The major differences between capitalism and communism are the control of resources and/or the means of production. In communism, the community or society solely owns the resources or means of production. In Capitalism, the resources or the means of production lies with a private owner. The profit of any enterprise is equally shared in by all the people, the profit in a capitalist structure belongs to the private owner only (No Author, 2009). While the private party controls the resources in capitalism; it is the society that controls the whole means of production in communism. No one having control over the means of production implies that everything is shared by all in communism. All wages are equal for all; no one is richer or poorer than others. Basically, communism stands for a classless society. On the other hand, Capitalism divides the society into rich and poor. Lastly, if individuals want to raise the ladder, all they have to do is work harder.

Communism in Russian can be attributed to the harsh life of 19th century. Communism developed which became popular amongst the workers of Russia due to the many difficulties experienced through Tsarist rule. Tsar failed and a new government was setup, Duma, but it couldn’t manage the problems that Russia had. The events of the revolution changed Russia completely and brought a new form of government. This group was called “Soviets” whom took over the government. A communist government was established in result, as the Soviet Union (Moran & Harris, Pg. 438).

Due to communist rule, the Soviet Union government approved the NEP (New Economic Policy) which called for virtually all aspects of the economy to be centrally planned. All workers were now working for the collective good of the state and individual profits were not allowed. Everyone was on equal social status terms with the hopes that all citizens would be self-sufficient and properly taken care of. This plan was an immediate failure as five million people died in a famine, within the first few years (No Author, 2012).

The majority of citizens in Soviet Union were illiterate with no training or education. The government brainwashed Russians by using propaganda and false information in order for workers to buy into the communist plan. This plan was a failure which resulted in a constant struggle for workers. Moreover, as a result of the government failing another famine occurred due to lack of agriculture, resulting in millions of deaths (No Author, 2012).

The communist rule did not offer any signs of hope to the Russian Federation. Every century more and more danger appeared. The economy fell harder, as other countries continued to grow. For example: during the advancement of computers and technology the Soviet System misused its resources and concentrated only on military instead of industries that may have benefited the society.

The communist days were numbered, in 1991, an independence movement arose, causing the USSR to implode and break up as a union of socialist republics (Moran & Harris, Pg. 438). Russia held its first ever election, electing Boris Yeltsin. He had plans for drastic market reforms through the use of shock therapy. The reforms involved withdrawing regulations, price controls and subsidies to the state owned industries and opening up the nation to import goods at cheaper prices thereby diminishing monopolies the government had set up(No Author, 2012). This was the major obstacles towards adapting a capitalistic system.

 

Before the turn of the century Russia realized capitalism was simply not working. Despite high levels of education the Russian population simply lacked business skills. The economy underwent a depression and life expectancy declined sharply with the poverty rate at an all-time high. Many Russians, felt that they were better off during the communist regime. Several Eastern European countries share a history of Communist rule. While Communism has left its mark in this region, it’s now a thing of the past for many European Countries.

Positive aspects of capitalism are that it gives individuals motivation. All capital is owned privately and individuals always have the ability to start their own business or other endeavors. Everyone has the hope that if they work hard they can improve their quality of life. Unfortunately, capitalism is not a stable economic system compared to communism. Although, there is opportunity to improve one’s situation, it is not possible for everyone to do so. A negative aspect is that unemployment is common and there is a wide gap between the rich and poor. Communism tends to be more stable due to capital being evenly distributed. In communism the state owns the capital gains and the government is supposed to take care of the workers in the region (doesn’t happen obviously in every situation). Although this may seem beneficial, it puts limits in life. Furthermore, it keeps one from reaching their full potential by not allowing them to see how hard one is willing to work or how far one will go when everyone is on an equal plane.

References:

Moran, R., & Harris , P. (2011). Managing cultural differences global leadership strategies for cross-cultural business success (8th ed.). Burlington, MA: Butterworth-Heinemann.

