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Elements of Culture in Australia, Libya, and Canada

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a. Describe elements of culture that might affect how you would negotiate a contract with a business person from both countries and from your own country. Describe the following three countries: Australia, Libya, Canada
b. Explain how misunderstanding or ignoring this element of culture might adversely affect contract negotiations with a business person from those countries.
c. Write a plan on how you would respect the culture in negotiations.

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a. The elements of culture that will affect negotiation are as follows. According to Geert Hofstede, the power distance for Australia is 36 whereas it is 39 for Canada but 80 for Libya. This means that in Australia people are viewed as equals whereas in Libya hierarchies are very important. From the perspective of negotiation, negotiators from Australia/Canada should give special importance to the hierarchical position of the negotiator from Libya. The individualism score for Australia is 90 and for Canada it is 80 whereas the individualism score for Libya is 38. This means that Libya is a collectivist society. While negotiating with people from Libya, the Canadian/ Australian negotiator should see that the Libyan should not lose face. Next according to Geert Hofstede, the uncertainty avoidance score for Libya is 68 whereas the score for Australia is 51 and Canada is 48. The implications are that during the main ...

Solution Summary

The response provides you a structured explanation of how culture differs from country to country. It also gives you the relevant references.

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Hofstede's Five Cultural Dimensions

The CEO has asked you to identify three target market countries and present your choices to senior management. Earlier (phase
1) you had done some preliminary investigation and chosen three countries; now you will work with other members of the sales team to research and confirm the three target countries to present to the CEO.

I wrote about the UK, Canada, and Morocco.


1. Conduct research and locate background and cultural information on these countries.
2. What specifics did you learn about doing business in each of the three targeted countries?
3. How will this knowledge help PM Company do business there?
4. Using Hofstede's five cultural dimensions, what did you learn about the culture(s) in each country that will help you make better management decisions when planning to do business there as well as actually doing business there?
5. Finally, analyze how the cultures of these countries are similar and how they differ, and how this information will impact your management decisions.


You have achieved great success at Physical Movement Company (PM Co.) as their Sales Manager. PM Company is a three year old, US$25 million home healthcare company, headquartered in the northeastern part of the United States. The firm creates and sells wheelchairs, walkers or other types of "mobility products" that give a person some level of mobility when they can no longer completely ambulate on their own. Recently due to an influx of inquiries about your mobility products and some very large, direct sales to customers outside your home country, you have been promoted to the position of Vice-President of International Sales, responsible for all sales outside the United States. The job sounds simple enough - just sell your great mobility products around the world! Benefits of the job include traveling globally, eating great food and shopping for bargains in your free time. Life is good!

However, after a few days in your new position you begin to realize there is more to this job than what you were previously accustomed to as a Sales Manager who sold only in your own country. Your previous job responsibilities included finding a need for your mobility products, overcoming any objections and closing the sale. You were very comfortable in this role. As you begin to call on companies around the world by phone and e-mail, you realize that the global business environment is far more complex, involves many more details, and requires much more knowledge than you ever realized! Because of the time zone differences, you are finding yourself working all the time as business is conducted 24 hours a day, 7 days a week around the world, so there is always someone you need to contact or follow-up with. No one in the company has ever sold internationally before. There are a few employees in the company who were not born in this country. They can provide some language skills and can share their cultural knowledge, but they do not have international business experience. However, you are now the global business leader for your company.

Late one night between calls to Singapore and China, you realize you need to quickly learn as much as you can about global business issues and their implications and to communicate these issues and their solutions to senior management so that together you and the company can achieve your new worldwide revenue objectives.


Specifically, I need more information on #4 and #5 on these countries I wrote about and how to apply Hofstede's five cultural dimensions. Thank you.

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