The second reason is that chile is recently coming

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United States government into business and heavier regulations imposed by the government. The second reason is that Chile is recently coming out of a heavily authoritarian military regime rule that strictly controlled all aspects of the local economy. As Chile removed itself from this form of government and back into a democracy, Chile has taken great strides in removing all of the governmental “red tape” on the economy allowing the free market economy to open up even more (Lear & Collins, p. 11-14). Hofstede’s Cultural Dimensions Geert Hofstede developed his cultural dimension theory after conducting a study of more than 100,000 IBM workers in over 50 countries. Hofstede initially identified four cultural dimensions which could be used to distinguish people of one culture from another based on their values, beliefs and customs (2013, p. 3). The original four dimensions were the Uncertainty Avoidance, the Power Index, Individualism versus Collectivism, and Masculinity versus Femininity. Later on a fifth, Long Term Orientation, and a sixth, Indulgence, were added to Hofstede’s cultural dimensions (2013, p. 3-4). These six cultural dimensions can now be used to
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GLOBAL BUSINESS CULTURAL ANALYSIS: CHILE 19 help businesses determine if it is feasible for them to conduct business in certain countries of the world when they are looking to expand their market area. Utilizing the Hofstede cultural dimensions to make sound business decisions could save a company millions of dollars by preventing them from moving into the wrong nation for their business or from the company not becoming familiar with the local culture. Power Distance Index The Power Distance Index “is the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally” (2006, p. 3). In other words the higher the Power Distance Index the more authoritarian the government is in that country. This would be dictatorships and authoritarian style governments. If the Power Distance Index is low, then the country has a much more democratic style of governance and the citizens have many freedoms and liberties. Chile scores moderately high on the Power Distance Index with a score of 63 (Hofstede Insights, Chile) while the United States is moderately on the low side with a score of 40 (Hofstede Insights, United States). Individualism versus Collectivism Individualism in the Hofstede Cultural Dimensions refers to whether a person only looks out for himself / herself and his / her immediate family or if the citizens belong to what many call in- groups where people work towards the good of all people around them (Guesalaga & Pitta, 2014, p. 146). If the numerical score for this cultural dimension is very high, then the people of that country care more about themselves and their loved ones whereas those with a low score are said to be Collectivists that belong to small groups in which they strive to do what is good for the group as a whole. The United States scored a 91 on the Individualism which is extremely high
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GLOBAL BUSINESS CULTURAL ANALYSIS: CHILE 20 Power Distance Individualism Masculinity Uncer
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