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International Management Report

This document is a 43-page international management report submitted by a student. It discusses the importance of cross-cultural training (CCT) for short-term assignees working in Hong Kong. The report includes an executive summary, literature review on CCT and international assignment planning, methodology, findings on Chinese culture and business, discussion, recommendations, and conclusion. Key topics examined are the effectiveness of CCT, importance of cultural understanding such as Guanxi networks, and implications of China's political environment for foreign businesses. The student conducted research in Hong Kong to understand how CCT can help expatriates adapt to the local business culture.

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                International  Management   Report   M.S.c  International  Management   Conor  Fitzgibbon       Word Count: 7956 Student Number: 11516003    
          2     Name: Conor Fitzgibbon Student ID: 11516003 Subject: International Management Module: International Management Report Word count and page length Of Essay: 7956 Pages 43 Bibliography Included I hereby confirm that this Essay is my own unassisted work, has never been submitted for publication or assessment elsewhere and that all sources used in its composition have been clearly cited. Signed By Student: Date:28/07/2015
                                             
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          Table  of  Contents       Executive Summary  ............................................................................................................  1   1.  Introduction  ...................................................................................................................  3   1.1 Rationale  ..................................................................................................................................  3   2.  Indicative  Literature  Review  ....................................................................................  5   2.1 International Assignment Planning  ...................................................................................  5   2.2 Cross Cultural Awareness  ...................................................................................................  7   3.  Methodology  .................................................................................................................  10   4.  Findings  .........................................................................................................................  11   4.1 Chinese Dream  .....................................................................................................................  11   4.2 Cross Cultural Training  .....................................................................................................  12   4.3 Guanxi  ....................................................................................................................................  14   5.  Discussion  .....................................................................................................................  18   5.1 Changing political enviornment  .......................................................................................  18   5.2 Can cultural adaptions be flexible?  .................................................................................  19   5.3 Is Guanxi everywhere?  .......................................................................................................  21   5.4 Don’t cross the line  ..............................................................................................................  22   6.  Recommendations  .....................................................................................................  24   7.  Conclusion  .....................................................................................................................  26   8.  Bibliography  .................................................................................................................  27   9.  APPENDICES  .................................................................................................................  31   APPENDIX  A  ...............................................................................................................................  31   APPENDIX  B  ...............................................................................................................................  32   APPENDIX  C  ................................................................................................................................  33     Table  of  Figures     Figure  1    Reports  of  Corruption  by  Region………………………………………………16   Figure  2    Guanxi system (China Australia Consult)…………………………….21                
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          1   Executive Summary With the impact of Information Technology (IT) on modern society, the world has molded into what has become known as a global village where economies and cultures have become more homogenized. People are now aware of once distinctive cultures, traditions, lifestyles and living conditions prevailing in almost every corner of the world. Interestingly, this is going beyond awareness and into a state of integration that is a result of cross-pollinated views, ideologies, products and services. Such an evolution of behavioral norms and traits is due to the process of globalization. According to (Ghemawat 2008) globalization makes things more alike but cultural differences still present many issues and challenges to be considered. Leading the world of globalization is China and East Asia with China predicted to over take the United States of America (US) as the world’s global superpower economy in the coming years. Such power represents a plethora of opportunity for western companies to exploit by partnering, competing or moving their business to China. The purpose of this report is to examine the cross-cultural effectiveness of Cross Cultural Training (CCT) for short term assignees working within differing cultural contexts such as China with a focus on Hong Kong. Hong Kong is the gateway for companies when attempting enter into the Chinese market and western assignees can understand Chinese culture by looking at Hong Kong, as Hong Kong is a mix between modern and traditional Chinese cultures which complicates the process for understanding but also makes it more interesting. Thus the reason for research to take place in Hong Kong. The report seeks to identify areas for improvement of CCT training in order to help overcome cultural obstacles, which may be experienced by western business assignees working in any cultural context with a focus for this paper on Hong Kong, The data obtained for this report was gained through a simulated short-term business assignment to Hong Kong between the 28th of May - 7th of June 2015. Such data was collected through attendance at talks, lectures, seminars and informal discussions with
          2   business leaders and expatriates operating in China, Hong Kong and throughout. A One key limitation noted by the researcher is one cannot portray the Hong Kong culture as the same to that of the Chinese business culture as they are influenced by differing factors. However, a compelling finding from this report is that despite the homogenous rise of globalization, no culture is the same and thus one must educate themselves specifically to the context or country in order to adjust. Therefore, the findings in this report provide the latest views and perspectives of Chinese cultural issues when doing business in Hong Kong. The literature review then focuses on CCT, which includes the differing views of the validity and effectiveness of such. Chinese cultural understanding in the context of Hong Kong is also examined in the form of ‘Guanxi’ and its effectiveness and cogency as a cultural aspect of business. This has been in play for hundreds of years. The report then contributes the latest findings which are discussed in detail followed by recommendations, which if followed can help the expatriate adapt more effectively to a culturally challenging environment such as Hong Kong. Doing business in China is now seen as a ‘must’ for any company looking to gain a foothold in their respective market. The challenges and issues such as political, social and cultural, are all examined in the report. The following is the main research question for this study: How important is cross-cultural training (CCT) for short-term assignees in understanding the cross-cultural differences of doing business in Hong Kong?                              
          3   1.  Introduction   1.1 Rationale Much of the literature on Cross-cultural training (CCT) suggests that even the most frequent business travellers need time to adapt to the cultural characteristics of the new environments in which they find themselves. However, it is not clear whether cross-cultural training (CCT) actually allows for familiarity with cultural diversity despite the extensive research that has been carried out in this area. (Black and Mendenhall 1990). (Scullion and Collings 2006) in contrast argue that CCT could in fact limit the possibility of any culture shock that the expatriate may face, minimize transition adjustments as well as warding off pre-mature entry and project failure. Other authors have illustrated that CCT will aid employees performance as they thrive to be effective whilst making the best ‘first impression’ on the ground in the new foreign environment (Parkinson and Morley 2007) (Collings and Scullion 2006). Ultimately, in order to gain maximum effectiveness, such CCT should take place when the trainees are most excited and motivated about the trip itself (Grove and Torbiorn 1985). There does however, seem to be a lack of research into the effect of CCT on short-term assignments. Drawing inspiration from this, the research investigates the importance of CCT for western business managers on short-term international assignments (IAs) in understanding the cultural complexities of doing business in Hong Kong. The next section introduces the specific research objectives of this research. -How important is the notion of Guanxi for understanding Chinese business relations in Hong Kong? These issues will be looked at in the context of Hong Kong and will ultimately seek to investigate the cultural differences of doing business in China for a short-term assignee from Ireland. Hong Kong is a cultural melting pot that bridges Western and Chinese cultural values and hence presents a valuable research setting wherein which to investigate the importance of CCT training for international assignees Boakari (2004). -The evolving political transition in Hong Kong and China and its implications for doing business in China
          4   The structure of this report is as follows. The research will firstly consider in depth the current literature relating to CCT with respect to short-term assignments and the role it plays in overcoming cultural differences through Cross Cultural training. This section will also outline the relevance of Guanxi and how it can help short-term assignees adapt to doing business successfully in Hong Kong. The next section will also consider the findings of the report and the discussions of these findings will be analyzed before concluding with recommendations for future short term IAs.                                                                    
          5   2.  Indicative  Literature  Review   2.1 International Assignment Planning With the ever-changing dynamic global marketplace change is happening frequently in both the planning of but also the type of international assignments. Long term IA’s, also known as ‘expatriate assignments’, are the traditional choice when it comes to international assignments: Another changing form of traditional International Assignments that has received growing attention by academics is short-term assignments. Such an assignment helps cut costs and save finanacially unlike expatriate assignmenets. The literature commonly refers to short-term assignments as postings between 1 to 12 months in length (Collings, Scullion et al. 2007).There is a lack of literature on such assignments and is something that will be investiagted throughout this report, whether or not CCT is required for Short-Term Assignments and what if any value does it bring to the indiviual and company. The various forms of business assigness can be seen in Table 1 in Appendices Cross-cultural training (CCT) has been one the most investigated topics in expatriation research (Caligiuri, Phillips et al. 2001). This interest had been down to many factors, notably managerial implications of such research, the interest in such training by MNC’s, cross-cultural consulting and universities respectively. Such research is therefore of direct interest to MNC’s in particular. CCT is a particular form of Pre departure training that companies use to help managers on international assignments to deal with issues such as culture shock (Hurn 1999). CCT should enable participants to determine appropriate cultural behaviors in the host country and suitable ways to perform their job tasks (Black and Mendenhall 1990). Through CCT, expatriates may be better equipped to cope with unforeseen events in the new cultural context and to avoid any unnecessary conflicts due to unexpected actions or occurrences (Earley 1987). Missing such training can lead to business people replicating their cultural habits and traits of their host country without appreciating and acknowledging the cultural traits and norms of the host country. (Black and Mendenhall 1991) describe CCT initiatives as ‘factual’ training methods, and they have been negatively associated with numerous views. First, cognitive
          6   approaches lack rigor and often do not allow participants to engage actively in the learning process. Consequently, leading to an increase in factual (explicit) knowledge as opposed to a practical applicable knowledge attribution processes (tacit knowledge). Second, (Tung 1981) states that these programs are insufficient to prepare trainees for international assignments due to the innumerable cultural differences that exist, many of which are too sensitive and intricate to teach through cognitive training methods. Hence, the effectiveness of such CCT programs has to be questioned. They limit the transfer of explicit knowledge; they are not designed to transfer tacit cultural knowledge which as mentioned, is a core element of culture. Adding to this, as (Mendenhall et al. 2004) report, CCT programs are usually, but not always, effective in improving trainees’ cognition. They have a mixed record in changing trainees’ effectivness, but are only occasionally effective in changing trainees’ behavior, thus leading to doubt to the effectiveness of such programmes. Utilization of technology in corporate communications, cross-cultural training program design, delivery, and follow-up will continue to expand with globalization. Likewise, will the demand for technologies that can be in-corporated into cross- cultural training. These future implications of CCT will put financial strain on organizations especially in times of economic uncertainty where cutting CCT programmes could be seen as a ‘cost saver’. A key finding of (Selmer 2010) study considered CCT in the context of China and found that those expatriates with an expert knowledge of China, referred to as ‘China Hands’, showed a clear majority of expatriates were allowed to enter China without any CCT at all and is consistent with other results (Brewster 1995); Hutchings (2005); (Selmer 2000). Interestingly, with respect to China, whose culture has been described as ‘baffling’ (Chen 2001), this could lead to problems down the line not only for such training but also the business environment itself. Hence such evidence suggests a need for CCT in a culturally complex environment such as China. (Black & Mendenhall 1990) are furthermore of the view that CCT can have positive impact on one’s skill development, cross cultural adjustment mechanisms and one’s
          7   job performance while in a new environment. In 1987, Tung discovered that the more training provided to expatriates, the lesser the probability of failure. (Molinsky 2013) argues that in order for there to be complete appreciation of a new culture and to be effective in foreign cultural interactions, one must have global ‘dexterity’ which is the ability to adapt or shift behavior in light of any cultural differences. In the case of China, he gives the example of making the culture ‘your own’. He says one has ‘leeway to adjust’ to a culture. Adding to this, he also recommends a Chinese mentor to be used and stresses that it’s not all of China one needs to know but the particular region in which they will be working. He mentions the importance of a knowledge of CCT but more importantly, the ability to take what you know and put it into action on the ground. He emphasizes the need for managers to be able to adapt and think quickly on their feet in differing cultural contexts and situations. From these arguments, it is apparent that CCT is a particularly important mechanism for helping global managers understand Chinese cultural values for example the Chinese culture of ‘Guanxi’ in order to maximize full working performance and potential with the added benefit also that CCT could also reduce the anxiety arising from the unknown (Bennett, Aston and Colquhoun 2000). Despite vast arrays of academic literature on CCT for expatriation, there lacks specific research on the effectiveness of CCT for short term IA’s, which needs to be examined further and is a key contribution of this paper. 2.2 Cross Cultural Awareness Guanxi is a phenomenon found in Chinese business ethics, which is fundamentally defined as interpersonal connections and has been identified as one of the factors of business success in china (Abramson and Ai 1999). Guanxi is considered as long-term relationship between business partners that contributes to efficiency in the organization and competitive advantage (Lovett et al 1999). It has been found that firms with higher Guanxi prosper more readily on many diverse fronts as they have a sustained competitive advantage (Tsang 1998) and they have better chances of long- term survival and growth (Pearce and Robinson 2001). This again points to the need for aspiring international firms to offer CCT in order to build sustainable business relationships and to attain the ability to culturally adapt. This being said, Chinese
          8   values in particular are said to be westernizing. Thus, ambiguity surrounds the establishment of such relationships as with development of business practices when initiating business relationships. (Wellman, Chen, & Dong 2002) are of the view that Guanxi based business practices can in fact reduce uncertainty, lower search and other transaction costs and provide usable resources. Such statements reiterate that foreign expatriates should make it their main priority to build Guanxi to give them a competitive edge in their networking and trust building in the Chinese business arena. This is supported by (Tung and Worm 2001) who state that Guanxi is the most influential cultural dynamic that impacts business life in the dynamic Chinese marketplace. Such statements support the drive for appropriate and effective CCT. Trust is also key element of business practices in Chinese culture. In cross-cultural business relationships, trust plays an indispensable role since partners from different cultures don’t always have the same values, perceptions or assumptions about how business works. Trust is seen to be one of the leading managerial issues of the corporate agenda. (Ellis 1996) suggested that building trust between partners in strategic alliances is a key ingredient to building a sustainable long-term relationships. (Buckley 2006) found however that confusion surrounds the main concepts of Guanxi, its implications and the benefit it actually brings with it. Moreover, (Fan 2002) & (Chua 2012) highlight the ‘myths’ of Guanxi and believe the concept is beginning to become more parallel with more the typical networking practices with which western executives are already familiar. They highlighted a misconception of the term in that the resources available are too broad and rarely stray beyond superficial notions. Also the myth of gift giving is now frowned upon as China’s tradition of gift giving is changing to a focus on the professionalism of doing business, rather moving away from the social side, the latter which has represented corruption and other wrongdoings such as nepotism, bribery and fraud (Yang, 1994). During the economic reform and opening of China’s marketplace, corruption has become so rampant that it has been called the ‘plague’ or ‘cancer’of society (Yang 1994). Such corruption is now being targeted for complete elimination by the Chinese government, which has long played a regulatory role in the economy according to (Buckley 2005).
          9   ”State paternalism remains a dominant feature of China’s business environment” (Child & Tse, (2001) p. 17). The Chinese political system is in a time of change from a paternalistic state to a more relaxed system of welcoming world MNC’s to their shores. Commentators such as (Eakeley 1997, p. A23) claim that”China is showing an interest in the rule of law” by reinventing their legal system, leaning towards a more ‘American’ style of doing business and implementing policies of anti- corruption. Hence the term , ‘the Chinese Dream’ (Guthrie 1998) which is a play on the ‘American Dream’. Although recent empirical studies state that time consumption and expenses in developing and maintaining Guanxi are perceived as a major disadvantage (Fock & Woo, 1998; Yi & Ellis, 2000), such literature nevertheless asserts that to be succesful in certain types of business realtions supports the needs for Guanxi awareness, but moreover points to the need for CCT to be given to International Assignees on short- term assignments, on what to expect and how to deal with such a diverse cultural context. The previous arguments have illustrated the importance of CCT for short-term assignees especially in the context of understanding Chinese values in HK. More specifically, the changing of Guanxi as a resource in HK is without doubt a significant concern for western businesses doing business in China. The next section of this report will consider the main methodological approaches used when undertaking this research.                            
