Cross-Cultural Management Essay: Cultural Value Comparison

This essay examines cross-cultural management, focusing on the business interactions between Mexico and the United States. It begins by analyzing the cultural values of both countries using Hofstede's Cultural Dimension Theory, comparing dimensions like power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. The essay then discusses the potential problems that might arise for people from these two cultures conducting business, particularly highlighting challenges for US businesses operating in Mexico due to differing cultural values. The second part of the essay addresses stereotyping, defining implicit and explicit stereotyping and their impact on cross-cultural interactions, especially in the context of racial discrimination. The essay concludes by emphasizing the importance of understanding cultural differences and the challenges these differences pose to international business operations, such as Ford Motor Company's experiences in Mexico. This analysis provides valuable insights into the complexities of managing across cultures and the importance of adapting business strategies to local cultural contexts.

Running head: CROSS CULTURAL MANAGEMENT
Cross Cultural Management
Name of the Student
Name of the University
Author Note

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Response to Question 1
In the globalized contemporary world, the restrain of territorial boundaries no longer
applies to the private business. The various States of the world follow a policy of open economy
where trade is carried out with many different countries simultaneously. Open economy refers to
a situation where the concerned country allows private businesses of other countries to set up
their base in the host country, while the private businesses of the concerned country establish
their branches in other countries (Mazanec et al. 2015). Thus, there is a system of
interconnectedness amongst almost all the countries of the world. However, a main problem
arises when there is political animosity between the agencies of the States. Political crisis always
unequivocally affect the economy of the world. The economy is adversely affected when two
States or more have political or cultural differences between themselves. This essay seeks to
discuss the various cultural differences that might arise from the conduction of business between
the countries of Mexico and United States of America. This essay analyzes the various cultural
values of the two States and how these cultural values are different from each other or similar to
each other, which, in turn, either help in the promotion of business or adversely affects the
conduction of the business. The main purpose of this essay is to look into the various cultural
problems existing between Untied States of America and Mexico and what potential problems
might arise for people from these two cultures conducting business with one another.
Mexico is considered to be one of the earliest cradles of civilizations. People from
various parts of Asia, Europe and Africa migrated to Mexico during the ancient times because of
its rich civilizational culture (Bakir et al. 2015). During the eighteenth and nineteenth century,
the culture of Mexico was in sharp contrast to that of the liberal ideology pursued by the United
States of America. It was more influenced by the principles of Communism, believing in the

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socialist ownership of property. However, the contemporary social structure of Mexico is along
the similar lines of liberalist principles. The country of Mexico now believes in the principles of
liberal ideology, privatization and liberalization. As such, almost a free reign is given to the
private players to pursue their ultimate objective of earning higher profits and revenue.
The United States of America always had a culture aligned with the liberalist ideology
(Favaretto et al. 2016). The land of the United States was formed by the immigrants from
different countries of Europe, Africa and Asia. These people felt that their independence from
the native countries was hard won and there should not be any further restraint on their freedom.
As such, the United States now follows liberal principles and the private players have absolute
control over the market.
The comparison of the cultural values of these two countries of Mexico and the United
States of America can be done with the help of a model known as Hofstede’s Cultural Dimension
Theory. The Hofstede’s Cultural Dimension Theory was invented by Geert Hofstede, which
serves as a guideline for comparing cross cultural communication (Upadhyaya and Rittenburg
2015). This Theory primarily considers the impact of the culture of a society on the values of its
people and how these values fundamentally shape the behavior of that person. The Dimension
Theory has six essential dimensions based on which the national culture of a particular country is
compared to that of another. Based on these dimensions, the culture of Mexico and the United
States has been discussed.
The first dimension is known as Power Distance. This dimension measures the behavior
of people on the issue of unequal distribution of power among the members of society (Minkov
et al. 2017). With a score of 81, it is believed that the people of Mexico accepts the hierarchical
structure of the society and accepts the existing inequality among them (Hofstede Insights,

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2018). The people of the United States, on the other hand, are not satisfied with the unequal
distribution of power. They believe that everyone is equal in society and hence, everybody
should be treated equally. The United States has a poor score of 40 on this dimension (Hofstede
Insights, 2018).
The second dimension is known as Individualism. This dimension measures the degree of
collectivism in the society, meaning the whether the society views itself in terms of “I” or in
terms of “we” (Chien et al. 2016). The people of Mexico identify a lot with their family
members and the people of society and hence, they have a feeling of collectivism in the society.
Thus, the country has a score of 30 in this dimension (Hofstede Insights, 2018). However, this is
not the case in term so of the United States. The people of the United States have a tendency
towards individualism and they like to be isolated from the society. As a result, this country has a
high score of 91 in this dimension (Hofstede Insights, 2018).
The third dimension is that of masculinity. This dimension measures the willingness of
the society to work hard and compete with each other (Kwon, Kim and Koh 2016). A high score
in this dimension indicates that the people of the society are very competitive and want to be
successful, whereas, a low score indicates a feminine attitude of the society where people are
more interested to care for one another and live a quality life. Both Mexico and the United
States have a relatively high score in this dimension, scoring 69 and 62 respectively (Hofstede
Insights, 2018).
Uncertainty Avoidance is the fourth dimension. This dimension measures the willingness
of the community to undertake risks and challenges while conducting business (Minkov 2018).
Mexico, with a score of 82, prefers to avoid taking any risks and is averse to new innovations

