Part 2 National Differences Case Discussion Questions 1. When Goldman Sachs chief economist Jim O'Neill coined the acronym BRIC in 2001 to refer to Brazil, Russia, India, and China, the focus was to highlight the immense collective economic potential of these countries. Since that time, China and Russia have influenced the in- ternational marketplace in political ways as well. How do you think these four countries-or a sub- set of them-will likely influence the world's cul- tures in the next 10 years? 2. Anyone who has been to Hong Kong typically says it is different from mainland China, more like Singapore, albeit with a strong connection to China. Do you think Hong Kong will become more like China in the next few years, or will China leverage Hong Kong as an asset to engage more capitalistically in the international market- place instead? 3. Macau was under Portuguese influence until 1999, which is not that long ago. Many in Macau welcomed the Chinese takeover so that the area could be better taken care of (e.g... infrastructure, economy). But being part of the Portuguese administration from 1887 to 1999 clearly has imbued their cultural values and beliefs in the mindset of Macau's citizens. How are these values and beliefs likely to influence the Macau-China relationship in the years to come? 4. Taiwan maintains diplomatic relations with some 76 member states of the United Nations (19 in an official capacity and 57 in an unofficial capacity). The nation's culture is a blend of Confucianist Han Chinese and Taiwanese aboriginal influ- ences. How would you handle the link between China and Taiwan-culturally, economically, and politically? Design elements: Modern textured halftone: VIPRESIONA/ Shutterstock: globalEDGE icon: OglobalEDGE; All others: McGraw-Hill Education that affect culture around the world also? China? Many reports and investigations suggest the country is likewise engaged in political meddling. Does The BRIC countries' economic size and population CLOSING CASE China, Hong Kong, Macau, and Taiwan Today, a lot of discussion centers on how much economic power, political influence, and international competitive ness the People's Republic of China (PRC) has achieved in the international marketplace in just a few decades. Cultur- ally, such power in the international marketplace also begs were the simplistic starting point to group them as power. the questions of how much influence China is likely to have ful marketplaces to export products to, and to buy prod moving forward, and what this means for China's influence ucts from. These datapoints led former Goldman Sachs culturally around the world. So far, other powerful countries chief economist Jim O'Neill to first coin the acronym in the world have focused on China's economic influence, BRIC to highlight the immense collective economic pa but what about the country's influence on culture? tential of these four emerging markets. However, despite China, along with India, Brazil, and Russia, form the many countries' and companies' enthusiasm for increased so-called BRIC countries (an acronym formulated using global interaction and economic exchange with the BRIC their initial letters), which have been viewed as the busi economies, especially China and India, many have found ness engines of tomorrow (especially China and India), that cultural differences hinder their ability to conduct based on their immense economic potential. The BRICS, business in these countries. Not only is the culture differ- which cover a quarter of the world's landmass and contain ent between each BRIC country and most of the globe's 40 percent of its population, had a combined GDP of $20 remaining 191 countries, but the business and societal trillion in 2001. Today, these increasingly market-oriented cultures within the BRIC countries are also vastly differ economies boast a GDP of $37 trillion (or 22 percent of ent from each other. global GDP), a figure forecast to reach $120 trillion by Plus, the outlook for the BRICs may not be as posi- 2050. Together, they control more than 43 percent of the tive as we have been led to believe anyway. For exam- world's currency reserves ($4 trillion) and 20 percent of ple, the structural transformation of China (the main its trade. Is it too simplistic and naive to think that the driver of the BRICs) from an export-driven economy BRIC countries-especially China and Russia-only have a to one relying more on domestic consumption, has focus on economic power? Clearly, Russia has engaged in added some woes. The likelihood is that the trend of at least some political activities that have had tremendous annual increases of exports to China from much of the lobal effects (e.g.. election meddling). And what about developed world will also slow down. We will see trade Derences Chapter 4 increases, nevertheless, just not as significantly as in the past decade. China is a sigantic market that we because of deteriorating public order, rising crime rates must pay attention to, of course. China is beginning to and widespread corruption that had infiltrated the also influence the world's culture outwardly. Econom culture during the last years of the Portuguese-Macam