          10   3.  Methodology   Empirical data was conducted by simulating a short-term IA to Hong Kong. This assignment lasted 10 days and replicated the process involved with that of a short- term IA. It has been argued that short-term IA’s are the most popular form of non- standard assignment (Tahvanainen et al., 2005). Price Waterhouse Coopers (2005) reported that over 50 per cent of companies surveyed expect the use of short-term assignments to increase in the future which shows the growing popularity of such an engagement. Also such a time frame allowed for qualitative Ethnography which involves the description and study of human cultures, (Saunders 2002). Qualitative research was deployed as the main research strategy and the main research tool came in the form of observational techniques. Presentations from specialists in the field including academics, local Irish consulate members, Irish managers in HK and business professionals who have experience working on international assignments, with most presentations lasting between 1 and 2 hours maximum. A number of small scale surveys with IA’s from Ireland were also carried out to offer practical perspectives for the findings. Table 2 in appendices details the various contributors to the data. Data was recorded using daily journal keeping in order to document all relevant research material gained, in as efficient a manner as possible. Clear and defined note taking was the main tool used in gathering data in all forms of meetings and discussions during the trip. Each evening these notes were typed into files concentrating on research related objectives, which may have arisen during the day. These files were then filed for personal note keeping and reflection. They included all facets of activities, which were crucial for the final report in attaining new knowledge and viewpoints on which the report was based. A limitation of the research assignment noted was that more time would be beneficial, for example time to cross the border into mainland China to gain a further understanding into the cultural differences and similarities there and help provide a more rounded view.        
          11   4.  Findings   The international field trip to Hong Kong has enabled this report to include in its findings the major issues facing western business assignees doing business in China. The following section will detail a summary of the findings from the data that was collected while on Assignment. It will begin by discussing the importance of the ‘Chinese dream’ before detailing findings on CCT, Guanxi and corruption. Ho (2015) believes that any company wishing to enter the Chinese market must understand and accept the challenges associated with doing business in China. A clear grasp of the major hurdles will allow foreign business people adapt to doing business more successfully in China. 4.1 Chinese Dream Crisis  or  opportunity  for  foreign  companies?     A fresh topic of debate and key finding from the international field trip is the new phenomenon branded “China dream”. The ‘Chinese Dream’ as the Chinese government has given birth to is its strategies for future growth and is raising a lot of uncertainty including potential hurdles and perhaps opportunities for MNC’s trying to enter into China. The policy initiatives announced by General Secretary Xi Jinping were amongst some of the more radical since Deng Xiaoping opened China to the global market in 1978 which Ho (2015) says was a ‘good step’ for China and done to ‘save china’. The “Dream” is an amalgam drawn from relationships between the Western and Chinese perspectives and is a play on the ‘American dream’ but importantly shows the influence the west has on all facets of both business and political life in China. Ho (2015) stressed that china is in a time of change as the new leadership regime are strong advocates of ‘ anti corruption’ with a clear 5-year strategic plan presently in place. These particular actions taken by China are creating uncertainty among western investors and foreign business personnel which can be simply linked with one main theme, “law enforcement’. Such a finding on corruption is the work being done by the ICAC (Independent Commission Against Corruption). On the topic of corruption, the ICAC use a three-pronged approach enveloping ‘law making, preventing and education’.
          12   The history of dishonesty and bribery, which lead to accidents at Foxconn, is now being widely challenged by society as a whole. However, (Eisenman 2015) of the American Foreign Policy Council decried it by saying: “China has been making it harder for foreign firms to operate’. Thus, the aforementioned uncertainty is real for many western business people. However, such a plan can bring with it opportunity, for example Ho (2015) stated its new ‘focused’ policies such as , ‘education, power generation, medical industries and finance’ are all areas that the chinese need to ‘learn’ from the west in order to implement and ‘maximise potential’ and bring with them ‘a lot of opprtunities for the west to do business with china’. Linked with this is the question of where does Hong Kong fall into this 5 year plan, a recent lack of attention for HK has lead to uncertainty for many HK people as to what value they are regarded to be by the Chinese. Ho (2015) claimed ‘china is one country, but is not one market’ and thus those looking to do buisness in China or Hong Kong and be part of this new ‘chinese dream’ must do their homework on all factors both political and business pre arrival. 4.2 Cross Cultural Training The next crucial finding is whether or not CCT has a benefit to short term assignees. A lot of differing and valid perspectives on the topic were observed throughout the trip and also pre-departure, where the observer conducted qualitative research through indiviual survey type questionnaires to various Irish business people who have experience in working or living in China/ Hong Kong. Donnelly (2015) an investor banker in Hong Kong was noted as saying he did not receive any CCT and stated: “I could be working in any major financial hub as it is that international”. This supports the view of the very westernised economy in Hong Kong at present. McDermott (2015) a quality inspector with a global MNC who does business in China regulary said that in relation to CCT he received ‘basic training’ on things such as how to ‘present a business card’ and how to ‘conduct oneself’ which he says was very beneficial. Crucially he says: ”as was being aware how one could “easily offend without knowing” whilst on business. He also recommended a simple ‘checklist’ that would be helpful for short-term assignees. Croughan (2015) an Irish business woman who has studied and worked in
          13   Hong Kong supports this further in suggesting that “understanding the core cultural values through CCT helps to delfect any problems that could occur”. Ho (2015) who gives his view on CCT and advice on short term assignments, saying it is crucial first to ‘send those who want to learn new things faster and also those who are open minded’. One theme he repeated a lot was the ‘pace’or the’ movement’ of both people and the economy in Hong Kong and in terms of CCT said ‘people walk and talk faster in Hong kong’, meaning one must be prepared to adapt quicker.Thus effective CCT is required. CCT by many has been said to be extremely beneficial to avoiding culture shock.This is supported by Prepscius (2015) of Asia Pacific BSR who in a former job with ‘Nike’ received CCT with a local mentor being provided to help soften the impact of the cultural difference. He said it was ‘very beneficial’ and was a good tool in order to identify ‘self awareness’ and cultural difference. He also said that in order to succeed on a short term assignment that one must use this ‘cultural mentor’ to build a ‘web of knowledge’ so that if they return they will have knowledge of what to do in different contexts. He identidied learning a ‘few’ words of the local language as imperative to a succesful trip. He stressed that to avoid “offending without knowing”, supported by McDermott (2015), to show humility rather than come over as ‘invasive’ as unfortunately some Americans are known to do. In addition, the views of Ni Dhonnacaha (2015) Deputy Consul General Hong Kong, were observed to gain an insight into her perspectives as she deals with complex cultures regularly. When speaking on the topic of CCT she said ‘firstly, one must understand cultural differences in order to adapt’,she then went on to say, ‘learning a few basic words really help with gaining your counterparts trust and also breaking the ice’. Cafferkey (2015) an Irish expatriate in Maylasia gave his slant on dealing with various cultures. He said he learnt ‘by doing’ such as ‘no pointing’ at anyone or shaking hands with women. These were a most unexpected and interesting insight to the vast cultural differences with Asia . In terms of CCT Cafferky (2015) said first:“one must not judge and give every culture a chance” as the ‘culture has been there for hundreds of years and we’re not going to change it”, instead we need to adapt and even ‘learn a couple of words so that we can (humbly) seek acceptance from them in order to be accepted’. He is of the opinion however that CCT programmes are too ‘formalised’ and it is ‘difficult to fully learn before you go’ and its imperative to ‘learn by doing in the actual environment itself’.
          14   4.3 Guanxi The complex topic of Guanxi was investigated in relation to answering the research question and brought with it valuable angles to the report. The findings from the report appear to portray Guanxi still as a significant factor in business in China but vary in relation to the extent of the role guanxi plays. Ho (2015) delcared that in order to build Guanxi with business counterparts, one must have ‘heart and passion’ to ‘understand the ‘logic’of any culture. He said in business ‘we have partners and competition’ but ‘regradless we need to know both of them’ and thus building relationships is crucial to that which he says are ‘not built in day one, but are built over time when one comes to respect the system’ which has been in place for generations. Costigan (2015) gives his slant saying: “Guanxi is simply an amplification of relationships which we have in the west already” and continues to say: “Westerners find it ‘relatively easy to culturally adapt in China and Hong Kong as we have experience of building ‘business relationships from the bottom up”. Cafferkey (2015) agreed with this saying: “ one major advantage Irish people have in doing business in China/ Hong Kong is ‘our abaility to adapt and build relationships and trust in a way like no other people” He also mentioned our own ‘network system’ across the world is that of the ‘GAA, which he says: “Saves lives in Asia”. Ni Dhonnacha (2015) also said:”The Irish have an ‘edge’ on other countries as the Irish are ‘totally based on trust and relationships.The GAA is at the fulcrum of such a tight knit network of trusting community systems be they in business or family. This is what comes naturally to us”. Ni Dhnnacha (2015) said these networks help the Irish ‘transfer and adapt their Irish culture to the Chinese, and build trust and sustainable business relationships’. Prepscius (2015) gave the impression that Guanxi is a choice, one can ‘opt in or out’ and said it is important to ‘research it and understand what exactly it is and what it entails’. McDermott (2015) stated: ”Guanxi is very important. The relationship starts as a business one but gradually moves into a personal one, where the trust is with you as the person who is a business-man rather than with the company”. He says: “It ‘takes a number of meetings to establish such trust in order to be considered family. Interestingly, he says: “In contract negotiations, “‘yes” doesn’t always mean “Yes” and thus ‘we must re-evaluate our ‘western trust’ system to ‘see past their surface
          15   cultural behaviors” Croughan (2015) compared building trust and business relationships to ‘dating’. On the first meeting ‘there is minimal conversation about the business but more so in developing trust and relationships through mutual interests, friends etc. Futher to this, she stressed ‘humility’ in all realtionships in China. While we naturally tend to promote our ‘strengths’ with the Chinese she stresses ‘modesty’ and also to ‘admit personally one has a lot to learn in terms of language and cultural understanding’. She continues to declare that she ‘doesn’t see the Chinese bending their feelings towards business Guanxi as they are a global powerhouse who are self-sufficient, able to support themselves without western business partners. Therefore it is up to us in the west to adapt and change our ways, to re-evaluate what we mean by ‘strength’. Such views show the importance of cultural understanding and the necessity for cultural sensitivity and appreciation in doing business in China. Notably Guanxi has also openly been linked with corruption. This was evident for the researcher whilst on the research trip. Such practices lead to major challenges which may not be seen as a priority for foreign businesses. A talk attended by the researcher at the HQ of the ICAC, (Independent Commission Against Corruption) brought into clear focus how “black money” became a necessary way of life. Although it is now not as serious due to the establishment of the ICAC in 1974, business people need to be aware of corruption and understand the fine line between doing business through Guanxi and corruption. Corruption is a key area of interest in China’s five year plan with Ho (2015) stressing the ‘new leaders drive to wipe out corruption’. .
          16   Figure 1: Reports of Corruption By Region Figure 1 shows Corruption in China most rampant by region from a study by Charney research (2015) shows Hong Kong owned firms were found to be more likely to pay bribes at 44 percent, compared to foreign firms at 37 percent, and under developed Mainland China firms at 32 percent Ni Dhonnacha (2015) gave her experience of dealing with Gift Giving during a state visit of president of Ireland to Beijing earlier that year. She gave the example that the ‘Gift’ to be exchanged was to be of small monetary value but more ‘sentimental and symbolic’ value as to avoid any presumption or suspicion of bribery. McDermott (2015) portrayed similar experiences with an important factor that it be more of a ‘gesture or token gift’ rather than lavish gifts to avoid any notion of bribery. He also went on to say that business in China is becoming more ‘westernised and this tradition is becoming less prevalent and is a nice gesture but is not essential’. The ICAC recommend one should seek ‘approval from their company to accept any gift or gesture in conducting business’ In summary, the international field trip has allowed this report to provide in its findings a dossier of the key issues facing foreign executives carrying out business in China. The main findings are the Chinese Dream, CCT, Guanxi, cultural understandings and Coruption. It would be prudent for foreign firms to acknowledge
          17   these issues as when a foreigner is aware of the potential issues associated with doing business, through CCT it makes these challenges much easier to overcome.                                                                                          
          18   5.  Discussion   This section of the report provides discussion and analysis of the importance of differing factors that will help foreign business people to overcome the aforementioned issues thereby enabling them to do business more successfully in China. These guidelines have been generated using the relevant literature in conjunction with the author’s personal experiences. The points include: 5.1 Changing political enviornment Too often the political enviornment has been overlooked by many critics and academics as a worthy contender for the most important factor in doing business in china. Understanding such helps the assignee grasp a political understanding of the enviornment which they will be entering into, which this will aid cultural adaptation. At the moment, the current chinese political enviornement is in a state of transition. At the top of the agenda is the chinese governments clamp down on corruption in their latest 5 year strategic plan. A paper by (Li , ,Meng, & Wang 2008), on Chinese Political connections found that political connections to the party in power can have a beneficial effect on a firms performance. Party membership was also found to be conducive to obtaining loans from banks or other state institutions, which gives enterprises that are run by Party members a distinct advantage over others. This shows the corruption and unethical behavior which Xi Jingping’s government is trying to immobilize. There is also considerable debate concerning how fast China is moving toward a Westernized emphasis on the rule of law. (Guthrie 1998) believes shifts in the economy have led China to redesign the legal system to a more westernized ‘American’ system in such a way that it favors efficiency which is in line with Ho (2015) who stated China is now ‘trying to learn form the west’ so foreign firms and especially assignees can gain advantage from this if they learn to adapt to this changing political landscape. Ho (2015) also believes it is a ‘good step’ for doing business in China which does not agree with Eisenman’ (2015) view that China has been targeting foreign firms making it very difficult to do business there.
          19   The findings from this report illustrate that China’s changing political system in the form of the ‘Chinese dream’ is a significant factor and a telling contribution for foreign companies to consider especially in short term assignments where Guanxi is extermeley important in developing in early business dealings. The changing nature for China and HKs relationship has increased more recently and Western firms need to be aware of this in order to avoid certain disruptions such as bribery or corruption in developing Guanxi in future business dealings through cultural experience and dealings and effectve CCT. 5.2 Can cultural adaptions be flexible? CCT has been one of the most investigated topics in expatriation research according to (Brewster 2001) who stated in 1995, that expatriates are regularly assigned to all parts of the world with little or no cross cultural training, Which is challenged by Croughan (2015) who determined that ‘understanding the core cultural values through CCT helps to delfect any problems that could occur with little or no CCT’. (Black & Mendenhall 1990) are of the view that CCT can be described as ‘factual’ training methods which in fact do not allow one to actively engage in the learning process which ties with Cafferkey (2015) who is of the opinion that such methods can be too ‘formalized’ which (Black & Mendenhall 1990) don’t agree with who see CCT as a ‘positive spill over’ on ones development and job performance while in a new enviornment which is reinforced by (Tung 1981) who found that the more training provided to expatriates, the less chance of failure. The indiviual is also an important factor in deciding whether or not to apply CCT. Ho (2015) says it is imperative to ‘send those who learn new things faster and those who are open minded’ A major contribution of this report for future study was the dawn of cultural dexterity. (Molinsky 2013) argues that in order for one to have complete appreciation for any new culture, one must have ‘global cultural dexterity’ which is the ability to ‘adapt or shift behavior in light of any cultural differences’. Prepscius (2015) noted when working with Nike he received CCT which came in the form of a local mentor which is highly recommended by Molinsky (2013) as a key form of ‘cultural ice breaker’ which Prespicus (2015) reinforced and said it was a ‘very beneficial’ tool in creating
          20   ‘self awareness’ in differing cultural contexts which he worked in. Cultural Dexterity is the effective integration of these components. A Publication by (Hazard 2012) said that Cultural Dexterity is a process of discovery, adaptation, and creation of techniques that an individual can employ across any cultural context. The underlying principle of Cultural Dexterity according to (Hazard 2012) is that the dynamics of intercultural interaction are always fluid. Cultural Dexterity training’s main competency is built over time through real world application which links to the opinion Cafferkey (2015) who says ‘one must learn by doing’. (Molinsky 2015) also noted that learning a ‘few words of the native tongue’ can go along way in being ‘accepted’ or ‘trusted’ in a new enviornment. This guideline is supported by the experiences of Ni Dhonnacha (2015) and Prepscius (2015) who both see ‘learning a couple words can really help with business and personal relations’. Another interesting finding saw McDermott (2015) examine the need for a small ‘checklist’ of dos and donts to reinforce CCT prior to departure which can also be seen in (Hazard’s 2015) paper to make the transition more fluid, but Cafferkey (2015) emphasised that ‘we cannot change these cultures as they have been around for hundreds of years, it is up to us to adapt and change’. Prespcius (2015) remarked that one should ‘ do the due dilligence before entering a new enviornment’ which would work parallell in going into ‘discovery mode’ when entering a new enviornment. (Dutra 2013) says its fundamentally important to expand ‘learning agility’ being aware of environmental differences, learning from unfamiliar situations, and applying such lessons to new occurences in future dealings. With this change in ‘agility’, short term assignees can develop cultural dexterity to ‘effectively navigate across any cultural difference as cultural dexterity improves each time it’s practiced’. Cultural dexterity goes beyond the realms of personal relationships and advances into aiding the creation of strategic advantage and higher performance, enhancing growth and business results. Therefore a leading finding from this report for future study that coincides with contemporary arguments on CCT is that CCT is an integral part of a short term assignee effectiveness. Going further, cultural dexterity is an advised approach to take when entering a new business or cultural enviornment.
