A. Cross-Cultural Differences Company X is considering expanding its business to China. However, prior to moving into a new and foreign market, Company X must understand the various cross cultural differences that are relevant to properly conducting business in China. By being more sensitive to and understanding the cross-cultural differences, Company X's transition into the new market should be less challenging and improve its chances of acceptance. Language, work ethic and material culture are three cultural differences that should, first, be understood prior to pursuing opportunities in China.

Language is a barrier that will greatly influence the ability of Company X to conduct business in China. Included in this category
Therefore, the components of the marketing mix (products, price, promotion and place) strategies might require adjustments to become attractive to the Chinese market.

Often times, the total product must be modified to accommodate the needs and appeal of a specific market. This does not necessarily mean that the manufacturing or production process is modified. The total product consists of the brand, accessories, services, warranty, instructions, image and packaging (Ball et al, 2009). For example, if Company X decides to sell certain circuit boards in China, it might be more beneficial to modify the package and instructions that are written in English for the U.S. Market and translate into Mandarin or Cantonese for the Chinese market. Another example is in the frozen food industry. If Company X is distributing frozen meats, like chicken and beef, to grocery retailers in the U.S. and wants to expand into the Chinese market, the company might encounter infrastructure challenges because many rural and undeveloped areas of China may not be equipped with freezers. It's more common to find fresh or live chickens in markets so Company X may want to consider modifying its product strategy from distributing frozen food in China to fresh distribution as an alternative.

Pricing also needs to be addressed because purchasing power in the foreign currency may differ from the U.S. dollar. Prices need to be adjusted to consider the cost of living in China. For