Singapore business culture and practices

Research Paper On Singaporean Culture.

Global Business Cultural Analysis Instructions

**USE SOME REFERENCES FROM THE ATTACHED ANNOTATED BIBLIOGRAPHY AND THE IS AN ATTACHED FINISHED PRODUCT TO FOLLOW ***DO NOT PLAGIARIZE FROM THAT DOCUMENT***

The purpose of this research project is for you to write a professional, graduate-level research paper in current APA format. Competency in current APA format is required !!!

You will research and write a paper analyzing the cultural perspectives of doing business in another nation. You will select a nation to study **(Singapore)**

After reading your paper, the reader should be able to comprehensively answer the following research questions. Thus, the research questions form the major aspects (APA Level 1 headings) of your outline.

· What are the major elements and dimensions of culture in this region? (See Chapter 2 of the textbook for a list of the required dimensions.)

· How are these elements and dimensions integrated by locals conducting business in the nation?

· How do both of the above items compare with US culture and business?

· What are the implications for US businesses that wish to conduct business in that region?

Important Points to Consider

This paper must be written in strict conformance to current APA format, and contain a minimum of ***25 pages*** of content (excluding the title page, abstract, and references) utilizing at least 24 references from reputable professional and/or scholarly journals and/or informational venues that deal with the content of the course (i.e., not blogs, Wikipedia, newspapers, etc.).

Use the following as the exact title of your paper, Global Business Cultural Analysis: (insert nation selected)

3.

Three levels of current APA headings must be used throughout the paper, as this is a graduate-level research paper.

· Do not directly quote more than 120 words from any 1 source.

· If the source is 2,000 words or less, do not directly quote more than 50 words from it.

· Do not use the same source more than a total of 3 times within the whole document for quoting or paraphrasing.

· Quotes must contain the section (if provided) and paragraph or page numbers of the quote and this information must be placed in the reference.

· In all instances, use current APA guidelines for citations and references.

Global Business Culture Analysis: Singapore

Student Name

XXX University

Abstract

Singapore is a culturally diverse country made of numerous ethnic groups with different traditions, religions, and customs. Understanding the impact of culture in Singapore will help small, business owners and major corporations maneuver through its dynamic and diverse business arena. This paper will explore the major elements of culture in Singapore and break down those essential components to help U.S. business leaders adapt to the Singaporean multicultural business environment. This evaluation of the Singaporean business market will help identify Singapore’s strengths, weaknesses, opportunities, and threats (a SWOT analysis), which will help inform future business ventures. Culture influences many aspects of how people function daily, and it is imperative to understand the people of a country when operating a business internationally. Drawing on findings of how culture influences the Singaporean business market, this paper provides general recommendations to inform business leaders and help foreign companies navigate the international business scene in this region.

Keywords: Culture, business, adaptations, SWOT, foreign direct investment

Global Business Cultural Analysis: Singapore

As with all countries, culture influences international business in Singapore and includes implications and considerations for U.S. and foreign firms to considering business in Singapore. Singapore has business opportunities that can be good or bad, and to understand the any business environment, one first needs to know the people and cultural construct of the region. To conduct or pursue business opportunities afar, understanding the driving forces culturally will help business leaders and businesspeople adapt and seize all opportunities globally.

Major Elements and Dimensions of Culture in This Region

Cultural makeup is displayed through a society’s communications, religion, customs and manners, education, and governmental organizations. Culture is essentially a collection of learned behaviors, religious beliefs, values, and practiced customs passed down from generation to generation (Balsmeier & Heck, 1994). Thus, understanding the history of a region will help businesspeople better comprehend its cultural environment. Singapore is culturally diverse, and by understanding the various elements of Singaporean culture and history, business leaders will be able to navigate better the international business scene.

