Hofstede Cultural Dimensions

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.1 Culture
Culture is a set of norms and rules that influences people’s behavior and way of thinking. It tells apart different societies (Hofstede, 2017). Most CEOs agree that culture is the main point of doing business abroad since it defines both partners and customers. Aiming at winning the largest market share, companies feel the necessity to integrate with the Chinese society. Consequently, the differences between home culture and local one are to be learned.
The widely known cultural dimensions of Hofstede and the online source Hofstede Insights are of a great help. They describe and compare various cultures, give the needed knowledge to lower culture shock and break the barriers. Figure 2 shows the similarities and contrasts among China and its autonomous territory Hong Kong as well as the Anglo-American countries. We can see that both groups are quite divergent (except 2 dimensions called Masculinity and Uncertainty Avoidance) that marks the gap between the countries. As a result, the cultural barrier will most likely affect the foreign company and its presence in the Chinese market. Figure 2: Hofstede’s cultural dimensions of China, Hong Kong, the United States and the UK Note: Reprinted from “Hofstede Insights”. Retrieved from https://www.hofstede-insights.com/

Foreign companies should consider the main characteristics of China defined by Hofstede (2017):
1. Power distance – the Chinese society for a long period of time was affected by
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