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MINISTRY EDUCATION AND TRAINING

VIETNAM NATIONAL UNIVERSITY, HO CHI MINH CITY


UNIVERSITY OF ECONOMICS AND LAW

ASSIGNMENT 2

Hofstede Theory

Instructor: Hoang Thi Que Huong & Tran My Linh

Semester: 2023- 2024

Members:

Student name Student ID Rate

Nguyễn Thị Quỳnh Hoa K224081071 100%

Đặng Thị Hồng Hạnh K224081067 100%

Trần Nguyễn Anh Thư K224081095 100%

Triệu Tường Vi K224081100 100%

Bùi Thị Bích Trâm K224081097 100%

Ho Chi Minh City, 07/03/2024


1. Which dimension (of the six) has the largest difference between the US
score and the countries: China, India, and Brazil? Present the scores and explain
the difference.

Figure 1.1. Country Comparison based on Hofstede’s Theory of Culture

As shown in the diagram, indulgence is the biggest difference between the US


and other countries, namely China, India, while uncertainty avoidance has the biggest
gap between the US and Brazil.

One challenge that confronts humanity over many decades, is the degree to
which small children are socialized. This dimension is defined as the extent to which
people try to control their desires and impulses. In other words, “indulgence” versus
“restraint” indicates how freely people can satisfy their basic needs and desires, how
strict social norms are followed and gratification suppressed and regulated.
*US vs China

Figure 1.2. The culture comparison between US and China

At the score of 24, China is considered as a restrained society. Societies with a


low score in this dimension have a tendency to cynicism and pessimism. In particular,
countries that have a lot of restraint have a lot of social norms to regulate behavior.
Therefore, Chinese citizens will be good at controlling immediate gratification and
instead will be able to delay rewards and stay focused on tasks until a project is
completed.

On the other hand, the US scores as an Indulgent at 68, being reflected by the
following contradictory attitudes and behavior. Americans always want to reward
themselves for the hard work they do which reflects the popular phrase “work hard,
play hard”. It can be seen that American employees strive for the reward and benefit
for the hard work they have accomplished. In contrast, restrained countries put less
emphasis on leisure and have a more clear separation between work and family.

It can be explained because of some factors:

Table 1.1. The factors impact China and U.S culture

Factor China U.S

In China, there is a large social


In the U.S, cultural values such as
stratification, which means that people
individualism, consumerism, and the
in lower positions must follow the rules
pursuit of happiness both encourage
or regulations of people of higher
indulgence. Americans more concern
status. Moreover, they also attach
Social Structure about personal freedom and
special importance to the importance of
self-expression, which can lead
group interests. Social structures and
individuals to prioritize their own desire
rules appeared and existed for a long
and seek gratification through various
time, so those greatly influenced the
means, including indulgent behaviors.
Chinese people.

Chinese culture and philosophy have


been shaped by various religious and
philosophical traditions, such as
The U.S is one of the countries with the
Confucianism, Taoism, and Buddhism.
most diversified kinds of religions in the
These traditions emphasize values such
Religion world and has no single religion
as self-discipline, humility, and
predominating. People are free to choose
balance, which promote restraint in
their beliefs
personal desires and encourage Chinese
to live a virtuous and morally upright
life.

China’s political philosophy


emphasizes collective welfare, social
The U.S has a diverse political
Political harmony, and disciplined behavior.
landscape, and those can shape attitudes
Philosophy Individuals must obey regulations of
towards indulgence.
governments that are to exercise
restraint in their actions and behaviors.

While economic development and


In a market-driven economy,
prosperity are highly valued, there is
consumerism and the pursuit of material
also an emphasis on moderation and
Economic wealth are often encouraged. Economic
avoiding excessive materialism.
Philosophy philosophies that prioritize free markets
Chinese have to restrain their
and consumption can contribute to a
consumption and discourage excessive
culture of indulgence.
indulgence.
American culture often places value on
As mentioned above, because of norms
individualism, self-expression, and
and beliefs derived from Chinese
personal achievement, which lead to
Manners religions, people restraint in their
contributing to a culture of indulgence,
behavior, emotions, and desires as a
where personal desires and gratification
way to maintain social harmony.
are prioritized.

