Complete

Journal of Management History
Research of Understanding China, Mexico, and United

States: Ethics, Values, and Cross-Cultural Differences and
Similarities
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Journal:
Manuscript ID:
Manuscript Type:
Keywords:

JMH-12-2014-0575
Research Paper
China, Entrepreneurs
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http://mc.manuscriptcentral.com/jmh
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Values, and Cross-Cultural Differences and Similarities between China, Mexico and United States
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Research of Understanding China, Mexico, and United States:

Ethics, Values, and Cross-Cultural Differences and Similarities
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By: Angelica J. Trevino
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Abstract
Purpose: This paper applies to the findings of three countries: China, Mexico, and the United
States, which is intended to investigate the distinctive as well as similarities of ethics, values, and
cross-cultural understanding. Each country serves as a key contributor to the world business
sector, consciousness of each cultures ethics, values, and cross-cultural understanding can
influence expatriates in being successful in blending and succeeding in the foreign culture of
China, Mexico, and the United States for international business.
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Design/Methodology/Approach: The data was collected via survey instruments and graphs of
other researchers whose data has been evaluated prior to being publicized. Also this research
paper utilized Hofstedes model of cultural differences of six dimensions that includes power
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distance, individualism, masculinity, uncertainty avoidance, pragmatism, and indulgence
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compared to findings of different statistical data between China, Mexico, and the United States;
which will demonstrate the importance of values, ethics, and cross-cultural differences and
similarities between each country.
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Findings: The findings showed the importance of the need of understanding for expatriates in
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order of being successful. Addressing factors of China, Mexico, and the United States
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differences and similarities of ethics, values, and cross-cultural issues; possible expatriates are
better prepared.
Research Limitations/Implications: When researching each country, there are different barriers
influencing each societys ethics, values, and cross-culture such as traditions, religion, and
morals. Examining each countrys factors may assist future expatriates in being successful in the
international business in China, Mexico, and the United States.
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Practical Implications: Expatriates need to be aware that each culture is not a collective culture,
but rather understand each ethics, values, and culture is different in order to avoid consequences
from formal or informal decisions a expatriate can make from not taking the toll of
understanding that each culture has its own unique factors in order to be successful as an
expatriate.
Originality/Value/Contributions: The research paper is original in that it uses different data and
information to collect data allowing for a comparison of China, Mexico, and the United States
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for expatriates learning the relationship of cultural differences of Hofstede's six dimensions with
data to back up the ethics, values, and cross-cultural differences and similarities between the
three countries.
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Introduction
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According to Gereffi (2008), there are fundamental changes afoot in the global economy, and no
simple answers for countries that want to improve or even maintain their levels of development.
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International businesses are growing, in order of being successful expatriates need to understand
not only foreign investments, markets, or organizations but also their ethics, values, and cross-
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cultural factors. Adopting a relativistic perspective, some cultural psychologist have proposed
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that these biases may be limited to individualistic cultures to prevent self-enhancement as a

expirate (Church, Katigbak, Mazuera, Rincon, Vargas-Flores, Ibez-Reyes, Ortiz 2014). Three
surveys conducted in early 2012 reveal a rising trend among manufacturers to bring operations-and the jobs associated with them--back to the United States. The first, administered by the
Boston Consulting Group (BCG) and published in late April, surveyed decision makers at 106
companies across a broad range of industries, asking them to rate their company's expectations
for manufacturing relocation and job creation. The survey found that the number of decision
makers strongly considering relocating manufacturing jobs back to the United States is steadily
growing, with 37 percent of respondents reporting that they were either planning to restore some
of their manufacturing jobs or strongly considering it. This figure rose to 48 percent among
larger firms, those with over $10 billion in revenue (Gobble & Holden 2012). Expatriates
should take serious the level of perception and interests when dealing with new cultures, for
example, Mexico, like China has strong tradition of pervasive, traditional gender roles (Mayer
& Schmidt 2004).
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Exploring Hofstedes six dimensions of power distance, individualism. masculinity, uncertainty

