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Please respond to the discussion below in one page. 600 words min.Discussion 1 Discussion 1: Compare and contrast one other country with the US and comment on its political or legal or economic or cultural difference with the US. What might be the possible impact of this difference for US firms doing business with firms in that country. Please make sure you cite your sources at least 3 citations.Respond to 2 classmates in 3-4 sentences.Attached is the classmates responses.
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Discussion 1
I will be utilizing Germany as a comparative nation for the purposes of this discussion. I
previously spent four years working for an organization with headquarters in Germany, so I
figured that would be a good place for me to compare the facts I check up to my own opinions.
The comparative analysis of Germany and the United States reveals significant economic and
cultural differences that strongly influence the dynamics of contacts between the two countries.
Germany’s economic strength is rooted in its export-focused approach, which places a strong
premium on accuracy and high-quality engineering. This is especially evident in its thriving
automobile industry, as highlighted by Destatis. The United States has an economic environment
that is diverse and driven by technology, services, and innovation, which is in stark contrast to a
manufacturing-centric approach.
The economic disparities between the two nations have significant ramifications for enterprises
involved in transatlantic collaborations. When U.S. companies want to form collaborations with
German companies, it is crucial for them to adjust their strategy to match Germany’s strong
manufacturing capabilities. Gaining a comprehensive understanding of the intricacies of
Germany’s export-focused economic model is essential for achieving effective entry into the
market and establishing long-term partnerships (World Trade Organization). In addition to
economic inequities, cultural variations significantly influence business interactions. In the
corporate sphere, Germany highly values efficiency, punctuality, and formal communication.
This stands in contrast to the less formal and more varied business culture that is widespread in
the United States (Hofstede Insights). Mastering these cultural intricacies is crucial for building
and sustaining successful international relationships, shaping negotiation strategies, and
developing effective communication protocols. Furthermore, the cultural disparities emphasize
the significance of developing relationships in Germany, where trust and enduring commitments
are greatly esteemed. American companies entering the German market must acknowledge and
value the importance of cultivating relationships within the business environment (Global
Negotiation Insight Institute).
Ultimately, the economic inequalities between Germany and the United States, marked by
Germany’s strong industrial capabilities and the U.S.’s varied economic landscape, have a
substantial influence on business relations that occur beyond national borders. To successfully
collaborate internationally, it is crucial to have a detailed awareness of the economic strengths
and cultural peculiarities of each country. This requires adaptation and a sophisticated approach.
Works Cited
Destatis. “Germany’s Economic Structure”
(https://www.destatis.de/EN/FactsFigures/NationalEconomyEnvironment/EconomicStructure/Ec
onomicStructure.html)
U.S. Bureau of Economic Analysis. “U.S. Economy at a Glance” (https://www.bea.gov/)
World Trade Organization. “International Trade Statistics” (https://www.wto.org/)
Hofstede Insights. “Country Comparison – Germany vs. United States” (https://www.hofstedeinsights.com/country-comparison/germany,the-usa/)
Global Negotiation Insight Institute. “German Business Culture”
(https://www.globalnegotiationinsight.com/german-business-culture)
Discussion 1: Compare and contrast one other country with the US and comment on its
political or legal or economic or cultural difference with the US. What might be the possible
impact of this difference for US firms doing business with firms in that country.
All countries are different in their political, economic, and cultural systems through various
differences due to each of their histories. The United States has an individualist culture, making
freedom for individuals an important aspect of life and business. As the US is a developed
country, many of the factors that go into individualism support the way business in the American
market is done. US being a representative democracy, government by the people, also directly
correlates to the characteristics of individualism. The precedence of individual interests over
collective interests is a shared value. On the other hand, Japan is collectivistic, which means the
US and Japan function differently. Japan is looking for the greater good and looking out for
collective goals (Hill). Where a group is given more importance than an individual. Japan has a
parliamentary constitutional monarchy, which means that Japan’s emperor is the head of the
state, but he or she does not have the power or the right to make decisions over the rules and
regulations of the country but is a symbol of the state and of the people. Japan has a prime
minister who oversees the government to complete the political functions of the state (Sawe).
The US has a mixed economy; though individualism is shown predominantly through private
ownership, there are many rules and regulations set for industries by the government. For
example, the US government took over a large stake in AIG to prevent the financial institution
from collapsing and creating more economic problems in 2008 (Hill). Similarly, Japan has a
mixed economy based on capitalism. Japan’s economy relies heavily on its central bank; both the
government and bank work together to create a flexible interest rate and take out government
bonds (Amadeo). Culturally, both the United States and Japan are different. If we look at
Hofstede’s six cultural dimensions, both countries are on opposite ends. For example, Japan
scored 80 in long-term orientation and the US 29; uncertainty avoidance was 92 for Japan and 46
for the US. This is a main difference seen in most western and eastern countries. Japan’s
collectivistic political system has a major impact on its culture, similar to that of the US (Hill).
One of the main focuses of Japan is its export system, especially on machine parts, electronic
components, and oil. As a result, the United States engages in trade with Japan. The US has also
had success in partnering with and expanding into Japanese markets. Globalization has helped
both countries in many ways. Japanese culture is very different from the US; standards in Japan
are not standards in the US. For example, bowing is a sign of respect in Japan; things like this are
something firms in both countries will have to learn about. A major impact on business
transaction comes when firms in countries are not aware of mores and violating these can
compromise one’s values or principles (Hill). Another major impact will be the language barrier,
which is something both sides will have to overcome.
Another major factor in doing business in both countries is the legal system. Japan’s civil law
system is more rigid, requiring less flexibility. In Japan, laws must be applied thoroughly,
whereas in the US, judges have the power to interpret laws depending on situations and
circumstances (Hill). These are difference both countries will have to overcome to do business.
Despite the many differences, Japan and the United States have a long history of successful
business dealings. As globalization increases due to easier communication, these countries will
become closer, and markets will become more interconnected.
Citation
Amadeo, Kimberly. “Japan’s Economy and Its Impact on the U.S. Economy.” The Balance,
www.thebalancemoney.com/japan-s-economy-recession-effect-on-u-s-and-world-3306007.
Accessed 21 Dec. 2023.
Sawe, Benjamin Elisha. “What Type of Government Does Japan Have?” WorldAtlas,
WorldAtlas, 21 Aug. 2019, www.worldatlas.com/articles/what-type-of-government-doesjapan-have.html.
Hill, Charles W. L. International Business: Competing in the Global Marketplace 14th Edition.
14th ed., Charles Hill, 2022.
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