International Business: Hofstede Framework Country Comparison Analysis

This assignment analyzes and compares Canada with India and China based on the Hofstede framework, focusing on cultural dimensions and their implications for international business. The student chose India and China due to their favorable demographics, emerging markets, and economic growth, which present opportunities for Canadian businesses. The analysis includes a value graph and a table explaining the implications of each value dimension on cultural aspects of international business. Based on the framework, India is suggested as a better trading and investment partner for Canada due to similarities in certain dimensions and the potential benefits of the emerging Indian market. The student highlights the ease of country comparisons using Hofstede's cultural dimensions and the importance of such analysis for multinational business organizations before making investments or forming business partnerships. This resource provides a valuable overview of the critical drivers of Indian culture, which can influence the business operation of a Canadian business organization.

RUNNING HEAD: COMPARISON OF COUNTRIES BASED ON THE
HOFSTEDE FRAMEWORK
COMPARISON OF COUNTRIES BASED ON THE HOFSTEDE FRAMEWORK
Name of the Student:
Name of the University:
Author’s Note:

1
COMPARISON OF COUNTRIES BASED ON THE HOFSTEDE FRAMEWORK
1.) Select two (2) countries with which to compare Canada. Identify them in
the box below.
India and China are those two countries that will be compared with Canada. Canada can
do business with these countries.
2.) Why did you choose these countries? Explain.
India: The analysis of Hofstede’s Framework identified various reasons for which a
business organisation can do business in this country. Favourable demographics of this
country is a reason for doing business in this country. Youthful, educated, emerging
market, the increasing workforce can help a business organisation to do business in this
country. The growing economy of this country can help the business organisation of
Canada to profit by doing business in India. India is constantly evolving and turning in to a
business-friendly country. The government are supporting foreign direct investment. So it
can be said that doing business in the emerging market in India can be a good option.
China: Capital markets, emerging market, appropriate business environment, and thriving
economy are the reasons for which a business organisation can do business in this country.
A business organisation can access cheap, educated workforce of this country. The
government of China is trying its best to make more accessible rules and regulations for
foreign direct investment. The economic growth of China can support the foreign business
organisation to do business. The economy of China is one of the fastest-growing major
economies of this world. This country has become the largest economy of this world.
3.) Insert the Value Graph comparing the two countries with Canada.
Source: (Hofstede Insight 2020)

2
COMPARISON OF COUNTRIES BASED ON THE HOFSTEDE FRAMEWORK
4.) What are the implications of each value dimension on cultural aspects of
international business? Provide an explanation in the table below.
Understanding the
value dimension
Canada Country 2
India
Country 3
China
Power Distance 39 77 80
Individualism 80 48 20
Masculinity 52 56 66
Uncertainty
Avoidance
48 40 30
Long term
orientation 36 51 87
Indulgence 68 26 24
Source: (Hofstede Insights 2020)
5.) Based on this framework and analysis (i.e. cultural fit), of the two
countries selected, which would be a ‘better’ trading, investment or
business partner for Canada?
Based on the Hofstede’s framework analysis, between India and China, India can be
better trading, investment partner for Canada. Value dimensions of cultural aspects of
international business referred that there are similarities between India and Canada. In the
Masculinity dimension, Uncertainty avoidance dimension, the score of these two countries
are more or less the same (Hofstede Insights 2020). Though there are considerable
differences in the Power distance, Indulgence, Long term orientation, Individualism
dimensions, Yet it can be said that Canada can choose India as its business and trading
partner (Hofstede Insights 2020). Doing business in India can be beneficial for Canada. For
doing business, Canada can take advantage of the emerging market of India. Hofstede’s
analysis provides a good overview of the critical drivers of Indian culture, which can
influence the business operation of a Canadian business organisation.
The market of China can be attractive for a business organisation of Canada.

3
COMPARISON OF COUNTRIES BASED ON THE HOFSTEDE FRAMEWORK
However, to do business in China, every business organisation has to follow the strict
regulation of the government of China. So it can be said that India can be a good option for
doing business for a business organisation of Canada.
6.) Something new or interesting that you learned?
After using Hofstede’s cultural dimension, it can be said that making a comparison
of countries based on culture can be easy. Before investing in a country, this analysis is
essential for the management team of an international business organisation. It will help the
management team of a multinational business organisation to get a perfect idea of the
country and to motivate the employee and to manage the conflicts between employee this
analysis can be helpful for the authority of a multinational business organisation because
this analysis will provide various cultural information of the country. It can be said that,
before investing in a country or making business partner, the business organisation has to
do sufficient research and this analysis is a part of that research. (Hofstede Insights 2020).

4
COMPARISON OF COUNTRIES BASED ON THE HOFSTEDE FRAMEWORK
References:
Hofstede Insights (2020). Country Comparison - Hofstede Insights. [online] Hofstede
Insights. Available at:
https://www.hofstede-insights.com/country-comparison/canada,china,india/ [Accessed 20
Jan. 2020].
Hofstede Insights (2020). Home - Hofstede Insights. [online] Hofstede Insights. Available at:
https://www.hofstede-insights.com/ [Accessed 20 Jan. 2020].