The education system in the United


Moral education is an integral part of States provides an open environment for
the curriculum, and schools emphasize students as they can freely give their
Education the importance of discipline, opinion. Students are promoted critical
self-control, and adherence to social thinking and decision-making skills that
norms. can help them make informed choices
about indulgence.

*US vs India - TA

Figure 1.3. The culture comparison between US and India

India receives a low score of 26 in this dimension, meaning that it is a culture of


Restraint. Societies with a low score in this dimension have a tendency to cynicism
and pessimism. Also, in contrast to Indulgent societies, Restrained societies do not put
much emphasis on leisure time and control the gratification of their desires. People
with this orientation have the perception that their actions are Restrained by social
norms and feel that indulging themselves is somewhat wrong.

The United States scores as an Indulgent (68) society on the sixth dimension.
This, in combination with a normative score, is reflected by the following
contradictory attitudes and behavior: Work hard and play hard. The States has waged a
war against drugs and is still very busy in doing so, yet drug addiction in the States is
higher than in many other wealthy countries. It is a prudish society yet even some
well-known televangelists appear to be immoral.

It can be explained because of some factors:

Table 1.2. The factors impact India and U.S culture

Factor India U.S

Strict customs, importance of Flexible customs, encouraging


Manners and
ceremony, and restraint in social and personal freedom and
Customs
personal behaviors. self-expression.

A structured society with clear social An open society that promotes


Social Structure
hierarchy and positions. diversity and equality.

Religions like Hinduism and Islam Religious diversity, with no single


Religion are influential, often emphasizing religion predominating, generally
moderation. more flexible in views.

Conservative policies and


Political Policies that promote individual
management, prioritizing community
Philosophy liberty and self-determination.
over the individual.

A developing economy with an A free-market economy that


Economic
emphasis on sustainability and encourages innovation and
Philosophy
control. consumption.

Education that encourages critical


Traditional education emphasizing
Education thinking, creativity, and
academics and discipline.
self-expression.
*US vs Brazil

Figure 1.4. The culture comparison between US and Brazil

At 76 Brazil scores high on UAI – and so do the majority of Latin American


countries. These societies show a strong need for rules and elaborate legal systems in
order to structure life. The individual’s need to obey these laws, however, is weak. If
rules however cannot be kept, additional rules are dictated. In Brazil, as in all high
Uncertainty Avoidance societies, bureaucracy, laws and rules are very important to
make the world a safer place to live in. Brazilians need to have good and relaxing
moments in their everyday life, chatting with colleagues, enjoying a long meal or
dancing with guests and friends. Due to their high score in this dimension Brazilians
are very passionate and demonstrative people: emotions are easily shown in their body
language.

The US scores below average, with a low score of 46, on the Uncertainty
Avoidance dimension. As a consequence, the perceived context in which Americans
find themselves will impact their behavior more than if the culture would have either
scored higher or lower. Thus, this cultural pattern reflects itself as follows:
There is a fair degree of acceptance for new ideas, innovative products and a
willingness to try something new or different, whether it pertains to technology,
business practices or food. Americans tend to be more tolerant of ideas or opinions
from anyone and allow freedom of expression. At the same time, Americans do not
require a lot of rules and are less emotionally expressive than higher-scoring cultures.
At the same time, 9/11 has created a lot of fear in the American society culminating in
the efforts of government to monitor everybody through the NSA and other security
organizations

Table 1.1. The factors impact Brazil and U.S culture

Factor Brazil U.S

- People have a high level of social


involvement and consider it crucial
to have human interactions, also in - The United States is a large and
the workspace. Most people are a bit diverse country with flexible
touchy and don’t have such a strong customs, encouraging personal
sense of personal space freedom and self-expression.
Manners and
- Brazilians need to know who they Americans value personal space.
Customs
are doing business with before they - US office culture emphasizes
can work effectively. Women individual achievement, direct
working in a corporate environment communication, and a balance
should ensure that their hands are between work and personal life
manicured. Formal dress code in
office

Social discrimination on the basis of The American class system of social


skin color, people with darker brown stratification is broadly divided into
skin are economically and socially three main layers - upper class,
disadvantaged. Class is determined middle class, and lower class - that
Social Structure by economic status and skin color. are mostly based on socioeconomic
There is a great disparity in wage conditions. It's important to
differentials--and therefore lifestyle recognize the difference between
and social aspirations--among the income and wealth when discussing
different classes and different gender our class system.