History and Demographics

Singapore, located in Southeast Asia, is home to a wide variety of ethnic groups. Singapore has a total population of 5,567,301 (July 2014), which is 76.8% Chinese, 13.9% Malay, 7.9% Indian, and 1.4% various ethnic groups (Colgan, 2016). The modern establishment of Singapore happened in the early 1800s as a British trading post colony. Then in the mid-1900s, Japanese soldiers gained control over Singapore, but three years later (1945), the Allies liberated the island. By 1955, Singapore had a provisional government, and, by the end of 1971, the British military presence in Singapore ended. Singapore developed quickly. It became one of the founding members of the Association of Southeast Asian Nations (ASEAN) and has become one of the top five busiest ports in the world today (Colgan, 2016). Even this overview of history demonstrates its importance in understanding country’s culture.

Dimensions of Culture

Satterlee (2009) categorized the dimensions of culture as communication (verbal and nonverbal), religion, ethics, values, manners, customs, social structures, and education (p. 43). Global business leaders must respect cultural practices of the country in which they are doing business. Increasing cultural awareness will lead to more fluid and natural business arrangements and negotiations.

Communication

Communication is essential when conducting business in multilingual countries, and understanding verbal and nonverbal forms of communication, such as gestures, manners, and body language, are just as important as speaking the country’s main dialects. According to Schmidt, Conaway, Easton, and Wardrope (2007), “We operate in a world that demands integration of intercultural communication skills and international business competence” (p. 12). Forms of communication can vary from verbal to nonverbal, and by understanding the differences in communication styles and deliveries, business managers can help mitigate misunderstandings and barriers to communication and lead successful business ventures in Singapore.

Verbal. Satterlee (2009) defined verbal communication as involving “the actual speaking of words” (p. 44). The national language in Singapore is Malay, but most Singaporeans are bilingual or speak multiple languages due to the various ethnic groups that make up the region, including the main groups of Chinese, Malay, and Indian. The most prominently spoken languages in Singapore are Chinese, Malay, English, and Tamil. According to Youngblood-Coleman (2010), “English is the language that unites various ethnic groups in multicultural Singapore. Nevertheless, a desire to retain cultural roots and traditions means that the different ethnic groups do still speak their respective languages at home” (para. 5). Many of the primary languages in Singapore include various forms of the Chinese and Indian languages. Verbal communication in Singapore depends heavily on the ethnic group to which a person belongs.

Nonverbal. Nonverbal communication includes expressions made without physically speaking, such as facial expressions, body language, and mannerisms. According to Bosrock (2007), Singaporeans consider open (public) forms of affection as unacceptable behavior. Singaporeans trust facial expressions, voice, tone, and body positioning to help interpret a given situation or conversation.

Religion

Religious practices in Singapore are diverse due to the various ethnic groups from other countries. The major religion in Singapore is Buddhism, which is practiced by multiple ethnic groups. Malays and some Indians practice Islam, whereas a small portion of Chinese people practice Taoism.

Taoism. People of Chinese descent primarily practice Taoism. Taoists believe in living in peace. About 11% of Singaporean Chinese practice Taoism (Global Road Warrior, 2016). Taoism makes up a small portion of the different religions practiced in Singapore.

Buddhism. Multiple ethnic groups, such as Malays, Indians, and Chinese, in Singapore practice Buddhism. About 42.5% of Singaporean and residing citizens practice Buddhism (Global Road Warrior, 2016). Buddhism combines multiple beliefs and traditions. Buddhists believe in the path, the truth of everything, and the underlying existence of truth. Buddhism is one of the three major religions in Singapore.

Islam. Most Singaporeans that practice Islam are of Malay descent. About 14.9% of Singaporeans are Muslim (Global Road Warrior, 2016). Muslims believe that the Quran is the verbalized word of God, and they strive to keep the five pillars of God (Satterlee, 2009).

Customs

There are numerous customs and traditions practiced or celebrated in Singapore. Singaporean customs show through its diverse cuisines and elaborate festivals. Singaporeans take pride in continuing practicing customs and traditions to keep alive.

