A society can be described as a group of different people who interrelate and have some common aspects of their lives and live together. There are many components which make up the society. Some of the major ones are : status, roles, groups and institutions. (Society: Social structure, 2004). All these different components of society have varying impacts on the business environment.
When comparing the American and Chinese society, some of the components of society which will be looked at are. These are generally influenced by the cultures of the different countries, the systems of government and the general attitude of the peoples. These components are: groups: social diversity in groups, language; institutions: social institutions, formal organizations and bureaucracy.
The united states is basically a melting pot of different cultures as there are numerous groups of people with diverse backgrounds. China on the other hand has a more uniform group even though there are subgroups which may have some dissimilarities. The language mainly spoken is mandarin with numerous dialects. America on the other hand has many other languages but the main one spoken is English.
The Chinese business environment is quite dynamic as it is fast growing and the economy is on a constant expansion. The economy has been growing on an average of 9.5% for the last 20 years and this has been attributed to by the favorable government policies.(npr, 2008). This is unlike the American business environment which usually experience minimal growth, if any, and of recently has been facing massive recession.
Some of the main problems which can be experienced in china are bureaucratic hurdles and lack of transparency from the authorities, unpredictable regulatory organizations.(Business Alert) It is not to say that these are peculiar to china but in comparison to America, china comes out very badly. The other major difference is the tax system which is very obscure in china unlike in the United States.
The United States is a fully democratic society which has the peoples freedoms enshrined in its constitution. The Americans are free to try out any ideas that may be of benefit to them, thus it is called the land of the free and the home of the brave. The Chinese government on the other hand has a lot of restrictions instituted for its people. There are a lot of controls on the information, the press, there is lack of personal freedom to a big extent. This impacts very negatively on the society as a whole as people are not free to express themselves.
In general, the American society is better than the Chinese society. This is due to factors like the freedom accorded the Americans. The United States government tries very much to protect the rights of its citizens unlike the Chinese government which has been involved in numerous cases of human rights abuses.
In business terms, the American business environment is friendlier as the government has clear policies governing business. The United States also has policies for supporting the less fortunate in the society with various philanthropists establishing foundations to look after them.
Even though there may be more Chinese speakers than any other language, it is not widely spoken and therefore its use is restricted to china. English on the other hand is spoken more widely than any other language. It has been established as the lingua franca and therefore the best for use in business.
Reference
Business Alert – US. American Chamber of Commerce Finds Improved Business Environment in China. 2006. Web.
Npr. Chinas Evolving Business Environment. 2008. Web.
Society. Social Structure. Basic Components of Society. 2004. Web.