International and pacific Asian Business Essay Example | Topics and Well Written Essays - 1500 words

International and pacific Asian Business - Essay Example However, Deng Xiaoping’s economic reforms clearly transformed the Chinese economy with improved annual 10% growth rate of GNP in the 1980s and marked improvement in the ordinary people’s standard of living (Minami, 1994, P.1). Plan and intention To achieve viable economic growth, the Chinese government lays economic blue prints for its economic developments in phases of five-year plan, which is implemented with specific targets and goals in place. Based on this model, the 9th Five-Year Plan (1996-2000) was quite successful, and the 10th Five-Year Plan (2001-2005) was rolled out with main objectives of â€Å"Sustaining fairly rapid growth, strategic restructuring, and improving the quality and benefits of economic growth so as to lay firm foundations for doubling the 2000 GDP by 2010† (China-un, 2008). This is in addition to â€Å"substantial perfection of the socialist market economy and putting state-owned enterprises on a modern enterprise footing, thus allowi ng greater participation in international cooperation and competition† (China-un, 2008). ... First, the government is very active in national planning and implementation, guided by the largely free economy via sophisticated and powerful monetary and fiscal policies. Secondly, the Japanese way of linking largely private ownership of assets with conservative public-spirited management, especially the role of the Ministry of International Trade and Industry (MITI) coordinates national industrial policies consistent with economic and social growth (Nationsencyclopedia, 2011). It is the responsibility of MITI to identify and develop industries targeted for Japan economic growth at different times as deemed appropriate through evaluation. Role of culture in the economic development (Confucianism and Guanxi) Culture influences business practices worldwide thereby affecting business management systems in different countries. For China, the traditional Chinese culture is very much involved in most aspects of the society to extent it influences the business management system and the b usiness community at large. For Chinese, in their management system, they tend to be more hierarchical, collectivistic, and context-oriented when compared with westerners, implying that different communication styles are used in Chinese society (Cleland, & Gareis, 2006, P.23-3). Unlike the westerners, the Chinese value interpersonal relationships a lot. The very important aspect of interpersonal relationship value is guanxi (personal relationship or personal connection), that define the basic force that holds the personalized network of influence (Cleland & Gareis, 2006, P.23-3). Guanxi is a major cultural and social part of the Chinese society affecting many areas of Chinese daily life even in the present China. It is products of Confucian values and contemporary