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Abstract

Guanxi or gift giving in an international business context can mean the difference between continuing a working relationship versus prematurely discontinuing the working relationship. The analysis of gift giving indicates significant economic, cultural, judicial, and ethical differences exist between the United States and China. These differences can be mitigated through the use of a commonly accepted and frequently cited ethical decision making models proposed by Trevino (1986) which take into account cognitive development, individual, and situational moderators. The expected outcome in terms of ethical behavior should be consistent with the established company protocol and at the same time honor the commitment to United States law yet is culturally sensitive to the practices of China.

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