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and changes (Hofstede Insights, 2018). The United States on the other hand, believes in the
invention of new concepts and ideas which will help in the development of the business.
The fifth dimension is long term orientation. This dimension measures the affinity of the
concerned society with its historical traditions and values and how much they have an impact in
the modern changes and innovations (Eisend, Evanschitzky and Gilliland 2016). Scoring a low
of 24 and 26, both Mexico and the United States look towards modernity and change with
suspicions and prefer to cling onto the past values and customs (Hofstede Insights, 2018).
The final dimension is that of Indulgence. This dimension measures the desire of the
people of the concerned State to either spend their money in a leisure way or to restrain
themselves and save money (Erdman 2018). People of both Mexico and the United States wish
to indulge themselves in leisure time and spend their money in a leisure manner, as reflected in
their relatively high score in this dimension.
Analyzing the nature of the culture of the countries Mexico and the United States, it is
opined that a private business belonging to that of the United States will find it challenging to
conduct a business in Mexico (Hofstede Insights, 2018). The people of Mexico do not believe
much in change and they are averse to the idea of innovation and new inventions. Moreover, the
collective nature of the society of Mexico makes it difficult for any individual to take any
decision unilaterally. This poses a real challenge to the private players of the United States as
they are more prone to continual innovations which will help them to conduct their business in
an effective and efficient manner.
Ford Motor Company, a United States originated Company, has extended its branch in
Mexico. Although the Government of Mexico is taking strong measures to change the nature of

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society to a more open and competitive one, the prevalent culture of Mexico makes it
challenging for the operation of Ford Motors within the country. There are many obstacles which
the company needs to face such as obtaining construction permits and attracting investors for the
company. The acceptance of the hierarchical structure of the society, on the other hand, provides
some relief to the management who do not have to worry about the dissatisfaction of the
employees. Moreover, the masculine nature of the market which encourages competition, allows
the private player to achieve its ultimate objective of generating higher profits.
To conclude, it is observed that the existing cultural difference between the countries of
Mexico and the United States poses many challenges to the outside private players operating
within their respective territorial boundaries. Although all the economies are rapidly
transforming into an open economy with a competitive framework, there are many traditional
and cultural challenges that exist within the framework of the country of Mexico. This makes it
considerably challenging for the private players originating from the United States to conduct
their business in their neighboring country. The parent company in the United States have all the
freedom to pursue their self-interest of earning higher profits by instituting new changes within
their production and management sphere without any hassle. However, this is not possible within
Mexico as the employees would provide resistance to any sudden changes in the organizational
level. They would prefer that the changes occur gradually over time. This will hamper the
operation of the business in terms of lower generation of revenue and a consequent lower profit
margin.
Response to Question 2
The human mind is very prejudicial in nature. It cannot help but form an opinion about
other people. Often times, it happens that this opinion is not limited to one particular human

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being, but rather is extended to other similar human beings or those who are related to the
concerned person. This is what is known as stereotyping. Stereotyping is defined as a
psychological nature where an individual believes that a particular person or similar group of
persons will behave in a particular way under any circumstances (Roth and Ritter 2015). As
such, the behavior of the concerned individual or group of people can be foreseen and
accordingly, other people can take actions. Such stereotyping is not an encouraged social
behavior as it might lead to false accusations and prejudices. Individuals differ from each other
in their personality and characteristic features. They are inherently unique and different from one
another at a fundamental level.
Stereotyping can be of two types, that is implicit stereotyping and explicit stereotyping
(Yip 2016). Implicit stereotyping refers to that situation where an individual generalizes the
actions and behavior of another person or group of persons but does not verbally communicate
this to the other party (Caparoso and Collins 2015). They keep their prejudices in their mind and
as such, there stereotyping is implicit in their communication with the other individual or group
of people. Stereotyping implies that an individual has already formed some pre conceived notion
about another person or a similar group of person and expects them to behave in this manner.
These generalizations may not be an actual representation of the behavior of the person but in
human society, because of animosity, they somehow end up being true. Explicit stereotyping
refers to the situation where the individual verbally communicates the expected outcome and
behavior of the opposing individual or group of people to them (Najdowski, Bottoms and Goff
2015). As such, the opposing party is aware and conscious of the prejudices existing within the
minds of the person they are communicating with. This is helpful to the extent that the people

