Contrast Between British And Hong Kong Business Essay

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Hong Kong officially ceded to British after the Chinese and two governments signed the Treaty of Nanjing. The agreement was included under the principle of one country , two systems" would be impose on Hong Kong and they will take benefit from high degree of autonomy in every matter excluding defence and foreign affairs for the next fifty years (


Hong Kong consist of seven million Fifty five thousand & seventy one depend on different ethnic group including 95% Chinese, 2% of Indonesian and Filipino and 2% mixture of different nationality. The official language of Hong Kong is Chinese (Cantonese) but 6.4% population speaks other Chinese language and about 3.2% people speaks English as well. In Hong Kong majority of people believe on diverse local religion and only 10% population is Christian. Hong Kong is one of the most Crowded place in term of population consist of seven million people in the world. In Education system of Hong Kong the child age group of 15 and over in which a very limited no. of students who attended schools as research shows only 7% of students from the above age group attended school in proper manner. Hong Kong is situated in Eastern Asia and the borders are closed to south China sea and county of China. Hong Kong has Consist of more than two hundred islands. Hong Kong is spread out in 426 square miles and the biggest part of border shared by South China Sea which is 455 miles and small part of border shared with country of China about 18 miles. Hong Kong Six time bigger than Washington, Dc. Hong Kong weather is quite subtropical. Hong Kong is famous for their excellent natural resources including deepwater harbour and feldspar (

Economy & Financial:-

Hong Kong is a free trade economy including mainly with international trade and finance. It is an international city consist of business hub, famous banks and Hong Kong stock exchange. It is one of the main commercial service economy with very low taxation, free market and least government interference. Hong Kong has grow appropriate incorporation with chine through trade, tourism and finances. China is one of the biggest partner for Hong Kong in export trading 2008 which is about 49%. when the Hong Kong has reduced their visa restrictions then approximately quadrupled people migrated to Hong Kong from China between 2001 and 2008.Every Chinese companies are seeking to in list Hong Kong leading stock market. Moreover, almost 33% of the Chinese Companies are listed on Hong Kong Stock Exchange and they are holding three-fifths of the whole stock market capitalization. In the last ten years Hong Kong service industry boosted significantly which reflects more than 90% of the territory`s gross domestic product(

Contrast Between British and Hong Kong Business ( The Do`s and Don`ts):-

One of the Major similarity between United Kingdom and Hong Kong is population, both Countries have the same number of population is about 7 million and both consider as financial centres and internationally important cosmopolitan. In Hong Kong a major population is included with ethnic Chinese Where as in United Kingdom is included different communities like Koreans, Latin Americans, Nigerians, Easter Europens,Middle Easterners and so on.

Lothar Katz (2008),In Hong Kong business meetings have to schedule in advance before three weeks with complete information of the meeting like meeting person, title, position and task of the attendees. A senior Executive always lead the negotiation of the company and negotiating team have to comprise of senior manager who understand all knowledge of the company. The most Senior person of the group should enter in the conference room first. Being late in meeting without having a reasonable and valid reason can be an offend In Hong Kong, use a proper title to address a people such as Director Chen or Doctor GN or Mr /Ms and family name. In meeting, exchange of business cards is a very vital move and possibly the one side printing in English and other side in Chinese. Always receive and present visiting cards with both hands and do not put business card in back of your pocket because it feels disrespect.

Richard Lewis (2006), Whereas in British people are very truthful, sensible, helpful and thoughtful. British consist of different classes, Northern English Brits set more importance on honesty , straight and easy dealing but southern English Brits work more on education and civilized side. In first business meetings, the British are quit formal and used first names only after two or three interactions. Subsequently, they behave very informal i.e. take off jackets, rolled up selves. During meetings, British people like to expose themselves as very family oriented i.e. to discuss about their kids, holidays and old memories. In UK, during business sessions jokes are very important and it is advisable for opponent person to come with lot of jokes and reminiscences. People who are talented in making jokes should use their ability during business meetings. British people expect from other person to match story with story and create an environment to doing business will result. British executives can use jokes as a weapon for opponent candidate to show disagreement. During meetings, British executives try to prove that they are guided by rationally, cooperative and logically. It is very rare for British people to take final decision in first business meeting even in the absence of any differences. They do not like to be quick and rushed. The British hardly ever disagree the proposals from the other party. They normally agree every time but finalize at their own terms and conditions.

In Hong Kong, normally people used chopstick for eating and it is advisable to use it in a proper manner. Position of the chopsticks should not be upright in the rice of bowl as it is preferred bad manners. Rice is suppose to be a filler and serves normally with every meal. Leaving small amount of rice at the end will show that the person is happy with the food and satisfied with their serving. Whereas, in United Kingdom is preferred to use forks and knives. It feels so impolite to start eating before everyone is served.

Helen Deresky (2011) The word negotiation explain the method of conversation by which two or more parties to get a mutually suitable agreement. International negotiation method is quite difficult because of different cultural principles, languages, lifestyle, trade style and regulation.

Helen Deresky (2011) The negotiation method consist of following 5 stages.


Relationship Building

Exchange of Task- Related Information


Concessions and agreement


The meaning of useful preparation for cross-culture negotiations cannot be emphasized. To know the negotiating styles in different cultures, initially managers should know their own styles and then try to find out how its different from the norm in other countries. Managers can compare their profiles with those who supposed to be a successful negotiators in different countries. These profiles reflect the behaviours, value system and attitude inherent in a certain society. There are 12 variable which can helpful to understand the inherent culture, nationwide motivations and traditional processes for mangers to prepare a proper negotiation. These 12 variables are as follow:-

Basic concept of Negotiation process

Negotiator selection criteria

Significance of type of issues

Concern with protocol

Complexity of communication context

Nature of persuasive arguments

Role of individual aspirations

Bases of trust

Risk taking propensity

Value of time

Decision making system

Form of satisfactory agreement

Relationship Building:-

Relationship building is the method of building mutual trust in a host country before entering on business negotiation and dealing. This method is very useful in different countries in the world.

