Culture differences
Culture affects the social, economic and political growth of a particular country. Different countries have embraced the various aspect of culture in their own unique way depending on the environment in which the locals operate. This paper compares the aspects of power distance, individualism, masculinity and uncertainty avoidance between the United States and South Korea and how they affect business operations in each country (ITIM, n.d).
To start with, power distance is an aspect that shows how a country copes up with inequalities. The United States has the lowest PDI of 40 compared to that of South Korea which is at 60. The low PDI indicates that the United States has a greater equality for its members at the various societal levels. Considering that the United States is a multicultural country, it is evident that most of the government offices, organizations and families shave even distribution of power. However, a PDI for South Korea is very large (ITIM, n.d). It clearly indicates that power is not evenly distributed in organizations and government offices. This is due to the fact that it is a hierarchical society. Other characteristics or a hierarchical society such as centralization of power and inherent inequalities are reflected by the large power distance that exists. Since the subordinate staff in the United States has a chance to suggest and take part in an organization’s decision making, carrying out a business more effective. Business in South Korea can be ineffective because contributions from the wise are normally blocked out. The bosses have the final say even if they do not consult (ITIM, n.d).
The United States has a 91 score of individualism while South Korea has a score of 18. People in the United States are much concerned about themselves and their individual families while those in South Korea have a collectivistic society. Carrying out a business in U.S. is also easy because individualism promotes healthy competitions because one can be able to demonstrate his or her talent. In addition, workers can have a chance to exhibit large amount of creativity and innovations hence promoting economic growth. Collectivists in south Korea is only focused on high level of personal responsibility implying that it is easy to do business in the united states than in south Korea (ITIM, n.d).
On the concept of masculinity, South Korea has a low score of 39 implying that it has a feminine society. It has the well being is prioritized. Managers often support their subordinates by involving them in decision making. The other focus is caring and striving to achieve the quality of life. The masculinity of the united is very high of up to 62. Americans are driven by the “live to work” who means that each person is only concerned about his or her well being. From this perspective, carrying out a business in South Korea is favorable than in the United States. This is because the culture of South Korea supports the mentality of work in order to live. This is more motivating than that of the United States (ITIM, n.d).
Lastly, South Korea scores 85 which make it to be the leading country in terms of uncertainty avoidance. This aspect of South Korean culture makes people to have intolerant behavior because a tragedy is not in any way planned for. It restricts innovation and creativity and therefore carting out a business here is difficult. This is because when a person comes with a new idea, a lot of laws may hinder it because of fear about the consequences that might befall the country. Business in South Korea especially for new innovations can be challenging for entrepreneurs compared to the United States where innovations and creative minds are welcomed (ITIM, n.d).
One the aspects of the South Korean culture that have been left is business etiquette. This is grounded from the fact that personal relationships are very vital to them. The business etiquette is made up of introduction, greeting, business cards, and gift giving the K-type management as well as business meeting. These are highly esteemed aspect of their culture. Doing business in South Korea requires one to adopt and fit into their business etiquette. Most businesspersons usually face a lot of difficulties while handling the Koreans (Choong et al, 2012). This is because they scarcely conduct business with someone whom they don’t trust. Foreign companies experience difficulties while trying to reach the expectations of the South Koreans because their practices are totally different from those in the United States or any other country across the globe. This implies that one has to understand their culture and traditions failure to which the going would be tough for foreigners (Choong et al, 2012).
In general, an investor or an entrepreneur who is planning to start a business in South Korea may face a lot of difficulties due to cultural differences. In the area of creativity and innovation, he or she might be limited by the laws of the country. Understanding fully the business etiquette is also challenging to the foreigners.
References
ITIM, ( n.d) Geert Hofstede Retrieved from: https://geert-hofstede.com/united-states.html
Choong Y. Lee, Pittsburg State University, Kansas, U.S.A, (2012) Korean Culture and Its Influence on Business Practice in South Korea The Journal of International Management Studies, Volume 7. Retrieved from: http://www.jimsjournal.org/21%20Choong%20Y.%20Lee.pdf