          21   5.3 Is Guanxi everywhere? According to (Abramson & Ai 1999),cGuanxi is a vital factor in doing succesful business in China. (Lovett 1999) describes it as the necessary foundation of business relationships that contributes to efficiency in the organization and competitive advantage Figure 2: ‘Guanxi system (China Australia Consult) ‘Fugure 2, shows the development of a typical Guanxi system with family being to the core which brings with it the highest level of trust. Mcdermott (2015) gave his experience of constantly building relationships to gain trust and be considered family, as at this stage he says you ‘are onto a very good line of business’ which complements (Buckely & Casson 1998) view by saying that ‘trust is seen to be one of the leading issues on a corporate agenda’. Ho (2015) added that to build Guanxi, ‘one must first have care & passion in order to understand the logic’ of not just the chinese culture but any culture, thus reinforcing (Molinsky’s 2013) view on the need to have‘cultural dexterity’ historic Costigan (2015) gave a fascianting point for discussion declaring that, ‘Guanxi is just an amplification of relationships which are already in place in the west’ which lead to the investigation on the similairty between Chinese Guanxi and Irish peoples ability
          22   to build networks and relationships at ease. At the heart of this globally and in Asia, is the GAA. The emphasis of the GAA is community. Thus here one can see similarities between Chinese and Irish cultures in their ability to network and build relationships and culturally adapt more quickly, something which Ni Dhonnacha (2015) says give Irish people an ‘edge as Irish peoples relationships are based on trust’ which is at the core of such a tight knit ‘community system’ which is reiterated in Clinton Institute UCD’s research, thus aiding to help Irish people adapt more effectively and efficiently to cultures such as Guanxi in China. A key finding here is that Guanxi is indeed an important aspect of overcoming cultural challenges in HK but Irish managers have been particularly adept at tapping into institutional structures in HK in the form of the GAA. Although a natural trait of Irish people to adapt, time must be given to each individual cultural context to analyze and appreciate difference before jumping in. 5.4 Don’t cross the line Another pressing issue with Guanxi is its issue with corruption. The ICAC (2015) stated how ‘black money’ became a necessary way of business life (Yang 1994) said that Guanxi ‘represents corruption and other wrongdoings such as nepotism, bribery and fraud, which are now being stamped out by Xi Jingping’s government. Gift giving is seen to be dying out in today’s China. Ni Dhonnacha (2015) gave an example of it being important not giving someone a gift of high monetary value but more ‘sentimental and symbolic value’. McDermott (2015) reiterated the importance of not giving ‘lavish expensive gifts’ in order to avoid suspicion of bribery or fraud which was challenged by (Chua 2012) which showed the ‘myth of gift giving’ and how it is slowly being phased out due to anti corruption programs but also a more westernized business environment. Therefore a critical contribution of this report to existing literature is that it highlights the contemporary discrepancies in how western companies associate gift giving with Guanxi and the implications this has for potential corruption. Such an issue increases the demand for appropriate CCT to educate short-term assignees of the changing
          23   environment both legally and ethically to factors such as gift giving and corruption when doing business in China.                                                                                          
          24   6.  Recommendations     China is said to have one of the most complex cultures to do business in and with China predicted to over take USA with the worlds largest markets, this leads to marrying the two into the research question of this paper, How important is CCT for short term assignees in understanding the cross cultural differences of doing business in Hong Kong? Fail to prepare, prepare to fail (Early, 1987) said through CCT, expatriates may be better equipped to cope with unforeseen events in the new cultural context and to avoid any unnecessary conflicts due to unexpected actions or occurrences. The researcher in Hong Kong found such a view. Not once was CCT dismissed over the duration of the simulated assignment, but was agreed upon by many to be a pivotal instrument in over coming cultural differences. A topic of discussion was that of Guanxi and its relevance in modern day business in China, which one could feel, was slowly vanishing alongside the days of corruption and bribery. The new governments plan is changing the business environment and culture of China both for Chinese and foreigners alike maybe unintentionally but its changing none the less. Thus, the need for one to be appropriately trained to be knowledgeable in a particular culture for both business and human interactions with the ambition of fulfilling cultural dexterity is crucial. The timing of such training is also crucial, as for a short term assignment, real life experiences, practical learning and a cultural checklist should be used close to departure to help gain cultural dexterity for assignees. As the literature and findings suggest, cultures no matter where in the world, all have their own distinctive traits, norms and behaviors which have been around for hundreds of years, thus one must be sensitive to this, but more importantly, if a culture seems to be in stage of change business or otherwise, assignees must be appropriately trained to adapt to such changes in order to make such short term assignments worthwhile and fruitful. As the laws and policies of China change to law enforcement and anti corruption, with this comes opportunity for short-term assignees
          25   for example, using Guanxi and ethical relationship building as a resource to be exploited to overcome cultural barriers. It is an exciting time to do business in China but as Ho (2015) said, companies must ‘send only their best young people who want to learn’. This researcher feels such learning should come in the form of CCT with the goal of achieving cultural dexterity to pro long the individuals ability to travel globally thus being more effective individually and to the company. Put on your seatbelt A critical recommendation identified was the vastness of opportunity available to one and all in China/ Hong Kong, both lifestyle wise and career opportunity. The overwhelming advice from expats and business people who have completed similar short term assignments is to ‘GO’ at every chance as its an economy full with opportunity. Nonetheless, one must not get carried away with themselves and take their time in order to stand back, assess the culture and apply their CCT and past experience and knowledge to each and every cultural situation they find themselves to be in.                                          
          26   7.  Conclusion   With China posied to overtake the US economy and become the leading global powerhouse, any business wishing to be succesful must identify this economy as a paramount objective for success. Such opportunity brings challenges and issues and in the case of China like any other setting, cultural challenges and behaviors are present which need to be identified prior tp departure in order to achieve an effective short term assignment. Such facets have laid the objective for the research of this paper, How important is CCT for short term assignees in understanding the cross cultural differences of doing business in Hong Kong? Firstly, a clear and detailed literature review helps to identify the array of studies on the topic of CCT, and cultural understanding of Guanxi in the context of China/Hong Kong. The findings of the report then present fresh hands on examples of the varying attitudes and viewpoints to the Chinese Dream, CCT, Cultural understanding and Guanxi in China. An appreciation and sensitivity towards such will help assignees to adapt to cultures through hands on real life interactions and experiences. The discussion then looks into the importance of: • Being aware of political activity and changes in todays Chinese environment which can be incorporated into CCT to maximize knowledge transfer and confidence in assignees, The  flexibility  of  cultures.  Are  they  changing  to  a  more  westernized  one  or  is  is   up  to  us,  the  westerner  to  adapt,  which  lead  to  the  next  and  most  crucial  point  of   the  paper  which  was  that  of  cultural  Dexterity.  This  is  a  crucial  angle  brought  to   the  paper  and  is  a  keen  recommendation  for  anyone  doing  business  in  China   • Guanxi, which can prove difficult for expatriate Assignees. Such cultural dexterity will allow one to become adaptable in a short term assignment, to differing situations which may arise in changing cultural environments like China/ Hong Kong through up to date, hands on, practical and fresh CCT prior to departure to ensure the most effective and successful trips are worthwhile. The defining recommendation of this report is that China/Hong Kong is in a time of change, politically and economically. Their intiricit culture, yes, is a crucial part to doing business however, it is up to the west to change and adapt and have cultural dexterity and appreication in order to be flexible to such a changing enviornment, thus the importance of effective CCT cannot be overlooked by any company planning on doing succesful business in China.
          27                             8.  Bibliography    
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          31   9.  APPENDICES           APPENDIX  A Table 1, Popular forms of Business Assignments Inpatriation Which involves the transfer of subsidiary managers to the HQ for a specific period of time (Harvey et al. 2000). This would allow key subsidiary managers to get to know the workings of the parent company and build up informal communication networks Self initiated assignments A growing number of assignees make their own arrangements to find work abroad facilitated by the introduction of free movement of labor in the European Union and other economic regions Virtual assignments Companies have begun to make use of virtual assignments in order to address the competing needs for decentralization and global interrelation of work processes in a more flexible way. A virtual assignment does not require the individual to physically relocate to a foreign organizational unit but rather distributes international responsibilities as managed from the individual’s home base.
          32   APPENDIX  B     Table 2, Various contributors to Data Collection Name Gender Age Position Company Method of Delivery Date & Time Leo Ho Male N/A Professor of Chinese Business Studies Hong Kong Baptist University Formal Presentation June 1st 10:00 AM ICAC speaker N/A N/A Corruption Agent Corruption Agency Formal Presentation June 2nd 14:00 PM Fiona Ni Dhonnaca Kenny Cafferkey Paul Costigan Female Male Male N/A N/A Deputy Consul General Lecturer of IHRM Chairman Irish Consulate Kulala Lumpur University Irish Chamber of Commerce HK Roundtable discussion “ “ June 5th 16:00 PM Dr Jenny Chan Female N/A Professor/Researcher labor law Professor Oxford University Formal presentation Q&A June 4th 9:00 AM Jeremy Prepscius Male N/A VP Asia-Pacific BSR Informal Q&A June 4th 14:00 PM Tony Mcdermott Ronan Donnelly Ashling Croughan Male Male Female N/A N/A N/A VP Irish quality systems company Stock loan Hedge Fund Business Analyst APAC Ambition Survey by email “ May 8th
          33       APPENDIX  C   JOURNAL ENTRIES Day 1 Journal entry Hong ‘keep up with the pace’ Kong Baptist Universtiy DR. Leo Ho Today we had a very interesting talk on Doing Business in China with DR Ho who has over 25 years experience of management if ICT, Engineering and industrial global organizations In Asia. One aspect which I noticed was we were all given name tags, we were all equal, treated the same and there was a collective aspect to the talk. The college itself was in prsitine condition with a strong emphasis on being enviorenmentally friendly.We had a coffee in the coffee shop beforehand, which I noticed was very like an american students coffee shop I had been in recently at Berkeley University. The room was spacious and clean and a microphone was used to maximise our learning and clarity. It was easy to identify from being in his presence that he is a driven, energetic and appealing person who was clear in what he spoke about and one could sense the pride he has in what he has achieved and how he now feels itstime to pass on his messgae to ‘future leaders’ as he said he is in history but our young generation are the future.He feels it necessary to advise the young to help ‘plan for the next china before this one is mature’ He acknowledged failures that he has encountered over the years have acted as opportunities for success for him and also will for others in the future. He noted the opening up of China to selective countires in 1978 and said this was for the sustainability and surivial of China. A vital message I got from the talk , was that in order to be succesful, a company must be succesful in China as ‘money talks’ in order to gain trust, and respect with top management to be the best you can be in order to align this with the companies strategic path. ‘Pace’ was spoken about as a key detrimant to success in the maretplace and with global assignments, it is those who learn the ‘fastest’ who will achieve. With Culture,
          34   he said there was ‘no good and bad’ with culture as it is the same for both sides. One needs ‘time and passion’to understand the ‘logic’ of the differing cultures. ‘friends and enemies’ both know each other so partners should also know each other. He says in order to build trust we must gain friends first then business. After the talk, We ate in the college canteen which was something else. The efficiancy of the system is something I have never experienced before, you order in one room, then collect in another then eat. After this talk we went to the International Antique exhibit in the Hong Kong Exhibition & Convention Centre as we were lucky enough to be attending the ‘Antique Exhibit Tradeshow’ at 1PM. The building itself, known as HKCEC is a major part of the Hong Kong Island skyline and located on the Victoria harbour-front. This modern building is internationally renowned as it was voted Best Convention and Exhibition Centre in Asia for the ninth time by industry awards in 2012, I felt privileged to be there. I talked to a london based store and learned a lot about the origins of some of their relics and watches a lot of which were from Geneva. In the 1800’s these were once exchanged between the chinese and europeans as gifts to do trade. Now the Chinese are buying these old relics back and is a very afluent, expensive market. This ancient art of ‘Gift giving’ is a key area of my study on Culture in China, and I have seen first hand the Gifts which were given, one of which was on sale for £150,000 which shows the worth today but also the historical significance and cultural practices in place in China which we took part in today by presenting Leo Ho with a gift for his talk today. On the way home from the Antique Show I stopped by a ‘Hong Kong Innovation Awards’ exhibit in the Causeway MTR station.I took a few minutes to look around at the latest inventions and innovative products that the young people here are inventing and which I am sure will see in Ireland in the near future. I visited the ‘Ladies market’ in the city also where every kind of handbag, accessory, gadget and clothing type was available for negotiation for the best price something which I enjoyed a lot. I noticed that all the stalls were very tidy and efficient and the owners welcomed us with an english ‘ Hello’ . We negotiated in every store and were
          35   succesful as they were very intent on selling as quickly as possible,something I was not surprised by with their cunning and efficient ways of doing business. Day 2 Journal entry ‘Don’t cross the line’ Today, we had a late start so I went for lunch with some of my Chinese colleagues in the class in a chinese Hong Kong style restaurant. Surprisingly I was asked to come alone with no other class mates, I asked why, and was told they don’t paticlaurly like large groups of people at dinner and as it so happened there was 6 seats at our table for 6 people, the chinese accomplished efficiency again. I had a chicken and rice stir fry. I initially made for the chop sticks to eat the rice but was reliably informed by my friends that doing such an action is a sign of ‘death’ in Chinese culture, something I was very apologetic about. Six of us fitted into a small table very comfortably and I was told that Chinese place all belongings off the table ,so no phones, wallets or sun glasses on the table. This meant no distractions at all just conversation and sharing of food which I found to be a pleasant change from the ever present technology on our western dinner tables. I really enjoyed experiencing eating with my friends and was a great cultural awareness experience. We then assembled in the lobby of the hotel at 2 o clock for the talk at the anti corruption Agency Hong Kong. Smartly dressed, we travelled by MTR and walked for 5 minutes in the blistering humidity to arrive sweaty to the ICAC. One of the most shocking things I learned was of the challenges the independent commission overcame to become the cleaner more business friendly place, and how just 50 years ago ‘black money’ became a necessary way of life and that even firefighters or ambulance paramedics demanded money before carrying out their job. One thing I noticed in particular was how she reiterated the importance of the I (Independent) in ICAC, meaning the commission is not affiliated with the Government and instead reports directly to the Chief Executive of Hong Kong, for who which I observed, is there is to be an election in 2017 for this position, showing Hong Kongs adoption of democracy. During the presentation an interesting issue touched upon was gift giving with which the term ‘entertainment’ was used. I learned that the immediate consumption of entertainment is permitted and was explained how being brought out for an occasional meal is ‘normal’ but bringing home a bottle of wine is considered an ‘advantage’ and
