Last Updated 31 Mar 2023

Cultural Diversity and Global Business: The Importance of Geert Hofstede’s Culture Analysis

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As we are moving towards the global era, businesses today have to work 24 hours a day, 7 days a week with no weekend. This is obvious as the needs of each country differ and the business has to be available all the time if they don’t want to lose their prospective clients. However, cultural diversity today plays a major role in the era of globalization. We need a team that is culturally diverse that would be able to meet the requirements of the business on a global level. We need experts in the field of culture who would work for our company.

Geert Hofstede’s culture helps the management team to learn how to adapt to several situations that one may come across in a culturally diverse environment. It helps in the effective interaction between several cultures that a business may come across while dealing with international clients. As stated on Hofstede’s website, “Geert Hofstede's research gives us insights into other cultures so that we can be more effective when interacting with people in other countries. I understood and applied properly, this information should reduce your level of frustration, anxiety, and concern.

But most important, Geert Hofstede will give you the 'edge of understanding' which translates to more successful results” (Hofstede, 2003). According to Hofstede’s cultural dimensions, Ethiopia ranks 27 in individualism (IDV), 64 in power distance index (PDI), 41 in masculinity (MAS), 52 in Uncertainty Avoidance Index (UAI) and 25 in Long Term Orientation Goals (LOG). Australia ranks 36 in PDI, 90 in IDV, 61 in MAS, 51 in UAI and 31 in LTO. United Kingdom scores 35 in PDI, 89 in IDV, 66 in MAS, 35 in UAI and 25 in LTO (Clearly Cultural, n. d. ).

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Hofstede, Geert (2003). Geert Hofstede Cultural dimensions. Retrieved online on

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