Question

Please list and two of Hofstede’s (1980) cultural dimensions and discuss why each is relevant in our global environment

Answer 1

Two of Hofstede's cultural dimensions are

• Uncertainty Avoidance
• Masculinity Vs Feminity

How Uncertainty Avoidance is relevant in a global environment?

It is necessary to acknowledge certain factors while doing business in a global environment. Since the cultural factors differ in certain countries, to reach a successful agreement one has to make decisions based on these factors. the dimensions also aid in comprehending the outcomes of business agreements.

For example, if a businessman from Japan was trying to secure a deal with an American businessman, you'll notice that the Japanese would attempt to maintain a longer relationship through the deal to avoid future risks showing a high Uncertainty avoidance index. However, this is not true for the American businessman who would base decisions on the better offer he receives as the Uncertainty Avoidance is low for Americans. This is why cultural dimensions are very relevant to understand the business decisions of individuals from different countries.

How Masculinity Vs Feminity is relevant in the global environment?

Masculinity and Femininity play a huge role in defining the societies of various countries. To learn and perceive the culture of certain countries, one can observe the behavior of the citizens and determine if the country is masculine or feminine and how to approach them in business or any other form.

For example, Asian countries are usually driven by competition and hold a patriarchal system which shows the masculinity of the nation. By knowing this, a business from abroad can formulate effective negotiation and market entry strategies to conduct business in this environment. The Scandinavian countries demonstrate traits of care, discussions to accommodate ideas and measures to enhance the quality of life. These are feminine traits according to Hofstede and can be useful for businesses that resonate with such environments.