Business and Culture in the Asia Pacific Region

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Table of Contents

Introduction
Main Text
Conclusion
Bibliography

Introduction

The rise of Globalization, as socio-economical concept, resulted in creating a situation when more and more people begin to think of humanity as something homogeneous, which in its turn, prompts them to conclude that cultural and economic concepts that are being crafted in the West, can also be applicable in just about any other part of the world with ease. It is being commonly assumed that people’s behavior is being defined by their social status rather then by their ethnic affiliation, and to suggest otherwise, would represent a “politically incorrect” statement.

In her article “The March of the Monoculture”, Helena Norberg-Hodge makes a good point when she suggests that: “The world, we are told, is being united by virtue of the fact that everyone will soon be able to indulge their innate human desire for a Westernised, urbanised consumer lifestyle. West is best, and joining the bandwagon brings closer a harmonious union of peaceable, rational, democratic consumers “like us” (Norberg-Hodge, p. 194).

However, the objective reality often indicates that it is individual’s affiliation with a particular ethnic group, which defines his or her existential mode more then anything else does. One does not have to be and ardent traveler to realize this simple fact. Since socio-political policies in Western countries became strongly associated with the concept of multiculturalism, we now have a plenty of proof, which suggest that people’s ethnicity affect their purchasing choices.

For example, the majority of immigrants from Hong-Kong to U.S. and Canada are very wealthy people, who can easily afford living in mansions of their own; yet, they prefer buying houses and apartments in densely populated areas, simply because living in such areas corresponds to their mentality. In its turn, it substantiates our hypothesis that people’s buying choices in post-industrial era cannot only be discussed within a context of economics alone. Nevertheless, despite the fact that there is plenty of evidence that leaves no doubt as to the fact that people’s cultural differences define their economic behavior, the mainstream economists prefer to ignore this fact.

For example, in his article “Economics Rules Return on Investment Dictates Whether Mainstream Ads Include Ethnic Groups”, Patrick Fong suggests that it is inappropriate to think of racial diversification as such that affects the effectiveness of market-oriented advertising in principle: “Advertising, shouldn’t be dictated by multiculturalism, but by economics. If your effort to include cultural groups comes off as corny, harm is done not only to the ethnic community but to the effectiveness of the campaign itself” (Fong, p. 13).

Apparently, author does not understand a simple fact that the application of conventional morals, in the field of economics, can hardly be beneficial. In this paper, we will focus on exploring the specifics of Asian mentality, in conjunction with economics, because it will provide us with the insight on what would represent the best approach, when it comes to making a particular product or service commercially appealing to a specific segment of Asian market.

Main Text

Before we begin discussing how Asian mentality affects people’s economic behavior, we will need to pin point at certain characteristics of this mentality. The hawks of political correctness try very hard to convince us that there are absolutely no psychological differences between representatives of different cultures. They suggest that people are equally capable of relying on their sense of rationale, when it comes to making purchasing choices, for example.

In its turn, this reveals the theories of such Liberal “experts” as being euro-centric in their essence. In other words, those who prefer not to notice a significant difference between how worldviews of Whites and Asians are being formed, for the sake of building a “multicultural paradise” on Earth, are often being perceived by Asians as utterly ignorant in their attitudes.

The existential hypocrisy is a common psychological trait of all neo-liberal economists, who never get tired of promoting the concept of “equality”, while relying on Western socio-political concepts, in order to substantiate their vision of the world. In his article “Cultures of Reason”, Bruce Bower provides us with the insight on particularities of people’s reasoning in Asian countries: “In a variety of reasoning tasks, East Asians take a “holistic” approach.

They make little use of categories and formal logic and instead focus on relations among objects and the context in which they interact. These populations also tend to accept or even search for contradictory perspectives on the same issue. In short, they direct their attention into a complex, conflict-strewn environment… People in the United States, on the other hand, adopt an “analytic” perspective. They look for the traits of objects while largely ignoring their context” (Bower, p. 57).