          36   therefore discouraged and all practices had to match with that of the company of both giver and receiver of gifts. After the meeting we were taken to a large room (with an amazing view!) that showcased many interesting anti-corruption cases. Each case was displayed in a unique and ornate fashion, the main case I looked at was the landmark case of Godber as Agnes Kwok had spoken about it in our meeting. Peter Fitzroy Godber, The chief of police who had been accused of corruption managed to flee Hong Kong and escape to his homeland Britain. Following Godber’s escape, there was outrage among people from all walks of life resulting in the establishment of the ICAC which was free from the Police Force and the rest of the civil service. I noticed a gift was not given or token of gratitude after our meeting. After we finished viewing the cases we assembled for a class photo, one of many so far on this trip. After this myself and a few classmates travlled by MTR to Mordy RD, to look at buying tailor fitted suits. One feature of the MTR stations was the lines at the platforms, clearly defining where people are to stand within ‘red lines’ whilst queing for the train, this is something you definiely would not see at a que for the Luas in Dublin! We rambled and found a suit shop which one of the faculty had been before and built a relationship with and they immediately looked up Kieron’s name and once they realised he was a repeat customer they could tell him what he had previously purchesed and were more than willing in helping us. After tough negotiations and various threats to leave, 6 of us were given a very good deal considering the bad exchange rate at the moment. We then returned to the hotel for a quick shower, then into taxis and off to see the peak views of Hong Kong. The views were spectacular especially at night time with the cities lit up and constantly ever changing colorful skylight. We travelled by taxi and something I have noticed with taxis is the passenger in front is in charge and directs the driver and also manages the money, so a certain element of trust and hierarchy exists between both parties as I also noticed that the drivers do not talk to passengers in the back. Day 3 Journal entry ‘Sushi and clogs, an interesting mix’ On Wednesday Morning I was pleased that a culture day lay ahead of us. We walked as usual to the MTR station at Causeway bay and by now I was a pro finding my way
          37   around and figuring out what train route to take. We made our way to Tsim Sha Tsui Station in Kowloon. The Hong Kong Museum of History was just a short walk from the station. The Museum was magnificent, and also free today which was great! it has managed to squeeze 400 million years of history into one building. The collections are divided among three major areas: natural history, ethnography and local history. I spent most of my time in the local history section as I felt I had to get an understanding of the local folk culture in order to comprehend why the importance of building relationships is common among Chinese people as I had been told that it was based on their history. I was taken aback by the old fishing villages, ege, Stanley who fished in dangerous circumstances in junk boats. Religion was a mjor part of their culture and gods were worshipped for safety and fortune at sea. I continued on my rambles and came across how the people used to make salt using dykes of up to five ponds through a process of crystalization with the help of raw engineering and no technology. This salt was then used to help preserve fish and shrimp and was a vital contributor to the sustainiabilty of the people. I then watched a video relating to the modern history of Hong Kong and the relations between China and Hong Kong after the War, it gave a vivid impression of post war development, the economic and social climate and the emergence of the commonality shared by the population as a whole. I wrote a wish on the wishing tree which was an old chinese tradition which we in Ireland have in the form of wishing wells. The want for success and health is common to both our cultures. One could also notice a lack of mention of the british colonoial past during my observations. Upon leaving, what struck me was the stark contrast between contemporary design of the museum itself in contrast with the years of history it held inside. For lunch we went to a japansese restaurant, where I had Sushi for the first time. It came on a tray with various dishes on it. I ate Wasabi for the first time and also ate it with out soy sauce and nearly burnt my mouth to pieces. It was a real traditional restaurant where the waiters ran around on wooden clogs which sat on stilts which ‘clogged’ around to our amusement. Some of the class ate at the food preperation bar and were required to take off their shoes to eat there which was an interesting eye opener of varying cultures. After lunch we visited the beautiful Wong Tai Sin Temple’s in hope that all our wishes would be granted as it claims to ‘make every wish come true upon request’. It houses three religions (Taoism, Buddhism and Confucianism) in a beautiful and
          38   natural setting. I saw many worshippers pray and give offerings and so I made an offering of health and happiness with my family and friends.It is a tranquil place with gentle music to be heard around the trickles of water and cherping of birds. It is a truly special place. I did notice however, that the temples are right across the road from high rise apartments which are not best pleasing on the eye. I guess this is due to the sheer demand for space to cater for the vast population and even aesthetics or location are not taken ito consideration when planning. On the MTR that evening, I over heard an asian girl and english man talking. They were looking at friends wedding photos and as it turned out, she told him that in china, the wedding photos are taken before the wedding and not on the day of it, to his amazement and dis-belief. I found this to be an interesting point to learn of their traditions and ways. Later that evening, we went to the Happy Vally races where this elegant race track lay between hills and high rise buildings. I thoroughly enjoyed the it and Happy Valley Race Course was just minutes from our hotel and was surrounded by the beautiful night skyline. It was like nothing I had ever seen before. I noticed a lot of westerners present and also chinese inside gambling, but mainly westerners. It is an opportunity for a real mix of cultures to come together, where there was a Bollywood dance show on every half hour or so, and also differing nationalities of the trainers, jockeys and the MC’s were from england. Hong kong is a different place than china in my view due to globalozation and I really don’t think its an issue, its an opportunity for everyone regardless of culture or background. Day 4 Journal entry ‘Delivering to the world’ An early start was had today with the meeting time of 8:30 down in the hotel lobby. We set off again smartly dressed to the Kaplan college meeting rooms for a talk with Ms Jenny Chan on labor law in China. She was very engaging and full of energy and helped to quickly wake us up. She spoke about Hong Kong’s emergence of labor due to the opening up of its economy to the world and also of rural migrant workers. Then she changed her focus to that of Foxconn who apple use for cheaper labor and manufacturing which has resulted in terrible working conditions which she herself went undercover to investigate. We watched a video on this and it was a real eye opener as Apple products lay on the tables in front of nearly all of us.
          39   In Foxconn asa many as 14 deaths by suicide was shocking to hear. She explained that within the company they make the varying departments compete against each other thus, who will be the best and who will work the hardest, leading to physical and mental exhaustation. They were non stop for 24 hours with 40% of their revenue coming from Apple and a 13 day working week for workers. Apples former CEO Steve jobs has left a legacy for me of a negative outlook. Yes he did innovate and boost the technological advancements of the world but at a cost. There is always a cost and this has resulted in poor working conditions and deaths by Foxconn workers. Next to talk to us was Guan form SACOM with a smiliar topic of lobbying for better conditions for workers. This is done through media coverage through all mediums, youtube, television, advertisements, headlines and protesting. It was a very interesting talk with some real eye openers which I think we can all be naïve to accept or research more into. I am glad I was present at these talks and the chance to meet these people so I can tell and spread their knowledge and wisdom back home. We returned to the hotel where we waited for a bus to collect us. Next we went to visit the DHL Central Asia Hub which was located around 45 minutes towards the airport by bus. This was a vast building with security points and security scanner machines. We were told on a couple of occasions not to take any photographs at any time. A major expansion of the hub has led to DHL enhancing its position in the region and world with an investment of $210 million. Along with this investment comes investment in AirHongKong which is expanding its fleet which further broadens the companies offerings around the world. We were given a quick presentation and watched a video on the process which exists, which seeing planes land and take off just metres from the room we were in which was pretty cool! We were shown the new automated system which is in place during our walking tour, and it is very impressive to see the parcels being ushered down to their destinations collection point, scanned and wateh by over 200 CCTV cameras. The hub is the definition of efficiency handling and processing over 35000 shipments and 40000 docuents per hour. The lady also said it takes 27 minutes to have deliveries off a plane, through customs and gone again towards its final delivery destination. I did notice the heat in the warehouse was very warm with up to 500 employes sharing 4 shifts a day as they
          40   work 24 hours a day 365 days of the year.I felt more could be done in terms of air conditioning to accommodate the excessive humidity. I thought it was interesting that after the talk with Ms Jenny Chan about Apple and other products using a lot of chinese based manufacturing, that a lot of goods we buy could travel through this DHL hub and it opened my eyes to the bigger supply chain which exists. After a rushed bus journey and a quick lunch, we were back at the Kaplan College , for a talk with Jeremy Prepscius, a man with vast experience in doing business in Asia with nike and is now VP Asia pacific BSR. It was a Q&A session where he was very energetic and mad some very interesting observartions based on his experience. In terms of negotiations he said, the chinese need to learn how to deal with the outside world and work with them and also that foreigners should understand the chinese aswell for a two way dialogue, so this made me think about CCT and is it necessary? He said it is down to the person and not necessarly the training, If the person is going awy to ‘run away’ the project will fail but if their going to ‘learn’ it will succeed. Also, he then mentioned that CCT can take the form of the internet of our generation and we have more resources available to us to be more cultural sensitive. Due dilligence is necessary in all over seas assignments he said. In terms of Guanxi he had differing opinions like many who we have talked to. He seemed to relate Guanxi to ethics and whether you want to build relationships around the conecpt or not eg, people who can bribe or be involved with fraud in order to get places or those who build networks of people in order to succeed. He says this initial contact with people is crucial to the success of the relationship, Connecting with them or finding a common ground on which they can relate to is a key detriment to success. When asked about culture shock, he said embrace it & accept it. He said culture shock is more likely and tougher with repatriation and not expatriation. I found this interesting and he continued to say he struggled going back to the US, and found being an outsider easier to adapt back to as people don’t care. He spoke about Collectivst power distance cultures and said that there is a ‘grain’ of truth in them, for example, Intel have a corporate culture that he says can be more important then the national culture and that managing cultural diversities within this corporate culture is the key to success and comes down again to the individuals
          41   respecting one anothers differences, good and bad in everyone whilst working towards common ground. I found this session to be very helpful and Tony exchanged a gift with him on behalf of the college. We walked back to the hotel where we relaxed and got ready for the Anniversary of the Tienamen square shootings which fell on this day. At this, I noticed a small group of Chinese carrying large british flags which I felt to be very interesting. Later that night my cousin and his friends arrived to Hong Kong from a short stay in Beijing, he could not get over the differences between the two and said the sheer size and effeciency of space being used really opened his eyes which he would have a key eye for being an artichect. Day 5 Journal entry ‘Lobster, Music & Lightbulbs’ Today we had a late start to the day so myself one of my chinese couterparts helped to organise a Dim Sum lunch for those interested at a local Dim sum restaurant. I didn’t know what to expect but was competley blown away by the meal and the sheer amouht of food being continiously brought to our table. Over 25 people came to the lunch which included ‘tapa’ like fish, meat, rice, noodle and vegetable dishes, I even tried chicken legs, but maybe wont again! We even ordered a fully functional and kicking lobster of which everyone got great excitement from, he was then killed and we ate him which was absolutely beautiful. A lot of our chinese friends in the class atteneded which was great for everyone as they helped to explain what the different dishes were and differing interesting facts and ingredients in them, for example, when pouring tea if someone taps their finger off the table this means they have enough, which I practiced a lot! After this, myself and one of my colleagues went to times square shopping centre for a look. We went into a shop called Muji, and I could hear this music, I investigated more and noticed it was in fact Irish music being played in the shop which is a Japanese company. I stayed in the shop for 20 minutes and listened to even more Irish traditional songs being played on the speakers of the high end fashion shop. I asked a shop assistant and he said that he thought it was chinese music, which in fairness, for one song did sound similar as one could argue due to the slow nature of the flute
          42   playing, but it was definitely an Irish tune a I play it myself at home.We were really blown away by this, as it was the last thing we thought we would hear in Hong Kong. We also found out that this music is played in every Muji store in Hong Kong and is on a generic playlist. Later this evening we then had an evening in Delaneys bar with the Irish Consul, the chamber of commerce and other member of the Irish business community in Asia. This was a very insightful talk where Q&A took place and some interesting insights were given , for example Fiona of the irish Consul gave the example of when the president made a state visit to China, a conscious effort was made not to give a gift of too much financial value as to avoid any allegation of bribes or corruption by the receiver. Relationships were also talked about at length and all had a general consensus of making the effort, being open and appreciating differing perspectives to be the most important aspects of developing these relationships when doing business in China and Asia. Cultural diversity is an opportunity said paul from the chamber of Commerce and with regard to CCT and all said the best way to learn how to deal with cultures is to imerse yourself in it and ‘jump in’ and learn on the ground. Getting food after Delaneys, I met a man from glasgow who owns a lightbulb factory in shenzen and was on business in Hong Kong for the weekend, when asked about ‘Guanxi’ he responded by telling me, it was a ‘city about two hours past shenzen’. This was interesting and I explained my understanding of ‘Guanxi’ and he basically said that this cultural concept is alive in every society and culture in the world and that this is just a ‘tag’ or name put on a more intersting chinese culture. Day 6+7 Journal entry ‘Handbags, views and My own Guanxi’ After a late night on Friday, we were late at rising up on Saturday, We went for food together in a small chinese restaurant and I had a lovely fish stir fry, however the service in this restaurant and others which we were at was not great, the food tended to come out in drips and drabs, something I noticed throughout the week so it is hard especially when in a large group. We rambled around the city for a look and bought a few handbags and presents for people at home and then made our way to the ferry terminal where one of my classmates had organised an outstanding ‘Junk’ boat trip for the class which was a 4
          43   hour cruise around Victoria Harbor with unlimited food, drinks and craic with everyone. You could actually hear the silence at one point as the views were just too good to describe. We were all in awe of this wonderful city with its vast infrastructure and efficient building projects. After this amazing boat trip we all assembeled at the ‘local’ at this stage to watch the Galway hurling match, I invited all the Chinese students to come and join us for our final night and a lot joined us which was great for everyone. Also on this night was the champions league final between Barcelona and Juventus and I was amazed at the amount of Chinese locals wearing Barcelona jersyes in packed bars and pubs to watch the game and really proved the demand and size of the football clubs brand over in Hong Kong and the power it possess. On the note of sport a frequent topic of conversation with Irish out there was the impact and importance of the GAA in relationship builidng and networking with others. We met a man who came out to teach english but ended up meeting different people through the GAA, and now works in Morgan Stanley. Even today Monday, the day we fly home, I was sitting beside a young man from Celbridge, Co. Kildare, who is moving to HSBC in Hong Kong when he returns there in two weeks after two years with another financial company. After chatting to him he said he had heard of my NUIG MSC class heading out there for the last 4 years, and it turned out he is a member of the Hong Kong Chamber of Commerce and also an Irish rugby community which paul, who gave us a talk in Delaneys on the Friday, organises the annual Irish ball each year, so you could say through these networks and relationships we were all connected, and performed our own kind of Guanxi which is exactly was a main objective of this paper, identifying the validity of Guanxi in doing business in China, and by meeting people like this, and exchanging business cards and having a drink, I am very confident that my own ‘Guanxi’ built in Hong kong and the plane journey home if pursued could help me get a start in such a vibrant economy. All in all this trip has opened my eyes to the Asian world. Hong Kong is westernised but not too much I feel, yes it is influenced but it still holds its traditional uniqueness and has strong language and cultural differences which need to be respected and adapted to by anyone visiting or doing business there.  