Brazil is a former Portuguese colony,


there was no freedom of religion Religious diversity, with no single
Religion during the colonial times. About 64% religion predominating, generally
of the population is Catholic, 22% is more flexible in views.
Protestant, 2% is Spiritist, about 3%
adhere to other religions, and 8%
have no faith.

The US political philosophy strives


for a democratic republic that
Brazil's political philosophy strives balances individual liberty with a
Political for a democratic system that balances well-functioning government that
Philosophy individual rights, social justice, and promotes economic prosperity and
economic progress. social justice. However, there's
ongoing debate about the best way
to achieve those goals.

the US economic philosophy


Brazil's economic philosophy
prioritizes a free market system with
prioritizes pragmatic solutions for
Economic some government intervention to
growth while increasingly focusing
Philosophy address social welfare, promote
on social inclusion and reducing
stability, and foster a competitive
inequality.
economy

Roughly 90% of adults (25 years or


older) have completed high school
The total compulsory instruction time or obtained a GED (General
over the course of primary and lower Educational Development). Around
secondary education is lower than the 15% have completed some college
OECD average, at 7 200 hours, coursework but haven't earned a
Education distributed over nine grades. In degree, 10.5% hold an associate
Brazil, 44% of 15-19 year-olds are degree, a two-year program, over
enrolled in general upper secondary 35% of the population has achieved
education and 5% in vocational a bachelor's degree or a higher level
upper secondary education. of education, such as a master's or
doctorate.

2. How do you prepare for those differences if you plan to visit these
countries in the near future?

Differences in culture and rules are one of the common reasons for
misunderstandings between people and tourists. Tourists may experience a bit of a
culture shock when they first arrive in another country. Even, in some cases, people in
that country might think you're insulting them. So getting ready for a little bit of
knowledge of the culture of the country you're about to come to is a completely
necessary experience of traveling abroad.

Here are some cultural features to prepare for when visiting these countries
(India, China, US, Brazil) in the near future:

*US: With a high Indulgence Index, Americans tend to be more open to


enjoying fun, entertainment, and pursuing personal interests, while Vietnamese
tend to save more and put more responsibility on them.

Costume: One of the differences between American and Vietnamese costume


styles is that sexy dressing is very common to Americans, and often painting images
of naked people is seen as bringing beauty to people to admire. Their perception is
quite different from that of the Vietnamese, which is one of the most obvious
differences in how they dress. So you need to be mentally prepared and accept their
style, instead of judging their dress.

Informal : In American culture, comfort has always been valued. They dress,
entertain, and communicate with each other comfortably, even when there is a
difference in age and social status. Students and teachers can call each other by name
when communicating (which may surprise most international students when they
come here, but this is part of American culture). Greetings in the US are also
expressed in many intimate gestures: greeting, handshaking, hugging, kissing, so don’t
be so surprised. However, when communicating, you should also avoid topics such as
age, income and marital status - three very sensitive factors in US communication.

Individualism: Americans have always respected individual freedom, which does


not mean isolation from the community around which Americans value individuality
and independence, guaranteeing equal human rights. This is a characteristic of
American culture.Therefore, independence is a characteristic of Americans. From an
early age, children have been taught to stand on their own feet. By the time they go to
school, the majority of American students will choose their own course, class, or even
pay part or all of the tuition. When I go to school, I'm gonna find myself a job, take
the lead in life... Moreover, people are encouraged to grow themselves, pursue their
dreams, take responsibility for life, creativity, innovation, and entrepreneurship.
Americans value achievement and Achievement is seen as a way for them to express
themselves.

