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Cultural environment comparison Argentina and U.S.A February 28, 2018.

 

  • Power Distance: According to Hofstede’s scores on the chart Argentina scored on the lower end of the Power Index, lower than most Latin American countries. Argentina’s has a 49-power distance which is right in the middle of the scale and represents a greater level of equality. The United States scores lower compared to Argentina, indicating that superiors work closely with subordinates. Argentina experience a more stricter authority and may not have as much freedom. American companies should caution behavior and interaction, appearance is very important as well as the language. Citizens in Argentina accept a slightly higher degree of unequal power distribution than those in the Unites States culture. Argentina’s business organization practice a hierarchical work structure. Status is very important which follows a high level of respect.

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  • Individualism: From Hofstede’s scores, Argentina is considered a non-individualistic country, but with a score of 46 it is the more individualistic than other Latin American countries. Citizens of Argentina value their family welfare more and tend to spend more time with them. The U.S. is one of the most individualistic countries, which means the society focus is on the relationship between the individual and group, people are responsible for themselves. Argentina’s society has more collectivist traits, meaning group interaction and group decision making is best. American businesses focus on originality and taking initiative independently. In Argentina, the American business will have a hard time adapting to a society that focuses on group interaction rather than individual performance.
  • Masculinity: Argentina’s masculinity score according to Hofstede’s chart averaged high, meaning the country presents more masculine than feminine elements. Society in this country are driven by competition, achievement and success. A value system that starts in school and continues throughout organizational life. The U.S. follows with a score slightly higher than Argentina. Both countries are a culture that supports traditional masculine orientation, where gender roles are clearly distinguished, and work is priority over duties. An American business in this country would definitely succeed in terms of this cultural dimension. HR management’s management selection would be gender identified, training would be career oriented instead of job-oriented, and promotions deal with male-female distinctions.

 

 

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  • Uncertainty Avoidance: Argentina’s score in UAI according to Hofstede’s chart is relatively high, as it is in other Latin American countries. Uncertainty Avoidance is the way that a society deals with the fact that the future can never be known. According to

Hofstede’s insights, societies like in Argentina, “show a strong need for rules and elaborate legal systems in order to structure life.” However, because of corruption, for example, the legal system is considered to be weak. Managers in this county will probably deal with employees or business partners who are not certain of future goals and outcomes. The HR management selection and promotions will be based on seniority and loyalty to the business. An American business will have a hard time adapting to the culture in Argentina regarding this dimension.

 

The risk is low if an FDI effort was made by a US company. According to Hofstede’s cultural dimension, by comparing Argentina’s scores to those of the US, there are distinct differences in Individuality and Uncertainty Avoidance in both countries. The US is a very individualistic country and Argentina is one of the highest individualistic Latin American countries but is still considerable collective. Although Uncertainty Avoidance in the US is low, it is pretty high in Argentina. If a US company were to make an investment in this country, the future can never be known, and society learns to cope with that.

 

 

 

 

 

 

 

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