CHAPTER 4: National Differences in

Culture Environment
FTU – Foreign Trade University
Lê Thị Thanh Ngân

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 Telling the truth

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 Queuing

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 Transportation

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 Child

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 Senior’s daily life

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 Noise level inside a restaurant

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 Connections and Contacts

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 Punctuality

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 Boss

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 and many others….

EAST - WEST
CULTURAL DIFFERENCES

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 Prof. Geert Hosftede

“Culture is more often a source of conflict than of

synergy. Cultural differences are a nuisance at best and
often a disaster”
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 WHAT IS CULTURE?

is the system of…

Values
Norms
and Beliefs
…being shared among group of people
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 ELEMENTS OF CULTURE
- Religion
- Language
- Aesthetic
- Political - economic philosophies
- Education
- Social structure
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 LANGUAGE
3,000 languages and as many as 10,000 dialects worldwide
Language can be a competitive weapon
Language serves at the window to the culture of a society
Verbal or non-verbal is a very important skill for Business people

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 4 Main religious: Christianity, Islam, Hinduism, Buddhism
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 “Master Kong”: 551 – 478 BC

Confucianism is not a religion, but influences behavior and

shapes culture in many parts of Asia
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 Activity 1
Give some examples of cultural differences in the interpretation
of body language. What is the role of such nonverbal
communication in business relationships?

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 WORKING IN CROSS CULTURAL WORKPLACE
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 Power distance
“The extent to which the less
powerful members of institutions
and organizations within a country
expect and accept that power is
distributed unequally”

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 Low power distance
• Minimize the inequalities among people
• Interdependence between less and
more powerful people
• Flat hierarchy pyramid
• Power decentralization
• Narrow salary range
• Subordinated expect to be consulted
• The ideal boss is a resourceful democrat
• Privileges and status are disapproved
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High power distance
• Inequalities among people are both
expected and desired
• Less powerful people should be
depended on the more powerful
• Slope hierarchy pyramid
• Power centralization
• Wide salary range
• Subordinated expect to be told what to
do
• The ideal boss is a benevolent autocrat or
good father
• Privileges and status are both expected
and popular
Classification: Internal
 Viet Nam
High Malaysia
Orientation towards authority Arab Countries
Mexico
India
France
Italy
Japan
Spain
Argentina
US
Germany
UK
Denmark
Low Israel
Austria

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 Example
• A company from Austria (low power distance) is considering entering the
Vietnam (high power distance) market.

Power Distance Index

100
81
80
60
40
20 11
0
Austria Viet Nam

Communication tips for the Austrian manager:

1) Give clear and explicit directions to those working with him

2) Deadlines should be highlighted and stressed

3) Do not expect subordinates to take initiative

4) Be more authoritarian in his management style

5) Show respect and deference to those higher up the ladder

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 Uncertainty avoidance –
“The extent to which members of a
society feel threaten by uncertain
or unknown situations”

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 Weak uncertainty avoidance
• Uncertainty: normal feature of life and
each day is accepted as it comes
• Low stress – subjective feeling of well-
being
• Aggression and emotions must not be
shown
• Comfortable in ambiguous situations
and with unfamiliar risk
• There should not be more rules than
necessary
• Precision and punctuality have to be
learned
• Tolerance to innovation
• Motivation by achievement
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Strong uncertainty avoidance
• Uncertainty : continuous threat that
must be fought
• High stress – subjective feeling of
anxiety
• Aggression and emotions may be
shown at proper times
• Fear of ambiguous situations and of
unfamiliar risk
• Emotional need for rules, even if they
never work
• Precision and punctuality come
naturally
• Resistance to innovation
• Motivation by security
 VietNam
High
Greece
Japan
France
Korea
Desire for stability

Arab Countries
Germany
Australia
Canada
US
UK
India
Low Denmark
Singapore

Classification: Internal
 Example
▪ A company from France (high uncertainty avoidance) is considering investing in
Denmark (low uncertainty avoidance)
100

