World-leading construction equipment firm Caterpillar Inc has achieved a substantial growth even when its domestic market continues to stagnate due to the global financial crisis in the United States. Caterpillar has maintained its position as a leading U.S. exporter of the industry, its export sales accounted for 58% of total sales and revenues in 2007 (Wikinvest, 2008). The company recognized its main growth opportunities are in foreign countries, it has increased the percentage of overseas manufacturing. Collaboration is taking place through joint ventures designed to share production facilities and technology. Due to the insatiable demand for infrastructure in the developing countries, the company expects sales in China will double to $4 billion by 2010 from around $2 billion this year (Reuters, 2008). To take advantage of the economic boom, it plans to open more manufacturing plants, R&D center, and dealerships, and forms more joint ventures with local companies (International Herald Tribune, 2007).
Chinese Stamp, 1950. Joseph Stalin and Mao Zedong ...
English: Location_of_the_First_Congress_of_the_Chi...
China, Shibangou Bridge underpass, Fuling, Yan...China is very important to the company and it looks to become the leader in the emerging market.
Although it is projected that the Chinese economy will be one of the world's largest in the next decade, the Western understanding of traditional Chinese work values is minimal. McWilliams predicts that the center of economic gravity is shifting from the US to China and the global economic change is increasingly being dictated by what is happening in China (Irish Entrepreneur, 2007). As the traditional Confucian influence on world trade patterns increases, it will be advantageous for trade partners to better understand the Confucian values. Managers in multinational firms will be at a disadvantage if they overlook the importance of Asian traditions and values in the workplace as we approach the new millennium.
According to Hofstede, "Culture is more often a source of conflict than of synergy" (Hofstede). East-West...