avoidance, pragmatism, and indulgence expatriates can succeed in improvements for being
successful in the international business market. We find that the share of domestic value added
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as a proportion of the firms exports has been declining in the last 6 years. We show that the
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decline is not the result of market share reallocations; that it persists after controlling for price
changes and that is observed across firms of all sizes. The results suggest that more segments of
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the supply chains are generally not moving into Mexico and that on the contrary there is a trend
of falling domestic value added. This result contrasts with that of other countries engaged in
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similar export processing activities, like China (Blyde 2014). Therefore it is an important key
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factor that future expatriates receives the knowledge of how important it is to take the time to
understand other countries ethics, values, and culture in order to succeed and prevent the need of
leaving early from an assignment at different county and minimizing the time of regaining
previous levels of performance once they have returned.
Literature Review
Through Hofstedes six dimensional model, we can have a deeper understanding of the Chinese
culture. In the first dimension of power distance, which expresses the attitude of the culture
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towards inequalities, China scored a 80. China has a high ranking where it believes that
inequalities amongst people are acceptable (Hofstede 2014). There is a strong subordinatesuperior relationship, where there is no protection against the power abused by superiors for
subordinates. It is lead to reason that in the Chinese culture individuals have no yearning of
furthering past their rank. Individualism is the second dimension in the model, which can be best
described as whether peoples self-image is defined in terms of I or We (Hofstede 2014).
At a score of 20, China is highly understood as a collective group rather than defined as
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individuals. Expatriates should acknowledge the affect hiring and promotions if expatriate is a
manager, since the Chinese culture are relatively organized as family in receiving preferential
treatment. It is known that employee commitment to the organization is low, however the
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relationship with colleagues are cooperative for in-group they are cold or even hostile to out-
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groups, and that personal relationships prevail over task and company (Hofstede 2014). The
third dimension is masculinity, the higher the score implies that the society will be driven by
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competition, achievement and success, with success being defined by the winner / best in field,
a framework that starts early in school and continues throughout the cultures norm in their
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career. With a score of 66, China has a relatively masculine culture where they are success
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oriented and driven. The need to ensure success can be exemplified by the fact that many
Chinese will sacrifice family and leisure priorities to work. Service people will provide services
until very late at night. Leisure time is not so important. The migrated farmer workers will leave
their families behind in faraway places in order to obtain better work and pay in the cities.
Another example is that Chinese students care very much about their exam scores and ranking as
this is the main criteria to achieve success or not (Hofstede 2014). The fourth dimension is
uncertainty avoidance, which deals with the way the culture manages the way that the future can
never be known or controlled. To the degree where parts of the culture may feel undermined by
obscured circumstances and have made beliefs that attempt to avoid base on the score. China
scored with low 30, which can mean that they are comfortable with ambiguity as well as
adaptable and entrepreneurial (Hofstede 2014). The fifth dimension is pragmatism where it is
described as how every society has to maintain some links with its own past while dealing with
the challenges of the present and future, and societies prioritise these two existential goals
differently (Hofstede 2014). China scored an 87, which implies that it is an exceptionally down
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to business society. In social orders, individuals accept that truth depends all that much on
circumstance, connection and time. They demonstrate a capacity to adjust customs effortlessly to
changed conditions, a solid affinity to spare and contribute thriftiness, and determination in
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accomplishing results. The sixth dimension is indulgence, it is defined as the extent to which
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people try to control their desires and impulses, based on the way they were raised (Hofstede
2014). China is a limited society as can be seen in its low score of 24 in this measurement. Social
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orders with a low score in this measurement tend to criticism and cynicism. Likewise, as
opposed to liberal social orders, limited social orders don't put much stress on recreation time
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and control the satisfaction of their wishes. It can be tied with the third dimension of masculinity
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since they are strict with competition starting at a young age.
Mexicos first dimension under Hofstedes model has a close score as China with an 81. Mexico
is known as a hierarchical society. It is view that the Mexican culture accepts the hierarchical
order of everyone has a place and which needs no further justification,...reflecting inherent
inequalities centralization is popular, subordinates expect to be told what to do and the ideal boss
is benevolent autocrat (Hofstede 2014). Mexico scores a higher score than China with a 30 in
the second dimension of individualism; it is still seen as a collective society like China however.
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This is show in part of being as a collective family, which is vital, and overrides most other
cultural principles and regulations. Mexico cultivates in solid connections where everybody
assumes liability for individual parts of their gathering. In the third dimension of masculinity,
Mexico scores a close score to China of 69. Mexicos culture live in order to work, managers
are expected to be decisive and assertive, the emphasis is on equity, competition, and
performance and conflicts are resolved by fighting them out (Hofstede 2014). In the fourth
dimension of uncertainty avoidance, Mexico scores an 82, which is more than double of Chinas.
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With the high level of uncertainty avoidance, shows a narrow minded of unconventional conduct
and thoughts. Time is cash, individuals have an inward urge to be occupied and buckled down,
exactness and reliability are the standard, advancement may be opposed, and security is a vital
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component in individual inspiration. Pragmatism, the fifth dimension of Hofstedes model,
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Mexico scores a low 24 meaning that the culture is normative. Unlike China, Mexico have a
strong concern with establishing the absolute Truth; they are normative in their thinking. They
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exhibit great respect for traditions, a relatively small propensity to save for the future, and a
focus on achieving quick results (Hofstede 2014). In the sixth dimension of indulgence, Mexico
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scored a extremely high score of 97. Individuals in the Mexican culture are grouped by a high
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score in liberality for the most part display an eagerness to understand their driving forces and
yearnings with respect to getting a charge out of life. They have an uplifting mentality and have a
propensity towards hopefulness.
United States is unique, yet social control ensures that most people will not deviate too much
from the norm. Moreover, within every country regional cultural differences exist, also in the
States. Americans, however, dont need to go to a cultural briefing before moving to another
state successfully (Hofstede 2014). In the first dimension of power distance, the United States
scored a low 40 compared to China (80) and Mexico (81). This measurement proves that all
people in social orders are not equivalent, and it communicates the state of mind of the society to
these force imbalances among us. Force separation is characterized as the degree to which the
less capable parts of organizations and associations inside a nation expect and acknowledge that
power is appropriated unequally. It needs to do with the way that the culture is supported by the
devotees as much as by the pioneers. Another high score is the United States second dimension
of individualism, which is a 91. Hofstede best describes the low power distance score in
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combination of a high individualism score creates the following to be true in the culture of the
United States (2014):
The American premise of liberty and justice for all. This is evidenced by an explicit
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emphasis on equal rights in all aspects of American society and government.
Within American organizations, hierarchy is established for convenience, superiors
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are accessible and managers rely on individual employees and teams for their
expertise.
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Both managers and employees expect to be consulted and information is shared

