Shui Fabrics
Strayer University
October 28, 2012

Ray Betzell and Chiu Wai’s perspective on Shui Fabrics
Economy
Ray general manager of the American company feels the disappointment of the low Return of Interest (ROI). In launching this business on Chinese soil there were many barriers from Chinese government. Economically the business venture is more advantageous to the Chinese government rather than the American business because of the high tariffs placed upon American companies. Chinese’ textile trade market allows no negotiations on exports. Per capita, Chinese employees have the lowest wage (below world average). Chinese work for lower wages than Americans but American’s technology advances allow American workers to be more efficient and require fewer employees than their counterpart. Americans are struggling in their own country with high unemployment rates and rising poverty due to the economic downturn. The overall disappointment is that there is no flexibility in expanding in the American capital plan in the scheme of the Globe project.
Chiu is pleased because the business is economically beneficial to the Chinese government and the local area. The business is providing jobs for the Chinese people and stimulating economic growth for the Chinese government. China is the largest exporter in the world. Chiu feels that Americans should be satisfied with the ROI. Americans seem to be thought as greedy; Chiu along with local authorities may feel that Americans exploit Chinese people and their land.
Legal
Ray’s company is controlled by China’s government regulations on foreign businesses. America is a capitalistic nation, whereas, they are unobtrusive to regulate foreign businesses but instead have specific expectations and rules to be maintained with overseas companies. America is influential with the organization of Occupation Safety and Health Administration (OSHA). America also has a great concern for the environment itself and works closely with rules of the Environmental Protection agency (EPA).
Chiu’s local government oversees the company because it is on their soil. Tariffs are volatile and quotas can change at any time. In contrast, China is not a capitalistic country, therefore, allowing their government to intervene at any time with foreign businesses. There can be interventions by the local, state, and federal government, therefore Chiu feels protected because he has managed to contribute to his people and government. The government has an impact upon Chiu’s attitude toward the company. Chiu is influenced by conceived notions from his government about Americans.
Sociocultural
Ray is a general manager for a company that has allowed him to work and live in China. Ray and Chiu have worked in a team-oriented leadership. He enjoys the people and living in China. There are diversities between the Americans and the Chinese including religion, culture, government, and within each society. American businesses on foreign ground tend to have higher expectations because they want the cheapest labor possible, but in this case productivity is not as efficient as it would be in America. This is another global dimension for being self-protective and autonomous. Ray is a representative of his company and feels the disappointment of his bosses. Ray is disappointed also because he had hoped to satisfy his bosses. Referring to GLOBE, culture is defined as “shared motives, values, beliefs, identities, and interpretations or meanings of significant events that result from common experiences” (House).
Chiu feels that he has had a strong influence in cutting labor cost and given the American company access to the Chinese market. Chiu has helped in matters concerning U.S.-Chinese textile trade negotiations. It is certain that Chiu has been a great asset to Ray, but he does not have to deal with the stress of failure because he feels that the company should be happy to receive any type of profit. Chiu’s perceptions are completely opposite than that of Ray’s perception. The casualty that Chiu displays in his leadership does not exemplify the need for better productivity and higher ROI. Chiu has stereotypical attitudes toward Westerners. Managerial leadership behaviors and attributes are linked to cultural characteristics. This a global leadership dimension “cultural differences strongly influence important ways in which people think about leaders and norms concerning the status, influence, and privileges granted to leaders” (House). Simply stated, “universal definition of organizational leadership is the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are member” (House).
Most Important Difference Economics is the most important issue in business. Businesses want to thrive and produce profit. In this particular article, it states “offer a product or service that people are willing to buy at a price that can provide you an acceptable profit margin” (Allen).In comparison, “in 2011, America had a 9% unemployment rate compared to 6.5% in China. The poverty level in America was 15.1 compared to China at 13.4” (CIA). The cross-cultural leadership between America and China did not produce the profits expected. Without sufficient money a company will fail. The recent economic downturn has threatened America as being the largest economy in the world. Conflict between the two world powers America and China have produced a competitive market for both countries. China’s currency as of “2005, has been reevaluated and the Renminibi (basket of currency) has increased to 2.1% to the American dollar” (CIA). Chiu is making a contribution to his government and people, he does not have the high expectations because he is not foreign in his homeland and he knows that the government will protect him as long as he is doing what is expected of him.
Strategy
Ideas to present would involve a cohesiveness of the two companies (collectivism). The joint venture of producing textiles should include American and Chinese laborers in production so profits are felt more divided. Training in productivity and sensitivity to consumer needs around the globe could increase profits. Appeal to consumers with joint efforts from both countries with international media. America has more barriers in foreign management of their companies, so therefore things should be more defined from the expectations of both countries. Tariffs and other fees should not be allowed to be irrational and contracts should be made to show good faith. Environmental and the Chinese aging population will become China’s greatest challenge in the near future. America conceived “Information Technology” and could share their knowledge in trying to help in their decline (humane orientation). America has excelled in medicine and other technological advances. It is quite impressive that China is number one in the world for industrial and agricultural output. China is the largest exporters in the world; work together on strategies for new technological developments for change in the environmental and health for laborers, for exchange in help to promote exports from America. China may no longer be the second largest power, but the first, but at what sacrifices? If the two world powers could work together to create a better place for people to live it would send a message to the world.

Benefits America is in the forefront of technology advances and sharing knowledge with the Chinese can create a unique partnership. Both countries can excel in this business venture, so whereas both countries enjoy a profitable union. Empathy and comprehensive training for both countries would unite them in seeking the highest profits. Trust could develop between the two countries and interrelationships would improve so in that China would not feel that their government would have to oversee the company. Education on the cultures of both countries would empower both countries in better understanding and greater empathy for each other. Together they could possess leadership qualities that were universally accepted by others and the desire to become a consumer of their products. The world has no boundaries and together everyone can make the world a beautiful place to live.

References

House, J., Hanges, J., Ruiz-Quintanilla, S., Dorfman, W., Javidan,, Dickson,, & Gupta, (Authors). Cultural influences on leadership and organizations:. Retrieved from http://t-bird.edu/wwwfiles/sites/globe/pdf/process.pdf
CIA, The World Fact Book, https://www.cia.gov/library/publications/the-world- factbook/geos/hk.html[->0]
Allen. (Author). (2008). the single most important thing in any business. Retrieved from http://entrepreneurs.about.com/b/2008/06/01/the-single-most-important-thing-in-any-business.htm

[->0] - https://www.cia.gov/library/publications/the-world-