les still drive China's global operations, albeit with an government. Today, Macau is being positioned as a key eye toward also influencing the international market diplomatic player in China's relations with Portuguese place in such a way that it favors China-both in its speaking countries home market and abroad. Taiwan officially named the Republic of China For example, China is still trying to implement the (ROC), is an island nation (Island of Taiwan, formerly "one country, two systems" approach-a constitutional Formosa). It is the most populous country, with the larg principle formulated by Deng Xiaoping-which involves est economy, that is not a member of the United Nations Taiwan was ceded by the Qing dynasty to Japan in 1895 how to merge mainland China with Hong Kong and Macau. With Xi Jinping president of China for the foresee after the Sino-Japanese War. The Republic of China was able future as a function of his de facto lifetime established in 1912 after the fall of the Qing dynasty. while Taiwan was under Japanese rule. However, China appointment when term limits were removed in 2018. China's political infrastructure is unlikely to change has consistently claimed sovereignty over Taiwan and as much. Consequently, China's culture at home and how serted that the Republic of China (ROC) is no longer in it handles business issues abroad is unlikely to change legitimate existence. Under its One China Policy. China even refuses to engage in diplomatic relations with any much as well. Beyond Hong Kong and Macau, Taiwan country that recognizes Taiwan. In this semi-independent presents an even bigger ongoing structural, legal, and state, Taiwan has experienced solid economic growth and cultural challenge for China. While Hong Kong and industrialization creating a stable industrial economy. Macau mostly fall in line within China's basic parame The culture blends Confucianist Han Chinese and ters, Taiwan does not Taiwanese aboriginal influences. Hong Kong, a business port located off the south When mainland China, Hong Kong, Macau, and east coast of China in eastern Asia, traces its history to Taiwan are combined, we often talk about the larger the Old Stone Age, and really became entrenched in entity "Greater China" or the "Greater China Region. Obvi today's infrastructure with its inclusion into the Chi ously, there is no legal entity or sovereignty associated nese empire during the Qin dynasty (221-206 B.C.). with this greater region, except in business/economic However, Hong Kong was a self-governing British col development terms. Some argue that the region" can be ony from 1841 to 1997, at which time it became a Spe seen as being culturally homogeneous, but such argu- cial Administrative Region (SAR) of the People's ments do not hold up well given the clashes between Republic of China (on July 1, 1997), pursuant to the mainland China on one hand and Hong Kong and 1984 Sino-British Joint Declaration. Throughout this Taiwan on the other. Interestingly, Macau has been more colonial era, Hong Kong's citizens developed a distino positive about its relationship with China, perhaps due to tive "Hong Kong identity" To this day, the cultural dir experiencing serious financial difficulties immediately ferences between mainland China and Hong Kong are prior to the 1999 handover from Portugal (these financial often pronounced, and whenever mainland China tries difficulties were essentially solved by China) to assert its influence their relationship becomes more Overall, given the strained relationships between contentious. The sentiment in Hong Kong is that it China and its close cultural neighbors, the phrase "sino needs to be recognized as having a unique culture and a phone world" ("Chinese speaking world") is often used "national identity." Hong Kong is often, in many ways. instead of Greater China to incorporate mainland China. at odds with mainland China in this way, and periodic Hong Kong, Macau, and Taiwan. The "sinophone world" clashes flare may look like a culturally homogenous region, but is far Prior to 1999. Macau was a Portuguese colony, that from it. became an overseas province under Portuguese adminis SourceTomas Helt. "The US Shoulder ret over Cheapers." tration from 1887 to 1999. Macau was both the first and August 14, 2015, Tomas Hull, "Why the Fed Is No Logere last European colony in China. Just before its return to Center of the Universe Fortune September 17, 2015. Tomas Huit. Does the Global Stock Market Selo Synal the BRICA China in 1999. Macau experienced a number of eco- Is Already Ort* The Cast August 2015: Tomas Hull homic difficulties. Its biggest revenue items-gaming US. Shoulderter Cheaper Yuan China's Growing Middle and tourism decreased drastically in 1993, followed by Class Will Keep Buying "Made in America. The Cow. Apr the collapse of the property market in 1994, and then 12. 2015. Tomas Hull "The BRIC Countries EDGE the economic crisis in 1997 that affected much of Asia K3 (41.2009 Mars Exposito, Amit Kapoor, Dep Nurha What is the State of the BRICS est Wild Economic Forum By the time 1999 came around for a handover from April 19. 