Cuisine. Singaporean cuisines exhibit an assortment of food varieties, which is a reflection of the ethnic diversity in the country. As noted by Henderson (2014), “Food is also shown to be a critical dimension of ethnic and national identity and to have a heritage worthy of protection” (p. 904). Singapore has hawker centres (food courts) all around. They serve up everything from traditional Chinese to Malay dishes; fusion dishes like stewed vegetables (chap chye) and braised pork with fermented soya beans (babi pongteh), which are all a reflection of Malay and Chinese combined influence in the region. Due to the wide array of ethnic dishes and culture, eating can be different depending on ethic group. For example, Muslims do not eat pork, so it is important to consider the cultural construct of the region and serve food in a group setting that everyone can eat. According to Henderson, “Food is a regular topic of conversation, ‘have you eaten yet’ being a common greeting” (p. 908) in a group setting. Food is a staple of Singaporean mixed culture, and understanding the food scene helps one understand the people.

Festivals. Singaporean traditional festivals have Chinese, Indian, and Malay origins. For example, they have three major religious ethnic holidays to honor their diverse culture: Chinese New Year, Ramadan (Malay Muslim), and Deepavali (Indian; the Festival of Lights). Singapore’s national songs such as “Stand up for Singapore,” “Count on Me, Singapore,” and “We are Singapore” are often sung at festivals to promote unity (Youngblood-Coleman, 2010). Festivals in Singapore mark its uniqueness and willingness to unify all ethnic groups into one country.

Integration of Culture into the Business Environment in Singapore

Cultural integration in the business environment is a vital step toward the success of the company. Singaporean culture plays a major role in establishing the country as an international business hot spot. By introducing culture into the business environment, companies can develop a multicultural workforce that will work together and appreciate one another (Trompenaars & Woolliams, 2004). Diversity in the workplace leads to competent employees willing to work together to achieve a given goal and mission. Cultural integration in Singapore further helps reduce conflicts and misunderstandings because people from different cultural backgrounds have experience working together. Integration also increases innovation and creativity because a multiethnic team of employees has to solve problems together. The government itself emphasizes cultural integration in business to improve the country’s competitiveness globally and show potential investors the country is worth investing in (Gerke & Menkhoff, 2003).

Multiethnic Influence

According to Lim (1991), Singapore is one of the most multiethnic societies in the world. In most instances, one’s business partner will be Chinese because they make up the majority of the population. Individuals are encouraged to adapt to the multiethnic business environment and the culture of their partners. Singaporeans are often open and cosmopolitan. When they realize that one of their partners comes from a different culture, they do not take offense when they accidentally commit a social faux pas. The general advice given to people of different cultures is, “When in Rome, do as the Romans.” It is important that businesspeople are cautious; particularly, one should try to avoid certain topics of discussion such as politics, and religion. The work culture, believed to entail a mix of the Western and Asian influences, creates an excellent working environment due to its diversity. Studies have shown that the multinational companies tend to have a Western culture of operation, whereas the local firms and businesses have a traditional Asian style of operation, which means they tend to be much more disciplined and strict while working in a multiethnic environment (Tsui-Auch & Lee, 2003).

Business Manners and Customs

Understanding business manners and customs is vital for business leaders when negotiating, representing, and visiting other countries. Typically, one would want to know factors such as appropriate business attire, how to address people, and usual business communication. All these elements play a factor in whether or not one successfully adapts or integrates into the business culture of Singapore.

Business meetings and addressing people. Often one should begin with a handshake, followed by an introduction. Businesspeople can expect during formal invitations for the senior person not to introduce you. It is important to acknowledge the rest of the party with a smile. When addressing people, it is important to refer to them honorarly, followed by their surname. People should repeat an individual’s name and title just as it was introduced to them. Addressing people correctly in Singapore is important.

Business communication. Most Singaporeans are calm and soft-spoken. During business meetings, they often prefer to abide by the set agenda, follow a linear path, and avoid talking about personal lives. The majority of the small talk often will include simple topics based on the food or the local attractions. One has to be patient and speak slowly to allow room for interruptions such as queries. Also, one should exchange business cards at the beginning of the meeting. Make sure to receive and give business cards using both hands. Go briefly over the card, focusing on the full name and the title of the individual, before putting it away.