This is the reason why scientific and cultural progress, in Western countries, has always being directed upwards, while the same progress, in China, for example, began to proceed in rather horizontal then vertical dimension, after having reached a certain point. This is the reason why Chinese civilization, as whole, is being closely associated with existential stagnation. Chinese citizens take an advantage of the fact that they are very skilled in finding practical applications for different social, political or scientific concepts, without understanding their actual essence.

For example, the modern Chinese version of Communism, does not relate to the logical properties of this ideology, which were formulated by Karl Marx, yet it does not deprive it of its vitality, because it corresponds to the inner psyche of Chinese people. The bulk of industrial products that are being made in China are better referred to as such that were made by Americans and Europeans in China, with Chinese employees acting as a cheep substitute to robots.

In his article “A Freespirit’s Observations On Taiwanese/Oriental Life/Mentality”, Winston Wu makes a very good observation of what corresponds to the essence of Asian mentality, as whole: “Most White people don’t see the other side of Asians and Orientals, which is the repressive controlling instinct and mentality that seeks to perpetually condemn, “fix” and correct those who are different from a set standard of Asian culture.

The reason is because Asians don’t try to change White people, but other Asians who don’t fit the mold of how Asians are “supposed” to be. Instead, they view Whites as a foreign species to maintain a good “face” to – bowing and smiling gently to feign fake politeness” (Wu, 2007). In other words, even

Asians see themselves as being different from Westerners, which brings us to logical conclusion that commercial philosophy that is based on Western mentality, can hardly be hardly associated with effectiveness, when being applied in Asian countries. It is a commonly assumed fact that the notions of monetary profit and product’s value are contained in the core of the concept of commercial activity.

People will only be paying money for something they associate with value. However, it will be wrong to suggest that the concept of value has universal properties, as some economists do. The validity of this statement becomes apparent when we look at the notion of value through the prism of Asian mentality. Whereas Westerners look for the “objectiveness” in the value of the product or service, before they decide, on whether they will be paying for it or not, Asians look at product’s value within a context of its social implications.

In other words, it is product’s “perceived” value that they associate with its actual worth. In his article “East is East and West is West – Regional Consumer Attitude Comparisons”, Don Hedley says: “Because “face” and image is more important in Asia (or at least more associated with products and ownership of certain goods), brands are more sought after and respected and own brand/private label is less popular.

This issue of trust in brands and particularly foreign brands is of great importance to Western manufacturers in view of the growth potential of the Asian middle classes” (Hedley, 2007). In its turn, this can be explained by the fact that the majority of Asians think of its social standing as such that represents their worth as individuals, because of their collectivist mentality. In Asian countries, individual considers itself as an integral element of society he belongs to, therefore, it is social attitudes towards a particular brand of products that forms his own opinion, in regards to this brand. It is not a secret that the overwhelming majority wealthy Chinese and Japanese consumers prefer driving BMW cars, as if other brands of cars simply do not exist.

Is it because they simultaneously happened to think of this brand of cars as only the one that appeals to their lifestyle? The answer to this question lies in the field of Asian existential psychology, which in its turn, has biological essence. Apparently, Chinese or Japanese car owner does not simply consider its vehicle at the mean of transportation, but rather as the tool of social distinguishement, because the communal opinion, in regards to the car he drives, represents to such individual a foremost importance.

This is why we can only agree with Marieke K. de Mooij, who in her book “Consumer Behavior and Culture: Consequences for Global Marketing and Advertising”, suggests that the difference between Western and Asian consumer behavior is best described within a context of individualism verses collectivism: “Modernization for the Japanese has reinforced the traditional Japanese ego-ideal into a total dedication to the task, which contributes to the good of the group.

The system of structural hierarchy of unquestioned subordination in large power distance cultures may change, but dependency values included in a hierarchy by quality, deep respect for superiors, and reciprocal relationships remain” (Mooij, p. 80). This is the reason why purchasing choices, on the part of Asians, are marked by high irrationalism.

