Entering the Market of Hungary Essay

Entering the Market of Hungary Essay

Length: 1260 words (3.6 double-spaced pages)

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Purpose: This paper will address the feasibility of a US company entering the market of Hungary. I will explore four major cultural components of the country that affect doing business in Hungary.

Cultural Impact: According to the Hofstede Centre there are five dimensions of culture, Power Distance, Individualism, Masculine/Feminine, Uncertainty Avoidance, and long term orientation. According to the Hofstede Centre "Power distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally." Hungary scored low on this dimension meaning that managers are not as revered as in a high power distance society, communication is direct as well. According to the Hofstede Centre Individualism is "the degree of interdependence a society maintains among its members". Hungary scored high in this dimension meaning it is considered an Individualistic society, a society of which there is more emphasis based on individual achievements rather than collective goals. According to the Hofstede Centre Masculinity/ Feminity is " what motivates people, wanting to be the best (masculine) or liking what you do (feminine)." Hungary scores high in this dimension meaning that is a live to work type society. A society that places much on competition and beating others . According to the Hofstede Centre Uncertainty Avoidance is defined as "The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these." On this dimension Hungary scored high meaning that they are conservative and like to avoid uncertain situations and outcomes. According to the Hofsted...

... middle of paper ...

..., the risk involved with doing business In Hungary would be too high to warrant a recommendation.

Works Cited
"2012 Investment Climate Statement - Hungary." U.S. Department of State. U.S. Department of State, n.d. Web. 19 Nov. 2013.
"Forms and Pubs." Internal Revenue Service. N.p., n.d. Web. 18 Nov. 2013.
"THE HOFSTEDE CENTRE." Hungary. N.p., n.d. Web. 19 Nov. 2013.
"Hungary." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 19 Nov. 2013.
"Market Potential Index (MPI) for Emerging Markets - 2013." GlobalEDGE: Your Source for Global Business Knowledge. N.p., n.d. Web. 19 Nov. 2013.
"Tariff Rate; Applied; Simple Mean; Primary Products (%) in Hungary." Tariff Rate; Applied; Simple Mean; Primary Products (%) in Hungary. N.p., n.d. Web. 19 Nov. 2013.
"Translation Services." TJC Global. N.p., n.d. Web. 19 Nov. 2013.

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