2016 Portugal to China, most locals welcomed the change Part 2 National Differences Case Discussion Questions 1. When Goldman Sachs chief economist Jim O'Neill coined the acronym BRIC in 2001 to refer to Brazil, Russia, India, and China, the focus was to highlight the immense collective economic potential of these countries. Since that time, China and Russia have influenced the in- ternational marketplace in political ways as well. How do you think these four countries-or a sub- set of them-will likely influence the world's cul- tures in the next 10 years? 2. Anyone who has been to Hong Kong typically says it is different from mainland China, more like Singapore, albeit with a strong connection to China. Do you think Hong Kong will become more like China in the next few years, or will China leverage Hong Kong as an asset to engage more capitalistically in the international market- place instead? 3. Macau was under Portuguese influence until 1999, which is not that long ago. Many in Macau welcomed the Chinese takeover so that the area could be better taken care of (e.g... infrastructure, economy). But being part of the Portuguese administration from 1887 to 1999 clearly has imbued their cultural values and beliefs in the mindset of Macau's citizens. How are these values and beliefs likely to influence the Macau-China relationship in the years to come? 4. Taiwan maintains diplomatic relations with some 76 member states of the United Nations (19 in an official capacity and 57 in an unofficial capacity). The nation's culture is a blend of Confucianist Han Chinese and Taiwanese aboriginal influ- ences. How would you handle the link between China and Taiwan-culturally, economically, and politically? Design elements: Modern textured halftone: VIPRESIONA/ Shutterstock: globalEDGE icon: OglobalEDGE; All others: McGraw-Hill Education that affect culture around the world also? China? Many reports and investigations suggest the country is likewise engaged in political meddling. Does The BRIC countries' economic size and population CLOSING CASE China, Hong Kong, Macau, and Taiwan Today, a lot of discussion centers on how much economic power, political influence, and international competitive ness the People's Republic of China (PRC) has achieved in the international marketplace in just a few decades. Cultur- ally, such power in the international marketplace also begs were the simplistic starting point to group them as power. the questions of how much influence China is likely to have ful marketplaces to export products to, and to buy prod moving forward, and what this means for China's influence ucts from. These datapoints led former Goldman Sachs culturally around the world. So far, other powerful countries chief economist Jim O'Neill to first coin the acronym in the world have focused on China's economic influence, BRIC to highlight the immense collective economic pa but what about the country's influence on culture? tential of these four emerging markets. However, despite China, along with India, Brazil, and Russia, form the many countries' and companies' enthusiasm for increased so-called BRIC countries (an acronym formulated using global interaction and economic exchange with the BRIC their initial letters), which have been viewed as the busi economies, especially China and India, many have found ness engines of tomorrow (especially China and India), that cultural differences hinder their ability to conduct based on their immense economic potential. The BRICS, business in these countries. Not only is the culture differ- which cover a quarter of the world's landmass and contain ent between each BRIC country and most of the globe's 40 percent of its population, had a combined GDP of $20 remaining 191 countries, but the business and societal trillion in 2001. Today, these increasingly market-oriented cultures within the BRIC countries are also vastly differ economies boast a GDP of $37 trillion (or 22 percent of ent from each other. global GDP), a figure forecast to reach $120 trillion by Plus, the outlook for the BRICs may not be as posi- 2050. Together, they control more than 43 percent of the tive as we have been led to believe anyway. For exam- world's currency reserves ($4 trillion) and 20 percent of ple, the structural transformation of China (the main its trade. Is it too simplistic and naive to think that the driver of the BRICs) from an export-driven economy BRIC countries-especially China and Russia-only have a to one relying more on domestic consumption, has focus on economic power? Clearly, Russia has engaged in added some woes. The likelihood is that the trend of at least some political activities that have had tremendous annual increases of exports to China from much of the lobal effects (e.g.. election meddling). And what about developed world will also slow down. We will see trade Derences Chapter 4 increases, nevertheless, just not as significantly as in the past decade. China is a sigantic market that we because of deteriorating public order, rising crime rates must pay attention to, of course. China is beginning to and widespread corruption that had infiltrated the also influence the world's culture outwardly. Econom culture during the last years of the Portuguese-Macam