1. Consider the following statement: “Economic development and capitalism require a
certain style of doing business in the twenty-first century. The sooner Asian cultures
adapt the better. “Do you agree or disagree? Explain.
The statement is unmistakably biased in favour of Western management practices. However, it
is true that many companies around the world are learning Western business principles.
Companies are still striving for greater efficiency and demonstrating a greater willingness to
experiment with new management techniques. As a result, we agree with the statement that Asian
cultures adapt better to the style of doing business that takes advantage of economic
development and capitalism.
To begin, in order to ensure long-term profitability and avoid losses, capitalism's practices are
useful for measuring demand and supply. The usefulness of capitalism in doing business is
derived from its management techniques, which Asian firms will use to their advantage in order
to maintain competitive advantages. During the Asian economic crisis, for example, governments
passed laws requiring greater transparency among companies and banks, and many U.S. and
other Western companies were buying up bankrupt Asian companies and drastically changing
their operations. As a result, despite the rapid pace of change, Asian businesses will always retain
practices that distinguish them.
Next, by adapting economic development and capitalism style, it places a greater emphasis on
individualism. When Asian companies adopt this culture, they tend to have very strong economic
strength. This is most likely due to the circular effect in which societies that foster individualism
benefit financially from the high performance and productivity of their individuals, who in turn are
motivated and incentivized to perform through the high compensations that the system can afford
and is willing to pay. Furthermore, a lack of individualism will result in collectivism. This is what
happens to Asian companies that are unable to strive and maintain their strength during an
economic downturn. Workers in this culture are more likely to be loyal to their employer. As the
consequences, the worker cannot develop their career development and it will give effect to the
economic as the whole.
Thus, the statement is agreeable because the benefits of adapting to Western practice are
enormous, but there are also many companies that are attempting to learn how to adapt to Asian
culture in order to have a better chance of doing business and being successful. There’s no rule
that says a certain company needs to adapt to any Asian or Western culture they can make
changes but they need to stay true to what they believe in and stay true to them.