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County analysis - Essay Example

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Hofstede defined power distance as “the extent to which less powerful members of the institution and organizations expect and accept that power is distributed unequally” (Baumann, 2007). A…
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Download file to see previous pages In carrying out business with parties from elevated power distance countries, the managers used or should have title at least on the same level as those they are negotiating with. On the other hand, cultures that have low power distance should have the inequalities reduced. Japan is ranked at 54 while the United States of America is ranked at 45.
According to Hofstede, countries with low uncertainty avoidance index score have innovative approaches and risk investment tendencies. This are attributes found in entrepreneurs. Uncertainty avoidance is the reality that vagueness about the prospects of the future is a basic fact of human life with which we try to cope through the domain of technology, law and religion. Uncertainty avoidance is also the extent to which individuals feel endangered by situations. This leads to people creating institutions that deal with these. Hofstede used stress, employment stability and rule orientation to identify. Countries are then ranked as low or high concerning uncertainty avoidance. Squat uncertainty avoidance means that, there is a strong willingness to take a risk. On the other hand, high uncertainty implies a lower willingness to take risk. Hofstedes notes that, in societies where there is high uncertain avoidance, there tends to be a generational gap amid the old and the young. High uncertain avoidance cultures are concerned with rituals and traditions and often follow exceedingly complex rules and regulations.
Individualism refers to preference of closed surrounding environment, in which it is understood that, one must mind for themselves and their close relations as opposed to the entire cluster in which one is an associate. Individualism can be referred to as an appraisal of the emotional dependence and autonomy of a person. The culture of a country is scored high in this sense if there are favourable responses to items such as , having a satisfying job which leaves you with enough time for yourself and the family.
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