INTERNATIONAL BUSINESS

INTERNATIONAL BUSINESS 1

Table of Contents
Bibliography ................................................................................................................................... 6
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Many businesses in China come for the first time that likes to observe the custom of China to
give gifts to colleagues, friends, and partners of the business. Many businesses people have
trouble to understand the regulations of etiquette behind the gift-giving practices. The culture of
china owns an ancient culture stepped regarding Confucianism based on relationships, respect,
and rituals. Objective is to maintain harmony with the families, friend’s network, society, and
colleagues. Giving of gift plays a vital role and allows demonstrating respect towards superiors.
This also helps them to present the commitment and enthusiasm to maintain close relations
(Glasse, 2012). The following discussion will cover the prime factor that motivates Chinese
businesses to offer gift money or gifts to potential partners of businesses and ethical principles
need to be considered by the parties that engage in gifting.

Gifts are an interesting part of motivating Chinese businesses to existing buyers and potential
business partners. The gift is known as an act of symbolic communication with implicit and
explicit meanings ranging from love, congratulations, and regret of dominance and obligation in
Chinese businesses. There are many ways of gift-giving as expressed value dimensions in
businesses. This is depending on the nature of the relationship, roles, and change in financial
status, and on prioritization to establish energy, funds allocation, and time. The following are the
primary factors that are motivating businesses of China to offer gifts to potential business
partners or potential buyers (Pike, 2019).

The procedure of giving gift allows for effective communication among Chinese businesses.
This establishes a nature and depth of relationship. The function of gifting is a significant
communication as the perceived importance of exchange relationship status between businesses.
The gift negotiation element is reciprocity. It allows parameters to recognize in gift-giving
exchange that is explained by social exchange theory. This also allows business partners to avoid
Chinese business behaviors at a costly level, seek rewarding status, interaction, relationships, and
desires to maximize profits (Prime, 2014).

Prominent dimension is an economic value of the gift. In China giving of the gift becomes
merely an exchange of economic as expected at an immediate level or at a later time. It also
presents the metric of satisfaction in the relationship of gift exchange. From an economic
perspective giving gifts diminishes the procedure towards a market exchange level. Business in
China likes to focus more on the economic value of a gift as taking away the thoughtfulness and
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mystique of procedure. Network at a social level in China is managed by the frameworks of gift-
giving. Gift-giving regarding social relationships are used to enhance, cultivate, and maintain
social connections. Gift-giving results in a goodwill bond and social indebtedness by intensifying
the obligation for regular exchange of gifts.

It is also known as a personal value to understand the intent of giving a gift. Businesses in China
have an objective with the energy to regulate business more effectively and achieve higher
success. Personal factors also generate effective values to promote the business. The function
factor is attached towards a gift to a Chinese business that is referred like a perceived utility. This
acts as a center on business and considered an appropriate action regarding the use of business
utility (Shanker, 2013).

The theory of being Chinese is based on cultural concepts. In China, there are legal assurances
designed to defend the culture and rights of minority nationalists. In China minority nationality
are people, groups that occupy a specific area, speak a common language, and share logic of
social values. Culture of China is critical. Scholars around the globe agree that diverse
communities of Chinese share characteristics persist. The significant of Chinese culture includes
the social life hierarchical structure, morality cultivation, and emphasis on achievement through
hard work.

China's economy is recognized as the world's largest economies. This nation never loses petition
to foreign financiers to bring businesses. China has a huge amount of population and a strongly
growing economy with the support of the investment-led strategy of the Chinese government.
This also increases the buying power that is the main criterion for driving interest in foreign
business. Giving a gift in businesses is known as unprofessional behavior. This is a concept in
China as giving gifts in business stronger through the friendly gesture of giving a gift (Steward,
2018).