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International Management Report

  • 1.
                    International  Management   Report   M.S.c  International  Management   Conor  Fitzgibbon       Word Count: 7956 Student Number: 11516003    
  • 2.
              2     Name: Conor Fitzgibbon Student ID: 11516003 Subject: International Management Module: International Management Report Word count and page length Of Essay: 7956 Pages 43 Bibliography Included I hereby confirm that this Essay is my own unassisted work, has never been submitted for publication or assessment elsewhere and that all sources used in its composition have been clearly cited. Signed By Student: Date:28/07/2015
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              4                                    
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              Table  of  Contents       Executive Summary  ............................................................................................................  1   1.  Introduction  ...................................................................................................................  3   1.1 Rationale  ..................................................................................................................................  3   2.  Indicative  Literature  Review  ....................................................................................  5   2.1 International Assignment Planning  ...................................................................................  5   2.2 Cross Cultural Awareness  ...................................................................................................  7   3.  Methodology  .................................................................................................................  10   4.  Findings  .........................................................................................................................  11   4.1 Chinese Dream  .....................................................................................................................  11   4.2 Cross Cultural Training  .....................................................................................................  12   4.3 Guanxi  ....................................................................................................................................  14   5.  Discussion  .....................................................................................................................  18   5.1 Changing political enviornment  .......................................................................................  18   5.2 Can cultural adaptions be flexible?  .................................................................................  19   5.3 Is Guanxi everywhere?  .......................................................................................................  21   5.4 Don’t cross the line  ..............................................................................................................  22   6.  Recommendations  .....................................................................................................  24   7.  Conclusion  .....................................................................................................................  26   8.  Bibliography  .................................................................................................................  27   9.  APPENDICES  .................................................................................................................  31   APPENDIX  A  ...............................................................................................................................  31   APPENDIX  B  ...............................................................................................................................  32   APPENDIX  C  ................................................................................................................................  33     Table  of  Figures     Figure  1    Reports  of  Corruption  by  Region………………………………………………16   Figure  2    Guanxi system (China Australia Consult)…………………………….21                
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              6    
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              1   Executive Summary With the impact of Information Technology (IT) on modern society, the world has molded into what has become known as a global village where economies and cultures have become more homogenized. People are now aware of once distinctive cultures, traditions, lifestyles and living conditions prevailing in almost every corner of the world. Interestingly, this is going beyond awareness and into a state of integration that is a result of cross-pollinated views, ideologies, products and services. Such an evolution of behavioral norms and traits is due to the process of globalization. According to (Ghemawat 2008) globalization makes things more alike but cultural differences still present many issues and challenges to be considered. Leading the world of globalization is China and East Asia with China predicted to over take the United States of America (US) as the world’s global superpower economy in the coming years. Such power represents a plethora of opportunity for western companies to exploit by partnering, competing or moving their business to China. The purpose of this report is to examine the cross-cultural effectiveness of Cross Cultural Training (CCT) for short term assignees working within differing cultural contexts such as China with a focus on Hong Kong. Hong Kong is the gateway for companies when attempting enter into the Chinese market and western assignees can understand Chinese culture by looking at Hong Kong, as Hong Kong is a mix between modern and traditional Chinese cultures which complicates the process for understanding but also makes it more interesting. Thus the reason for research to take place in Hong Kong. The report seeks to identify areas for improvement of CCT training in order to help overcome cultural obstacles, which may be experienced by western business assignees working in any cultural context with a focus for this paper on Hong Kong, The data obtained for this report was gained through a simulated short-term business assignment to Hong Kong between the 28th of May - 7th of June 2015. Such data was collected through attendance at talks, lectures, seminars and informal discussions with
  • 8.
              2   business leaders and expatriates operating in China, Hong Kong and throughout. A One key limitation noted by the researcher is one cannot portray the Hong Kong culture as the same to that of the Chinese business culture as they are influenced by differing factors. However, a compelling finding from this report is that despite the homogenous rise of globalization, no culture is the same and thus one must educate themselves specifically to the context or country in order to adjust. Therefore, the findings in this report provide the latest views and perspectives of Chinese cultural issues when doing business in Hong Kong. The literature review then focuses on CCT, which includes the differing views of the validity and effectiveness of such. Chinese cultural understanding in the context of Hong Kong is also examined in the form of ‘Guanxi’ and its effectiveness and cogency as a cultural aspect of business. This has been in play for hundreds of years. The report then contributes the latest findings which are discussed in detail followed by recommendations, which if followed can help the expatriate adapt more effectively to a culturally challenging environment such as Hong Kong. Doing business in China is now seen as a ‘must’ for any company looking to gain a foothold in their respective market. The challenges and issues such as political, social and cultural, are all examined in the report. The following is the main research question for this study: How important is cross-cultural training (CCT) for short-term assignees in understanding the cross-cultural differences of doing business in Hong Kong?                              
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              3   1.  Introduction   1.1 Rationale Much of the literature on Cross-cultural training (CCT) suggests that even the most frequent business travellers need time to adapt to the cultural characteristics of the new environments in which they find themselves. However, it is not clear whether cross-cultural training (CCT) actually allows for familiarity with cultural diversity despite the extensive research that has been carried out in this area. (Black and Mendenhall 1990). (Scullion and Collings 2006) in contrast argue that CCT could in fact limit the possibility of any culture shock that the expatriate may face, minimize transition adjustments as well as warding off pre-mature entry and project failure. Other authors have illustrated that CCT will aid employees performance as they thrive to be effective whilst making the best ‘first impression’ on the ground in the new foreign environment (Parkinson and Morley 2007) (Collings and Scullion 2006). Ultimately, in order to gain maximum effectiveness, such CCT should take place when the trainees are most excited and motivated about the trip itself (Grove and Torbiorn 1985). There does however, seem to be a lack of research into the effect of CCT on short-term assignments. Drawing inspiration from this, the research investigates the importance of CCT for western business managers on short-term international assignments (IAs) in understanding the cultural complexities of doing business in Hong Kong. The next section introduces the specific research objectives of this research. -How important is the notion of Guanxi for understanding Chinese business relations in Hong Kong? These issues will be looked at in the context of Hong Kong and will ultimately seek to investigate the cultural differences of doing business in China for a short-term assignee from Ireland. Hong Kong is a cultural melting pot that bridges Western and Chinese cultural values and hence presents a valuable research setting wherein which to investigate the importance of CCT training for international assignees Boakari (2004). -The evolving political transition in Hong Kong and China and its implications for doing business in China
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              4   The structure of this report is as follows. The research will firstly consider in depth the current literature relating to CCT with respect to short-term assignments and the role it plays in overcoming cultural differences through Cross Cultural training. This section will also outline the relevance of Guanxi and how it can help short-term assignees adapt to doing business successfully in Hong Kong. The next section will also consider the findings of the report and the discussions of these findings will be analyzed before concluding with recommendations for future short term IAs.                                                                    
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              5   2.  Indicative  Literature  Review   2.1 International Assignment Planning With the ever-changing dynamic global marketplace change is happening frequently in both the planning of but also the type of international assignments. Long term IA’s, also known as ‘expatriate assignments’, are the traditional choice when it comes to international assignments: Another changing form of traditional International Assignments that has received growing attention by academics is short-term assignments. Such an assignment helps cut costs and save finanacially unlike expatriate assignmenets. The literature commonly refers to short-term assignments as postings between 1 to 12 months in length (Collings, Scullion et al. 2007).There is a lack of literature on such assignments and is something that will be investiagted throughout this report, whether or not CCT is required for Short-Term Assignments and what if any value does it bring to the indiviual and company. The various forms of business assigness can be seen in Table 1 in Appendices Cross-cultural training (CCT) has been one the most investigated topics in expatriation research (Caligiuri, Phillips et al. 2001). This interest had been down to many factors, notably managerial implications of such research, the interest in such training by MNC’s, cross-cultural consulting and universities respectively. Such research is therefore of direct interest to MNC’s in particular. CCT is a particular form of Pre departure training that companies use to help managers on international assignments to deal with issues such as culture shock (Hurn 1999). CCT should enable participants to determine appropriate cultural behaviors in the host country and suitable ways to perform their job tasks (Black and Mendenhall 1990). Through CCT, expatriates may be better equipped to cope with unforeseen events in the new cultural context and to avoid any unnecessary conflicts due to unexpected actions or occurrences (Earley 1987). Missing such training can lead to business people replicating their cultural habits and traits of their host country without appreciating and acknowledging the cultural traits and norms of the host country. (Black and Mendenhall 1991) describe CCT initiatives as ‘factual’ training methods, and they have been negatively associated with numerous views. First, cognitive
  • 12.
              6   approaches lack rigor and often do not allow participants to engage actively in the learning process. Consequently, leading to an increase in factual (explicit) knowledge as opposed to a practical applicable knowledge attribution processes (tacit knowledge). Second, (Tung 1981) states that these programs are insufficient to prepare trainees for international assignments due to the innumerable cultural differences that exist, many of which are too sensitive and intricate to teach through cognitive training methods. Hence, the effectiveness of such CCT programs has to be questioned. They limit the transfer of explicit knowledge; they are not designed to transfer tacit cultural knowledge which as mentioned, is a core element of culture. Adding to this, as (Mendenhall et al. 2004) report, CCT programs are usually, but not always, effective in improving trainees’ cognition. They have a mixed record in changing trainees’ effectivness, but are only occasionally effective in changing trainees’ behavior, thus leading to doubt to the effectiveness of such programmes. Utilization of technology in corporate communications, cross-cultural training program design, delivery, and follow-up will continue to expand with globalization. Likewise, will the demand for technologies that can be in-corporated into cross- cultural training. These future implications of CCT will put financial strain on organizations especially in times of economic uncertainty where cutting CCT programmes could be seen as a ‘cost saver’. A key finding of (Selmer 2010) study considered CCT in the context of China and found that those expatriates with an expert knowledge of China, referred to as ‘China Hands’, showed a clear majority of expatriates were allowed to enter China without any CCT at all and is consistent with other results (Brewster 1995); Hutchings (2005); (Selmer 2000). Interestingly, with respect to China, whose culture has been described as ‘baffling’ (Chen 2001), this could lead to problems down the line not only for such training but also the business environment itself. Hence such evidence suggests a need for CCT in a culturally complex environment such as China. (Black & Mendenhall 1990) are furthermore of the view that CCT can have positive impact on one’s skill development, cross cultural adjustment mechanisms and one’s
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              7   job performance while in a new environment. In 1987, Tung discovered that the more training provided to expatriates, the lesser the probability of failure. (Molinsky 2013) argues that in order for there to be complete appreciation of a new culture and to be effective in foreign cultural interactions, one must have global ‘dexterity’ which is the ability to adapt or shift behavior in light of any cultural differences. In the case of China, he gives the example of making the culture ‘your own’. He says one has ‘leeway to adjust’ to a culture. Adding to this, he also recommends a Chinese mentor to be used and stresses that it’s not all of China one needs to know but the particular region in which they will be working. He mentions the importance of a knowledge of CCT but more importantly, the ability to take what you know and put it into action on the ground. He emphasizes the need for managers to be able to adapt and think quickly on their feet in differing cultural contexts and situations. From these arguments, it is apparent that CCT is a particularly important mechanism for helping global managers understand Chinese cultural values for example the Chinese culture of ‘Guanxi’ in order to maximize full working performance and potential with the added benefit also that CCT could also reduce the anxiety arising from the unknown (Bennett, Aston and Colquhoun 2000). Despite vast arrays of academic literature on CCT for expatriation, there lacks specific research on the effectiveness of CCT for short term IA’s, which needs to be examined further and is a key contribution of this paper. 2.2 Cross Cultural Awareness Guanxi is a phenomenon found in Chinese business ethics, which is fundamentally defined as interpersonal connections and has been identified as one of the factors of business success in china (Abramson and Ai 1999). Guanxi is considered as long-term relationship between business partners that contributes to efficiency in the organization and competitive advantage (Lovett et al 1999). It has been found that firms with higher Guanxi prosper more readily on many diverse fronts as they have a sustained competitive advantage (Tsang 1998) and they have better chances of long- term survival and growth (Pearce and Robinson 2001). This again points to the need for aspiring international firms to offer CCT in order to build sustainable business relationships and to attain the ability to culturally adapt. This being said, Chinese
  • 14.
              8   values in particular are said to be westernizing. Thus, ambiguity surrounds the establishment of such relationships as with development of business practices when initiating business relationships. (Wellman, Chen, & Dong 2002) are of the view that Guanxi based business practices can in fact reduce uncertainty, lower search and other transaction costs and provide usable resources. Such statements reiterate that foreign expatriates should make it their main priority to build Guanxi to give them a competitive edge in their networking and trust building in the Chinese business arena. This is supported by (Tung and Worm 2001) who state that Guanxi is the most influential cultural dynamic that impacts business life in the dynamic Chinese marketplace. Such statements support the drive for appropriate and effective CCT. Trust is also key element of business practices in Chinese culture. In cross-cultural business relationships, trust plays an indispensable role since partners from different cultures don’t always have the same values, perceptions or assumptions about how business works. Trust is seen to be one of the leading managerial issues of the corporate agenda. (Ellis 1996) suggested that building trust between partners in strategic alliances is a key ingredient to building a sustainable long-term relationships. (Buckley 2006) found however that confusion surrounds the main concepts of Guanxi, its implications and the benefit it actually brings with it. Moreover, (Fan 2002) & (Chua 2012) highlight the ‘myths’ of Guanxi and believe the concept is beginning to become more parallel with more the typical networking practices with which western executives are already familiar. They highlighted a misconception of the term in that the resources available are too broad and rarely stray beyond superficial notions. Also the myth of gift giving is now frowned upon as China’s tradition of gift giving is changing to a focus on the professionalism of doing business, rather moving away from the social side, the latter which has represented corruption and other wrongdoings such as nepotism, bribery and fraud (Yang, 1994). During the economic reform and opening of China’s marketplace, corruption has become so rampant that it has been called the ‘plague’ or ‘cancer’of society (Yang 1994). Such corruption is now being targeted for complete elimination by the Chinese government, which has long played a regulatory role in the economy according to (Buckley 2005).
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              9   ”State paternalism remains a dominant feature of China’s business environment” (Child & Tse, (2001) p. 17). The Chinese political system is in a time of change from a paternalistic state to a more relaxed system of welcoming world MNC’s to their shores. Commentators such as (Eakeley 1997, p. A23) claim that”China is showing an interest in the rule of law” by reinventing their legal system, leaning towards a more ‘American’ style of doing business and implementing policies of anti- corruption. Hence the term , ‘the Chinese Dream’ (Guthrie 1998) which is a play on the ‘American Dream’. Although recent empirical studies state that time consumption and expenses in developing and maintaining Guanxi are perceived as a major disadvantage (Fock & Woo, 1998; Yi & Ellis, 2000), such literature nevertheless asserts that to be succesful in certain types of business realtions supports the needs for Guanxi awareness, but moreover points to the need for CCT to be given to International Assignees on short- term assignments, on what to expect and how to deal with such a diverse cultural context. The previous arguments have illustrated the importance of CCT for short-term assignees especially in the context of understanding Chinese values in HK. More specifically, the changing of Guanxi as a resource in HK is without doubt a significant concern for western businesses doing business in China. The next section of this report will consider the main methodological approaches used when undertaking this research.                            
