Within the current global economy, China's importance is increasingly apparent in both economic and political spheres. China is the largest country in terms of population and the second largest in terms of gross domestic product adjusted to purchasing power parity. It is also a new member of the World Trade Organization.
Yet business success in China is far from certain, an all-too-apparent fact given the large number of failed Sino-American partnerships. Consequently, business executives must find more effective ways to conduct business in China, to cooperate with their Chinese partners, to manage Chinese workers, and to lead the Chinese business organization in changing times. Inevitably, questions have been raised about whether it is feasible to transplant managerial theories, as well as practical skills, from the West to China. Therefore, along with the expansion of world trade and the rising proliferation of multinational enterprises, the study of cross-cultural management has become increasingly important.
Culture has always been a reason for divergent thinking and a source for misunderstandings. “Culture” is a set of learned (over a lifetime) behaviors