Corporate Culture

Singapore’s government finances most large corporations. The government is a bureaucratic system that operates efficiently and free of corruption (Kasser & Ahuvia, 2002). Most corporations have Western-style management but are managed by Singaporeans. Within the business context, personal contacts are considered essential. It takes a long time to develop strong business relations in Singapore. One should take the time to understand one’s business peers before beginning a meeting. The Singaporeans are fast paced and make decisions quickly. It is important that one is concise and direct with Singaporeans. Moreover, as in most places, when making a promise, be sure to make good on it.

Hierarchy and Business Leadership

The work culture in Singapore includes a high power distance, implying that there exist certain clear authority structures. Further, one’s social status is often defined by one’s position in the larger society or the workplace. People who occupy the lower level must respect the higher authorities, the notion which is believed to have emerged from Confucianism and further exists in Asian and Chinese cultures. With a hierarchical workplace or society, juniors have no right to argue openly or even question their superiors. Titles are often used particularly when addressing superiors. According to Yeung (2006), the notion of collectivism tends to prevail over the concept of individualism. This implies that individuals often work as part of a larger group, meaning that the sense of the group is more important compared to an individuals’ status, which is different to what is practiced in Western society. Western societies tend to emphasize the aspects of personal achievement, independence, and self-determination, whereas the concepts of collective decision-making and overall group harmony are vital to Singapore’s work culture. The concept of collectivist culture means that individuals work as a group together and further share their earned rewards rather than focusing on individual recognition.

Negotiation Styles

Business managers in Singapore often have different styles of negotiation. Osman-Gani and Tan (2002) described the influence culture has on the negotiation styles based on various Singaporean ethnic groups. The major negotiation techniques in Singapore are the intuitive, analytical, factual, and normative forms.

Intuitive. The use of direct talk should be warm, flexible, and highly creative throughout the negotiation process. It should be imaginative, often projecting into the future. Singaporeans employ intuitive negotiation styles; this applies mostly to Malays, as compared to the Indians and Chinese.

Normative. The use of the normative negotiation style heavily depends on various facts and personal values. All kinds of communication tools are employed in this method, including expressing emotions and rewards to achieve the best deal. Indian managers tend to use this kind of negotiation, unlike the Chinese and Malay managers.

Analytical. Analytical negotiations form around logic and are aimed at determining the cause and effect of problems. They also analyze potential merits and demerits. Chinese business leaders typically use analytical negotiations, whereas Indian managers employ this style less frequently. According to Tan (2002), most Indian managers use emotional connections while negotiating to protect their point of view, which often leads to hostility and competitiveness.

Factual. This negotiation style accepts various statements and takes a neutral approach. The managers that employ this style pay attention to precise details and comments made during the negotiation process and place much importance on information. Chinese and Malay Singaporeans use this technique the most. The Chinese employ the factual negotiation style the most because they have family-owned-and-run corporations (Chew & Sharma, 2005). The diversity of the negotiation styles of the three ethnic groups in Singapore is not dramatic.

Corporate Social Responsibility

Throughout Singapore, corporate social responsibility (CSR) has for years been a vital element that the government uses to measure the performance of various organizations. It is simply defined as an organization’s volunteering and legal duty that demands firms take into consideration their activities and decisions and their general impact both socially and environmentally. CSR outlines clearly ways in which corporations contribute toward sustainable development in Singapore. For companies to observe CSR, they need to engage fully with key stakeholders and further make sure that the organization behaves ethically. The Singapore government has established a procedure to ensure that companies are socially responsible and protect the environment. The government has taken the responsibility to create awareness of CSR. Overall, CSR has made environmental protection possible through implementation of effective policies and helped promote awareness by enhancing stakeholder, community, and staff involvement.

Comparison of Singapore and U.S. Business Cultures

Clearly, both the United States and Singapore have a distinct area of divergence as far as communication is concerned. The two states tend to operate in what can be termed low-context societies, implying that the two countries do not emphasize the use of nonverbal communication, although it is allowed in certain situations in Singapore (Chan, 2000). In Singapore, facial expressions, posture, and tone of the voice are employed to communicate what exactly one feels, but this is not the case with the United States because people there rarely rely on nonverbal communication. Further, the main objective of communication is believed to be the same for both the United States and Singapore. Some Singaporeans are subtle, indirect, and highly implicit in terms of their communication, whereas in the United States communication is more direct.

