Asia – Continent of Contrasts in Business & Culture

Spanning some 17 million square miles, Asia is the world’s largest, most populous continent. The region is also the locus of global consumer demand, a force in innovation, and key source of foreign direct investment (FDI) to the U.S., where Asian firms employ over 1.4 million Americans.[1]

The region consists of 48 nations with keen differences in business practices and culture among them, often between close geographical neighbors. There are also over 20 million Americans of Asian heritage and some 45,000 in Arkansas, where the Asian-born population has grown rapidly over the past decade.[2]

Still, we tend to over-compartmentalize large swaths of the world (a two-minute segment on Asian markets on a morning finance program, or a one-page regional section in Sunday’s paper). Sure, the same treatment is sometimes given to ‘Western news’ in foreign media, but resources also abound offering finely-honed insight.

As Arkansas’ global relations deepen and evolve, it’s important we recognize the contribution of Asian economies and unique traits of each. Here we’ll look at just a few points on nations with standing and growing ties to our state:

Japan

Japan is the world’s 3rd largest economy and Arkansas’ largest source of foreign direct investment and job creation, employing some 5,600 Arkansans in a broad range of industries. Japan is well-known as a land of contrasts, with well-preserved Meiji era historical sites and revered traditions abutting ultra-modern skylines and shifting social attitudes.

Although it's an iconic free market economy, Japan’s business culture remains fairly staid and conservative, with a consensus-based approach to decision-making and value placed on nurturing long-term relationships. Despite this, Japanese firms keep forging hugely successful ventures in challenging international markets where flexible management is key.

India

India, on course to overtake China as the world’s most populous country next year, already claims the mantle of the world’s largest democracy.[3] A massive union of 28 states with 22 officially recognized languages, India is a marvel of complex political and economic climes unified under one flag.

The past decade saw India leap in global economic rankings from 10th largest to 5th largest by GDP, and it’s currently the world’s fasting growing economy at over 8%, year-to-date.[4] Indian firms’ presence in Arkansas has also grown dramatically in recent years, especially in IT and manufacturing. These include Welspun Group, Tata Consultancy Services, Mahindra Group, Wipro, and Infosys. ?

South Korea

South Korea, or the Republic of Korea, is a long-standing economic & military ally of the U.S., with an outsized position in the crucial semiconductor and EV industries. The country also boasts some of the more impressive cultural exports in recent years, with Korean TV and filmmakers raking in awards and K-pop hits regularly charting overseas.

Visiting the capital city of Seoul, with its sleek infrastructure and vibrant business scene, one can feel an unsettling sense of contrast. The North Korean border, seat of one of the world’s most repressive regimes, sits less than 40 miles away, buffered by a thin 'Demilitarized Zone'. South Korea’s shift to democracy and meteoric economic rise following the Korean War (the ‘Miracle on the Han River’) remains an inspiring case study of national and economic development policy. ?

Singapore

Modern Singapore emerged over the course of the 19th century, declaring independence from Malaysia in 1965 after 140 years of colonization and military occupation by larger powers. Today the country is known as a global powerhouse in finance and fintech, life sciences, trade, and business services, with a bold and nimble entrepreneurial spirit.

Singapore is a city-state with a population of 5.7m people squeezed onto an island measuring under 300 square miles. For scale, that’s only around 0.5% the size of Arkansas. Singaporeans claim various ethnic backgrounds (Malay, Chinese, Indian, etc.), and there are 4 official languages. The country has thrived under a unique mix of laissez-faire business promotion policy with social programs like heavily subsidized public housing.

Mainly due to a lack of appropriate space, Singapore's armed forces often partner with foreign militaries for training. Last year, Singapore’s air force selected the Ebbing Air National Guard Base near Fort Smith for extended training on F-16 and F-35 jets. 180 Singaporeans and over 300 U.S. military personnel will staff a new training facility nearby, pending final approval. This move will be a powerful boon to Arkansas-Singapore relations and the regional economy.[5] ???

Naturally Engaged

Organizations such as the AEDC, Global Ties Arkansas, World Trade Center, Arkansas Association of Asian Businesses, Ra-Ve Cultural Foundation, and Sister Cities Commissions help link our state with various parts of Asia. Business and cultural ties continue developing as Arkansas engages more countries via trade, FDI recruitment, and diplomatic visits to and from the state. As companies and people from more Asian countries make their move to Arkansas, we'll continue to learn and benefit from perspectives and opportunities they bring.?

[1] United States Dept. of Commerce - International Trade Administration, 2022 [2] United States Census Bureau, 2020 [3] UN Dept. of Economic & Social Affairs, 2022 [4] International Monetary Fund – World Economic Outlook, 4/2022 [5] Talk Business & Politics, 2/22