No Author. (2009). Difference Between Communism and Capitalism. Accessed: November 23, 2014. http://www.differencebetween.net/miscellaneous/difference-between-communism-and-capitalism/

No Author. (2010). Differences between Capitalism & Communism and why did it start in Russia. Accessed: November 23, 2014. http://www.sahistory.org.za/article/capitalism-vs-communism-and-russian-revolution-grade-11#content-top

No Author. (2012). From Communism To Modern Day Capitalism: A History On Russian Economics. Accessed: November 23, 2014. http://www.benzinga.com/trading-ideas/long-ideas/12/02/2367216/from-communism-to-modern-day-capitalism-a-history-on-russian-#ixzz3JuTN66VF

Cultural Differences Between Americans & Russians

Cultural differences can help describe the differences between two groups by comparing these groups as a whole. Both of these countries are multi-ethnic, great powers, whom have a variety of diverse groups in their societies. Both groups are known for great hospitality and appreciate casual, direct, and a blunt way of speaking. Moreover, cultural differences are of importance to discuss when doing business in Russia or just communicating between the two groups. One can learn to speak a language, but until you know and understand the culture you will never truly be fluent in that language. Cultural differences should never be underestimated due to their importance.

In Russia, personal space is not an option; your space is their space. Americans prefer more personal space than Russians do. In America when friends or family greet they shake hands or give a short hug and immediately step aside to have some distance for conversation(normally 3-4 feet). In Russia, people are comfortable talking right on top of each other with very little (maybe 1-2 feet) personal space between them(Natalia Kozyakova, 2014). Americans are very uncomfortable with “close talkers” so they start to back away. Russian people do not like to much personal space and would rather speak sitting or walking quite close to each other. As conversation proceeds, they tend to come closer and closer. I have a friend, whom is Italian, and I consider him a close talker and always catch myself stepping back during conversation until he has me cornered and I have nowhere else to go. Moreover, in Russia it is considered rude and unfriendly to keep a large distance during the conversation while in America it is preferred.

Like most cultures, it is important to have trust and a mutual relationship. It is imperative for the Russian culture to be able to trust one another and keep that trust. Russians have to believe that someone is good and honest before having a concert relationship. Americans become friends first and build trust later if at all. American’s friend and befriend people suddenly and occasionally. In some situations, Americans may seem open up at first, but in reality it can take time to earn their complete trust. Americans make friends and become relatively close in no time at all, but it is easy for them to disappear in an instance from one anothers life. Russians believe in building friendships and staying connected after the trust is built. Lastly, during communication repeating one’s self to a Russian will make you appear untrustworthy. A big mistake in the Russian culture is to repeat the words “I’m sorry” or “thank you”(Deborsi, 2012). Moveover, it is important to apologize once and not repeat.

Dating in America is normally casual and laid back mostly in pubic settings having a common conversation. Typically two individuals go to dinner or a movie or possibly both. Americans typically meet someone in a bar or nowadays online and throw themselves into dating; if it doesn’t work then they just move on. They date many partners in very little time and don’t think anything of it. Casual dating is a lot less common in Russia. Russians date to find a significant other and get married. In Russia, you will see two people on a date wearing a formal dress and suit instead of jeans and t-shirts (No Author, 2014). Russian women and men go to bars, coffee shops and restaurants to find potential dates and hope is to turn a casual encounter into marriage. Furthermore, Russian men are expected to pay for all of a woman’s expenses when they are on a date” (Deborsi, 2012). If the gentlemen, does not pay the female can take this offensively and move on.

Russian business culture retains many of the characteristics instilled during the Soviet era, most noticeably an autocratic management style (Ellie Williams, 2014). The autocratic style is not president in American business culture too often. This form of leadership enables managers to make decisions unilaterally. Russian employees don’t inquire about the consent; they do whatever they feel is necessary in order to achieve goals. America’s are expected to follow management’s direction even though employees often ask questions about their duties and often collaborate with supervisors. Language translation problems can occur; one word will convey an idea or meaning while Russians will have several words to choose from, each having a slightly different meaning. Lastly, many Russians don’t conduct business on the phone due to the phone system being poor. While American business is conducted over the phone, email, letter or fax. Russian prefers to hear and discuss directly from people they trust, face-to-face.

In Russia, people are a little more formal and reserved, more serious, and casual behavior is considered a sign of disrespect. In the United States, American culture is slightly less formal and open, with society interacting casually and frequently debating and discussing personal and non-personal issues. Russian people, value personal relationships and trust, and tend to be suspicious of strangers. As a result, they usually stick to people who know each other well. Whether or not one is going to have a personal or business relationship with someone from Russian, it is very helpful and respectful to get to know how their cultural expects another to act.