Exchanging Task-Related Information:-

In this stage of negotiation both parties usually makes presentation and asked question and answers with alternative discussion. The Chinese business people ask lot of questions to their opponents and investigate in depth.


The hard bargaining begins in the persuasion stage of negotiation. Normally, each side try to convince to other to understand more of their situation and sacrifice some of their own. In different countries, the majority of the persuasion finishes over one meeting or takes more negotiation meeting.

Concessions and Agreement:-

In the final stage of negotiation, concessions and agreement approach fluctuate significantly across cultures. Clever and sharp negotiators are aware a variety of different concession strategies and knows how to apply it in the negotiating meetings.

Lothar Katz (2008) In Hong Kong, normally negotiation is conducted by team rather than a single person. Moreover, teams more often comprises of high skilled negotiators who know how to get the better outcome. In Hong Kong, business people anticipate long-term commitments from their business partner and believe to get long term benefits. In beginning, negotiators faced very tough time to get the final deal but ones deal fairly done in a proper manner then Hong Kong business people maintain a long-term relationship. This culture follow a win-win approach as this is good approach for everyone to save face during a negotiation. If a disagreement take place at any level of negotiation so the negotiator need to find a alternate solution which could be useful to both parties. In extreme scenario a mediator who helps that negotiation to be successful. Hong Kong business people are normally shared information more openly as they believe on importance of give and take. In Hong Kong, negotiation is very slow and delayed as people of Hong Kong takes time to find the small details. Construct relationship, gathering proper details and finalize the decision making process all take time. Moreover, negotiators must be prepared to visit many trips to achieve the final deal or objective. Before finalize the deal, negotiators should be patient, show little amount of sentiments and admit that delay may take place.

Helen Deresky (2011) The word communication illustrate the process of sharing the information through media in order to words and behaviour. There is a cultural variables in the Communication process as follow:-


Social Organization

Thought Patterns



Nonverbal Communication



Everybody knows that our attitudes influence the manner we perform and communicate and exchange messages with each other.

Social Organization:-

We belong to such kind of social organization by which our Perceptions can be underlie in different principles ,priorities and approach.

Thought Patterns:-

The logical way of analysing varies extensively around the world and significantly affects the communication process.


Societies varies significantly in their perceptions of a manger`s role.


Language is a purpose to convey the objective information among the cultural and social understand from generation to generation.

Nonverbal communication:-

Nonverbal communication is a manner that communicate without words.


Last process is time that communicates culture in the manner people regards and utilize time.

Lothar Katz (2008) Hong Kong is comprises of two different languages; English and Chinese. Many Businessmen speaks very well English but sometime they used interpreter in meeting. They normally communicate in short and simple English sentence and avoid using slang language. Hong Kong business People are soft spoken and very gentle tone. Especially in business lunches and dinners they speak in very low tone and quite. Loud and noisy behaviour is supposed to be lack of discipline. Communication is usually extremely indirect as the perception of 'saving face' is vital in their culture. Hong Kong People only responded 'yes' on a direct question which mean they heard what you said but not agree with that and in rare cases people responded 'no'. It is useful to apply indirect approach while dealing with Hong Kong people as direct approach is perceive to be rude and aggressive.

Helen Deresky (2011)Negotiation actually represents the outcome of a series of small and large decision.Negotiation actually imitate the result of a series of large and small decision.Cutlural Variables in the Decision Making Process as under:-


individualism / collectivism Utilitarianism/moral ideals

Risk Tolerance Past/future orientation





Consideration of

Alternative solution



Objective / Subjective Internal / external

Perspective locus of control

Decision Making:-

Lothar Katz (2008) In Hong Kong, before taken a final decision of any deal they always consider the group interests and advise with others. Decision making process can be quick or can take a long period and most of it required patience. Personal belief, experiences and objective evidence may consider more beneficial rather than empirical facts. Hong Kong business people are more risk takers than mainland china.

Geert Hofstede (1967), we can see the culture of Hong Kong by the following hofstede five dimensional model consist of Power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, Long Term Orientation.

C:\Users\MASH\Downloads\HK & UK.PNG

Power Distance:-

Power distance shows that every single person in societies are not same. In Hong Kong 68% of people has a high score on power distance which most of people believes that inequalities among people are acceptable. There is no defence against power violence and people are inclined towards subordinate-superior relationship.


The above graph shows that Hong Kong is a collectivist culture where they think about their family relatives and friends. In Hong Kong, people prefer to hire their family members, relatives and friends in any job.


With the score 57 Hong Kong is a masculine culture. In Hong Kong, people works long hour for getting the success i.e. service people like hairdressers are works till late night to providing services. Moreover, students in Hong Kong are really work hard in exams for getting the good scores and high ranked.

Uncertainty Avoidance:-.  

In Hong Kong uncertainty avoidance is very low score at 29.They are comfortable with uncertainty. They can adjust at any situation and consider as business minded.

Long term orientation:-

Long term orientation is very high in Hong Kong society score at 96 in which perseverance and persistence are standard. In Hong Kong, relationships in respect of status and the order is observed. People of Hong Kong believe on long term project i.e. real estate business.

To sum up,It is obvious that work in a global market required a great knowledge of negotiation , communication and decision-making. we can say this that every country have its own business etiquette and regulation .Before start any business or business meetings in international market managers should know the above knowledge and understand the culture of different countries