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Global Business Strategy Class Essay

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Low Context Cultures vs. High Context Cultures

The video cultural difference in business is about a 17-year-old Valerie Hoek who traveled through the outskirts of Beijing China. She gained valuable knowledge about China’s culture by staying with the locals and learning how they lived and believed. This knowledge later helped her in business relationships with China.

China, which is a high context culture, emphasizes interpersonal relationships in their personal lives and while doing business. The perception of people in high context cultures from people in low context cultures may be they are inefficient in their use of time; however, high context cultures may believe people from low context cultures are overly aggressive. This video also points out how in high context culture, earning trust is very important to them when doing business and building relationships over time is how this is achieved. Low context cultures like United States, relationships are not as important in business transactions as contracts and laws are. In addition, conversation is more direct straightforward, concise, and efficient in telling what action is expected. Words are in high context societies are not as important as tone of voice, facial expression, gestures, posture or the person’s family history and status. Saving face, as stated in the video, is a major concern in low context cultures because of the importance of building relationships and status. In low context cultures having a transaction fall apart, as it did in the video, would also be important to someone doing business; however, it would not be as devastating on their

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