Communication Differences

The United States and Singapore differ regarding how communication is delivered, both verbally and nonverbally. Understanding the communication difference will help any businessperson operating in the United States or vice versa to communicate effectively. Communication difference is a cultural element that must be fully understood.

Verbal communication. In the United States, communication specifically takes place in English and is used by all the locals as the main language of communication. However, in Singapore, there are three ethnic groups, and, as a result, there are four languages that are used including Mandarin, Tamil, Malay, and English. Throughout the United States, English is the national language and preferred in schools, though some students opt to pursue foreign language fluency. In contrast, most Singaporeans are bilingual.

Nonverbal communication. In both the United States and Singapore, nonverbal communication plays a part of the business culture. In Singapore, nonverbal communication is predominant and often is displayed in the form of handshaking, smiling, and nodding. The United States, however, tends to focus more on the use of words in language and tone rather than focusing on nonverbal communication. However gestures are still widely used.

Differences in Management Styles

The majority of business owners and partners from Western countries such as the United States come across differently in terms of their business management. Singapore businesspeople often engage in business meetings with various business owners who run a wide range of companies in Singapore. In Singapore, the business management style focuses on the notion of collectivism that advocates for the idea of group consensus. This management style emphasizes the good of the group rather than individual success. In the United States, the business management style is often individualistic and focuses on individual success rather than group welfare. Western societies tend to emphasize the aspects of personal achievement, independence, and self-determination, whereas in Singapore, management emphasizes the notion of collective achievement is good for everyone.

Female Influence in the United States and Singapore

U.S. businesswomen in most instances tend to be confronted with some level of gender bias, particularly when they are doing business in Singapore. This implies that the Western female influence in business in Singapore is limited compared to that of Singaporean women. Being taller than average Singaporeans tends to be an advantage for women. Singapore also has an official policy that tends to protect women against any form of discrimination; further, Singaporean women in recent times have gained wider societal acceptance in business. There is thus an emphasis on gender equality in Singapore. In some businesses in Singapore, women can be found holding authoritative positions in business, but their positions cannot be equal to that of men. By the year 2010, more than half of women over 15 years old were involved in the workforce. Further, 73.85% of women aged 25–54 were actively involved in the workforce. Studies have shown that each succeeding year the total number of women engaged in the workforce increases tremendously; however, the percentage of women who were working dropped slightly at an average age of 25–30 years old, and this could be women who take time off to start a family. Additionally, female middle managers throughout Singapore tend to face some level of glass ceiling in their working environment, which is unlike in the United States where every woman has the right to be promoted and is not limited by glass ceilings. In general, women have limited rights as far as the workforce is concerned in Singapore s they do not have the same networking or mentoring opportunities as men.

Political Roles in Business

Politics play a significant role in business in both countries. Based on organizations’ experiences, political stability in Singapore attracts companies to open up a branch in Singapore. Political roles in business are similar when there is political stability in the country. Currently, Singapore has a parliamentary democracy in addition to its Prime Minister Lee Hsien Loong. Both countries have a legal system based on English common law. Based on the research conducted by Transparency International, it is clear that the political role in Singapore has led to the success of business; for instance, Singapore was ranked the fifth state globally among the least corrupt states (Rosen, 2000). The government in Singapore affects the business environment in the country positively because it is in a position to decide certain priorities in the economy and further set regulations employing a rational, probusiness approach. Evidently, the government plays a key role in helping Singapore toward its mission of becoming one of the most industrialized states in the world. As a result, Singapore has probably the best political stability in Asia, and, according to Youngblood-Coleman (2010), the United States also has low political risk indexes and a stable government. Singapore and the United States have similar thriving goverments and politics, which can help both countries grow.

