Cultural Analysis of International Business

This report provides a comprehensive analysis of the cultural landscape of the USA, focusing on its implications for international business. It discusses the diverse cultural parameters, the significance of Hofstede's cultural dimensions, and the unique business etiquette prevalent in America. The report emphasizes the opportunities for foreign businesses in the US market, highlighting the importance of understanding cultural nuances for successful business operations.

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student:
Name of the University:
Author Note:

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Executive Summary
The study reflects provides the cultural scenario of America in terms of establish the
business by the foreign countries. United States of America, widely known as the Land of the
Free and Home of the Brave, is much diverse in the cultural parameter. The immense landscape
is much luxurious and sophisticated, which is much opportune for the business marketers to
select the potential consumers. The favorable magnitude is also a considerable factor for the
existence of numerous subcultures in America. The seriousness among the business associates in
America is also much favorable for the development of organisations. Americans greet people
with more commendable manner than the other countries.

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Table of Contents
Introduction......................................................................................................................................2
a) Rationale for Selecting USA Cultural Market.............................................................................2
b) Cultural Analysis of USA............................................................................................................3
c) Business Cultures in America......................................................................................................3
d) Hofstede’s Cultural Model..........................................................................................................4
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
International business conducts the business transactions in different countries. These
transactions deal with the transfer of technology, services, managerial knowledge, goods, and
business capitals. The cultural differences in the international countries are considered as the
major determinants due to which the foreign business marketers sometimes face the considerable
challenges (Samaha, Beck & Palmatier, 2014). In this study, the cultural market of USA will be
discussed. The study would provide the fruitful insights on the culture of the host country. The
analysis of the different cultural components would also be presented in this study. In addition to
this, the study would discuss the business culture of the host country. The use of Hofstede’s
Dimension Model would consider the business operations of the foreign countries within the
different cultural scenario.
a) Rationale for Selecting USA Cultural Market
USA cultural market has been dominating the economic zone of the country. US market
consists of 300 million consumers due to which it is considered as the largest market in the world
(Mazaheri et al., 2014). The business opportunities and the favorable business markets are
attracting many foreign countries to establish their businesses. Even though the country contains
only 4% of the global populations, it has captured almost 25% of the global economic output.
USA is one of the richest countries in the world that is quite opportune for the foreign business
marketers to earn more profits (Keywords.nyupress.org, 2017). USA culture is comparatively
homogenous. It is considered as one of the most diverse countries with the presence of huge
number of ethnicities and languages. English is the international language for the foreign
businesses. It has been observed that 97% of the populations are fluent in English, which is much

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beneficial for the business dealings. Therefore, the study would focus on the exploration of USA
cultural market.
b) Cultural Analysis of USA
United States of America, widely known as the Land of the Free and Home of the
Brave, is much diverse in the cultural parameter. The immense landscape is much luxurious and
sophisticated, which is much opportune for the business marketers to select the potential
consumers. The cultures of the country are transmitted in variety of ways starting from migration
and recruitment. American culture is diverse in nature and consists of people from different
ethnicity, religions, and political background. The group of the indigenous people is also visible
within America (Bakir et al., 2015). The favorable magnitude is also a considerable factor for the
existence of numerous subcultures in America. The cultural analysis of America depends on
three major levels, such as the observable artifacts, enacted values, and espoused values. The
observable artifacts comprise of the ceremonies, symbols, social spectacles, and linguistic
values. The espoused values include goals, strategies and philosophies that differ from the other
cultures. The enacted values, on the other hand, depict the apparent influences on the US
cultures. The combination of the artifacts, enacted values, and espoused values together
formulate the cultural diversification in America.
c) Business Cultures in America
Appropriate etiquette and cultures are the most important factors to be considered in the
business scenario. The American business cultures are different to the etiquettes maintained in
other countries (Ferraro & Briody, 2017). It is notable that America is the melting pot of cultures
and there are no accepted rules followed. People in America are much concerned about their

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personal attributes and conscious about others’ personal spaces. Therefore, American companies
do not encounter much conflict. On the contrary, in the Asian culture, people are more likely to
work together and indulge with others’ works as well. The conflicting scenario is more visible in
Asia than America (Mazanec et al., 2015). The seriousness among the business associates in
America is also much favorable for the development of organisations. Americans greet people
with more commendable manner than the other countries. The informal behaviour outside the
corporate environment is much visible in American culture. Above all, the greeting and the
acceptability of the other cultures for the business dealings are remarkable enough to establish
the business in America.
d) Hofstede’s Cultural Model
Working in the foreign country requires gathering the insightful knowledge about the
cultural traits. It is essential to identify the cultural suitability before establishing any business
for a longer time. The analysis of the Hofstede’s cultural dimensions would be much preferable
to identify the major considerations for establishing the foreign business in USA.

