Hofstede Cultural Dimensions

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CONTENTS 1.0 Introduction 1 1.1 What is culture? 1 1.2 The importance of culture 1 2.0 Hofstede Cultural dimensions 2 2.1 Compared with China and Thailand by using Hofstede’s cultural dimensions 3 2.2 Compare two countries in financial aspects 5 3.0 Evaluation 7 4.0 Conclusion 8 Reference 8 1.0 Introduction In nowadays, the business between two different countries is a common thing. However, different countries have different financial system. It means in some financial problems like accounting different countries solved in different ways. Why it can happened. Because the different culture. In this essay, it will compare two countries to illustrate this point based on the Hofstede’s cultural dimensions. The two countries are Thailand and China. 1.1 What is culture? In this essay, culture is the major role. So the definition of culture needs to be explained. Culture is the common ideas, beliefs and values shared by the members of a group of individuals (Hofstede 1984). 1.2 The importance of culture In this model some players played a important role like Hofstede, Gay, Trompenaars and Hampden-Turner, Schwartz because firstly culture has a little influence on financial reporting and it used from 1980’s. 2.0 Hofstede Cultural dimensions It is a way of distinction countries and as a effective method to understand accounting. Furthermore, it uses key culture values as a basis. Prof. Geert Hofstede said “culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” The Hofstede Cultural dimensions have five aspects which are power distance index (PDI), individualism (IDV), masculinity (MAS), uncertainty avoidance index (UAI), long-term orientation (LTO). PDI It is defined as “the extent to which the less powerful members of institutions and

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