientation emphasizes quick results and respect
for tradition.
Therefore, the Chinese show long-term orientation as they often seek long-term
relationships and create relations rather than negotiate contracts. While
Bangladeshis establish personal relationships but are less people oriented than the
Chinese. So, they show short-term orientation.

5.6 Indulgence vs. Restraint


The indulgence vs. restraint dimension considers the extent and tendency for a
society to fulfill its desires. In other words, this dimension revolves around how
societies can control their impulses and desires.
Indulgence indicates that a society allows relatively free gratification related to
enjoying life and having fun. Restraint indicates that a society suppresses
gratification of needs and regulates it through social norms.
To sum up, both Chinese and Bangladeshis represent the Restraint dimension as
they practice social norms and sometimes forego their will. E.g. They would not
start eating until the oldest person at the table begins when invited to a meal.

6. Conclusion
Corporations planning internationalization might face many legal and cultural
barriers when planning their market entry strategies. Those barriers are quite
ambiguous as cultural differences stem from many different cultural variables such
as material culture, social organization, religion, language, aesthetics and popular
culture. These factors need to be successfully implied to local corporate culture.

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Culture affects in many business practices from day-to-day operational processes,
like negotiations, management, hiring, communication and performance
evaluations. One of the biggest challenges when operating business globally is
understand and benefit from cultural differences. In fact, many businesses have
failed to enter new markets and cultural understanding is crucial for every
corporation to avoid misunderstandings, bad relationships, inefficiency or cost and
to succeed in the marketplace. Countries must facilitate the relations with other
countries and be more open-mind. They should open their borders and try to
understand the culture of their neighbors. All these issues must be taken off by
countries to develop international business. Furthermore, understanding the culture
is fundamental for businesses making decision. Therefore, there is a need of more
empirical research to better understand the culture. In addition, Hofstede
framework has 30 years old and the elements begin to become obsolete. We need
more recent data to analyses the culture around the world.

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References

1. https://www.ukessays.com/essays/business/international-business-and-its-
cultural-impact-business-essay.php
2. https://www.languageinsight.com/blog/2019/how-does-culture-affect-
international-business/
3. https://www.morethanshipping.com/cultural-factors-in-doing-business-in-
china/
4. https://www.todaytranslations.com/consultancy-services/business-culture-
and-etiquette/doing-business-in-china/
5. https://emerhub.com/bangladesh/business-etiquette-in-bangladesh/#contact-
emerhub
6. https://sites.google.com/site/organizationalcultureintro/hofstede-s-model
7. https://globaljournals.org/GJMBR_Volume16/2-Doing-Business-in-and-
with-China.pdf
8. https://www.commisceo-global.com/resources/country-guides/bangladesh-
guide
9. https://www.careeraddict.com/master-business-etiquette-in-bangladesh
10. https://www.hofstede-insights.com/country-comparison/bangladesh/
11. https://www.ukessays.com/essays/business/importance-of-culture-in-
international-business-business-essay.php

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