Culture And International Business

Power Distance:

It relates to the different solutions to the basic problem of human behavior. Cultures that demonstrated what Hofstede called "low power distance" in which there's a concern to minimize inequalities between boss and workers. We can find low power distance in these countries: New Zealand, Sweden, Austria. In high power distance cultures, inequalities within society are more acceptable. For example: Spain, Portugal, and all countries of Latin America

Uncertainty Avoidance:

It relates to the level of stress in society in the face of an unknown future. In relatively low uncertainty avoidance cultures, precision and punctuality are less important. Innovation is encouraged and people are motivated by being esteemed by, or belonging to, other above things.Countries with low UAI are Singapore, Jamaica and Denmark. High uncertainty avoidance scores mean that there's a fear of ambiguous situation and a preference of being busy, punctual and precise. For example: Japan, countries of Latin America, South Korea.

Individualism vs. Collectivism:

Individualism means that people in a society take care of themselves and their closest family. It's a loosely-knit social framework. For example: France, UK, Canada.Collectivism represents societies that take care of everybody. It's a tightly-knit framework. Countries with collectivism are Russia, India, Egypt.

Masculinity vs. Femininity

They stand for a division of emotional roles between women and men. In high femininity societies, social gender roles overlap with both men and women valuing 'feminine' qualities like modesty and quality of life above the more traditionally 'masculine' qualities of aggression and competition. For example: Netherlands, Denmark, Scandinavian countries. A high masculinity ranking indicates the country experiences a high degree of gender differentiation. Females are controlled by male domination. Countries in which we can find masculinity are Japan, Germany, U.S.

Long Term vs. Short Term Orientation

It relates to the choice of focus for people's efforts: the future or the present and past. Long  Term: it stresses perseverance and being sparing with resources. For example: China, Taiwan, Japan. Short Term: it involves a greater emphasis on quick results. We can find short term orientation in these countries: Pakistan, U.S., Great Britain.

Indulgence vs. Restraint

Indulgence societies allow relatively free satisfaction of basic and natural human drives related to enjoying life and having fun.  For example: Venezuela, Brazil, U.S. Restraint societies  suppress gratification of needs and regulate it by means of strict social norms. For example: Pakistan. 

AUSTRIA:  This country has very a low power distance. Austrian culture has following characteristics: equal rights, attitude towards managers are informal and on first name basis, citizens of Austria don't like to be controlled by someone else. Austria has a strong preference for avoiding uncertainty. Austrians feel an emotional need for rules and they always make their decisions after a long analysis of all important information. This country has a individualistic society, which means Austrians look after themselves and their closest family. Another characteristic is that offense very often  causes guilt and a loss of self-esteem. Society of this country is also more masculine than feminine. "A clear example of this dimension is seen around election time, with ferocious, no-holds barred battles between candidates." We can say that Austria has a short-term orientation and that Austrians have respect for traditions.

CANADA: Canada is a country with a quite low power distance. Canadian managers rely on individual employees and teams for their expertise and ideas. They often consult one another and share information freely. Canadians value a straightforward exchange of information.Canadian culture accepts uncertainty and is not very rules-oriented. Everyone is free to express their opinions and ideas. Canadians also tend to be less emotionally expressive.Canada is definitely an individualistic country. Employees are expected to be independent and full of energy and initiative. When Canadians hire new people they look for evidence of what they have done or are able to do. We can say that Canadian culture is somewhere in the middle between masculinity and femininity. Canadians are very good at finding balance between working hard and their personal life. They are hard workers who always find time for fun and enjoyment. This country is also short-term oriented. "A Canadian business entity measures performance on a short-term basis, with profit and loss statements being issued on a quarterly basis."

BELGIUM: Belgium has a high power distance. In business, inequalities between workers and boss are expected. There should be more formal attitude towards managers. The information flow is hierarchical as well. There's a high lever of uncertainty avoidance in Belgium. Rules and security are very important otherwise the lack of rules would create stress.Trainings and teachings are more inductive. Belgium is one of the most individualistic countries. Even though Belgium is an individualistic country, Belgians still need a hierarchy. "High score on power distance and high score on individualism create a specific “tension” in this culture, which makes the relationship so delicate but intense and fruitful once you manage it." Similarly like Canada, Belgium is also somewhere in the middle of masculinity and femininity. Mutual agreements are more important  than actual winning and discussion. Win-lose style would not be very effective in Belgium. Belgium is a short-term orientated country. Belgians feel a need for norms and absolute truth as guidelines.Management and business are based on self reliance, personal achievement, hard work and managers are judged on short term results.