Bundle: Essentials of Business Communication, 11th + MindTap Business Communication, 1 term (6 months) Printed Access Card
Bundle: Essentials of Business Communication, 11th + MindTap Business Communication, 1 term (6 months) Printed Access Card
11th Edition
ISBN: 9781337736312
Author: Mary Ellen Guffey, Dana Loewy
Publisher: Cengage Learning
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Chapter 1, Problem 14CT
Summary Introduction

To determine:

What could go wrong when the business people from a high-context culture (e.g., China or Japan) meet their counterparts from a low-context culture (United States) to negotiate and sign a manufacturing contract.

Introduction:

The context of culture changes as the country changes. Many times the cultural difference creates difficulty in communication and understanding each other. Some countries are culturally driven and some are not.

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The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero. For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017. As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device. The company also paid €5,000 to an…
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