Different Aspects of Globalization
Globalization represents the integration of societies and economies through migration, capital flows, foreign direct investment and global trade activities. One positive aspect of globalization is that it brings countries and their people closer by connecting them with each other. This is largely supported by the rise of the internet. The second aspect of globalization concerns the capital inflow and foreign investment into the developing countries. Because of such inflows, developing economies are able to prosper economically, get more employment opportunities, and the living standard of the local people increases. The third aspect of globalization is that countries are able to learn about each other’s culture and technological innovation.
National Differences Among Hong Kong and the United States
When entering any country, the first comparison one makes is the national differences that make up the social structure of its landscape. In Hong Kong, the social structure is hierarchical and formal where people tend to know and social with one another. In contrast, there exists an informal social structure in the United Stated where people hardly know each other and are mostly concerned about their individual/separate lives.
Hong Kong is well-known for collectivism whereas the U.S. is largely popular for its individualistic culture. In Hong Kong, people look at the situation and are concerned about the manner in which affects others. In contrast, people in the U.S. are more inclined towards how every matter affects them at personal level. People in Hong Kong are willing to make sacrifices for other person’s happiness whereas U.S. citizens tend to score in this perspective .
Economic Development
There are three hundred and twenty one million people living in the United States. Its GDP per capita is $55,868 and economic output (GDP) is worth $17,947 billion. Economic growth of the U.S. is 2.4 annually whereas unemployment rate is 5.3% and Policy Interest Rate is stable at 0.5% .
Comparatively, Hong Kong’s population is 7.3 million. Its GDP per capita is $42,407 and economic output (GDP) is worth $310 billion. Economic growth of Hong Kong is the same as that of the U.S. (2.4% annual) whereas unemployment rate is lower than the U.S. (3.3%) the policy interest rate in Hong Kong is also lower than that of the U.S. and is 0.39% .
Differences in Cultural Setup
In Hong Kong, group achievement is celebrated whereas in the United States, people prefer self-reliance where individual achievements are praiseworthy. Humility is considered strength in Hong Kong which is not the case in the United States. In Hong Kong, An individual’s reputation is considered very important since it is associated with a group’s, family’s or society’s outlook. In contrast, people in the U.S. tend to dissociate an individuals’ reputation with others. In Hong Kong, it is expected that a person would respect others and treat them in a very well manner. Comparatively, this characteristic is absent in the U.S. culture.
Business Cultures in these Two Countries
In Hong Kong, people tend to be quiet while making business deals whereas business men from the United States tend to break the ice and speak-up in business meetings. People in Hong Kong tend to take a longer term view of relationships whereas people in the United States tend to contact others when it suits their needs. As majority of the businesses in Hong Kong are family owned, personal relationships are highly valued in businesses. In contrast, individualism is encouraged in the United States where onlt short-term relationships are preferred. In business situations, older people and seniors are give more respect whereas in the United States, people tend to be informal in business context considering that everyone is equal and no one is superior to the other.
In the United States, people tend to very time sensitive especially when it comes to business project deadlines and meetings. All parties should be present at the sharp time. In Hong Kong, time is considered not as an absolute but as a matter of suggestion for one to be at the required place. The business meetings in Hong Kong would start and end at different times thn expected. The same applies to project management and their deadlines.
What are the top industries in Hong Kong and the United States?
In Hong Kong, trading and logistics, financial services, tourism, and manufacturing concerns are the four key industries that form four pillars of the country’s economic success. In the United States, the dominant industry is the health sector followed by automotive exports, professional and business services as well as finance and insurance .
The Leading Company and its Business Strategy
In Hong Kong, the largest publicly traded company is Hong Kong and Shanghai Banking Corporation (HSBC) which is listed in the Hong Kong Stock Exchange. Its business strategy is to grow the dividends and business by capitalizing on its worldwide arena. Another element of its business strategy is to implement globally accepted standards for enhancing the competitive edge and increase earning generation capacity.
Recommendations for any Future Company looking to Relocate its Operational Activities in Hong Kong
For investors and multinational companies wanting to enter the market arena in Hong Kong, it is highly recommended for them to follow a collectivism approach regardless of their original cultural outlook. While working and operating a business in Hong Kong, foreigners should follow family-oriented approach instead of appraising individual efforts and life. One needs to socialize a lot with colleagues and seniors for knowing one another. Humility is highly appreciated in Hong Kong. It is also recommended for foreigners to not to be seriously bothered about time sensitivity since meetings start late and end at unknown times. There is no strictness about meeting deadlines since this could be relaxed.
Works Cited
FE. U.S. Economic Outlook. 20 December 2016. 26 January 2017 <http://www.focus-economics.com/countries/united-states>.
Graf, Rebecca. 10 Major Cultural Differences Between China and the United States. 30 September 2010. 26 January 2017 <https://owlcation.com/social-sciences/10-Major-Cultural-Differences---China-and-the-United-States>.
HKTDC. Economic and Trade Information on Hong Kong . 19 January 2017. 26 January 2017 <http://hong-kong-economy-research.hktdc.com/business-news/article/Market-Environment/Economic-and-Trade-Information-on-Hong-Kong/etihk/en/1/1X000000/1X09OVUL.htm>.
Señara, Monna Eve. Top States among the 10 Major Industries in the US. 17 July 2015. 26 January 2017 <http://foundersguide.com/top-states-among-the-10-major-industries-in-us/>.
