Monday, December 10, 2012

Culture and International Business

Hofstede's five Cultural Dimensions





          - Power distance : This concerns the extent to which less powerful members of organizations within a country expect and accept that power is distributed unequally. In general, Hofstede found that Latin American and Latin European(France and Spain) countries had higher power distance scores.

          - Uncertainty avoidance : This concerns the extent to which the members of a society feel threatened by uncertain arid unknown situations. Jamaica and Singapore were relatively low uncertainty avoidance cultures  where precision and punctuality are less important, innovation is encouraged and people are motivated by being esteemed by, or belonging to, others above other things.

          - Individualism vs Collectivism : In an individualist business, employment contracts based on hiring and firing. Two examples of countries with high scores on individualism were Australia and Canada. In a collective society, people are more concerned for others and the culture is based around more cohesive groups such as the family which offer protection in exchange for loyalty. Ecuador, China and Indonesia are the examples of more collective societies.

          - Masculinity vs Femininity : This refers to the degree to which gender roles are distinct and adhered to within a society. In high femininity societies, social gender roles overlap, with both men valuing feminine qualities such as modesty, intuition and quality of life above the more traditionally masculine qualities of aggression and competition. Denmark and the Netherlands were more feminine cultures  while many other Western countries exhibited more masculine values. Japan, the UK and West Germany scored highly on masculine values.

          - Long Term vs Short Term Orientation : This refers to the degree to which the country orients and focuses for people's efforts more more to the future or present. Korea and Japan are the examples long term orientation countries, while Mexico and Jamaica are short term orientation countries.

          - Indulgence vs Restraint : Indulgence society is freely satisfied by basic needs and behavior, and enjoys moment rather than using time to compare with others. The USA and Canada can be an indulgence society. Restraint society will be suppressed and regulated, which ends with feeling threatened. China and some south eastern Asia can be the example of restraint society.

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