Country Project Part B -International Business

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CountryAnalysis3.docx

6

Angela Diaz

BUS 366: International Business

A: CULTURE

a) Cultural Dimensions

1. Power Distance

This dimension addresses the detail that all societies are not identical. Power distance refers to the level to which the slightly strong individuals of organizations and institutions anticipate and approve the unbalanced placement of power. If the value of power distance is high for a country, it means power is distributed on the basis of ranking (Hofstede Insights, n.d.).

2. Individualism

Individualism makes a reference to the level of interdependence which a society conserves between its residents. A high score of individualism on Hofstede indicates the higher focus of the individuals upon themselves and their individual families.

3. Masculinity

Masculinity indicates the degree of competition and success propelling a society. A high score on this dimension means a society is propelled by the success as compared to affection. A low score shows that the society links greater significance to the love and care as compared to the success (Hofstede Insights, n.d.).

4. Uncertainty Avoidance

It deals with the manner a society addresses the prediction of the future. A higher score for uncertainty avoidance on Hofstede shows that the members of a society depend upon the current rules and laws to prevent an uncertain situation in the future.

b. Comparison of the two countries among Hofstede’s dimensions (Saudi Arabia and Argentina)

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Figure 1: Comparison of Saudi Arabia and Argentina

I. How Power Distance applies to Saudi Arabia

The score of power distance for Saudi Arabia is 95. This score shows that in Saudi Arabia power distribution is linked with the ranking. It also shows that in Saudi Arabia social status is given high priority. Power is centralized in the organizations in Saudi Arabia and the subordinates act upon the orders of their bosses (Hofstede Insights, n.d.).

II. How Power Distance applies to Argentina

The score on this dimension for Argentina is 49. This core is quite low as compared to Saudi Arabia. It shows that power is not centralized in the organizations in Argentina and the subordinates possess certain degree of authority in making decisions. In Argentina, European way of leadership is more prevalent.

III. How Individualism applies to Saudi Arabia

The score on individualism for Saudi Arabia is 25. It means that in Saudi Arabia collectivism is more common as compared to individualism. People in Saudi Arabia do not emphasize upon themselves (Hofstede Insights, n.d.). Instead a greater focus is placed on collective happiness of the groups. Loyalty towards the groups is given more significance than individual happiness.

IV. How Individualism applies to Argentina

The score on individualism for Argentina is 46 which is quite high as compared to Saudi Arabia. It represents that Argentina is an individualist country. Individual happiness is more important for the people of Argentina as compared to collective happiness of the groups.

V. How Masculinity applies to Saudi Arabia

The score for masculinity for Saudi Arabia is 60 which is a quite high score. It indicates that the society is driven by the success and competition. Saudi Arabia is more inclined towards assertiveness and achievement. In short, there are more masculine characteristics in Saudi Arabia (Hofstede Insights, n.d.).

VI. How Masculinity applies to Argentina

The score on this dimension for Argentina is 56 which is almost equal to that of Saudi Arabia. It shows that both Argentina and Saudi Arabia are driven by competition and success. The conduct of politicians and female managers is masculine. There exists a strong need to shine and protrude.

VII. How Uncertainty Avoidance applies to Saudi Arabia

The score for uncertainty avoidance for Saudi Arabia is 80. People like to stick to the existing rules and laws to avoid uncertainty in the succeeding time. In Saudi Arabia, greater importance is associated to the traditions and culture. People are resistance to revolutionary reasoning (Hofstede Insights, n.d.).

VIII. How Uncertainty Avoidance applies to Argentina

The score on this dimension is high for Argentina, i.e. 86 which is higher than the score for Saudi Arabia. The rate of corruption is high in Argentina and people’s need to obey these rules is low. In addition, the black market is substantial.

B. ETHICS

a. A brief explanation of corruption index

The corruption perception index ranks the countries on the basis of existence of corruption in their economies. The current accessible ranking is up to 2018. The corruption perception index is developed through the opinion assessments/surveys of the business people and experts. This index classifies 180 nations. A total of 13 surveys and experts evaluations were used to determine public division corruption in these countries (Transparency International, n.d.). The scores that are assigned to these nations range from 0 to 100. A higher score on the index shows lower degree of corruption and a low score on the index represents higher degree of corruption. An absolute score of 100 shows there is no existence of corruption in the particular country.

b. Saudi Arabia’s score compared with the USA’s score

The score for the United States of America on the Corruption Perception Index is 71 in 2018 (as shown in the figure 2). This score shows lower level of corruption in the USA. The score for Saudi Arabia on the index is 49 which is a lower score as compared to the score of the USA (Transparency International, n.d.). The lower score exhibits increased level of corruption in the country.

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Figure 2: Corruption Perception Index

c. Argentina’s score compared to the USA’s score

The score for Argentina in 2018 was 40. This score is lower in comparison to the USA’s score. The lower score of Argentina shows that there is a higher level of corruption in Argentina.

d. Why are Saudi Arabia and Argentina’s scores different from USA’s score?

The score for Argentina is different from the USA’s score because in Argentina, people are less likely to obey the law. As a result, the level of corruption is high in Argentina. Likewise, in Saudi Arabia the laws devised for corruption are not adequately implemented (Transparency International, n.d.). There is an existence of monarchy in Saudi Arabia that makes it defenseless against corruption. In the United States, it is quite opposite to Argentina and Saudi Arabia.

e. Comparison with the Hofstede score

The Hofstede’s scores for uncertainty avoidance for Saudi Arabia and Argentina are 80 and 86 respectively. These scores show higher levels of corruption in both these countries. It is identical to the ranking of the two countries on the Corruption Perception Index.

References

Hofstede Insights. (n.d.). Country comparison. Retrieved from https://www.hofstede-insights.com/country-comparison/argentina,saudi-arabia/

Transparency International. (n.d.). Corruption Perceptions Index 2018. Retrieved from https://www.transparency.org/cpi2018