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can control their communication to that level which will not ignite any negative behavior from
either of the parties.
One of the most concerning stereotype in the present contemporary world is that of racial
discrimination (Godsil et al. 2014). The ‘whites’ have a prejudice against the ‘blacks’ believing
that the ‘blacks’ are inherently barbarians and are not civilized in any manner. This prejudice is
the result of the colonial baggage when the European imperialist powers of the world decided to
expand their territories beyond their mainland into other parts of the world (Clark et al. 2015).
However, they needed a reason to occupy the lands which did not belong to them. In order to do
so, the European colonial masters created the theory that the people of these concerned land in
the Eastern and Southern part of the world were not civilized and did not know how to rule
themselves. The reason provided by the ‘whites’ for the prevailing conflict in these lands is
because the people of such lands were barbarians; this was clearly evidences in their skin color
which was ‘black’ signifying that they were dirty and did not even have the decency to take care
of themselves. The question arose that how could they take care of an entire land. The ‘whites’
felt that it was their responsibility to educate the ‘blacks’ on how to rule themselves. This
marked the beginning of the era of colonization where the ‘whites’ ruled over the ‘blacks’. This
era was infamous in global history because of the wide scale presence of oppression, chaos and
misery for the ‘black’ people.
After the end of the Second World War, the international community realized that every
nation of the world had the privilege of being sovereign, that is, they had the freedom to be
independent and not be under the rule of any other country. This essentially brought an end to the
period of colonization and all the colonial countries, essential those country where majority of
the population has a ‘black’ skin tone’, became free and independent (George 2015). However,

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the prejudice in the minds of the people did not change in the following decades, even till now.
The ‘whites’ still have the mindset that they are superior to the ‘blacks’ in all aspects of life, just
because of their differing skin tone.
The problem of racial discrimination has manifested itself in a very grave manner in the
present world (Weber et al. 2014). The ‘whites’ stereotype the ‘blacks’ to be as still barbarians,
incapable of any civilized mannerism and behavior. They believe that the ‘blacks’ are rowdy and
do not have ethics to behave properly in a public setting. The ‘blacks’ on the other hand holds
the assumption that the ‘whites’ suffer from a superiority complex and arrogance (Taylor et al.
2018). The ‘blacks’ have the prejudice that the ‘whites’ look down upon the ‘blacks’ and hence,
there is no way to reconcile the existing situation. This prejudice in the minds of the people have
made it very difficult for them to communicate properly with one another.
The stereotyping of different races has created a barrier against effective communication.
No ‘white’ likes to conduct business with a ‘black’ person and it is the same the other way
around. They feel like the opposing individual would not understand them and will continue to
hold their prejudice within their mind. In a work place, this stereotyping carries grave
consequences (Krupnikov and Piston 2015). This assumption often adversely affects the career
of such person, leading to a negative growth in career. One similar group of individual finds it
difficult to properly communicate with the other similar group of individual. This results in
extreme miscommunication and animosity. The miscommunication may also prevent an
individual to learn something new, might demotivate them to work properly and might lead to
missing of several opportunities which might otherwise would have helped them to improve their
career.

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Such stereotyping might also prevent an individual to effectively communicate with his
or her audience. He or she night feel that since the audience already has a pre conceived notion
of his or her behavior and might not receive the words in an effective and welcoming manner, it
highly demotivates the speaker to deliver a perfect presentation (Andemeskel et al. 2017). This
dampens the work environment to a great extent and creates obstacles in the work place which
otherwise might not have existed. Racial discrimination in the work place, as such, is highly
discouraged and sometimes, legal actions can also be taken when such stereotyping becomes
explicit in nature. No action can be taken in the case of implicit stereotyping as there is nothing
that can stop an individual from thinking in a certain manner. Everyone has the freedom of
thought and speech. However, care must be taken to ensure that this thought process do not
manifest itself in a real life situation where the sentiments of some other individual is harmed in
the process (Hope, Skoog and Jagers 2015). This will lead to violation of the freedom of the
other affected individual and this, in turn, will require the legal intervention of the concerned
State.
To conclude, it is observed that stereotyping is not good for humanity. People should be
given the benefit of doubt before someone forms an opinion about them. The pre conceived
notions in the minds of people about some concerned individual or similar group of people will
only lead to conflict and animosity. Besides racial stereotyping, there exists many numerous
other forms of stereotyping, such as gender bias between men and women. It is often assumed
that the female gender is weak and delicate and therefore, always require the care and support of
the male gender. It is because of such prejudices that the women are not preferred to be
employed in the work force and even if they are employed, they are not given the due
recognition or paid the similar wages as paid to that to the men performing the same work.

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Stereotyping has divided the world into many small pieces, with each individual holding a
grudge against the other for some actions performed by someone else who is similar to the victim
of stereotyping. The only mechanism to prevent stereotyping is to inculcate a civic sense of
broadening the mind so that any conceived notions are not formed. Every individual deserves a
chance to prove himself or herself before someone starts to judge them. Such a step will improve
the process of communication and make it efficient and flawless. It is very important for human
beings to be able to communicate with one another and have some to depend on simply because
they are human beings. Discriminations should be highly discouraged.

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