Uncertainty Avoidance Index

86
80
60
40 23
20
0
France Denmark

Communication tips for the French manager:

1) Try to be more flexible or open in his approach to new ideas than he may be used to

2) Be prepared to push through agreed plans quickly as they would be expected to be

realized as soon as possible

3) Allow employees the autonomy and space to execute their tasks on their own; only
guidelines and resources will be expected of him
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 Individualism
“The tendency of people to look
after themselves and their
immediate family and neglect the
needs of society”

Classification: Internal
 Low individualism
• Individuals learn to think in terms of
“we”
• Diplomas provide entry to higher
status groups
• Relationship employer- employee is
perceived in moral terms, like a family
• Hiring and promotion decisions take
employees’ ingroup into account
• Management is management of
groups
• Relationship prevails over task
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High individualism
• Individuals learn to think in terms of
“I”
• Diplomas increase economic worth
and/or self- respect
• Relationship employer-employee is a
contract based on mutual advantage
• Hiring and promotion are supposed
to be based on skills and rules only
• Management is management of
individuals
• Task prevails over relationship
 High
Australia
US
UK
Canada
France
Germany
Spain
Japan
Mexico
Italy
Korea
Low Singapore

Classification: Internal
 Example
▪ A company from UK (high individualism) is considering investing in Mexico
(low individualism)
100 96

Individualism Index
80

60

40
23
20

0
UK Mexico
Communication tips for the UK manager:
1) Note that individuals have a strong sense of responsibility for their family

2) Remember that praise should be directed to a team rather than individuals

3) Understand that rewards depend upon seniority and experience

4) Be aware that the decision making process will be rather slow, as many members
across the hierarchy need to be consulted
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 Masculinity
“The tendency within a society to
emphasize traditional gender
roles”

Classification: Internal
 Low masculinity
• Dominant values: caring for others
and preservation
• People and warm relationships are
important
• Sympathy for the weak
• In family, both fathers and mothers
deal with facts and feelings
• Stress on equality, solidarity , and
quality of work life
• Managers use intuition and strive
for consensus
• Resolution of conflicts by
compromise and negotiation
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High masculinity
• Dominant values: material success
and progress
• Money and things are important
• Sympathy for the strong
• In family, fathers deal with facts and
mothers with feelings
• Stress on equity, competition among
colleagues and performance
• Managers are expected to be
decisive and assertive
• Resolution of conflicts by fighting
them out
 High
Japan
Mexico
Germany
UK
US
Arabia
France
Korea
Portugal
Denmark
Low Sweden

Classification: Internal
 Example
▪ A company from Denmark ( low masculinity) is considering investing in Mexico
(high masculinity)

Masculinity Index
100 91
80
60
40
20 8
0
Denmark Mexico

Communication tips for the Danish manager :

1) Be aware that people will discuss business anytime, even at social gatherings

2) Avoid asking personal questions in business situations

3) Take into account that people are not interested in developing closer friendships

4) Communicate directly, unemotionally and concisely

5) In order to assess others use professional identity, not family or contacts

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 Long- term orientation
“A basic orientation towards time
that values patience”

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 Short- term orientation
• Respect for traditions
• Little money available for
investment
• Quick results expected
• Respect for social and status
obligations regardless of cost
• Concern with possessing the Truth
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Long-term orientation
• Adaptation of traditions to a
modern context
• Funds available for investment
• Perseverance towards slow results
• Respect for social and status
obligations within limits
• Concern with respecting the
demands of Virtue
 Activity 1
Ask students to outline the reasons why the
various elements of culture might increase the
cost of doing business in a country. Please
illustrate your ideas with concrete examples of
both cultural elements and specific countries.

40
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 Activity 2
Assumed that your corporation intend to open your business in
America and Japan, from your own research about their culture,
point out the culture differences and specialties. Give some
recommendations for your boss?

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