BUSINESS IN A CROSS CULTURAL ENVIRONMENT - Essay Example

Business in a Cross Cultural Environment Hong Kong Table of Contents Table of Contents 2 Introduction 3 Hong Kong’s Culture 3 Role in Business World 3 Technological Environment 4 Political Environment 4 Legal Environment 5 References 6 Introduction Hong Kong is a commercially and economically vibrant city which is extremely dominated by the western as well as Chinese influences. Previously it was a home to farmers and fishermen and now it is one of the most teeming cities across the world (Anonymous).

Hong Kong’s Culture Hong Kong’s culture is significantly impacted by the Chinese culture. However, influence of western culture is also found. Both Cantonese as well as English are chosen as the official language of the region. In Hong Kong, many businesses are found to be family-owned. Business owners believe in long-term relationships with their partners. The sophisticated Hong Kong Chinese people are fairly comfortable with the people who are from other nations. One can expect a swift decision making process, but business negotiations may take time (Anonymous).

Role in Business World For years, Hong Kong has been acting as an important gateway for trade between China and other nations. The formula “one country, two systems” is followed while running the city and therefore it enjoys several facilities that have made it a free trade zone. With the tremendous growth of Chinese mainland, Hong Kong has also grown as a major hub for various economic activities. Huge amount of capital has been invested in the city and similarly large number of Hong Kong based business houses have invested in the mainland.

A total investment of $860 billion has been shared by the mainland of China and Hong Kong by 2010. This reflects the kind of role that Hong Kong has played in the business world (Tsang). Technological Environment Technology and innovation have been the key drivers of Hong Kong’s marvelous economic growth. In order to make the city’s economy a knowledge-based one, its government developed a special commission named “Innovation and Technology Commission”. Its main function is to support application and transfer of technology, foster a culture of technology and innovation in the community, promote new technological start ups, assist the development programs of human capital and promote standards that are internationally accepted.

Furthermore, ITC helps in the development of world-class infrastructure so that technological up-gradation can take place smoothly in the country (Information Services Department, 1-2). Political Environment According to a country risk report which is published by AMB Inc. political risk in Hong Kong is very low. This Special Administrative Region of China has a very flexible product as well as labor market. A light but efficient regulatory framework, small government and low taxes have made Hong Kong the most flourishing economically free country.

Mainland China has always shown a liberal attitude towards Hong Kong, but it has the right to intervene if it finds something that is of its national importance; therefore democracy in Hong Kong is limited in nature (A. M. Best Company, 3). Legal Environment The legal system in Hong Kong is found to be a blend of Chinese customary law and British law. Chinese customary law is applicable in the matters that are related to family and land. Hong Kong’s basic law was approved by China in the year 1990 (Central Intelligence Agency).

References Anonymous. “Hong Kong profile”. BBC News. 2nd October. 2012. Web. 2nd December. 2012. . Anonymous. “Hong Kong - Language, Culture, Customs and Etiquette”. Kwintessential. No Date. Web. 2nd December. 2012. . A. M. Best Company. “Hong Kong”. AMB Country risk report. 26 Oct. 2012. Pdf file. 2nd December. 2012. Central Intelligence Agency. “Hong Kong” World Fact Book. Web. No Date. 2nd Dec. 2012. Information Services Department. “Innovation and Technology”.

Hong Kong: The Facts. April, 2012. Pdf file. 2nd December. 2012. Tsang, Donald. “HK plays key role in Chinas development”. Hong Kong’s Information Services Department. 13 April, 2012. Web. 2nd December. 2012. .