Time: For American culture, time is the most important thing. Americans like to
set their lives on a timetable, they're always on time at every appointment or at work.
To other nations, Americans seem to be in a hurry, but the value of time helps them to
achieve high results in work as well as in life.It's considered unprofessional and
disrespectful to constantly be late or keep others waiting. Not only is timeliness
appreciated, it also helps ensure smooth coordination, avoid delays and meet deadlines
effectively.

Direct communication: The primary importance of direct communication when


working with Americans is that they value clarity and efficiency. They prefer
straightforward conversations that get to the point, so it's important to communicate
directly to ensure accurate understanding and avoid misinterpretation. Sometimes it
leads to conflict, but this straight talk also promotes discussion, exchanges with good
results in the work.

Tips – Service fee: Interestingly, tips is one of the characteristics of American


culture, service fees are not included in the bill, so customers usually pay a 10 to 15%
extra amount of the bill to the waiter. In many cases, tips are also a servant's income.

Cultural diversity: A diverse cultural background, covering a wide range of


races, religions and nations. People tend to be open and respect differences, listen and
learn from others' experiences and stories, use inclusive language, participate and
celebrate diversity, challenge bias and discrimination, foster cross-cultural
relationships, consider privilege and power dynamics, and engage in continuous
learning and growth.
*China: The Chinese and Vietnamese cultures have many similarities due to
the influence of Buddhism and the historical intersection. However, each country
has its own unique and distinct cultures.

Culture: China has a long and rich history and culture. It is important to bebe
open-minded, respectful of local customs and traditions and embrace the differences .
For example, it is considered rude to point or talk loudly in public. When visiting
temples or other religious sites, be sure to dress modestly.Study Chinese etiquette and
customs, such as proper gift-giving habits, dining etiquette, and the importance of
saving face in interactions. This can help them avoid misunderstandings and make a
positive impression.

Diet and cuisine: Chinese cuisine is known for its variety and flavor. There are
many different regional specialties to try. Be sure to sample some of the local dishes
when you visit China. However, if you have a sensitive stomach, you may want to
stick to familiar foods or bring some stomach medicine with you.

Language: Vietnamese and Chinese languages have many differences so learning


some basic Mandarin phrases to aid communication is necessary. Although many
Chinese people can speak English, knowing a few local phrases can be appreciated.
Respect traditional customs and practices, such as bowing, using both hands when
giving or receiving things, and taking off your shoes before entering someone else's
home.

Chinese culture is influenced by both collectivism and class division: It is


expressed through values such as patriotism, solidarity, and individual sacrifice for the
common good. So, China highlights the values of family and society, the importance
of tradition. Class division has been a reality in Chinese society since ancient times. It
manifests itself in the differences in social status, property, and power between the
classes of society. Class division can boost economic and social development, but it
also leads to problems such as inequality, social instability, and affecting human
mental health. When communicating with the Chinese people, respect the authorities,
the elderly, and the rulers. Talk to people using their appropriate title and maintain a
formal and respectful attitude in a professional and social environment.

*India: India is a country with a long history. The world sees India as one of
the most brilliant cultures of human civilization. So, tourists need to respect their
culture.

Dress up conservatively and respectfully: India is culturally diverse, with each


region having its own dress rules influenced by different religions and traditions.
When visiting, it is advisable to dress conservatively, especially in a business
environment. For women, it is advisable to avoid wearing very short dresses or
jackets. Men should choose formal costumes at business meetings.

Diet and cuisine: If the Asians used sticks to chew food, the Western Europeans
used knives and spoons, the Indians used their hands. Especially, never use your left
hand when you eat and never use the left hand to give things to someone else. Indians
are famous for their style of cooking with a lot of spices. Muslims eat pork while
Hindus don't eat beef. Therefore, chicken, goat, sheep and seafood are the most
common. Paying attention to these sensitivities, especially in eating experiences, will
contribute to positive interactions.

