Culture and International Business

Geert Hofstede made up six dimensions of international marketing that are important to consider.

1. Power Distance

This represents the distance between equalities of workers and the head of business. 

Some cultures practice low power distance which means less formal relationships and more democratic environment between the leaders and the employees. 

High power distance cultures give importance to the hierarchical positions which causes unequal distribution of power and more autocratic environment.

2. Uncertainty Avoidance

This aspect relates to the near future and the changes. people who work in high uncertainty environment tend to be more stressed, emotional and have hard time adapting to changes. This is a result of many strict rules and being tight up. People with  low uncertainty environment have as few rules as possible which leads to more friendly, less stressful and easily adaptable environment.

3. Individualism versus Collectivism

Individualism is when people who have larger number of loose relationships but in fact it is a everyone-for-himself way of achieving goals. Collectivism is tight relationships and teamwork with benefit for all.

4. Masculinity versus Femininity

This is focusing on the quality of life vs quantity of life loved. Masculine features consists of more competitive, assertive and materialist behavior while femininity is represented by feelings, reason and maintenance of good relationships.

5. Long Term versus Short Term Orientation

Long term focuses on the future of the company, giving importance to persistence and  savings. Short term orientation focuses on the present and past and highlights traditions, tries to reach favorable return and therefore fulfills social obligations.

6. Indulgence versus Restraint

This concepts relates to the natural human drive to enjoy life. Indulgence is fulfilling obligations while enjoying life whereas resistant approach represents repression of this optimistic drive to fulfill higher expectations.