Culture is a collection of beliefs and behavioral norms in the society. Every country has a different cultural beliefs, values, and activities. The United States is an industrial nation that has enhanced business culture to ensure smooth operations and impressive performance in the workplace. It has been able to trade and partner with foreign states such as the Philippines to enhance popularity in business activities and more income.
Some of the driving factors of the American and Philippines culture include power distance, individualism, masculinity, and uncertainty avoidance. The power distance is explained as the difference and uniqueness in everybody’s appearance and opinions, and thus, societies also tend to differ. American power distance often gives the people with less power a mentality of inequality in how laws are enforced such as economic laws. In contrast, Philippines state is a hierarchical society having a benevolent autocratic leader who gives out hierarchical order and every person must follow (Frijns et al., 2013).
Besides, individualism tends to be the degree of interdependence maintained by the society amongst the member. American premise of justice and liberty for all emphasizes on equal rights in all governmental and American society aspects to ensure equality. On the other side, Philippines is considered to be a collectivistic society having loyalty to foster all its cultural practices (Matusitz & Musambira, 2013).
However, both United States and the Philippines share a high percentage in the masculinity dimension and thus, they are masculine societies that live to work having decisive and assertive managers and leaders (Matusitz & Musambira, 2013).
The uncertainty avoidance reflects the manner in which societies see the future of their culture. For instance, ambiguity may bring anxiety and thus, society must deal with it in advance and before it worsens. America states score fairly in this dimension when compared to the Philippines, and this means that it will have a fair deal with innovations and new ideas acceptance whether it pertains the technology, business, or food. Philippines scores lower in this dimension and thus, it has a low preference to avoid uncertainty, and thus, people believe that there should be no more rules, and if the policies are ambiguous, they should be done away with or changed.
Due to the perceived slight cultural differences between U.S and Philippines, operating business can be difficult between the nations. For instance, under individualism perspective, U.S tends to believe in liberty and justice for all while the Philippines is a collectivistic society and its systems are managed in the autocratic manner of leadership unlike in most United States organizations (Karin et al., 2014). Thus, the differences between the two states may make it hard for them to partner in business activities.
Besides the information from Hofstede information, Filipinos tend to be very friendly and hospitable, and often visit their neighbors and converse with Americans who spend most of their leisure time reading novels. Besides, U.S is an indulgent society with more perceptions of how they control their impulses and desires, unlike the restraint Filipinos society (Shao, Kwok, & Zhang, 2013). These aspects can influence the manner in which Filipinos operate businesses. For instance, the fact that they are social and like team-work can improve their outcomes and productions.
The national culture of Philippines influences how business activities are carried out. However, high masculinity percentage in their country means important outcomes in the production industries since there is enough workforce. Running businesses by foreign countries in the Philippines can be greatly impacted by the cultural differences. Language differences may be a major concern. Besides, the business and economic policies might be enacted by autocratic Philippines leaders to curb the introduction of more foreign into their state (Shao, Kwok, & Zhang, 2013). The difference in the power distance may affect American companies operating in the Philippines based on the fact that it is a hierarchical society.