Topic 4 - Culture and business in N.Amercia

Question 1

US:

Answer 1

• World’s largest national economy
• Ethnocentric
• Adaptation is very important

Question 2

US Business Culture:

Answer 2

• PD – 40, AI – 46, IDV – 91, MAS – 62
• U.S negotiators considered as arrogant but EFFECTIVE
• Companies are quite ACCESSIBLE
• Professionalism is highly valued
• Direct and clear communication
• Focus = PROFITABILITY
• Haggling is NOT COMMON
• Each management level makes its own decisions
• Agreements reflected in very detailed contracts
• Formalisation broadly used
• High employee rotation

Question 3

Mexico Business Culture

Answer 3

• PD – 81, AI – 82, IDV – 30, MAS – 69
• Las maquiladoras (assembly plants close to the U.S border) are one of the foundations of the Mexican economy. This is the reason for 78% of the country’s exports flowing to the U.S.
• Time and effort required to build rapport
• Slow decision – making
• Indirect language
• Haggling accepted
• Decisions made at the highest level

Question 4

US vs Mexico Cultural Factors

Answer 4

• Family is first priority in Mexico compared to work in the US
• Religion – the US is religiously diverse compared to the long roman catholic tradition in Mexico.
• Nationalism – US are very patriotic and Mexico is very nationalistic
• Etiquette – in the US formality is sacrificed for efficiency
• Status – in Mexico titles and positions are very important whereas money is the main status indicator in the US

Question 5

US vs Mexico Management Styles

Answer 5

• Work and leisure – the Mexicans work to live and the Americans live to work
• Supervision - Mexican managers are very autocratic whereas American managers like to delegate responsibility
• Theory vs Practice – the Mexicans are very theoretical and the Americans are pragmatic
• Staffing – the Mexicans prefer to use family and friends whereas relatives are usually barred in the US and promotions are based on performance.
• Competition – the Mexicans favour harmony whilst workers in the US like to prove themselves
• Time – in Mexico is a relative concept and it’s imperative in the US.
• Planning – Mexico tends to be short – term and US is long term
• Feedback – Mexicans tend to be only POSITIVE whereas the Americans are very honest.