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              10   3.  Methodology   Empirical data was conducted by simulating a short-term IA to Hong Kong. This assignment lasted 10 days and replicated the process involved with that of a short- term IA. It has been argued that short-term IA’s are the most popular form of non- standard assignment (Tahvanainen et al., 2005). Price Waterhouse Coopers (2005) reported that over 50 per cent of companies surveyed expect the use of short-term assignments to increase in the future which shows the growing popularity of such an engagement. Also such a time frame allowed for qualitative Ethnography which involves the description and study of human cultures, (Saunders 2002). Qualitative research was deployed as the main research strategy and the main research tool came in the form of observational techniques. Presentations from specialists in the field including academics, local Irish consulate members, Irish managers in HK and business professionals who have experience working on international assignments, with most presentations lasting between 1 and 2 hours maximum. A number of small scale surveys with IA’s from Ireland were also carried out to offer practical perspectives for the findings. Table 2 in appendices details the various contributors to the data. Data was recorded using daily journal keeping in order to document all relevant research material gained, in as efficient a manner as possible. Clear and defined note taking was the main tool used in gathering data in all forms of meetings and discussions during the trip. Each evening these notes were typed into files concentrating on research related objectives, which may have arisen during the day. These files were then filed for personal note keeping and reflection. They included all facets of activities, which were crucial for the final report in attaining new knowledge and viewpoints on which the report was based. A limitation of the research assignment noted was that more time would be beneficial, for example time to cross the border into mainland China to gain a further understanding into the cultural differences and similarities there and help provide a more rounded view.        
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              11   4.  Findings   The international field trip to Hong Kong has enabled this report to include in its findings the major issues facing western business assignees doing business in China. The following section will detail a summary of the findings from the data that was collected while on Assignment. It will begin by discussing the importance of the ‘Chinese dream’ before detailing findings on CCT, Guanxi and corruption. Ho (2015) believes that any company wishing to enter the Chinese market must understand and accept the challenges associated with doing business in China. A clear grasp of the major hurdles will allow foreign business people adapt to doing business more successfully in China. 4.1 Chinese Dream Crisis  or  opportunity  for  foreign  companies?     A fresh topic of debate and key finding from the international field trip is the new phenomenon branded “China dream”. The ‘Chinese Dream’ as the Chinese government has given birth to is its strategies for future growth and is raising a lot of uncertainty including potential hurdles and perhaps opportunities for MNC’s trying to enter into China. The policy initiatives announced by General Secretary Xi Jinping were amongst some of the more radical since Deng Xiaoping opened China to the global market in 1978 which Ho (2015) says was a ‘good step’ for China and done to ‘save china’. The “Dream” is an amalgam drawn from relationships between the Western and Chinese perspectives and is a play on the ‘American dream’ but importantly shows the influence the west has on all facets of both business and political life in China. Ho (2015) stressed that china is in a time of change as the new leadership regime are strong advocates of ‘ anti corruption’ with a clear 5-year strategic plan presently in place. These particular actions taken by China are creating uncertainty among western investors and foreign business personnel which can be simply linked with one main theme, “law enforcement’. Such a finding on corruption is the work being done by the ICAC (Independent Commission Against Corruption). On the topic of corruption, the ICAC use a three-pronged approach enveloping ‘law making, preventing and education’.
  • 18.
              12   The history of dishonesty and bribery, which lead to accidents at Foxconn, is now being widely challenged by society as a whole. However, (Eisenman 2015) of the American Foreign Policy Council decried it by saying: “China has been making it harder for foreign firms to operate’. Thus, the aforementioned uncertainty is real for many western business people. However, such a plan can bring with it opportunity, for example Ho (2015) stated its new ‘focused’ policies such as , ‘education, power generation, medical industries and finance’ are all areas that the chinese need to ‘learn’ from the west in order to implement and ‘maximise potential’ and bring with them ‘a lot of opprtunities for the west to do business with china’. Linked with this is the question of where does Hong Kong fall into this 5 year plan, a recent lack of attention for HK has lead to uncertainty for many HK people as to what value they are regarded to be by the Chinese. Ho (2015) claimed ‘china is one country, but is not one market’ and thus those looking to do buisness in China or Hong Kong and be part of this new ‘chinese dream’ must do their homework on all factors both political and business pre arrival. 4.2 Cross Cultural Training The next crucial finding is whether or not CCT has a benefit to short term assignees. A lot of differing and valid perspectives on the topic were observed throughout the trip and also pre-departure, where the observer conducted qualitative research through indiviual survey type questionnaires to various Irish business people who have experience in working or living in China/ Hong Kong. Donnelly (2015) an investor banker in Hong Kong was noted as saying he did not receive any CCT and stated: “I could be working in any major financial hub as it is that international”. This supports the view of the very westernised economy in Hong Kong at present. McDermott (2015) a quality inspector with a global MNC who does business in China regulary said that in relation to CCT he received ‘basic training’ on things such as how to ‘present a business card’ and how to ‘conduct oneself’ which he says was very beneficial. Crucially he says: ”as was being aware how one could “easily offend without knowing” whilst on business. He also recommended a simple ‘checklist’ that would be helpful for short-term assignees. Croughan (2015) an Irish business woman who has studied and worked in
  • 19.
              13   Hong Kong supports this further in suggesting that “understanding the core cultural values through CCT helps to delfect any problems that could occur”. Ho (2015) who gives his view on CCT and advice on short term assignments, saying it is crucial first to ‘send those who want to learn new things faster and also those who are open minded’. One theme he repeated a lot was the ‘pace’or the’ movement’ of both people and the economy in Hong Kong and in terms of CCT said ‘people walk and talk faster in Hong kong’, meaning one must be prepared to adapt quicker.Thus effective CCT is required. CCT by many has been said to be extremely beneficial to avoiding culture shock.This is supported by Prepscius (2015) of Asia Pacific BSR who in a former job with ‘Nike’ received CCT with a local mentor being provided to help soften the impact of the cultural difference. He said it was ‘very beneficial’ and was a good tool in order to identify ‘self awareness’ and cultural difference. He also said that in order to succeed on a short term assignment that one must use this ‘cultural mentor’ to build a ‘web of knowledge’ so that if they return they will have knowledge of what to do in different contexts. He identidied learning a ‘few’ words of the local language as imperative to a succesful trip. He stressed that to avoid “offending without knowing”, supported by McDermott (2015), to show humility rather than come over as ‘invasive’ as unfortunately some Americans are known to do. In addition, the views of Ni Dhonnacaha (2015) Deputy Consul General Hong Kong, were observed to gain an insight into her perspectives as she deals with complex cultures regularly. When speaking on the topic of CCT she said ‘firstly, one must understand cultural differences in order to adapt’,she then went on to say, ‘learning a few basic words really help with gaining your counterparts trust and also breaking the ice’. Cafferkey (2015) an Irish expatriate in Maylasia gave his slant on dealing with various cultures. He said he learnt ‘by doing’ such as ‘no pointing’ at anyone or shaking hands with women. These were a most unexpected and interesting insight to the vast cultural differences with Asia . In terms of CCT Cafferky (2015) said first:“one must not judge and give every culture a chance” as the ‘culture has been there for hundreds of years and we’re not going to change it”, instead we need to adapt and even ‘learn a couple of words so that we can (humbly) seek acceptance from them in order to be accepted’. He is of the opinion however that CCT programmes are too ‘formalised’ and it is ‘difficult to fully learn before you go’ and its imperative to ‘learn by doing in the actual environment itself’.
  • 20.
              14   4.3 Guanxi The complex topic of Guanxi was investigated in relation to answering the research question and brought with it valuable angles to the report. The findings from the report appear to portray Guanxi still as a significant factor in business in China but vary in relation to the extent of the role guanxi plays. Ho (2015) delcared that in order to build Guanxi with business counterparts, one must have ‘heart and passion’ to ‘understand the ‘logic’of any culture. He said in business ‘we have partners and competition’ but ‘regradless we need to know both of them’ and thus building relationships is crucial to that which he says are ‘not built in day one, but are built over time when one comes to respect the system’ which has been in place for generations. Costigan (2015) gives his slant saying: “Guanxi is simply an amplification of relationships which we have in the west already” and continues to say: “Westerners find it ‘relatively easy to culturally adapt in China and Hong Kong as we have experience of building ‘business relationships from the bottom up”. Cafferkey (2015) agreed with this saying: “ one major advantage Irish people have in doing business in China/ Hong Kong is ‘our abaility to adapt and build relationships and trust in a way like no other people” He also mentioned our own ‘network system’ across the world is that of the ‘GAA, which he says: “Saves lives in Asia”. Ni Dhonnacha (2015) also said:”The Irish have an ‘edge’ on other countries as the Irish are ‘totally based on trust and relationships.The GAA is at the fulcrum of such a tight knit network of trusting community systems be they in business or family. This is what comes naturally to us”. Ni Dhnnacha (2015) said these networks help the Irish ‘transfer and adapt their Irish culture to the Chinese, and build trust and sustainable business relationships’. Prepscius (2015) gave the impression that Guanxi is a choice, one can ‘opt in or out’ and said it is important to ‘research it and understand what exactly it is and what it entails’. McDermott (2015) stated: ”Guanxi is very important. The relationship starts as a business one but gradually moves into a personal one, where the trust is with you as the person who is a business-man rather than with the company”. He says: “It ‘takes a number of meetings to establish such trust in order to be considered family. Interestingly, he says: “In contract negotiations, “‘yes” doesn’t always mean “Yes” and thus ‘we must re-evaluate our ‘western trust’ system to ‘see past their surface
  • 21.
              15   cultural behaviors” Croughan (2015) compared building trust and business relationships to ‘dating’. On the first meeting ‘there is minimal conversation about the business but more so in developing trust and relationships through mutual interests, friends etc. Futher to this, she stressed ‘humility’ in all realtionships in China. While we naturally tend to promote our ‘strengths’ with the Chinese she stresses ‘modesty’ and also to ‘admit personally one has a lot to learn in terms of language and cultural understanding’. She continues to declare that she ‘doesn’t see the Chinese bending their feelings towards business Guanxi as they are a global powerhouse who are self-sufficient, able to support themselves without western business partners. Therefore it is up to us in the west to adapt and change our ways, to re-evaluate what we mean by ‘strength’. Such views show the importance of cultural understanding and the necessity for cultural sensitivity and appreciation in doing business in China. Notably Guanxi has also openly been linked with corruption. This was evident for the researcher whilst on the research trip. Such practices lead to major challenges which may not be seen as a priority for foreign businesses. A talk attended by the researcher at the HQ of the ICAC, (Independent Commission Against Corruption) brought into clear focus how “black money” became a necessary way of life. Although it is now not as serious due to the establishment of the ICAC in 1974, business people need to be aware of corruption and understand the fine line between doing business through Guanxi and corruption. Corruption is a key area of interest in China’s five year plan with Ho (2015) stressing the ‘new leaders drive to wipe out corruption’. .
  • 22.
              16   Figure 1: Reports of Corruption By Region Figure 1 shows Corruption in China most rampant by region from a study by Charney research (2015) shows Hong Kong owned firms were found to be more likely to pay bribes at 44 percent, compared to foreign firms at 37 percent, and under developed Mainland China firms at 32 percent Ni Dhonnacha (2015) gave her experience of dealing with Gift Giving during a state visit of president of Ireland to Beijing earlier that year. She gave the example that the ‘Gift’ to be exchanged was to be of small monetary value but more ‘sentimental and symbolic’ value as to avoid any presumption or suspicion of bribery. McDermott (2015) portrayed similar experiences with an important factor that it be more of a ‘gesture or token gift’ rather than lavish gifts to avoid any notion of bribery. He also went on to say that business in China is becoming more ‘westernised and this tradition is becoming less prevalent and is a nice gesture but is not essential’. The ICAC recommend one should seek ‘approval from their company to accept any gift or gesture in conducting business’ In summary, the international field trip has allowed this report to provide in its findings a dossier of the key issues facing foreign executives carrying out business in China. The main findings are the Chinese Dream, CCT, Guanxi, cultural understandings and Coruption. It would be prudent for foreign firms to acknowledge
  • 23.
              17   these issues as when a foreigner is aware of the potential issues associated with doing business, through CCT it makes these challenges much easier to overcome.                                                                                          
  • 24.
              18   5.  Discussion   This section of the report provides discussion and analysis of the importance of differing factors that will help foreign business people to overcome the aforementioned issues thereby enabling them to do business more successfully in China. These guidelines have been generated using the relevant literature in conjunction with the author’s personal experiences. The points include: 5.1 Changing political enviornment Too often the political enviornment has been overlooked by many critics and academics as a worthy contender for the most important factor in doing business in china. Understanding such helps the assignee grasp a political understanding of the enviornment which they will be entering into, which this will aid cultural adaptation. At the moment, the current chinese political enviornement is in a state of transition. At the top of the agenda is the chinese governments clamp down on corruption in their latest 5 year strategic plan. A paper by (Li , ,Meng, & Wang 2008), on Chinese Political connections found that political connections to the party in power can have a beneficial effect on a firms performance. Party membership was also found to be conducive to obtaining loans from banks or other state institutions, which gives enterprises that are run by Party members a distinct advantage over others. This shows the corruption and unethical behavior which Xi Jingping’s government is trying to immobilize. There is also considerable debate concerning how fast China is moving toward a Westernized emphasis on the rule of law. (Guthrie 1998) believes shifts in the economy have led China to redesign the legal system to a more westernized ‘American’ system in such a way that it favors efficiency which is in line with Ho (2015) who stated China is now ‘trying to learn form the west’ so foreign firms and especially assignees can gain advantage from this if they learn to adapt to this changing political landscape. Ho (2015) also believes it is a ‘good step’ for doing business in China which does not agree with Eisenman’ (2015) view that China has been targeting foreign firms making it very difficult to do business there.
  • 25.
              19   The findings from this report illustrate that China’s changing political system in the form of the ‘Chinese dream’ is a significant factor and a telling contribution for foreign companies to consider especially in short term assignments where Guanxi is extermeley important in developing in early business dealings. The changing nature for China and HKs relationship has increased more recently and Western firms need to be aware of this in order to avoid certain disruptions such as bribery or corruption in developing Guanxi in future business dealings through cultural experience and dealings and effectve CCT. 5.2 Can cultural adaptions be flexible? CCT has been one of the most investigated topics in expatriation research according to (Brewster 2001) who stated in 1995, that expatriates are regularly assigned to all parts of the world with little or no cross cultural training, Which is challenged by Croughan (2015) who determined that ‘understanding the core cultural values through CCT helps to delfect any problems that could occur with little or no CCT’. (Black & Mendenhall 1990) are of the view that CCT can be described as ‘factual’ training methods which in fact do not allow one to actively engage in the learning process which ties with Cafferkey (2015) who is of the opinion that such methods can be too ‘formalized’ which (Black & Mendenhall 1990) don’t agree with who see CCT as a ‘positive spill over’ on ones development and job performance while in a new enviornment which is reinforced by (Tung 1981) who found that the more training provided to expatriates, the less chance of failure. The indiviual is also an important factor in deciding whether or not to apply CCT. Ho (2015) says it is imperative to ‘send those who learn new things faster and those who are open minded’ A major contribution of this report for future study was the dawn of cultural dexterity. (Molinsky 2013) argues that in order for one to have complete appreciation for any new culture, one must have ‘global cultural dexterity’ which is the ability to ‘adapt or shift behavior in light of any cultural differences’. Prepscius (2015) noted when working with Nike he received CCT which came in the form of a local mentor which is highly recommended by Molinsky (2013) as a key form of ‘cultural ice breaker’ which Prespicus (2015) reinforced and said it was a ‘very beneficial’ tool in creating
  • 26.
