The cultural and market dimensions between the USA and China - Assignment Example

Hofstede’s Model—USA vs. China The present paper looks for making the comparative analysis of the cultural and market dimensions between the USA and China, the two opposite and rival societies existing in quite divergent regions of the world, in the light of the cultural index articulated by Dr. Geert Hofstede by 1973. The main objective behind making an investigation into the topic above-mentioned includes the exploration of association between the cultural traits and economic developments the countries observe at the international scale. Renowned Dutch theorist Dr. Geert Hofstede’s cultural dimensions index elucidates the cultural aspects of the independent states by concentrating upon the five dimensions, which include power, individualism, masculinity/femininity, uncertainty and long term orientation (Hofstede et al., 19). The comparison between the USA and her opposite political and economic state i.e. China in the light of Hofstede’s cultural index, has been made in the following lines: China vs. USA: Power Distance Index While elaborating the first dimension i.e. power distance, it becomes evident that the USA looks carrying 40 points in respect of power distance, while China maintains 80 in the same dimension; which manifestly indicates that the people of China observe imperative divergence in the cultural hierarchy as well as business and financial positions, in comparison with the Americans, where the latter have obtained less financial and status differences within the social hierarchy than their Chinese counterparts. Consequently, the status consciousness and conflict on the basis of social and financial positions is far lesser among the Americans than among the people of Far East growing economic giant i.e. China. Figure 1 China vs. USA: Power Distance Index China vs. USA: Individuality While discussing the second of the Hofstede’s cultural dimensions i.e. individuality vs. collectivity, one comes to know that the USA contains 91 points in individuality; on the other hand, China carries just 20 points in the same index. As a result, the American subjects appear to be far more interested in individual achievements and independence in comparison with their Chinese counterparts, and hence seem to be making hard efforts to observe accomplishments while embarking upon their national and international business and financial ventures subsequently for the sake of witnessing individual progress in life. On the contrary, the Chinese pay due heed to collectivism, instead of individualism, and enter into long term friendships, partnerships and personal and familial associations with their fellow citizens on the one side and the overseas business partners and friends on the other. Hence, the concept of personal relationships and collectivism appear to be in significant wane in the USA in comparison with China. Figure 2 China vs. USA: Individuality China vs. USA: Masculinity/Femininity: Third dimension of the cultural index under-investigation reflects the masculinity/ femininity existing within the cultural context of the world nations at large. Here, according to the Hofstede’s index, masculinity stands for the level of aggression, competition and achievements, while, while femininity reflects the compassion, care and meekness actually the people observe in their everyday life. The index points out that the Chinese lead the Americans in aggression, assertiveness, decision-making and embarking upon competition by obtaining 66 points; on the other side, the US people appear to be more compassionate and caring than the Chinese in their collective life by carrying 62 points. However, the countries do not observe great difference between them with regards to the Hofstede’s masculinity/femininity dimension. Figure 3 China vs. USA: Masculinity/Femininity China vs. USA: Uncertainty Avoidance Similarly, the fourth dimension of the Hofstede’s Index explains the magnitude of uncertainty avoidance the nations maintain in their everyday routine activities. In other words, it refers to the ability and determination with regards to endure and resist against the uncertain and tentative state of affairs at large. The uncertain situations, particularly crimes, accidents, natural calamities and disasters, are strived to be evaded by seeking shelter under the religious beliefs, formation and application of the code of law, and moral principles and ethical values have been in vogue in a particular socio-political establishment. In the uncertainty avoidance index, China scores just 30 only, while the USA scores 46. It clearly indicates that the Americans somewhat have the trend of undergoing the fear and insecurity in respect of any possible uncertainty; consequently, they are more conscious than their Chinese counterparts, in respect of seeking support from religious, legal, political and social institutions in one way or the other in order to escape uncertainty in business activities and financial transactions. Hence, by having high uncertainty avoidance index, the Americans appear to be paying more heed to religious obligations and seeking more support from the rule of law in their business matters and market affairs than the Chinese people observe in their routine work and activities. Figure 4 China vs. USA: UAI China vs. USA: Long term Orientation The last of the cultural dimension lays stress upon long/short term orientation. In other words, short term orientation defines the peoples’ sticking to the traditions, conventions and prevailing moral values instead of bringing fast alterations in their life-style, ethical values and belief systems. Similarly, the same traditionalism is being imitated by the people of the USA in their trade, business and other commercial activities. Since an overwhelming majority of the American subjects follow a specific faith, i.e. Christianity, the members of US society emulate the religious teachings, and hence are traditional in nature and scope. On the contrary, the Chinese stick on making long terms plans by adopting novelty and innovation in their cultural and market activities. It is therefore, the Chinese are turning western to a great extent with the passage of time. Nevertheless, it is quite strange to notice that though the scientific and technological advancements made by the USA have no comparison with the same made by China altogether; however, the adopting of long term orientation has turned out to be fruitful for the Chinese in respect of rising as the second largest economic power of the world after America. Hence, the Hofstede’s index, displays the Americans to be far more traditional than the Chinese masses actually. Figure 5 China vs. USA: Long term Orientation To conclude, it becomes evident that the Chinese appear to be witnessing great difference from the Americans in their cultural values and market and commercial systems predominantly in respect of power development, individuality, uncertainty avoidance and LTO. Somehow, they are fast chasing the Americans in the race of hitting the tremendous economic targets, and turning their nation to be progressive and prosperous eventually. In some way, the masculinity/femininity dimension find little difference between the countries exhibiting that both the cultures are competitive, aggressive, less caring in cultural and market points of view at large. Work Cited Hofstede, Geert., Gert Jan Hofstede., and Michael Minkov. Cultures and Organizations: Software of the Mind, 3rd edition. New York: McGraw-Hill. 2010. The Hofstede Centre: China vs. USA. Web. < http://geert-hofstede.com/china.html > Read More