frequently. At the same time, communication is informal, direct and participative to a
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degree.
The society is loosely-knit in which the expectation is that people look after
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themselves and their immediate families only and should not rely (too much) on
authorities for support.
There is also a high degree of geographical mobility in the United States. Americans
are the best joiners in the world; however it is often difficult, especially among men,
to develop deep friendships.
Americans are accustomed to doing business or interacting with people they dont
know well. Consequently, Americans are not shy about approaching their prospective
counterparts in order to obtain or seek information. In the business world, employees
are expected to be self-reliant and display initiative. Also, within the exchange-based
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world of work we see that hiring, promotion and decisions are based on merit or
evidence of what one has done or can do.
In the third dimension of masculinity, United States score a close score of 62 compared to
China and Mexico. However unlike China and Mexico, the United States high masculinity
score is driven with the dimension of individualism. There is a can-do mentality which
makes a considerable measure of dynamism in the culture, as it is accepted that there is
dependably the likelihood to improve things. Also that the United States live to work with
the goal that they can acquire financial incentives and as an issue achieve higher status
focused around how great one can be. The fourth dimension of uncertainty avoidance is near
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the middle with a score of 46. There is a fair degree of acceptance for new ideas, innovative
products and a willingness to try something new or different, whether it pertains to
technology, business practices or food. Americans tend to be more tolerant of ideas or
opinions from anyone and allow the freedom of expression. At the same time, Americans do
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not require a lot of rules and are less emotionally expressive than higher-scoring cultures
(Hofstede 2014). Yet from 9/11, it has made a great deal of apprehension in the American
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culture building up and finally finishing in the endeavors of government to screen everyone
through the NSA and other security associations. In the fifth dimension, the United States
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have scores a low 26, near Mexico, American businesses measure their performance on
short-term basis, with profit and loss statements being issued on quarterly basis. This also
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drives individuals to strive for quick results within the workplace (Hofstede 2014). United
States scores a high score of 68 in the sixth dimension of indulgence, which is higher than
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China (24), but still low compared to Mexico (97). In the blend with a normative score,
reflected by conflicting mentality and conduct, Hofstede list the following (2014):
Work hard and play hard.
The States has waged a war against drugs and is still very busy in doing so, yet drug
addiction in the States is higher than in many other wealthy countries.
It is a prudish society yet even some well-known televangelists appear to be immoral.
Based on Hofstedes six dimensional model of cultural differences there are various factors
that may moderate the relationship between self-enhancement and adjustment pointed out an
important methodological problem with social comparison indices are confounded by target
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effects, which index the extent to which self-raters actually are superior to others on the rated
traits, as viewed by a consensus of observers (Church, Katigbak, Mazuera, Rincon, VargasFlores, Ibez-Reyes, Ortiz 2014). Expatriates need to understand the relationship between
enhancement and adjustment when following through as an expatriate. Based on the findings
from A Four-Culture Study of Self-Enhancement and Adjustment Using the Social Relations
Model, the authors were able to find the correlations between self-enhancement and
adjustments estimate versus constrained to be equal across cultures, which could resolve
current bias of cultures for expatriates. The graph below displays the percentages of selfenhancers and self-effacers in friend and family context between the United States, Mexico,
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Venezuela, and China.
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This table is based on the social comparison and self-insight indices, in the table above the
United States as well as Venezuela have a greater percentage of self-enhancement than selfefface on the communal traits, whereas China has a greater percentage in self-efface. Based on
the conclusions, regarding the relative prevalence of egoistic and moralistic bias across cultures
depends on the content of the assessment and the index used, ...no definitive pattern of cultural
differences in self-enhancement emerged once perceiver and target effects were controlled
(Church, Katigbak, Mazuera, Rincon, Vargas-Flores, Ibez-Reyes, Ortiz 2014). In the table
