Visit the global automotive industry news blog with Brazil automotive industry news and Mexico automotive industry news.





GlobalAutoTV
Click to watch Ricardo Castro-Garza -
Click to watch Ricardo Castro-Garza -
latin resources

Need an office in Mexico or Brazil? Office suites, meeting rooms, virtual offices, network access



free downloads
LATIN AMERICA: "Guide: Investment in Argentina"

LATIN AMERICA: "Guide: Investment in Argentina". 69-page guide by KPMG Argentina.

proceed to download
eJournals







back to index backLATINtalk August,  2011


The Cultural Dimension of Doing Business in Latin America

There is no doubt that doing business with another country is a challenge, and when there are cultural differences as well, it can seem formidable. Although different Latin American countries have certain similarities, there are also some profound cultural differences, some of which are comforting to USA and UK exporters. Since all aspects of consumer behavior are culture bound, there is an increased need to identify and integrate this interaction and its’ impact on global advertising and marketing. Geert Hofstede’s work can be used to explain the differences between countries and act as a guide in increasing global efficiency in marketing. Geert Hofstede summarises cultural comparisons very elegantly and is quoted below (www.geert-hofstede.com).

Across all Latin American markets there are profound cultural similarities that in turn pertain to business operations with US and UK enterprises. High Uncertainty Avoidance and often Low Individualism prevail (see below for definitions of these terms). Based on studies and data, the large majority of predominantly Catholic countries (those with Uncertainty Avoidance as their highest ranking Dimension) have a low tolerance for ambiguity. The combination of Catholicism and the cultural dimensions shown in the Hofstede Graph on his website reinforce a philosophy predicated in the belief that there is an absolute “Truth.” As Geert Hofstede explains about peoples with a high Uncertainty Avoidance Index, their attitude is, “There can only be one Truth and we have it.” This creates a highly rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty within the population.

USA: There are only seven countries in the Geert Hofstede research that have Individualism (IDV) as their highest Dimension: USA (91), Australia (90), United Kingdom (89), Netherlands and Canada (80), and Italy (76).

The high IDV ranking for the United States indicates a society with a more individualistic attitude and relatively loose bonds with others. The populace is more self-reliant and looks out for themselves and their close family members. The next highest Hofstede Dimension is Masculinity (MAS) with a ranking of 62, compared with a world average of 50. This indicates the country experiences a higher degree of gender differentiation of roles. The male dominates a significant portion of the society and power structure. This situation generates a female population that becomes more assertive and competitive, with women shifting toward the male role model and away from their female role. (World averages shown above for comparative purposes with USA are: Power Distance Index [PDI] 55 – IDV 43 – MAS 50 – Uncertainty Avoidance Index [UAI] 64 – Long-Term Orientation [LTO] 45).

The United States was included in the group of countries that had the Long Term Orientation (LTO) Dimension added. The LTO is the lowest Dimension for the US at 29, compared to the world average of 45. This low LTO ranking is indicative of society’s belief in meeting its obligations and tends to reflect an appreciation for cultural traditions. The next lowest ranking Dimension for the United States is Power Distance Index (PDI) at 40, compared to the global average of 55. This is indicative of a greater equality between societal levels, including government, organizations, and even within families. This orientation reinforces a cooperative interaction across power levels and creates a more stable cultural environment. The last Geert Hofstede Dimension for the US is Uncertainty Avoidance (UAI), with a ranking of 46, compared to the world average of 64. A low ranking in the Uncertainty Avoidance Dimension is indicative of a society that has fewer rules and does not attempt to control all outcomes and results. It also has a greater level of tolerance for a variety of ideas, thoughts, and beliefs.

UK: Is virtually a carbon copy of USA!

We now take a look at a selected number of Latin American countries according to Geert Hofstede’s Dimensions : Argentina, Brazil, Chile, Colombia, El Salvador, Guatemala, Mexico, Peru, Uruguay.

One striking difference between the Latin American countries examined and the US and the UK is the high Uncertainty Avoidance Index (UAI) ranking:

To read full story, please click here.

Source: LatINsight - GAI





previous page

go top
search our site


Loading

LATINtalk

Other articles from the same issue (August,  2011).

Foreign Direct Investment in Mexico: Is your Investment Safe?
play read on

Country Report: How Safe is Mexico?
play read on

Mexico: Tax Uncertainties and New Limitations Unsettle Maquiladora Industry
play read on

Brazil Becomes Fourth Largest Car Market, But High Capacity Utilisation Could Halt Further Progress
play read on

Denise Farinos, CFO of GM South America, on Shifting Gears in Emerging Markets
play read on

Auto parts production in Mexico soars
play read on

Mexico production tops Canada, U.S.
play read on

Mexico and the automotive industry
play read on

Latam sales to boost 2011 Mexico auto output
play read on

Aluminum Demand to grow fast in Transportation Sector in Brazil
play read on

Statistics on Mexico's Automotive Industry, April 2011
play read on

Mexico and the Automotive Industry: A strategic Place to Invest
play read on

Argentina auto industry vows export surplus in 2012 after a 6 billion USD deficit in 2010
play read on

Mexico To Unveil $1.5 Billion Investment In Auto Sector
play read on

Autos tell tale of links between nations: Vehicles and parts flow as Mexico, U.S. build commerce
play read on

Brazil auto sales hit record in H1 of 2011
play read on

Mexico gets helping hand from costlier China labor
play read on

Execs in Brazil Outearn US and Europe
play read on

Latin Labor Index: Best & Worst
play read on

Brazil: The Labor Challenge
play read on

General Summary of Labor Rights in Mexico, Brazil, Argentina, Chile, Colombia, and Venezuela
play read on

Mexico: Survey of Salary and Benefits
play read on

Special Investment Report: Mexico's Labor Costs, Skill Keep Investment Up
play read on

Latin America: The Quest for Talent
play read on

Brazil's Boom Needs Talent
play read on

The Cultural Dimension of Doing Business in Latin America
play read on

Establishing a business in Brazil
play read on

Legal Guide for Foreign Investors in Brazil
play read on

Progress Report on Mexico´s Infrastructure Plan
play read on

Canadian Businesses Continue to Invest in Mexico
play read on

Mexico Remains the Top Choice for Manufacturing ‘Near-Shoring,’ According to AlixPartners Survey of Senior Executives
play read on

Tax trends in the Americas
play read on

Mexico: Important Amendments to the Federal Law of Economic Competition and Other Related Statutes
play read on

U.S. Companies Reluctant To Open In Mexico
play read on

Mexico: Tax Uncertainties and New Limitations Unsettle Maquiladora Industry
play read on

Brazil Has Best Science Base Outside G8, says UK
play read on

Where’s the Source of Innovation in Brazil? Take a Look at its Tech Parks
play read on

Cargo Theft Inside U.S. Said to Be Much Worse Than in Mexico
play read on

Mexico: The Comeback Kid
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120