Implications for U.S. Firms Contemplating Business in Singapore

In determining the implications of U.S. firms’ contemplating doing business in Singapore, we first have to grasp its strengths, weaknesses, opportunities, and threats (SWOT). Understanding Singapore’s SWOT analysis can help business leaders make better informed decisions about pursuing business ventures there. Certain factors have made Singapore attractive to international firms. The strategic location of Singapore is one of the major advantages U.S. firms will explore and benefit from. The country is located in Southeast Asia, which enables firms to access diverse markets of approximately 2.8 billion people in a short time. Singapore’s probusiness environment is in a position to attract a huge number of foreign investors and various business entrepreneurs. U.S. firms will also be able to turn their business ideas into real ventures with ease, which could result in huge revenues. Unlike other Western countries such as the United States, in Singapore a foreign firm will take about 1–32 days to set up and be incorporated in Singapore. The government further offers potential assistance to boost business operations (Sim & Pandian, 2003). The country’s effective tax system is another factor to consider. Singapore has comparatively low effective personal and corporate tax rates. Further, the tax in Singapore has a tier system ranging from 0% up to 20% for all incomes that are above $320,000. There are actually no capital gains taxes in this country.

Strengths in Singapore

There are many strengths to consider when exploring business ventures in Singapore:

· Excellent infrastructure

· Transparent government officials

· Effective policymaking system able to address risks on time

· A healthy public fiscal stance

· Efficient international creditor position

· Central connected location

· Adaptable workforce

· Probusiness environment

Free trade agreement. The Congressional Research Service (2010) outlined the impact of U.S.–Singapore trade relations 5 years after the ratifications of the Free Trade Agreement by the two countries. By 2009, exports from Singapore had peaked at $27.9 billion from $16.6 billion in 2003. The agreement explicitly provided U.S. goods with a market by injecting necessary capital into the economy. For Singapore, a significant effect is that U.S. direct investments have reached an estimated $21.1 billion (Congressional Research Service). The significance of the Singaporean trade ties is the expansion of the U.S. goods market. According to statistics of Singapore trade, Singapore imported approximately 26% of its imports from the United States (Congressional Research Service) and provided the United States a market for industrial goods such as equipment for telecommunication parts and microchips. Singapore is the primary beneficiary of the close trade relations agreement. Since the establishment of the Free Trade Agreement, statistics show that the exports of pharmaceutical products from Singapore to the United States increased from $0.23 billion to $3.0 billion in the financial year 2009. Oil is the most significant imported product from Singapore to the United States (Congressional Research Service). As a result, the FTA opened a larger market for Singaporean products.

Financial and political stability. Political risk in Singapore is low according to the Political and Economic Risk Consultancy (PERC). Singapore enjoys some of the lowest political risk globally. The country is also democratic, where the citizens elect their own representatives. Since its independence, Singapore has been enjoying a high level of political stability and has become quite peaceful while its citizens enjoy a higher standard of living. This is related to its improved business opportunities. Therefore, with improved political stability, Singapore is in a position to concentrate on various strategies for economic growth and development.

Singapore is one of the most established financial service hubs in the Asia-Pacific region. It is an international center as far as banking and finance are concerned. Singapore’s probusiness environment, high cultural diversity, and well-established regulatory framework are among the factors that have made Singapore a destination for global businesses and attracted international capital and financial institutions. Singapore was rated fourth for global financial institutions, making the country highly competitive. There is a wide range of financial products offered in Singapore, ranging from bonds, insurance, foreign exchange, and derivatives. Major growth areas entail risk management, private banking, and even wealth management. There have been efforts by the Singaporean central bank, the Monetary Authority of Singapore, to liberalize the country’s banking sector, thus encouraging increased competition from foreign banks. It is clear that Singapore has a large foreign exchange market globally, only trailing after London, New York, and Tokyo.

Intellectual property protection. Singapore has the most comprehensive intellectual property protection. The government takes the concept of IP protection with utmost seriousness. As the result of effective policies to enhance IP protection, global businesses have focused on Singapore as their destination to set up businesses with the aim of seeking to manage their comprehensive intellectual assets effectively. According to the Institute for Management Development (IMD) and Political Economic Risk Consultancy (PERC), it is clear that Singapore is ensuring comprehensive IP protection throughout Asia. Further, the country has a strong copyright law, which eliminates forms of willful copyright infringement. The country is further ranked seventh globally in the International Property Rights Index 2013. This has enabled Singapore to become the second most innovative state in Asia, as stated by the 2013 Global Innovation Index. The success of Singapore innovation is attributed to the following: a strong IP protection, emphasis on R&D, and the utmost grooming for R&D talent.