For example, the majority of Chinese men believe that eating the bladder of black bears will increase their potency and will even enlarge their penises. In fact, 90% of illegally killed black bears in the world relate to the existence of black market of bears’ gall bladder in China. The report “The Bear Facts: The East Asian Market for Bear Gall Bladder”, which can be found on the web site of Traffic.Org, provides us with information, in regards to black bears’ poaching, because, according to the report: “For traditional Chinese medicine (TCM), the bear is a walking drugstore. Many parts of the bear, from fat to brain to spinal cord, have been used for millennia.

The most coveted medicinal part of the bear is the bile within the gall bladder, which gram for gram can exceed the cost of narcotics” (Traffic, Org. 1995). It is important to understand that there is no single scientific proof, in regards to beneficial effects of black bears’ gall bladder on Chinese males’ sexual potency. Many of them do understand this fact. However, it does not prevent them from paying huge amounts of money for bears’ bladder, before they are being affected by the socially induced prejudice, in regards to the value of this bladder. We can say that they pay for the perceived value of bear’s bladder, without being able to rationalize their purchasing behavior.

This example illustrates the existence of a significant difference between commercial philosophies that define dynamics on Western and Asian markets. This is why the classical principles of designing commercial advertisement, which utilizes people’s ability to rely on their rationale, when it comes to making a purchasing decision, can no longer be thought of as adequate, when intended to be utilized in Asia.

There is an explanation to the fact that, most of those White people who had watched commercial ads on Japanese TV, for example, find them as being quite odd. This is because these ads are highly emotional in their essence. When a particular brand of soap is being advertised on Japanese TV, the commercial ad often includes the images of cancan-dancers, flying saucers, Godzillas and sumo wrestlers, which have absolutely no relation to the advertised product whatsoever, yet these ads prove to be highly effective, as advertisement designers are well aware of particularities of Japanese mentality.

Asians are known for their obsession with “European values”. There are close to 10.000 cosmetic surgeries take place in Tokyo on annual basis that have to do with Japanese citizens trying to “correct” their slanted eyes to appear as being European. The characters in Japanese “anime” can be referred to as anything but Asians.

Many Western movie stars were able to capitalize on this fact immensely. In her article “Selling Out Is Now In”, Christine Champagne reveals information in regards to the less known activity of famous movie stars in Japan: “Many big stars – Brad Pitt, Jodie Foster, Ben Affleck, Leonardo DiCaprio, Jennifer Aniston and John Travolta, to name a few – haven’t been shy about slinking off to Japan, as well as Europe, to appear in TV and print ads and raking in hoards of cash. Just a few years ago, a Hollywood star could command as much as $3 million by spending just a few hours shooting a Japanese commercial” (Champagne, p. 20). This again proves the fact that the purchasing choices, on the part of customers in Asian countries, are often being affected by purely irrational factors.

The Western entrepreneur needs to be aware of this, if he wants to have its advertisement campaign, which is being specifically designed to target Asian market, to have practical effectiveness. He also needs to be aware of the fact that dynamics on commercial markets in Asia often correspond to demographical trends in Oriental countries.

In their book “International Marketing: An Asia-Pacific Perspective”, Richard Fletcher and Linden Brown leave no doubt as to the fact that the commercial activity, in countries of Pacific Asia is often being closely related to ethnic affiliation of entrepreneurs. In its turn, this comes as something incomprehensible to a Western mind: “For example, a firm wishing to do business in Indonesia and Malaysia, would need to recognize that business activities in both countries are largely controlled by Chinese community”(Fletcher, Brown. p. 59).

In mentioned countries, citizens of Chinese descent constitute 95% of all businesspersons, and they vigorously guard their “trade privileges”. Whereas in Western countries, it is only the same corporate interests, on the part of entrepreneurs, that prompt them to unite, when it comes to protection of their business agenda, in Asian countries businessmen often act as one, simply because they belong to the same ethnic community. Even in Western countries that are being affected by multiculturalism, the representatives of Asian ethnic minorities strive to occupy whole niches of a particular commercial market, in order to enjoy a full monopoly.