Value Relationships and Hierarchies: In India, status is often determined by age,


education, and occupation. In addition, jobs in government agencies are considered
more prestigious than jobs in private agencies. Show respect to elders and individuals
in positions of authority to foster positive interactions.

Collectivism: Unlike the US or China, India is at a level of neutrality between


the advocacy of individualism and collectivism in society. And this is the trend that
countries may gradually move towards. The harmony between when to value personal
opinion, when collective will most likely be unique in Indian culture, and can create
obstacles for entrepreneurs to come to business in this country.

The Indians are very hospitable, especially to foreign tourists. India uses English
as its official language, so this is very beneficial for tourists to communicate, visit and
learn about Indian culture. But apart from that, Hindu is also constitutionally
recognized and there are thousands of other languages. Indeed, Indians are very
diverse in personality and thus create cultural diversity.

Religion: Religion has a major influence on the way people live, their beliefs,
values and attitudes, their working habits, and how they behave in society towards
each other and other societies. So it's important to study and respect their religion to
avoid misunderstanding and show respect for these beliefs.

Festivals: The advent of various festivals has also promoted the spiritual
development of the people of India. That's why even in this country, you can always
witness vibrant, unique and exciting festivals.

*Brazil: As a multi-ethnic country with many cultures, Brazil not only


carries the customs and lifestyle characteristic of the Portuguese people, but also
has unique traces of immigration flows from Italy, Germany, Spain, Japan and
the Middle East.

Brazil is famous for its collective culture, emphasizing social connections and
strong family ties. Be willing to value and respect relationships and consider group
needs rather than personal interests. In addition, it is important to understand that the
family occupies a central place in Brazilian culture. Expect strong family bonds and
the involvement of family members to extend to different aspects of life, including
business issues.

Language: Learning some basic phrases such as common greetings, polite


phrases ("please," "thank you," "excuse me"), and numbers is a great way of showing
respect, impressing the locals and can help you solve some basic situations.
Phrasebooks, online resources, and mobile translation apps can be helpful.

Communication: Brazil is a country of warm and sincere behavior, so when they


meet, apart from shaking hands, they can easily touch their shoulders, kiss their
cheeks, hug each other. In Brazilian culture, you should use your name when you
speak to someone else, except for those who have a higher rank, who can call for more
office, and the word "senhor" will be added before the name, when you talk to the
elderly with high authority. Besides, the Brazilians are friendly and cheerful, so they
rarely express their differences when they disagree, and they seldom debate in public.

Dress, Fesstival, Music: The festival is a factor that contributes to creating


unique, impressive features of Brazilian culture. The most famous festival in Brazil is
Carnival. The Brazilian national costume is quite glamorous and is often displayed
only on festive occasions. In normal life, Brazilians dress quite sexy, comfortable
because the weather here is very hot. But at work, the costumes are very discreet,
highlighting politeness. Brazilians like to sing and dance samba based on existing folk
music.

Detailed and complex communication style: Brazilians often provide broad


context and prefer face-to-face conversations. When communicating, be prepared to
actively listen and express yourself clearly and comprehensively. Avoid speaking too
directly or hastily in conversations

=> By taking these notes, you'll be well-equipped to navigate cultural


differences to ensure a smoother and more enjoyable travel experience when
visiting a new country.
3. What are 2 tips you feel are most meaningful to remember when wanting
to do business in these countries?

Figure 3.1. The Hofstede’s Theory of Culture

While all of Hofstede's six Cultural Dimensions are important, some can be
more impactful depending on the specific business context. And Indulgence together
with Individualism vs. Collectivism appears to be one of the most significant
differences among countries. These cultural dimensions have a profound impact on
various aspects of society, including social interactions, work dynamics, and business
practices. Collaboration and communication across cultural boundaries can only be
successful when these differences are recognized and navigated. Here are two broad
yet important pointers to bear in mind while wishing to conduct business with nations
that differ greatly in terms of Individualism vs. Collectivism and Indulgence:

*The US

The US is a diverse country, and communication styles can vary by region and
industry. However, keeping these two dimensions of Hofstede's framework in mind
can help you navigate business interactions in the US more effectively:

- Highlight the enjoyable aspects of your product or service:

1
Indulgent cultures like the US value leisure time, enjoyment, and a healthy
work-life balance. Focus on how your product or service can enhance people's lives
and free up time for these Indulgent aspects. Frame the benefits in a way that
resonates with this cultural value. For instance, if you're promoting productivity
software, emphasize how it can save users time and allow them to focus on the things
they enjoy outside of work.

