INTERNATIONAL BUSINESS AND CULTURE

... INTERNATIONAL BUSINESS AND CULTURE (1BUS0084) Referred/Deferred Coursework Assignment Details Duran Lanka Fernando (06165074) WORD COUNT:1887 Introduction Hofstede's (1980) dimensions of culture have become the most widely used model for explaining various effects across cultures (Yoo and Donthu, 1998). Stedham and Yamamura (2004) describe culture as stable and enduring but also somewhat changeable due to external forces. Hofstede's five dimensions include the following. a. Power Distance. The power distance dimension has to do with inequality in a society. In a high power distance environment there would be greater tolerance for, and expectation of, inequality in prestige, wealth and power. Uncertainty Avoidance. Hofstede focuses on uncertainty at the organizational level looking at the use of rules and strategies to reduce exposure to an unsure future. Individualism and Collectivism. This dimension has to do with the relationship the individual has with the group and more generally with society. Hofstede points out that the nature of this relationship determines not only how

want to read more? →