Foreign businesses in China select to follow the giving gift culture as the Chinese do. This is
important to be cautious to make sure that the friendly gesture is not measured like bribery as per
the law and regulation of China. Giving of a gift is demonstrated as a courtesy or respect for
employees and a commitment to generating or maintaining the relationship. This is effectively
mentioned in criminal law and Anti-unfair competition law of China to disallow acceptance and
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giving of bribes among companies in the marketable context. In criminal law article 164 has
mentioned that, “proposing property to organizations and business work personnel for inadequate
benefits in case of involving large amounts will be punished by criminal detention or
imprisonment for lesser than three years and cases that include large amount will be punished by
the criminal or imprisonment detention for more than 3 years with fine. Property can be
interjected in many types of property like profits as calculated in monetary value and expenses of
travel. Inadequate profits hold a vague interpretation.

This presents to any profit in-laws benefits, policies, regulations, that need the recipient to
deliver aid, laws violation inconvenience, policies, regulations or norms of the industry. As per
article 8 regarding Anti-unfair law of competition, leaders of business should not utilize money,
properties, and bribe methods to buy and sell commodities. This shall be known as a guilty of a
bribe if leaders give a top-secret command to other businesses of employees without the records
of accounting. Employees and organizations that accepted the secret discount without normal
records of accounting than it will be guilty of taking a bribe. Property refers to tangible property,
cash, consisting fees of marketing, fees of promotion, fees of sponsorship, fees of research, fees
of service, fees of consultations, reimbursements and commissions (Murray, 2014). These also
include the offering of travel in and outside China and many benefits besides the property.
Bribery at the commercial level is to mien unfair actions by receiving or giving property or other
profits that violate the standard of rational competition to deliver or receive the opportunity of
business and economic benefit that count as a legal activities at commercial level to prove that
actions are conducted regarding the business profits and affect a fair operation deal.

In 1977 act of Foreign Corrupt Practices was built by the United State to provide the requirement
of transparency under act of Security exchange in 1934 to standardize cases of bribery of foreign
officials. Anti-bribery provision of this act makes it unlawful for an individual of U.S. and
specific foreign security issuers to sort a payment towards a foreign authorized for purpose of
retaining or obtaining or directing businesses to any individual. In China foreign investors devote
a nation ranked as 40 through transparency international’s 2013 exploitation perceptions catalog
by high risk of corruption as it is sensitive regarding interaction with government of Chinese
officials and contribute to any tangible, gifts or insubstantial in return of organization
opportunities that can be considered as a bribery as per this act (Mark, 2015).
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In the limelight of the discussion, it can be concluded that foreign businesses in China did not
require observing the practices as strictly as local Chinese feel the need to do. This is important
to pay more attention to the important business contacts within the government bureaucracy that
has the power to build a life of the business. To establish a business in China it is necessary to
focus on the effective practices of business. Further discussion covers the prime factors that
influence businesses to offer a gift as existing buyers do. Ethical principles that need
considerations by all parties that engage in gifting.
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Bibliography
Glasse, J., 2012. Business Practices in China. [Online]
Available at: http://www.faqs.org/abstracts/Business-international/
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Mark, P., 2015. Gift Giving Culture in Chinese Business. [Online]

Available at: https://daxueconsulting.com/gift-giving-culture-chinese-business-2/
[Accessed 19 10 2019].

Murray, E. J., 2014. Motivation & Emotion. I ed. New York: McGraw-Hill.

Pike, J., 2019. The people's Republic of China Infrastructure. [Online]

Available at: http://www.globalsecurity.org/military/world/china/infras.htm
[Accessed 19 10 2019].

Prime, P. B., 2014. Developing Nations Practices. [Online]

Available at: m http://www.shopfloor.org/2009/01/23/pressing-the-chinese-on-currency
[Accessed 19 10 2019].

Shanker, D., 2013. The Economy of China. [Online]

Available at: http://papers.ssrn.com/so13/papers.cfm/abstract_i=277928
[Accessed 19 10 2019].

Steward, A., 2018. The Art of Giving Gifts According to Chinese Culture. [Online]
Available at: https://www.chinainternshipplacements.com/blog/giving-gift-chinese-culture/
[Accessed 19 10 2019].