South Korea and USA have been chosen as research countries. The main purpose of this report is to examine the different culture reflect of these two cultures. The first part is analyzing the culture characteristics by applying Hofstede’s cultural dimensional theory. The second part discussion is about the norm, belief and value. Then the third part is about understanding the practical way of doing business in different culture business environment, such as in South Korea and USA. The business communication, managing business, negotiation style and international marketing have been discussed following. The recommendations will be provided considering the culture difference between two countries. Contents
2. Hofstede Culture Dimensions
3. Belief, Value and Norms
4. Impacts on International Business Activities
As a result of technology improving and globalization, the world has become smaller than before. The communication between different cultures has become more frequently as well. In nowadays, businessmen are trying to join the international market because of the pressures from domestic business competition. The global project is not easy case. People or business comes from different culture has its own characteristics. Only by understanding and respect of each other, the international cooperation could be promoted. In this report, two countries have been chosen, South Korea and USA. South Korea is traditional eastern country; however, USA is a modern western country. Firstly, the Hofstede’s cultural dimensions have been discussed. It helps to understand the culture difference. In the second part, Norm, belief and value have focused. Then based on these differences, the business communication, managing business, negotiation style and international marketing have been examined as follow. At the end of this paper, some suggestions have been given. Hopefully, these suggestions could be helpful to reduce the cultural clashes in global business practice.
2. Hofstede’s cultural dimensions
According to Docin (2012), Hofatede is most well known on four dimensions of cultural variability, commonly referred to Hostede’s Dimensions, these including: Power distance, Individualism-Collectivism, Uncertainty Avoidance, Masculinity-Femininity, and Confucian Dynamism. These dimensions could cause culture’s consequences with respect to the international differences in work-related values. The below picture is the different scores of these culture dimensions between USA and South Korea (Hofstede 2012).
• Power Distance
Referred to Docin (2012), Power Distance reflects the degree to which a culture believes how institutional and organizational power should be distributed (equally or unequally) and how the decisions of the power holders should be viewed (challenged or accepted). In other words, people in higher power distance cultures are much more comfortable with a larger status differential than low power distance cultures.
In the picture, it shows that South Korea with the score of 60 is high in power distance. It means this country’s culture is more willing to accept variations in power over other members. However, USA is a bit lower than South Korea, is 40 (Hofstede 2012). This implies that this country’s culture is more to challenge variations. South Korea is a hierarchical society. It means that people accept a hierarchical order in which needs no further justification and everybody has its society position. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat (Hofstede 2012). In the contrary, according to Greet Hofstede (2012), The United States is evidenced by the focus on equal rights in all aspects of American society and government. Within American...
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