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below results suggest the cross-context consistency of only target participants providing rating in
contexts of suggesting that (a) participants who were rated more positively by friends were also
rated more positively by family members (i.e., target effects), (b) participants who rated others
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more positively in the friend context also tended to do so in the family context (i.e., perceiver
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effects), and (c) regardless of the index used, participants who exhibited greater selfenhancement (or self-effacement) in one context also tended to do so in the other context. Note
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that the positive correlations in the table do not address the levels or frequency of selfenhancement or self-effacement tendencies in the various cultures (Church, Katigbak, Mazuera,
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Rincon, Vargas-Flores, Ibez-Reyes, Ortiz 2014). While certainly this is not a large decline, it
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is clear that the share of domestic value added is not increasing, a finding that suggests that at
least during the period considered, Mexico has not been able to incorporate additional
local content to the international supply chains in which the country participates. It is worth
noting that the findings for Mexico are the opposite to those for China (Blyde 2014). .
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For example, in thinking about the impact of expanding trade on the wage premium in
developed countries today, empirical researchers may also need to account for declining union
power, falling minimum wages, increased rates of immigration of unskilled workers, and greater
skill-biased technological change. Similarly, analyses that focus on the impact of trade on wages
in developing countries, like China, also face an array of challenging empirical issues that make
identification difficult, including assessing the impacts of technological change, FDI, and state
intervention on factor prices (Mitchener & Yan 2014). There have been concerns over the effect
of Chinese competition on Latin American exports, especially in Mexico. This has occurred not
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only in low-technology products but also increasingly in high-technology products, and Brazil
has not been able to compensate for losses to China through increasing exports of more
sophisticated products. It was also found that Chinese competition intensified in the Latin
American market following the global financial crisis (Jenkins 2014). Expatriates need to
understand the issues in regarding the worldwide development in exchange is its impact on
wages. The United States is working to build on our strong relationship with China and our
solid track record of frank, productive, results-oriented dialogue. Today, we face many serious
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challenges stemming from China's slowed market liberalization and deferred structural reform -precisely when China's own economic transition requires those processes to be accelerated.
Problems often seem to stem from China's pursuit of industrial policies that rely on trade-
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distorting government intervention intended to promote China's domestic industries, particularly
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ones dominated by state-owned enterprises (Kirk 2011). .A significant part of the level headed
discussion has concentrated on how the extension in exchange between creating what's more
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created nations influences the wages in the United States and Europe. However there is new data
that China has opened up the the global trade as early as the 20th century. Expatriates need to
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understand the history of Chinas values through the history of factors that lead China to the
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ideas of its culture. Since China was once dominated by movement of relatively homogenous
goods across borders,...that an earlier era of globalization lead to the role in widening skills
premiums today in developing countries (Mitchener & Yan 2014). Hansons data proves that
from 1985 to 2008, there is an increase of average annual change in GDP, though China and
Mexico can be seen as middle income nations there is growth and development credited to the
growing global market,
Conclusions and Suggestions for Future Research
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Cultural differences is not bias if the expatriate uses research consistently to practice a new
approach of understanding ethics, values, and cultures to develop new adjustments of comfort.
Some cultural psychology perspectives, cultural differences in the relative prevalence of selfenhancement and self-effacement tendencies were found on the basis of traditional social
comparison and self-insight indices...overall results suggest that an approach to selfenhancement based on the supplier relationship management may help resolve current
controversies in the self-enhancement literature, both within and across cultures (Church,
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Katigbak, Mazuera, Rincon, Vargas-Flores, Ibez-Reyes, Ortiz 2014). However in future