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Figure 1: Hofstede’s Cultural Dimension
(Source: Hofstede-insights.com, 2017)
Power Distance
The power distance is the dimension, which determines the inequality between the people
within a society. It also expresses the measurement of the power for understanding the business
requirements. America scores 40 in this dimension, which is moderate for the foreign business. It
indicates that the foreign businesses need to consider the power of the societies’ inequalities,
which are endorsed mostly by the followers than the leaders (Stahl & Tung, 2015).
Individualism
The individualism dimension determines the degree of the interdependence maintained by
the members of the society. America score 91 in this dimension, which is quite higher. It depicts

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that the Americans follow the idea of liberty and justice for all. They value the people more,
which is quite favorable for developing the business atmosphere and achieving success.
Masculinity
The high score in the masculinity dimension indicates that the society is much driven by
the competition, success and achievement. It is noticed the score of America in this dimension is
62, which is quite higher. Therefore, the foreign business has the favorable chances to make
progress in their businesses.
Uncertainty Avoidance
This uncertainty avoidance dimension considers the fact that the society often requires
dealing with uncertain situations in future. America scores 46, which is below the average that
creates impacts on the cultures (Hofstede-insights.com, 2017). Hence, the foreign business
would ensure the success in establishing the business in America.
Long Term Orientation
The long-term orientation determines the maintenance of the links with the past while
dealing with the challenges in present and future. America scores 26 in this dimension, which
considers that the country is much fond of generating ideas from the new information. The
innovative thinking is the major strength for the country that is much favorable for the business
expansion of the foreign countries as well.
Indulgence
This dimension defines the extent to which people try to control the impulses and desires.
In this dimension, USA scores 68, which is the combination of the normative score. The country

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believes in working hard to achieve their desires. Hence, it can be implied that the contradictory
attitudes and behaviour are much visible in Americans.
Conclusion
The study explores the cultural analysis of America. It is notable that America is one of
the largest countries that as developed the cultural diversification. American culture is diverse in
nature and consists of people from different ethnicity, religions, and political background. The
group of the indigenous people is also visible within America. The favorable magnitude is also a
considerable factor for the existence of numerous subcultures in America. The proper and
favorable cultural traits along with the sophisticated business scenario are much favorable for the
foreign countries to establish business in America.

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References
Bakir, A., Blodgett, J. G., Vitell, S. J., & Rose, G. M. (2015). A preliminary investigation of the
reliability and validity of Hofstede’s cross cultural dimensions. In Proceedings of the
2000 Academy of Marketing Science (AMS) Annual Conference (pp. 226-232). Springer,
Cham.
Ferraro, G. P., & Briody, E. K. (2017). The cultural dimension of global business. Taylor &
Francis.
Hofstede-insights.com, (2017). Country Comparison - Hofstede Insights. [online] Hofstede
Insights. Available at: <https://www.hofstede-insights.com/country-comparison/the-usa/>
[Accessed 4 Oct. 2017].
Keywords.nyupress.org, (2017). Market | Keywords for American Cultural Studies. [online]
Keywords.nyupress.org. Available at: <http://keywords.nyupress.org/american-cultural-
studies/essay/market/> [Accessed 4 Oct. 2017].
Mazaheri, E., Richard, M. O., Laroche, M., & Ueltschy, L. C. (2014). The influence of culture,
emotions, intangibility, and atmospheric cues on online behavior. Journal of Business
Research, 67(3), 253-259.
Mazanec, J. A., Crotts, J. C., Gursoy, D., & Lu, L. (2015). Homogeneity versus heterogeneity of
cultural values: An item-response theoretical approach applying Hofstede's cultural
dimensions in a single nation. Tourism Management, 48, 299-304.

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Samaha, S. A., Beck, J. T., & Palmatier, R. W. (2014). The role of culture in international
relationship marketing. Journal of Marketing, 78(5), 78-98.
Stahl, G. K., & Tung, R. L. (2015). Towards a more balanced treatment of culture in
international business studies: The need for positive cross-cultural scholarship. Journal of
International Business Studies, 46(4), 391-414.