Immigration policy. The open immigration policy in Singapore facilitates business relocation such as for U.S. firms. This allows for easy and fast settlement. Work visa provisions are also provided by the Singapore government. An immigrant worker in Singapore is further divided into foreign talent and the foreign workers. The immigration policies established have enabled immigrants to feel that their efforts are recognized and valued differently by the country (Marx, 2011). The government for years has been at the lead in emphasizing the important contribution of immigrants to the economy.

Weakness in Singapore

There are a few weaknesses to consider when evaluating Singapore from a business perspective:

· Aging population

· Small domestic market

· Highly disjointed regarding language and media

· Limited domestic market size

· Small size of successful production companies

· Highly fragmented market as a result of diverse language segmentations

High overhead cost for business operations. High overhead costs are everywhere in the business operations in Singapore. These challenges are associated with Singapore’s business environment and various personal aspects. It is clear that both aspects have the capability to harm the business environment. An expensive process is believed to have originated from the high cost of living, such as Ex Land, and building projects. The high living standards will in the process make the city extremely expensive for businesses to operate and to local people to live. Therefore, Singapore is actually one of the most expensive countries in the world. Studies have shown that the most expensive factor in Singapore is the price for renting an apartment.

Labor laws. Singapore is believed to have the best labor laws in the world. The laws are not very harsh, and they take into consideration the company’s performance and the employees. Employees are supposed to be paid according to their level of education and experience, and this must be equal to the task done. Singapore’s workforce specifically is known for its high level of education, high productivity, and technical productivity. The government often supports companies to be successful; therefore, the laws on labor are accommodating.

Opportunities in Singapore

There are great opportunities to consider when considering business ventures in Singapore:

· Shopping complexes

· Technologies and industrial machinery such as petroleum refining and transport equipment

· Sengkang General and Community Hospitals

· Tampines Town Hub project

· Changi Airport development

· Thomson-East Coast MRT Line

Threats

There are a few threats to consider when considering business ventures in Singapore:

· Heavy business competition in a small market due to numerous international businesses

· Smaller talent pool to hire potential employees

Global competitiveness. Clearly, both the United States and Singapore have a distinct area of divergence as far as communication is concerned. The two states tend to operate in what can be termed as a low-context society, implying that the two countries do not emphasize the use of nonverbal communication, though it is allowed in certain situations in Singapore. In Singapore, facial expressions, posture, and tone of voice are employed to communicate what exactly one feels, but this is not the case in the United States because people there rarely rely on nonverbal communication. Further, the main objective of communication is believed to be the same both for the United States and Singapore (Peng, 2000). Both verbal and nonverbal communication in the United States and Singapore play a vital role in the enhancement of business communication. The Singaporeans are subtle, indirect, and highly implicit in their communication, whereas in the United States communication is more direct (Teo, Wong, & Chai, 2008).

Despite several issues that have been raised such as rising business costs and slowing growth, Singapore just celebrated its fifth year as the second-most competitive country—after Switzerland—based on a report by the World Economic Forum (YEAR). The country was placed second as a result of its consistent performance in the economy, and it fared well in various factors that were assessed to rank the countries such as infrastructure, technological readiness, and health. Further, the nation did well concerning labor, efficiency in the financial market, and in terms of quality of goods. Singapore can also depend on a flexible and attractive labor market, despite having low female participation in the workforce. High levels of education have enabled the country to increase its technological adoption and innovation.