research I would like to see an expansion of countries that are comparative to self-enhancers and
self-effacers in friend and family contexts. All these components become an integral factor and
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can be the motivation behind why this apparatus may not be as solid as numerous may think.
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Nothing in the realm of studies can be 100% precise in light of the gigantic variables of populace
and powerful purposes. Notwithstanding, studies executed and closed can bring estimations that
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may have the capacity to identify with reality. Through widely contemplating distinctive
societies, qualities, and conviction frameworks of varying countries, people or organizations may
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have the capacity to use the information, data, and conclusions from past studies and apply them
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to ordinary choices, professionally or by and by. In doing thus, people and organizations may
have the capacity to have a more complete and significant information, comprehension, or
familiarity with certain societies. With this social brainpower and appreciation, people and
organizations might end up fruitful and prosperous in the worldwide business sector.
Education can be used for further research in understanding each culture, the theory of the
effects of technology on institutions can show educational policymakers how to contribute to
economic development (Ranson 1988). It has been argued that the economic function of a
Page 15 of 20
15
country lies within the education of relevant skills. I would suggest of generating the statistics of
the three countries for comparison between scientific and technological curricula to different
education programs to illustrate a updated hypotheses in Ransons theory in Rural Education and
Economic Development that explained that Mexicos and Chinas failure in 1988. Starting with
children, ethnic identity emerges; one can examine their relationships with various social and
structural variables in the suggested study. In 2010, Song had participants keep tier country of
origin label throughout a five year longitudinal study using gender, annual household income,
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Fo
and parental educational level proved to associate with different ethnic identity depending where
the childs country of origin was. For example, Chinese participants' ethnic identity adaptations
were influenced by parental educational level, and Haitian and Mexican participants' by gender,
Pe
this can be supported by Hofstedes six dimensions model (Song 2010). Between China, Mexico,
er
and the United States, support was found that Anglos would demonstrate a stronger positive
relation between work hours and work family stressors than Chinese and Latins, Latins were
Re
found to work the most hours, have the most children, and report the highest job satisfaction,
China was the only region in which being married and having more children related positively to
vi
all measures of well-being (Spector, Cooper, & Poelmans 2004). Because these nations needed
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to develop a nationwide elementary curriculum that teaches basic reading and mathematical
skills in ways that make them immediately applicable to scientific and technological problem
solving, it would help expatriates understand the relationship of education and the nations
development of the workforce (Ranson 1988).
Another suggestion for further research is taking each countrys analyses of employment and
wages between the differences of imports and exports that can influence indulgence, normative
orientation, and individualism. Results indicate that the U.S-Mexico supply chain relationship
16
related to the maquiladora industry is significantly affected by Chinese competition (Ma &
Wooster 2009). In 2006, increased imports from Mexico are positively related to the increase of
employment and wages, which can influence the six dimensional model. Findings can be taken
by gender, wages, and type of employment for each country. Expatriates can use the information
based on location and identity to understand the group of their new workplace and how to
manage such as raising wages or increasing the employment availability.
There are many opportunities for further research since ethics and values are a broad topic to
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cover. Expatriates have capable knowledge of expanding trade to increase wages, but skill is not
the only factor needed for success in developing countries. The data discussed in this research
paper gives significant information that can certainly encourage in facilitating cross-cultural
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interactions for expatriates, while enlightening in understanding the global differences in ethics,
values, and culture.
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Page 17 of 20
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Journal of Management History