              20   ‘self awareness’ in differing cultural contexts which he worked in. Cultural Dexterity is the effective integration of these components. A Publication by (Hazard 2012) said that Cultural Dexterity is a process of discovery, adaptation, and creation of techniques that an individual can employ across any cultural context. The underlying principle of Cultural Dexterity according to (Hazard 2012) is that the dynamics of intercultural interaction are always fluid. Cultural Dexterity training’s main competency is built over time through real world application which links to the opinion Cafferkey (2015) who says ‘one must learn by doing’. (Molinsky 2015) also noted that learning a ‘few words of the native tongue’ can go along way in being ‘accepted’ or ‘trusted’ in a new enviornment. This guideline is supported by the experiences of Ni Dhonnacha (2015) and Prepscius (2015) who both see ‘learning a couple words can really help with business and personal relations’. Another interesting finding saw McDermott (2015) examine the need for a small ‘checklist’ of dos and donts to reinforce CCT prior to departure which can also be seen in (Hazard’s 2015) paper to make the transition more fluid, but Cafferkey (2015) emphasised that ‘we cannot change these cultures as they have been around for hundreds of years, it is up to us to adapt and change’. Prespcius (2015) remarked that one should ‘ do the due dilligence before entering a new enviornment’ which would work parallell in going into ‘discovery mode’ when entering a new enviornment. (Dutra 2013) says its fundamentally important to expand ‘learning agility’ being aware of environmental differences, learning from unfamiliar situations, and applying such lessons to new occurences in future dealings. With this change in ‘agility’, short term assignees can develop cultural dexterity to ‘effectively navigate across any cultural difference as cultural dexterity improves each time it’s practiced’. Cultural dexterity goes beyond the realms of personal relationships and advances into aiding the creation of strategic advantage and higher performance, enhancing growth and business results. Therefore a leading finding from this report for future study that coincides with contemporary arguments on CCT is that CCT is an integral part of a short term assignee effectiveness. Going further, cultural dexterity is an advised approach to take when entering a new business or cultural enviornment.
  • 27.
              21   5.3 Is Guanxi everywhere? According to (Abramson & Ai 1999),cGuanxi is a vital factor in doing succesful business in China. (Lovett 1999) describes it as the necessary foundation of business relationships that contributes to efficiency in the organization and competitive advantage Figure 2: ‘Guanxi system (China Australia Consult) ‘Fugure 2, shows the development of a typical Guanxi system with family being to the core which brings with it the highest level of trust. Mcdermott (2015) gave his experience of constantly building relationships to gain trust and be considered family, as at this stage he says you ‘are onto a very good line of business’ which complements (Buckely & Casson 1998) view by saying that ‘trust is seen to be one of the leading issues on a corporate agenda’. Ho (2015) added that to build Guanxi, ‘one must first have care & passion in order to understand the logic’ of not just the chinese culture but any culture, thus reinforcing (Molinsky’s 2013) view on the need to have‘cultural dexterity’ historic Costigan (2015) gave a fascianting point for discussion declaring that, ‘Guanxi is just an amplification of relationships which are already in place in the west’ which lead to the investigation on the similairty between Chinese Guanxi and Irish peoples ability
  • 28.
              22   to build networks and relationships at ease. At the heart of this globally and in Asia, is the GAA. The emphasis of the GAA is community. Thus here one can see similarities between Chinese and Irish cultures in their ability to network and build relationships and culturally adapt more quickly, something which Ni Dhonnacha (2015) says give Irish people an ‘edge as Irish peoples relationships are based on trust’ which is at the core of such a tight knit ‘community system’ which is reiterated in Clinton Institute UCD’s research, thus aiding to help Irish people adapt more effectively and efficiently to cultures such as Guanxi in China. A key finding here is that Guanxi is indeed an important aspect of overcoming cultural challenges in HK but Irish managers have been particularly adept at tapping into institutional structures in HK in the form of the GAA. Although a natural trait of Irish people to adapt, time must be given to each individual cultural context to analyze and appreciate difference before jumping in. 5.4 Don’t cross the line Another pressing issue with Guanxi is its issue with corruption. The ICAC (2015) stated how ‘black money’ became a necessary way of business life (Yang 1994) said that Guanxi ‘represents corruption and other wrongdoings such as nepotism, bribery and fraud, which are now being stamped out by Xi Jingping’s government. Gift giving is seen to be dying out in today’s China. Ni Dhonnacha (2015) gave an example of it being important not giving someone a gift of high monetary value but more ‘sentimental and symbolic value’. McDermott (2015) reiterated the importance of not giving ‘lavish expensive gifts’ in order to avoid suspicion of bribery or fraud which was challenged by (Chua 2012) which showed the ‘myth of gift giving’ and how it is slowly being phased out due to anti corruption programs but also a more westernized business environment. Therefore a critical contribution of this report to existing literature is that it highlights the contemporary discrepancies in how western companies associate gift giving with Guanxi and the implications this has for potential corruption. Such an issue increases the demand for appropriate CCT to educate short-term assignees of the changing
  • 29.
              23   environment both legally and ethically to factors such as gift giving and corruption when doing business in China.                                                                                          
  • 30.
              24   6.  Recommendations     China is said to have one of the most complex cultures to do business in and with China predicted to over take USA with the worlds largest markets, this leads to marrying the two into the research question of this paper, How important is CCT for short term assignees in understanding the cross cultural differences of doing business in Hong Kong? Fail to prepare, prepare to fail (Early, 1987) said through CCT, expatriates may be better equipped to cope with unforeseen events in the new cultural context and to avoid any unnecessary conflicts due to unexpected actions or occurrences. The researcher in Hong Kong found such a view. Not once was CCT dismissed over the duration of the simulated assignment, but was agreed upon by many to be a pivotal instrument in over coming cultural differences. A topic of discussion was that of Guanxi and its relevance in modern day business in China, which one could feel, was slowly vanishing alongside the days of corruption and bribery. The new governments plan is changing the business environment and culture of China both for Chinese and foreigners alike maybe unintentionally but its changing none the less. Thus, the need for one to be appropriately trained to be knowledgeable in a particular culture for both business and human interactions with the ambition of fulfilling cultural dexterity is crucial. The timing of such training is also crucial, as for a short term assignment, real life experiences, practical learning and a cultural checklist should be used close to departure to help gain cultural dexterity for assignees. As the literature and findings suggest, cultures no matter where in the world, all have their own distinctive traits, norms and behaviors which have been around for hundreds of years, thus one must be sensitive to this, but more importantly, if a culture seems to be in stage of change business or otherwise, assignees must be appropriately trained to adapt to such changes in order to make such short term assignments worthwhile and fruitful. As the laws and policies of China change to law enforcement and anti corruption, with this comes opportunity for short-term assignees
  • 31.
              25   for example, using Guanxi and ethical relationship building as a resource to be exploited to overcome cultural barriers. It is an exciting time to do business in China but as Ho (2015) said, companies must ‘send only their best young people who want to learn’. This researcher feels such learning should come in the form of CCT with the goal of achieving cultural dexterity to pro long the individuals ability to travel globally thus being more effective individually and to the company. Put on your seatbelt A critical recommendation identified was the vastness of opportunity available to one and all in China/ Hong Kong, both lifestyle wise and career opportunity. The overwhelming advice from expats and business people who have completed similar short term assignments is to ‘GO’ at every chance as its an economy full with opportunity. Nonetheless, one must not get carried away with themselves and take their time in order to stand back, assess the culture and apply their CCT and past experience and knowledge to each and every cultural situation they find themselves to be in.                                          
  • 32.
              26   7.  Conclusion   With China posied to overtake the US economy and become the leading global powerhouse, any business wishing to be succesful must identify this economy as a paramount objective for success. Such opportunity brings challenges and issues and in the case of China like any other setting, cultural challenges and behaviors are present which need to be identified prior tp departure in order to achieve an effective short term assignment. Such facets have laid the objective for the research of this paper, How important is CCT for short term assignees in understanding the cross cultural differences of doing business in Hong Kong? Firstly, a clear and detailed literature review helps to identify the array of studies on the topic of CCT, and cultural understanding of Guanxi in the context of China/Hong Kong. The findings of the report then present fresh hands on examples of the varying attitudes and viewpoints to the Chinese Dream, CCT, Cultural understanding and Guanxi in China. An appreciation and sensitivity towards such will help assignees to adapt to cultures through hands on real life interactions and experiences. The discussion then looks into the importance of: • Being aware of political activity and changes in todays Chinese environment which can be incorporated into CCT to maximize knowledge transfer and confidence in assignees, The  flexibility  of  cultures.  Are  they  changing  to  a  more  westernized  one  or  is  is   up  to  us,  the  westerner  to  adapt,  which  lead  to  the  next  and  most  crucial  point  of   the  paper  which  was  that  of  cultural  Dexterity.  This  is  a  crucial  angle  brought  to   the  paper  and  is  a  keen  recommendation  for  anyone  doing  business  in  China   • Guanxi, which can prove difficult for expatriate Assignees. Such cultural dexterity will allow one to become adaptable in a short term assignment, to differing situations which may arise in changing cultural environments like China/ Hong Kong through up to date, hands on, practical and fresh CCT prior to departure to ensure the most effective and successful trips are worthwhile. The defining recommendation of this report is that China/Hong Kong is in a time of change, politically and economically. Their intiricit culture, yes, is a crucial part to doing business however, it is up to the west to change and adapt and have cultural dexterity and appreication in order to be flexible to such a changing enviornment, thus the importance of effective CCT cannot be overlooked by any company planning on doing succesful business in China.
  • 33.
              27                             8.  Bibliography    
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  • 37.
              31   9.  APPENDICES           APPENDIX  A Table 1, Popular forms of Business Assignments Inpatriation Which involves the transfer of subsidiary managers to the HQ for a specific period of time (Harvey et al. 2000). This would allow key subsidiary managers to get to know the workings of the parent company and build up informal communication networks Self initiated assignments A growing number of assignees make their own arrangements to find work abroad facilitated by the introduction of free movement of labor in the European Union and other economic regions Virtual assignments Companies have begun to make use of virtual assignments in order to address the competing needs for decentralization and global interrelation of work processes in a more flexible way. A virtual assignment does not require the individual to physically relocate to a foreign organizational unit but rather distributes international responsibilities as managed from the individual’s home base.
  • 38.
              32   APPENDIX  B     Table 2, Various contributors to Data Collection Name Gender Age Position Company Method of Delivery Date & Time Leo Ho Male N/A Professor of Chinese Business Studies Hong Kong Baptist University Formal Presentation June 1st 10:00 AM ICAC speaker N/A N/A Corruption Agent Corruption Agency Formal Presentation June 2nd 14:00 PM Fiona Ni Dhonnaca Kenny Cafferkey Paul Costigan Female Male Male N/A N/A Deputy Consul General Lecturer of IHRM Chairman Irish Consulate Kulala Lumpur University Irish Chamber of Commerce HK Roundtable discussion “ “ June 5th 16:00 PM Dr Jenny Chan Female N/A Professor/Researcher labor law Professor Oxford University Formal presentation Q&A June 4th 9:00 AM Jeremy Prepscius Male N/A VP Asia-Pacific BSR Informal Q&A June 4th 14:00 PM Tony Mcdermott Ronan Donnelly Ashling Croughan Male Male Female N/A N/A N/A VP Irish quality systems company Stock loan Hedge Fund Business Analyst APAC Ambition Survey by email “ May 8th
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              33       APPENDIX  C   JOURNAL ENTRIES Day 1 Journal entry Hong ‘keep up with the pace’ Kong Baptist Universtiy DR. Leo Ho Today we had a very interesting talk on Doing Business in China with DR Ho who has over 25 years experience of management if ICT, Engineering and industrial global organizations In Asia. One aspect which I noticed was we were all given name tags, we were all equal, treated the same and there was a collective aspect to the talk. The college itself was in prsitine condition with a strong emphasis on being enviorenmentally friendly.We had a coffee in the coffee shop beforehand, which I noticed was very like an american students coffee shop I had been in recently at Berkeley University. The room was spacious and clean and a microphone was used to maximise our learning and clarity. It was easy to identify from being in his presence that he is a driven, energetic and appealing person who was clear in what he spoke about and one could sense the pride he has in what he has achieved and how he now feels itstime to pass on his messgae to ‘future leaders’ as he said he is in history but our young generation are the future.He feels it necessary to advise the young to help ‘plan for the next china before this one is mature’ He acknowledged failures that he has encountered over the years have acted as opportunities for success for him and also will for others in the future. He noted the opening up of China to selective countires in 1978 and said this was for the sustainability and surivial of China. A vital message I got from the talk , was that in order to be succesful, a company must be succesful in China as ‘money talks’ in order to gain trust, and respect with top management to be the best you can be in order to align this with the companies strategic path. ‘Pace’ was spoken about as a key detrimant to success in the maretplace and with global assignments, it is those who learn the ‘fastest’ who will achieve. With Culture,
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              34   he said there was ‘no good and bad’ with culture as it is the same for both sides. One needs ‘time and passion’to understand the ‘logic’ of the differing cultures. ‘friends and enemies’ both know each other so partners should also know each other. He says in order to build trust we must gain friends first then business. After the talk, We ate in the college canteen which was something else. The efficiancy of the system is something I have never experienced before, you order in one room, then collect in another then eat. After this talk we went to the International Antique exhibit in the Hong Kong Exhibition & Convention Centre as we were lucky enough to be attending the ‘Antique Exhibit Tradeshow’ at 1PM. The building itself, known as HKCEC is a major part of the Hong Kong Island skyline and located on the Victoria harbour-front. This modern building is internationally renowned as it was voted Best Convention and Exhibition Centre in Asia for the ninth time by industry awards in 2012, I felt privileged to be there. I talked to a london based store and learned a lot about the origins of some of their relics and watches a lot of which were from Geneva. In the 1800’s these were once exchanged between the chinese and europeans as gifts to do trade. Now the Chinese are buying these old relics back and is a very afluent, expensive market. This ancient art of ‘Gift giving’ is a key area of my study on Culture in China, and I have seen first hand the Gifts which were given, one of which was on sale for £150,000 which shows the worth today but also the historical significance and cultural practices in place in China which we took part in today by presenting Leo Ho with a gift for his talk today. On the way home from the Antique Show I stopped by a ‘Hong Kong Innovation Awards’ exhibit in the Causeway MTR station.I took a few minutes to look around at the latest inventions and innovative products that the young people here are inventing and which I am sure will see in Ireland in the near future. I visited the ‘Ladies market’ in the city also where every kind of handbag, accessory, gadget and clothing type was available for negotiation for the best price something which I enjoyed a lot. I noticed that all the stalls were very tidy and efficient and the owners welcomed us with an english ‘ Hello’ . We negotiated in every store and were
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              35   succesful as they were very intent on selling as quickly as possible,something I was not surprised by with their cunning and efficient ways of doing business. Day 2 Journal entry ‘Don’t cross the line’ Today, we had a late start so I went for lunch with some of my Chinese colleagues in the class in a chinese Hong Kong style restaurant. Surprisingly I was asked to come alone with no other class mates, I asked why, and was told they don’t paticlaurly like large groups of people at dinner and as it so happened there was 6 seats at our table for 6 people, the chinese accomplished efficiency again. I had a chicken and rice stir fry. I initially made for the chop sticks to eat the rice but was reliably informed by my friends that doing such an action is a sign of ‘death’ in Chinese culture, something I was very apologetic about. Six of us fitted into a small table very comfortably and I was told that Chinese place all belongings off the table ,so no phones, wallets or sun glasses on the table. This meant no distractions at all just conversation and sharing of food which I found to be a pleasant change from the ever present technology on our western dinner tables. I really enjoyed experiencing eating with my friends and was a great cultural awareness experience. We then assembled in the lobby of the hotel at 2 o clock for the talk at the anti corruption Agency Hong Kong. Smartly dressed, we travelled by MTR and walked for 5 minutes in the blistering humidity to arrive sweaty to the ICAC. One of the most shocking things I learned was of the challenges the independent commission overcame to become the cleaner more business friendly place, and how just 50 years ago ‘black money’ became a necessary way of life and that even firefighters or ambulance paramedics demanded money before carrying out their job. One thing I noticed in particular was how she reiterated the importance of the I (Independent) in ICAC, meaning the commission is not affiliated with the Government and instead reports directly to the Chief Executive of Hong Kong, for who which I observed, is there is to be an election in 2017 for this position, showing Hong Kongs adoption of democracy. During the presentation an interesting issue touched upon was gift giving with which the term ‘entertainment’ was used. I learned that the immediate consumption of entertainment is permitted and was explained how being brought out for an occasional meal is ‘normal’ but bringing home a bottle of wine is considered an ‘advantage’ and