Foreign Direct Investment

Singapore has for many years been receiving what can be termed as a disproportionately high level of FDI. The country tends to attract more FDI than the rest of Asia. This has led to major growth in the GDP. It is evident that, if Singapore has a larger GDP, then it follows it will attract more FDI. According to Teo, Devadoss, and Pan (2006), Singapore has for years been receiving some of the most FDI in Asia. The FDI flows in Singapore help the country keep up with Singapore’s high level of economic development and growth. The problems emerge from the fact that FDI is not a zero-sum game because ASEAN can merge to make themselves more competitive; this could affect Singapore greatly (Teo, Devadoss, & Pan, 2006).

Host country restrictions. Singapore’s numerous legal frameworks and other public policies are developed in such a way that they favor foreign investors. However, foreign investors do not have the right to either cede management control in a business or enter into a form of joint ventures with locals. Both local and the foreign investors are guided by the same basic laws of Singapore. The government critically screens foreign investment proposals to determine the most qualified investor for incentive regimes. Singapore does not place any form of restriction on any reinvestment or even on capital repatriation. Articles of incorporation in Singaporean law have shareholding limits that restrict ownership in any corporations by foreign individuals. Further, the Newspaper and Printing Presses Act clearly restricts any form of equity ownership in Singapore to about 5% for every shareholder, and, further, all the directors must be citizens of Singapore. The local media are influenced by the government, and there exist restrictions on the Internet, although Singaporeans have what is termed uncensored accessibility to the international media.

Infrastructure predictability. FDI has been the largest contributor to economic gains in Singapore, as reported by the FTA (Congressional Research Service, 2010). Statistics show that foreign direct investment injected about U.S. $21 billion into the Singaporean economy in 2009, compared with $4.3 billion in 2003 Congressional Research Service, 2010). The injection of capital into the economy has enabled Singapore to complete major infrastructural programs, effect positive policy adjustments, and establish the country as an important global trading partner. The FTA has reportedly created over 6 million employment opportunities to boost the Singaporean economy. Both the United States and Singapore have benefited from market creation, increased employment for citizens, and numerous economic gains (Congressional Research Service, 2010). Singapore’s continually growing infrastructure has lured international business from around the world, which has positvely affected foreign direct investment.

Exploitation from joint venture partners. The joint venture is a common means used in Singapore for conducting international business. It enables new firms in Singapore’s market to share the associated risks with another new firm or venture and further take advantage of relative skills and venture partners’ assets. Joint ventures further improve a firm’s revenues, improve its competitive advantage, help it explore the IP assets fully, extend its brand image, and enhance its business reputation.

Cultural Adaptation U.S. Firms Should Make

The cultural adaptations U.S. firms should make while doing business in Singapore include developing friendships with both the Singaporeans and individuals from their home country, improving language proficiency, learning the culture and the customs of Singapore, disregarding old assumptions and expectations, learning to be accommodating to different cultures, appreciating its multicultural environment, and employing people from diverse cultural backgrounds.

Consideration for Business Etiquette

When it comes to doing business in Singapore, firms should follow certain etiquette considerations. When businesspeople are making introductions, especially in a formal business meeting, with an individual with a Chinese name, they should use a first person title then family name then personal name. For an individual with a Western name, for instance “James,” it is important that an individual is introduced in the same way as in the West: use the given name followed by the family name. Studies have shown that the Malays in most instances do not use the family name but use their own name followed by bin, which means “son of,” or binti, which means “daughter of” before giving a father’s name (Garrett, Buisson, & Yap, 2006). Business cards often are exchanged particularly upon meeting, and these should be treated respectfully. These business cards have to be received and given with both hands. Once people receive business cards, they should place them on the table and arrange them in accordance with the people in the meeting. An individual is not expected to write on that business card but to keep it casually in the pocket. Any violation of these actions will be treated as disrespect.

Conclusion

Singapore is a great county with a vibrant and ethnic history. You can see and experience the cultural diversity of the country by tasting the cuisines and interfacing with the people of Singapore. Any company pursing business in Singapore should consider the political and financial stability of the country, the foreign direct investment overlay, and the SWOT analysis before making any decisions. Singapore is a multiethnic metacenter with various opportunities, but consider all the elements of cultural prior to visiting. This will definitely be beneficial for all companies and employees in such a dynamic business environment

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