Research of Understanding China, Mexico, and United

Journal of Management History

Research of Understanding China, Mexico, and United States:

By: Angelica J. Trevino

Journal of Management History

Journal of Management History

distance, individualism, masculinity, uncertainty avoidance, pragmatism, and indulgence

Journal of Management History

that these biases may be limited to individualistic cultures to prevent self-enhancement as a

Journal of Management History

Exploring Hofstedes six dimensions of power distance, individualism. masculinity, uncertainty

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Journal of Management History

since they are strict with competition starting at a young age.

component in individual inspiration. Pragmatism, the fifth dimension of Hofstedes model,

Journal of Management History

Journal of Management History

emphasis on equal rights in all aspects of American society and government.

Within American organizations, hierarchy is established for convenience, superiors

Both managers and employees expect to be consulted and information is shared

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Work hard and play hard.

It is a prudish society yet even some well-known televangelists appear to be immoral.

Journal of Management History

Venezuela, and China.

Journal of Management History

Journal of Management History

distorting government intervention intended to promote China's domestic industries, particularly

Journal of Management History

Journal of Management History

Katigbak, Mazuera, Rincon, Vargas-Flores, Ibez-Reyes, Ortiz 2014). However in future

Journal of Management History

Journal of Management History

Cultures. Journal of Research in Personality, 46(5), 556-570. doi:10.1016/j.jrp.2012.06.003.

41(2), 151-185. doi:10.1177/0044118X09333647.

Cermeno, R., Mayer-Foulkes, D., & Martinez-Gonzalez, A. (2009). Convergence, Divergence

and Stratification. Comparative Study of Dynamics of Growth in Manufacturing in Mexican

Journal of Management History

Towns and United States Counties. Trimestre Economico, 76(302), 349-378.

Journal of Management History

Fackler, M. (2004). Mexico First. Far Eastern Economic Review,167(13), 20.

Management, 55(5), 4-6. doi:10.5437/08956308X5505001.

1004. Retrived From: http://www.jstor.org/stable/29779707.

Jenkins, R. (2014). Chinese Competition and Brazilian Exports of Manufactures. Oxford

12(3), 199-221. doi: 10.1177/1088868308318260.

Implications. Industrial Marketing Management, 41(7), 1152-1163.

Journal of Management History

Journal of Management History

Wernsing, T. (2014). Psychological Capital: A Test of Measurement Invariance Across 12

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