For example, in Canada, it is now practically impossible to find public laundromats that are not being owned by Chinese immigrants. In New York, 90% of all taxi drivers are East Hindus. This provides us with the insight on Asian commercial mentality. Apparently, in Asia, many people consider their commercial entrepreneurship as not just a tool of making profit, but as their existential mode. This is why, Western cultural and commercial concepts are often being out of place in Asia.

While agreeing with the fact that a so-called “Asian values” do exist, we cannot refer to them as something homogeneous. With exception of China and Japan, Oriental countries are geopolitical entities that were being artificially created, after the end of colonial era, which is why the majority of citizens that populate them do not have much loyalty to the state where they live, but to the particular tribe they belong.

This is the reason why economic Globalization does not affect the lives of majority of people in South-Asia, except for the fact that it provides them with opportunity to work at sweatshops for often as little as $5 a day. As Anthony Milner has rightly suggested in his article “Asia” Consciousness and Asian Values”: “One might quickly come to the conclusion that Asian regionalism along with Asian values, will be swept aside by economic and cultural Globalization. But such a conclusion must be considered with caution. First of all, exclusive Asian regionalism is by no means a new development. It has a history of a century and more” (Milner, p. 2).

The reason why many Western companies had moved their lines of production in such countries as China, Malaysia, Taiwan, Singapore, South Korea and Thailand, is because the Western idea of commercial entrepreneurship, as such that is being regulated by the law, is simply not applicable there. It is only in Western countries where employees are being encouraged to believe in such sophisticated but meaningless concepts as “empowerment”, “transition-decision making” or “participative leadership”. In the countries of Orient, the majority of industrial workers are simply incapable of understanding of what these concepts stand for, not to say practicing them. And again, the explanation to this is best sought out in the field of behavioral psychology.

Asians are conservatives by nature. Only 5% of large Japanese manufacturing companies are being unionized, with the bulk of employees that work for these companies not being negatively affected as result. This is because in Japan, both – employers and workers know that they are the integral elements of society; therefore, they both need to act in socially acceptable manner. If Japanese company pays its workers less then its competitors, in order to make bigger profits, this company would be automatically viewed as such that undermines the very foundations of Japanese society, which will result in immediate practical consequences.

Of course, Western observers find Japanese corporate culture as such that does not correspond to the objective reality, while forgetting that Japanese society is racially homogeneous, which is why many socio-political problems that haunt Western societies are simply non existent in Japan. James Rose’s article “Corporate Responsibility in Japan: Evolving and Unpredictable” can serve as the best example of Western ignorant attitude, in regards to Japanese corporate culture, on the part of a person who represent Western mentality: “The nature of Japanese business is, traditionally, an extension of the cultural condition known as “face”– the practice of presenting an acceptable façade to a deeply conformist, often pathologically conventional audience” (Rose, 2004).

Author forgets that there is no need to encourage Japanese employees to “celebrate their cultural uniqueness”, as the ultimate mean of winning employer’s attention to their needs. This is the reason why professional adequateness of Japanese workers is one of the highest in the world – they simply do not have to divert their attention on dealing with irrelevant matters, during the course of executing their professional duties. The salaries of Japanese workers are also among the highest in the world, which is why Rose’s concern about their well-being sounds hypocritical.

Conclusion

In order to conclude this paper, we need to say once again that it is inappropriate to apply Western cultural dimensions, when it comes to discussing socio-political realities in Asian countries. The fact that world’s economy becomes increasingly globalized, does not deprive Asians of their biological essence as people, which in its turn, causes their economic behavior to be significantly different from the behavior of their counterparts in Western countries.

Therefore, those “experts” who strive to impose Western cultural and economic doctrines upon people in Oriental countries, are doomed to failure. People who live in different countries, did not become “closer” to each other, due to Globalization, as we are being told by promoters of “new world order”. Quite contrary – many new rules and regulations that are being put in place in recent times make international traveling impossible for ordinary people. It is only the large amounts of money that are now being transferred from country to country with apparent ease. Therefore, those who insist on universal properties of “progressive” economic and cultural concepts can be best described as such that have a hard time, while coming to terms with objective reality.

Bibliography

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Business and Culture in the Asia Pacific Region

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