Work Cited:

Deborski, (2012) Cultural Differences between Americans and Russians. Accessed: November 14, 2014. http://masterrussian.net/f13/cultural-differences-between-americans-russians-19683/

Ellie Williams, (2014) What Is the Difference between American & Russian Cultures in Business?. Accessed: November 14, 2014. http://smallbusiness.chron.com/difference-between-americans-russians-cultures-business-56041.html

Natalia Kozyakova, (2014) Differences between my Culture and the US with Regard to Nonverbal Behavior. Accessed: November 14, 2014.Http://smcgsp.blogspot.com/2009/03/about-me.html

No Author, (2014) Comparing Russian and American Dating Style. Accessed: November 14, 2014. http://www.rosebrides.com/russian-and-american-dating-styles.html

 

As we have learned, leadership in each country is handled differently and not conducted in identical fashion from culture to culture. Culture directly affects the communication process in an international business setting through many variables. A few variables that affect cultures are language, environmental, context, face-saving, authority, nonverbal communication, and behavior and time conception. Moreover, the relationship between international businesses is only successful when management, sales, and personnel are trained in proper communications across the culture. Some major contributors to miscommunication between the U.S. and China are cultural differences, communication, and proper etiquette.

Business culture is related to behavior, ethics, diversity and more. A business culture will surround as organization’s values, visions, working style, beliefs and habits. A few common cultural difference between the US and Chinese are that the Chinese is a “yes we can” society.  They don’t like to say no or infer they can’t complete a task. Also, Chinese uses role fulfillment that gives a role or title and expects the employee to perform the job without question or concern. (Moran Pg. 332) Middle managers and workers don’t make the decisions, they just do the work. If you want to get something done, it happens at the top.

Doing business in China requires careful interpretation of cultural differences. Chinese culture is non-confrontational and they are devoted to pleasantries until the real serious discussions begin. (Moran Pg. 332) Westerns don’t want to lose face with Chinese businesses. Once a business loses face, doing business with each other is no longer an option. To avoid losing face, when negating between Chinese and Western businessmen they will not overtly show their disagreement or displeasure. For example: they may use phrases like, “maybe or we will see”. Sometimes they even prefer to use intermediaries to negotiate. (Moran Pg. 332) In most cases, Chinese can read and write better English than they speak so whenever possible, it is suggested to use written communications.(Flatt, Berkeley.com) Most Chinese these days are given some written English classes in school.

The Chinese place high emphasis on proper etiquette. In china businesspeople dress formally and do not like to be touched. Moreover, they do not like even a simple handshake. Chinese businessmen consider a western businessman without a business card as a non-person. It is suggested to have one side in English and the other side Mandarin Chinese. (Moran, Pg. 336) Moreover, language barriers may present errors in communication and in these situations it is best to make light of the situation. Many times, you will have communicated perfectly, but when things don’t go according to plan, language is an excellent scapegoat by simply rewarding your sentence and asks the question in a different way. The cross-cultural issues can be avoided by asking the right question in the right way. Many of the communication barriers between people of different cultures can be anticipated and guided. Moreover, it is best to listen and ask questions only related to your particular business concern. When getting off topic it can be insulting or misconstrued as invading into their personal or private life. According to Berkeley Sourcing Group, he encourages not to get frustrated with how the communication is going but, to take a moment to think of what might be misinterpreted culturally and reword your sentences for better results. (No author, Berkeley.com)

As business has turned to the world market to meet its needs, the difficulties of communicating at a global level have become manageable with the proper knowledge. Many foreign companies are thriving in China, but they have only been able to achieve this success by having patience, cultural understanding, and perseverance. (Goh, Anthony Businessinsider.com) Lack of understanding can lead to conflict among differing cultures. The differences in culture, business practices, business etiquette and other cultural diversity demonstrate many areas where businesses can face challenges. Cross cultural understanding is an important tool for any international business person, company or organization.