Also, be mindful of work-life balance during communication and negotiations.


Respect the importance of leisure time in indulgent cultures. Avoid scheduling
meetings or calls outside of regular working hours unless absolutely necessary.

Be flexible and open to breaks during negotiations or presentations. Be aware


that taking a short break for coffee or socializing might be seen as a way to build
rapport and grease the wheels of the deal.

- Highlight Individual Benefits and Achievements (Individualistic Culture):

The US scores high on Individualism. This means American business culture


emphasizes personal achievement and individual success. When presenting your
business proposition, focus on how your product or service can benefit individual
customers or employees.

What’s more, highlight personal achievements and how they contribute to the
organization's success. American business culture values assertiveness and
self-promotion. While teamwork is valued, individual performance is often a key
factor in career advancement. So, in negotiations, be prepared to discuss potential
rewards or recognition for those involved in the deal. Additionally, tailor your
communication style to be clear, concise, and engaging. Americans generally
appreciate a direct approach, but avoid being overly aggressive.

*China & India


Figure 3.2. Country Comparison based on Hofstede’s Theory of Culture

- Focus on Practicality and Long-Term Benefits: (Low Indulgence):

Both China and India score low on the Indulgent – Restrained dimension,
which describes how much Chinese and Indian people try to control their desires and
impulses. Restrained societies like these 2 countries, do not put much emphasis on
leisure time.

In corporate culture, efficiency and practicality are highly valued. Play down
any leisure or fun features that your product or service may provide. Rather,
concentrate on the tangible advantages it offers for the bottom line, efficiency, or
productivity of the business. Emphasize how it will enable them to fulfill their
long-term objectives.

- Focus on Win-Win and Group Benefits (Collectivistic Culture):


India is a collectivistic society. Frame your business proposition in terms of
how it can benefit the entire team or organization, not just individual gain. Highlight
how your product or service can contribute to the company's long-term success and
reputation. Also, avoid overly individualistic language. Focus on "we" instead of "I"
when presenting your ideas, demonstrating a collaborative approach. Be prepared to
negotiate with a team, not just one person. Decisions are often made collectively, so
be patient and respectful throughout the process.

While China leans slightly more collectivistic, there's still a focus on individual
achievement and results. The key is to find a balance. Don't solely focus on individual
accomplishments. Frame your proposals around the benefits for both companies and
the potential for a successful partnership.

*Brazil

- Build Relationships First, Business Second (Collectivism):

Brazil scores low on individualism, meaning group harmony and loyalty are
more important. Businesses prioritize building strong, long-term relationships with
partners. Schedule initial meetings with ample time for casual conversation and
getting to know each other. Discuss your company culture, your personal background,
and ask questions about theirs. This builds trust and a sense of working together as a
team.

- Embrace Flexibility and Patience (Indulgence):

Brazil scores high on indulgence, indicating a more relaxed and social


approach to life and work. Deadlines might be flexible, and communication can be
more indirect. Be prepared for meetings to start slightly later or last longer than
scheduled. Don't expect immediate decisions - allow time for discussion and internal
approvals. Communication might be more implicit, focusing on building consensus
rather than direct confrontation.

The line between personal and professional relations is rather hazy. Brazilian
business relations are more about individuals than companies, which highlights the
importance of small talk (football, family, music), face to face conversations, and
constantly staying in touch with business associates. Close proximity and physical
contact are used during casual or business conversations, although business etiquette
and culture becomes less relaxed the further south one goes in the country.
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