les still drive China's global operations, albeit with an government. Today, Macau is being positioned as a key eye toward also influencing the international market diplomatic player in China's relations with Portuguese place in such a way that it favors China-both in its speaking countries home market and abroad. Taiwan officially named the Republic of China For example, China is still trying to implement the (ROC), is an island nation (Island of Taiwan, formerly "one country, two systems" approach-a constitutional Formosa). It is the most populous country, with the larg principle formulated by Deng Xiaoping-which involves est economy, that is not a member of the United Nations Taiwan was ceded by the Qing dynasty to Japan in 1895 how to merge mainland China with Hong Kong and Macau. With Xi Jinping president of China for the foresee after the Sino-Japanese War. The Republic of China was able future as a function of his de facto lifetime established in 1912 after the fall of the Qing dynasty. while Taiwan was under Japanese rule. However, China appointment when term limits were removed in 2018. China's political infrastructure is unlikely to change has consistently claimed sovereignty over Taiwan and as much. Consequently, China's culture at home and how serted that the Republic of China (ROC) is no longer in it handles business issues abroad is unlikely to change legitimate existence. Under its One China Policy. China even refuses to engage in diplomatic relations with any much as well. Beyond Hong Kong and Macau, Taiwan country that recognizes Taiwan. In this semi-independent presents an even bigger ongoing structural, legal, and state, Taiwan has experienced solid economic growth and cultural challenge for China. While Hong Kong and industrialization creating a stable industrial economy. Macau mostly fall in line within China's basic parame The culture blends Confucianist Han Chinese and ters, Taiwan does not Taiwanese aboriginal influences. Hong Kong, a business port located off the south When mainland China, Hong Kong, Macau, and east coast of China in eastern Asia, traces its history to Taiwan are combined, we often talk about the larger the Old Stone Age, and really became entrenched in entity "Greater China" or the "Greater China Region. Obvi today's infrastructure with its inclusion into the Chi ously, there is no legal entity or sovereignty associated nese empire during the Qin dynasty (221-206 B.C.). with this greater region, except in business/economic However, Hong Kong was a self-governing British col development terms. Some argue that the region" can be ony from 1841 to 1997, at which time it became a Spe seen as being culturally homogeneous, but such argu- cial Administrative Region (SAR) of the People's ments do not hold up well given the clashes between Republic of China (on July 1, 1997), pursuant to the mainland China on one hand and Hong Kong and 1984 Sino-British Joint Declaration. Throughout this Taiwan on the other. Interestingly, Macau has been more colonial era, Hong Kong's citizens developed a distino positive about its relationship with China, perhaps due to tive "Hong Kong identity" To this day, the cultural dir experiencing serious financial difficulties immediately ferences between mainland China and Hong Kong are prior to the 1999 handover from Portugal (these financial often pronounced, and whenever mainland China tries difficulties were essentially solved by China) to assert its influence their relationship becomes more Overall, given the strained relationships between contentious. The sentiment in Hong Kong is that it China and its close cultural neighbors, the phrase "sino needs to be recognized as having a unique culture and a phone world" ("Chinese speaking world") is often used "national identity." Hong Kong is often, in many ways. instead of Greater China to incorporate mainland China. at odds with mainland China in this way, and periodic Hong Kong, Macau, and Taiwan. The "sinophone world" clashes flare may look like a culturally homogenous region, but is far Prior to 1999. Macau was a Portuguese colony, that from it. became an overseas province under Portuguese adminis SourceTomas Helt. "The US Shoulder ret over Cheapers." tration from 1887 to 1999. Macau was both the first and August 14, 2015, Tomas Hull, "Why the Fed Is No Logere last European colony in China. Just before its return to Center of the Universe Fortune September 17, 2015. Tomas Huit. Does the Global Stock Market Selo Synal the BRICA China in 1999. Macau experienced a number of eco- Is Already Ort* The Cast August 2015: Tomas Hull homic difficulties. Its biggest revenue items-gaming US. Shoulderter Cheaper Yuan China's Growing Middle and tourism decreased drastically in 1993, followed by Class Will Keep Buying "Made in America. The Cow. Apr the collapse of the property market in 1994, and then 12. 2015. Tomas Hull "The BRIC Countries EDGE the economic crisis in 1997 that affected much of Asia K3 (41.2009 Mars Exposito, Amit Kapoor, Dep Nurha What is the State of the BRICS est Wild Economic Forum By the time 1999 came around for a handover from April 19. 2016 Portugal to China, most locals welcomed the change