Work Cited:

Anthony Goh and Matthew Sullivan, (2014) The 5 Biggest Challenges Businesses Face When They Expand To China. October 31, 2014. http://www.businessinsider.com/the-five-biggest-practical-challenges-for-foreign-smes-in-the-chinese-market-2010-12

Moran, R.T, Harris, P.R, Moran, S.V. (2011) Managing Cultural Differences Leadership Skills and Strategies for Working in a Global World. Oxford: Routledge

No Author, (2014) Cross-Cultural/International Communication. October 31, 2014. http://www.referenceforbusiness.com/encyclopedia/Cos-Des/Cross-Cultural-International-Communication.html

No Author, (2011) Communication Breakdown. October 31, 2014. Cross-Cultural/International Communication. October 31, 2014. http://www.berkeleysg.com/2011/05/communication-breakdown-it%E2%80%99s-always-the-same/

Brazil gained its independence in the 1800’s. It became a true federal republic after the military rule ended peacefully in 1985. Central America countries have been controlled by political and military powers which for many decades which have failed. In 1990 the military dictatorship was replaced by a new president, Fernando Cardoso. During his term he created many economic and social reforms which are still in place today. The only way these countries can survive is by working together to overcome poverty, illiteracy, and violence. Local business leaders and global managers have succeeded in raising the standards and quality of living.

The Federative Republic of Brazil is Latin America’s largest economy. Brazil is the largest country in Latin America and fifth largest in the world. According to bbc.com, Brazil’s economy unexpectedly notched up a growth rate of 0.7% in the last quarter of last year. (No Author, bbc.com, 2014) This was a surprise even for the government due to the economy shrinking in 2013. Many economists had expected it to shrink again and fall into recession. There is a 6.3% jump in investment this year which will give Brazil businesses the confidence in returning the marketplace. (No Author, bbc.com, 2014) The country has maintained policies that control inflation and promote economic growth. The U.S. was Brazil’s second largest source of imports, accounting for 15% of total imported goods. (No Author, export.gov, 2014) Brazil’s economic growth consists mainly of agricultural and industrial exports. It is the world’s biggest exporter of sugar, chicken, beef, and coffee. Brazil Industry is developing at a fast pace and is enhancing the country. Major Brazil Industry is iron and steel, chemicals, petroleum, automobile assembly and cement making.

Surface level diversity affects the demographic differences that set U.S. and Brazil apart. This diversity between the U.S. and Brazil has market challenges as well as effective business relationships. Brazil has a large and diversified economy that offers U.S. companies many opportunities to partner and to export their goods and services. Doing business in Brazil requires intimate knowledge of the local environment, including both the direct as well as the indirect costs of doing business in Brazil.

Success in Brazil’s business culture relies heavily upon the development of strong personal relationships. According to Moran, one of the biggest mistakes that one can make is by assuming what works in one country could work in another.(Moran, 2014) For instance something as simple as greeting one another with a handshake could be misconstrued or taken as an insult. Brazilians are friendly people that hug and kiss to show their warmth and affection. If one didn’t take the time to better understand the culture it may potentially lead to a negative business situation. In most cases, U.S. firms need a local presence and should invest time in developing relationships through frequent visits to Brazil.

 

The concept of low and high context communication styles involves both verbal and nonverbal communication aspects. Brazilians are lower context people while U.S. and northern European countries are high context. Brazilians tend to use words profusely and at times disconnect their feelings. Although Portuguese is the official language there are many distinct dialects within different parts of the country that cause verbal noise to the encoder. At times the nonverbal forms of communication will carry more weight than actual words. For example Brazilians are touchy and make eye contact as means of communication. If one is of the same status of the Brazilian then they make direct eye contact throughout the conversation while someone in lower status will keep their head down and make very little eye contact. There are many common cultural characteristics that can cause issues and ruin relationships.  Moreover, there are many barriers that could pose threats so it is wise to learn all the language barriers as well as other formal and informal cultural differences.

References:

No Author, Brazil’s economy grows at twice the rate expected. Date Retrieved: October 18, 2014., http://www.bbc.com/news/business-26368704

No Author, Doing Business in Brazil. Date Retrieved: October 18, 2014., http://www.export.gov/brazil/doingbusinessinbrazil/index.asp

Moran, R. T., Harris, P. R., & Moran, S. V. (2011). Managing cultural differences: Leadership skills and strategies for working in a global world. New York: Elsevier.

