Question

Based on the Hofstedes first 5 variables (Power Distance Index (high versus low),Individualism Versus Collectivism, Masculinity Versus Femininity, Uncertainty Avoidance Index (high versus low), Long- Versus Short-Term Orientation.) how do you determine if a country is good potential for an American company to market its products??

Answer 1

To determine if a country has good potential for an American company to market its products, the specifications should be as follows :

• Higher power index - A high power index means indicates that people acknowledge a structure or hierarchy without any doubts. Hence, they'd have a clear mindset for marketing a product.
• Individualistic society - An individualistic society believes in producing results and hence in the world of marketing, self-reliance and performances would be displayed.
• Masculine society - In such a society, people generally want to be the best, i.e. a society driven by competetion, performance and success.
• Low uncertainty avoidance - In a country with a low uncertainty avoidance score, people would keep their minds open to ambiguities and rather than try to avoid such situations, would adopt more in face of adversities.
• Long term orientation - A higher score , hence a long term orientation, says that the society is more pragmatic when solving problems.