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              36   therefore discouraged and all practices had to match with that of the company of both giver and receiver of gifts. After the meeting we were taken to a large room (with an amazing view!) that showcased many interesting anti-corruption cases. Each case was displayed in a unique and ornate fashion, the main case I looked at was the landmark case of Godber as Agnes Kwok had spoken about it in our meeting. Peter Fitzroy Godber, The chief of police who had been accused of corruption managed to flee Hong Kong and escape to his homeland Britain. Following Godber’s escape, there was outrage among people from all walks of life resulting in the establishment of the ICAC which was free from the Police Force and the rest of the civil service. I noticed a gift was not given or token of gratitude after our meeting. After we finished viewing the cases we assembled for a class photo, one of many so far on this trip. After this myself and a few classmates travlled by MTR to Mordy RD, to look at buying tailor fitted suits. One feature of the MTR stations was the lines at the platforms, clearly defining where people are to stand within ‘red lines’ whilst queing for the train, this is something you definiely would not see at a que for the Luas in Dublin! We rambled and found a suit shop which one of the faculty had been before and built a relationship with and they immediately looked up Kieron’s name and once they realised he was a repeat customer they could tell him what he had previously purchesed and were more than willing in helping us. After tough negotiations and various threats to leave, 6 of us were given a very good deal considering the bad exchange rate at the moment. We then returned to the hotel for a quick shower, then into taxis and off to see the peak views of Hong Kong. The views were spectacular especially at night time with the cities lit up and constantly ever changing colorful skylight. We travelled by taxi and something I have noticed with taxis is the passenger in front is in charge and directs the driver and also manages the money, so a certain element of trust and hierarchy exists between both parties as I also noticed that the drivers do not talk to passengers in the back. Day 3 Journal entry ‘Sushi and clogs, an interesting mix’ On Wednesday Morning I was pleased that a culture day lay ahead of us. We walked as usual to the MTR station at Causeway bay and by now I was a pro finding my way
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              37   around and figuring out what train route to take. We made our way to Tsim Sha Tsui Station in Kowloon. The Hong Kong Museum of History was just a short walk from the station. The Museum was magnificent, and also free today which was great! it has managed to squeeze 400 million years of history into one building. The collections are divided among three major areas: natural history, ethnography and local history. I spent most of my time in the local history section as I felt I had to get an understanding of the local folk culture in order to comprehend why the importance of building relationships is common among Chinese people as I had been told that it was based on their history. I was taken aback by the old fishing villages, ege, Stanley who fished in dangerous circumstances in junk boats. Religion was a mjor part of their culture and gods were worshipped for safety and fortune at sea. I continued on my rambles and came across how the people used to make salt using dykes of up to five ponds through a process of crystalization with the help of raw engineering and no technology. This salt was then used to help preserve fish and shrimp and was a vital contributor to the sustainiabilty of the people. I then watched a video relating to the modern history of Hong Kong and the relations between China and Hong Kong after the War, it gave a vivid impression of post war development, the economic and social climate and the emergence of the commonality shared by the population as a whole. I wrote a wish on the wishing tree which was an old chinese tradition which we in Ireland have in the form of wishing wells. The want for success and health is common to both our cultures. One could also notice a lack of mention of the british colonoial past during my observations. Upon leaving, what struck me was the stark contrast between contemporary design of the museum itself in contrast with the years of history it held inside. For lunch we went to a japansese restaurant, where I had Sushi for the first time. It came on a tray with various dishes on it. I ate Wasabi for the first time and also ate it with out soy sauce and nearly burnt my mouth to pieces. It was a real traditional restaurant where the waiters ran around on wooden clogs which sat on stilts which ‘clogged’ around to our amusement. Some of the class ate at the food preperation bar and were required to take off their shoes to eat there which was an interesting eye opener of varying cultures. After lunch we visited the beautiful Wong Tai Sin Temple’s in hope that all our wishes would be granted as it claims to ‘make every wish come true upon request’. It houses three religions (Taoism, Buddhism and Confucianism) in a beautiful and
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              38   natural setting. I saw many worshippers pray and give offerings and so I made an offering of health and happiness with my family and friends.It is a tranquil place with gentle music to be heard around the trickles of water and cherping of birds. It is a truly special place. I did notice however, that the temples are right across the road from high rise apartments which are not best pleasing on the eye. I guess this is due to the sheer demand for space to cater for the vast population and even aesthetics or location are not taken ito consideration when planning. On the MTR that evening, I over heard an asian girl and english man talking. They were looking at friends wedding photos and as it turned out, she told him that in china, the wedding photos are taken before the wedding and not on the day of it, to his amazement and dis-belief. I found this to be an interesting point to learn of their traditions and ways. Later that evening, we went to the Happy Vally races where this elegant race track lay between hills and high rise buildings. I thoroughly enjoyed the it and Happy Valley Race Course was just minutes from our hotel and was surrounded by the beautiful night skyline. It was like nothing I had ever seen before. I noticed a lot of westerners present and also chinese inside gambling, but mainly westerners. It is an opportunity for a real mix of cultures to come together, where there was a Bollywood dance show on every half hour or so, and also differing nationalities of the trainers, jockeys and the MC’s were from england. Hong kong is a different place than china in my view due to globalozation and I really don’t think its an issue, its an opportunity for everyone regardless of culture or background. Day 4 Journal entry ‘Delivering to the world’ An early start was had today with the meeting time of 8:30 down in the hotel lobby. We set off again smartly dressed to the Kaplan college meeting rooms for a talk with Ms Jenny Chan on labor law in China. She was very engaging and full of energy and helped to quickly wake us up. She spoke about Hong Kong’s emergence of labor due to the opening up of its economy to the world and also of rural migrant workers. Then she changed her focus to that of Foxconn who apple use for cheaper labor and manufacturing which has resulted in terrible working conditions which she herself went undercover to investigate. We watched a video on this and it was a real eye opener as Apple products lay on the tables in front of nearly all of us.
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              39   In Foxconn asa many as 14 deaths by suicide was shocking to hear. She explained that within the company they make the varying departments compete against each other thus, who will be the best and who will work the hardest, leading to physical and mental exhaustation. They were non stop for 24 hours with 40% of their revenue coming from Apple and a 13 day working week for workers. Apples former CEO Steve jobs has left a legacy for me of a negative outlook. Yes he did innovate and boost the technological advancements of the world but at a cost. There is always a cost and this has resulted in poor working conditions and deaths by Foxconn workers. Next to talk to us was Guan form SACOM with a smiliar topic of lobbying for better conditions for workers. This is done through media coverage through all mediums, youtube, television, advertisements, headlines and protesting. It was a very interesting talk with some real eye openers which I think we can all be naïve to accept or research more into. I am glad I was present at these talks and the chance to meet these people so I can tell and spread their knowledge and wisdom back home. We returned to the hotel where we waited for a bus to collect us. Next we went to visit the DHL Central Asia Hub which was located around 45 minutes towards the airport by bus. This was a vast building with security points and security scanner machines. We were told on a couple of occasions not to take any photographs at any time. A major expansion of the hub has led to DHL enhancing its position in the region and world with an investment of $210 million. Along with this investment comes investment in AirHongKong which is expanding its fleet which further broadens the companies offerings around the world. We were given a quick presentation and watched a video on the process which exists, which seeing planes land and take off just metres from the room we were in which was pretty cool! We were shown the new automated system which is in place during our walking tour, and it is very impressive to see the parcels being ushered down to their destinations collection point, scanned and wateh by over 200 CCTV cameras. The hub is the definition of efficiency handling and processing over 35000 shipments and 40000 docuents per hour. The lady also said it takes 27 minutes to have deliveries off a plane, through customs and gone again towards its final delivery destination. I did notice the heat in the warehouse was very warm with up to 500 employes sharing 4 shifts a day as they
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              40   work 24 hours a day 365 days of the year.I felt more could be done in terms of air conditioning to accommodate the excessive humidity. I thought it was interesting that after the talk with Ms Jenny Chan about Apple and other products using a lot of chinese based manufacturing, that a lot of goods we buy could travel through this DHL hub and it opened my eyes to the bigger supply chain which exists. After a rushed bus journey and a quick lunch, we were back at the Kaplan College , for a talk with Jeremy Prepscius, a man with vast experience in doing business in Asia with nike and is now VP Asia pacific BSR. It was a Q&A session where he was very energetic and mad some very interesting observartions based on his experience. In terms of negotiations he said, the chinese need to learn how to deal with the outside world and work with them and also that foreigners should understand the chinese aswell for a two way dialogue, so this made me think about CCT and is it necessary? He said it is down to the person and not necessarly the training, If the person is going awy to ‘run away’ the project will fail but if their going to ‘learn’ it will succeed. Also, he then mentioned that CCT can take the form of the internet of our generation and we have more resources available to us to be more cultural sensitive. Due dilligence is necessary in all over seas assignments he said. In terms of Guanxi he had differing opinions like many who we have talked to. He seemed to relate Guanxi to ethics and whether you want to build relationships around the conecpt or not eg, people who can bribe or be involved with fraud in order to get places or those who build networks of people in order to succeed. He says this initial contact with people is crucial to the success of the relationship, Connecting with them or finding a common ground on which they can relate to is a key detriment to success. When asked about culture shock, he said embrace it & accept it. He said culture shock is more likely and tougher with repatriation and not expatriation. I found this interesting and he continued to say he struggled going back to the US, and found being an outsider easier to adapt back to as people don’t care. He spoke about Collectivst power distance cultures and said that there is a ‘grain’ of truth in them, for example, Intel have a corporate culture that he says can be more important then the national culture and that managing cultural diversities within this corporate culture is the key to success and comes down again to the individuals
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              41   respecting one anothers differences, good and bad in everyone whilst working towards common ground. I found this session to be very helpful and Tony exchanged a gift with him on behalf of the college. We walked back to the hotel where we relaxed and got ready for the Anniversary of the Tienamen square shootings which fell on this day. At this, I noticed a small group of Chinese carrying large british flags which I felt to be very interesting. Later that night my cousin and his friends arrived to Hong Kong from a short stay in Beijing, he could not get over the differences between the two and said the sheer size and effeciency of space being used really opened his eyes which he would have a key eye for being an artichect. Day 5 Journal entry ‘Lobster, Music & Lightbulbs’ Today we had a late start to the day so myself one of my chinese couterparts helped to organise a Dim Sum lunch for those interested at a local Dim sum restaurant. I didn’t know what to expect but was competley blown away by the meal and the sheer amouht of food being continiously brought to our table. Over 25 people came to the lunch which included ‘tapa’ like fish, meat, rice, noodle and vegetable dishes, I even tried chicken legs, but maybe wont again! We even ordered a fully functional and kicking lobster of which everyone got great excitement from, he was then killed and we ate him which was absolutely beautiful. A lot of our chinese friends in the class atteneded which was great for everyone as they helped to explain what the different dishes were and differing interesting facts and ingredients in them, for example, when pouring tea if someone taps their finger off the table this means they have enough, which I practiced a lot! After this, myself and one of my colleagues went to times square shopping centre for a look. We went into a shop called Muji, and I could hear this music, I investigated more and noticed it was in fact Irish music being played in the shop which is a Japanese company. I stayed in the shop for 20 minutes and listened to even more Irish traditional songs being played on the speakers of the high end fashion shop. I asked a shop assistant and he said that he thought it was chinese music, which in fairness, for one song did sound similar as one could argue due to the slow nature of the flute
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              42   playing, but it was definitely an Irish tune a I play it myself at home.We were really blown away by this, as it was the last thing we thought we would hear in Hong Kong. We also found out that this music is played in every Muji store in Hong Kong and is on a generic playlist. Later this evening we then had an evening in Delaneys bar with the Irish Consul, the chamber of commerce and other member of the Irish business community in Asia. This was a very insightful talk where Q&A took place and some interesting insights were given , for example Fiona of the irish Consul gave the example of when the president made a state visit to China, a conscious effort was made not to give a gift of too much financial value as to avoid any allegation of bribes or corruption by the receiver. Relationships were also talked about at length and all had a general consensus of making the effort, being open and appreciating differing perspectives to be the most important aspects of developing these relationships when doing business in China and Asia. Cultural diversity is an opportunity said paul from the chamber of Commerce and with regard to CCT and all said the best way to learn how to deal with cultures is to imerse yourself in it and ‘jump in’ and learn on the ground. Getting food after Delaneys, I met a man from glasgow who owns a lightbulb factory in shenzen and was on business in Hong Kong for the weekend, when asked about ‘Guanxi’ he responded by telling me, it was a ‘city about two hours past shenzen’. This was interesting and I explained my understanding of ‘Guanxi’ and he basically said that this cultural concept is alive in every society and culture in the world and that this is just a ‘tag’ or name put on a more intersting chinese culture. Day 6+7 Journal entry ‘Handbags, views and My own Guanxi’ After a late night on Friday, we were late at rising up on Saturday, We went for food together in a small chinese restaurant and I had a lovely fish stir fry, however the service in this restaurant and others which we were at was not great, the food tended to come out in drips and drabs, something I noticed throughout the week so it is hard especially when in a large group. We rambled around the city for a look and bought a few handbags and presents for people at home and then made our way to the ferry terminal where one of my classmates had organised an outstanding ‘Junk’ boat trip for the class which was a 4
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              43   hour cruise around Victoria Harbor with unlimited food, drinks and craic with everyone. You could actually hear the silence at one point as the views were just too good to describe. We were all in awe of this wonderful city with its vast infrastructure and efficient building projects. After this amazing boat trip we all assembeled at the ‘local’ at this stage to watch the Galway hurling match, I invited all the Chinese students to come and join us for our final night and a lot joined us which was great for everyone. Also on this night was the champions league final between Barcelona and Juventus and I was amazed at the amount of Chinese locals wearing Barcelona jersyes in packed bars and pubs to watch the game and really proved the demand and size of the football clubs brand over in Hong Kong and the power it possess. On the note of sport a frequent topic of conversation with Irish out there was the impact and importance of the GAA in relationship builidng and networking with others. We met a man who came out to teach english but ended up meeting different people through the GAA, and now works in Morgan Stanley. Even today Monday, the day we fly home, I was sitting beside a young man from Celbridge, Co. Kildare, who is moving to HSBC in Hong Kong when he returns there in two weeks after two years with another financial company. After chatting to him he said he had heard of my NUIG MSC class heading out there for the last 4 years, and it turned out he is a member of the Hong Kong Chamber of Commerce and also an Irish rugby community which paul, who gave us a talk in Delaneys on the Friday, organises the annual Irish ball each year, so you could say through these networks and relationships we were all connected, and performed our own kind of Guanxi which is exactly was a main objective of this paper, identifying the validity of Guanxi in doing business in China, and by meeting people like this, and exchanging business cards and having a drink, I am very confident that my own ‘Guanxi’ built in Hong kong and the plane journey home if pursued could help me get a start in such a vibrant economy. All in all this trip has opened my eyes to the Asian world. Hong Kong is westernised but not too much I feel, yes it is influenced but it still holds its traditional uniqueness and has strong language and cultural differences which need to be respected and adapted to by anyone visiting or doing business there.