Business Environment Thailand vs USA, Research Paper Example

Cultural differences can interfere with the successful completion of projects in today’s multicultural global business community (Hofstede, 1989).  Understanding the multicultural dynamics relative to the market served is essential to constructing an amenable business environment (Hofstede, 1989).  To achieve goals and avoid cultural misunderstandings, professionals conducting business in an international climate should be culturally sensitive and promote creativity as well as motivation through flexible leadership (Migliore, 2011).  numerou theories consider relations between people, motivational orientation, orientation toward risk, definition of self and others, attitudes to time, and attitudes to the environment (Hofstede, 2006).

Ease of Conducting Business in Both Countries

Intercultural communication involves transmitting messages targeted to combine data, sometimes between diverse parties.  The purpose if intercultural communication is to define the extensive variety of message interchange that develops and the complications that logically appear within a society populated with people derived from diverse spiritual, social, cultural, and instructive upbringings.  Essentially, intercultural communication is synonymous with emotional intelligences in that you must be aware of the multicultural linguistic dynamics in order to obtain proficiency in this skill (Bharwaney, Bar-On, & MacKinlay, 2011).

Interpersonal intelligence is vital to intercultural communicative competencies because professionals in diverse must distinguish and reply appropriately to the various verbal and nonverbal communication cues of other multicultural individuals (Baack, 2012).  Proficiency in this aptitude permits individuals from other nations to interconnect with and distinguish the environment that surrounds them. The effective use of cross-cultural groups can offer a foundation of understanding and advanced intellect to increase the competitive situation of company as a whole (Rubel & Wallace, 2010).

The Thai culture exercises significant influence on business dealings. Although the Thai people are tolerant of different behaviors, the optimal approach is one of politeness and respect without ever losing one’s temper or raising one’s voice. Conflicts should be resolved by polite discussion. There is a unique Thai identity, giving rise to “the Thai way” of doing things. Personal ties and trust are also important to the Thai people; accordingly, direct personal questions are common and not inappropriate. Yet, people tend to be indirect in their dealings with each other and go around an issue rather than directly to the key point. Thus, tasks may be accomplished less efficiently and less quickly than with a direct approach (Tilleke & Gibbins International Ltd, 2013).

Main Differences between Political & Legal System in the USA vs Thailand

Cultural differences can interfere with the successful completion of projects in today’s multicultural global business community (Brown & Starkey, 1994).  To achieve project goals and avoid cultural misunderstandings, project managers should be culturally sensitive and promote creativity and motivation through flexible leadership (Reilly, Minnick, & Baack, 2011).  In addition, intercultural communication examines circumstances where individuals from various social backgrounds network. Separate from linguistic, intercultural communication focuses on societal qualities, thought designs, and the values of diverse fraternities regarding different individuals. It likewise encompasses comprehending numerous beliefs, dialects and civilizations of individuals from different national regions.

Additionally, intercultural communication displays a significant part in societal sciences such as ethnic educations, anthropology, and dialectology, psychology and interconnection examinations.  Professionally, it is important to have enhanced interpersonal communication competencies because administrators in this present-day include a culturally diverse international business community that regularly encounters cultural transformations, which could diminish the efficacy accomplishment of assignments (Brown & Starkey, 1994).

Efficacy of Justice System for US Firms Operating in Thailand

There are numerous biased multicultural stereotypes prevalent in American society that we must be aware of in order to make sure that they do not pervade the actions of those within our professional or personal environments.  These attitudes can influence relations between people, motivational orientation, orientation toward risk, definition of self and others, attitudes to time, and attitudes to the environment as well as motivation and training of multicultural project teams and relevant implications for project management (Brown & Starkey, 1994; Reilly, Minnick, & Baack, 2011).

Diversity initiatives are objectives formulated to measure the considerations given towards the comfort of the work environment by adapting cultural alterations within the place of work (Hofstede, 1989).  In consideration of the needs of the employees, diversity initiatives focus on valuing and managing diversity.  The worth of diversity emphasized through conscientious knowledge of dissimilar cultures and respecting these differences in constructive acknowledgment of social variances within the workstation (Al-adaileh, 2011).  Management of diversity expands upon existing skills and institutes diversity that is thoroughly associated with the organization’s administrative objectives (Hofstede, 1989)

Many U.S. businesses enjoy investment benefits through the U.S.-Thailand Treaty of Amity and Economic Relations (AER), originally signed in 1833. The 1966 iteration of the Treaty allows U.S. citizens and businesses incorporated in the U.S., or in Thailand that are majority-owned by U.S. citizens, to engage in business on the same basis as Thai companies (national treatment), exempting them from most restrictions on foreign investment imposed by the Foreign Business Act. Under the Treaty, American investment is restricted only in the fields of communications, transport, fiduciary functions, banking involving depository functions, the exploitation of land or other natural resources, and domestic trade in agricultural products. Prospective U.S. investors who seek benefits from the Treaty must first verify their nationality by obtaining a certified letter from the U.S. Embassy in Bangkok. For the representative office and foreign branch, the process stops at the U.S. Embassy, but for the investor wishing to register in Thailand in the form of company limited, the investor must then present the Embassy’s letter to the Ministry of Commerce, along with an application form for a business operation certificate. This process typically takes less than one month (U.S. Department of State, 2012).

References

Al-adaileh, R. (2011). The Impact of Organizational Culture on Knowledge Sharing: The Context of Jordan’s Phosphate Mines Company. International Research Journal Of Finance & Economics, 63, 216-228.

Baack, D. (2012). Management communication. San Diego, California: Bridgepoint Education, Inc.

Bharwaney, G., Bar-On, R., & MacKinlay, A. (2011). EQ and the bottom line: Emotional intelligence increases individual occupational performance, leadership and organisational productivity. Bedfordshire: Ei World Limited.

Brown, A. D., & Starkey, K. (1994). The effect of organizational culture on communication and information. Journal of Management Studies, 31(6), 807- 828.

Hofstede, G. (1989). Organizing for cultural diversity. European Management Journal, 7(4), 390-397.

Hofstede, G. (2006, September 7). What did GLOBE really measure? Researchers’ minds versus respondents’ minds. Journal of International Business Studies, 37, 882-896. doi:10.1057/palgrave.jibs.8400233

Migliore, L. A. (2011). Relation between big five personality traits and Hofstede’s cultural dimensions. Cross Cultural Management, 18(1), 38-54.

Reilly, M., Minnick, C., & Baack, D. (2011). The five functions of effective management. San Diego, CA: Bridgepoint Education, Inc.

Rubel, C., & Wallace, M. (2010). Instructor tone in written communication: Are we saying what we want them to hear? Ft. Lauderdale, FL: Kaplan University.

Tilleke & Gibbins International Ltd. (2013). Guide to Doing Business in Thailand. Lex Mundi.

U.S. Department of State. (2012, June). 2012 Investment Climate Statement – Thailand. Retrieved from U.S. Department of State Diplomacy in Action: http://www.state.gov/e/eb/rls/othr/ics/2012/191248.htm