Central America is primary small nations and territories that speak mainly Spanish, but also a few other languages. There are actually more countries and territories in this region than in North and South America combined even though the amount of land is far smaller. According to lesson 9, simple country borders can often lead to cultural differences, and there is a great degree of diversity in Central America. (Redmond)

We know Walmart as an American multinational retail corporation. The first Walmart store opened in 1962 in Rogers, Arkansas. (No author, Walmart.com) Walmart has imposed courses and programs (Best Practice Study) to overcome barriers of global diversity and conflict to become an international success. It entered the Central American region in 2005 which became Walmart Centro America in 2006. In 2009, Walmart Mexico acquired Walmart’s operations in Central America from Wal-Mart Stores, Inc. and two minority partners. In 2010, Walmart Mexico became Walmart de Mexico y Centro America. (No Author, Walmart.com)

In order to interact with people in a certain region a leader must build knowledge on that particular culture. Walmart created, “The Best Practice Study” program which focused on building hard to find information on (1) History and Culture; (2) Demographics; (3)Legislation; and (4)Best Practices. The study would also need specific diversity, cultural and legal information about each country. This kind of information was not immediately available. (No author, diversitycentral.com) They would have to build a customized information base if they were to increase their knowledge and understanding of diversity and inclusion in the countries the company did business.

Walmart in Central America and Mexico has built an accelerated development program that focuses on discovering the personal and professional potential of the participants. Walmart planned and designed this course of action to stimulate thinking and reflection on its impact when developing balanced teams within Walmart. This was designed to focus on the businesses best practices, case studies proving the direct link between Bias reduction and a sustainable, profitable business. (No author, globaldiversitypractice.co.uk)

Walmart’s strength is leadership and executive population to leverage the benefits of diversity and inclusion and be role models. According to walmart.com, the Global Diversity Practice were commissioned to deliver diversity and inclusion interventions ranging from Gender Equity, inclusive leadership and unconscious bias. Walmart Centro America is committed to maintaining a diverse work environment in which all associates are respected and appreciated. Lastly, a big concern for Walmart in Central America is to allow woman to work and get their hands on some earnings. Women’s growing participation in the workforce had a major role in poverty reduction in the region. Without their work, extreme poverty in the region in 2010 would have been 30% higher. (No Author, Worldbank.org)

Walmart has had success internationally as they have provided leaders as role models, decrease bias, increase gender bilingualism and become more inclusive leaders. Walmart has adapted the course to be relevant to the local perspective which has provided added credibility and relevance to close the gap of differences between groups and better understand international culture.

References:

Redmond, Brian (2014) Lesson 9, pg. 2. Central America and Mexico. The Pennsylvania State University World Campus

No Author, (2014) Walmart Best Practices Retrieved: October 24, 2014. http://diversitycentral.com/blog/developing-a-truly-global-diversity-inclusion-strategy-a-walmart-best-practice

No Author, (2014) Global Diversity: October 24, 2014. http://www.globaldiversitypractice.co.uk/portfolio/walmart/

No Author, (2014) Gains in Latin America: October 24, 2014. http://www.worldbank.org/en/news/feature/2012/08/29/women-play-key-role-in-economic-gains-in-latin-american-and-caribbean

• My name is Matthew Leibensperger; I am a Business Partner to Lehigh Valley Guns and Ammo Inc.
• I have lived in Allentown Pennsylvania for most of my life with the exception of four years which I lived in Chadd’s Ford Pennsylvania.
• As for professionally, I run a small business but want to finish my degree in Organizational Leadership.
• Long-term goals would be to continue to run my business from a distance and continue with other business adventures.
• My leadership experience thus far comes from opening my business that allowed me to develop many leadership skills such as Research and Planning, Strategic Planning and management skills.
• Quote: “I do not believe you can do today’s job with yesterday’s methods and be in business tomorrow.”
• Quote: “Inventories can be managed, but people must be led.”
• Unusual fact – My girlfriend and I have adopted 5 dogs, 6 cats, a bird and a bunny.