Running head: GLOBAL BUSINESS CULTURAL ANALYSIS 1
Global business cultural analysis
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Institutional
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GLOBAL BUSINESS CULTURAL ANALYSIS 2
Introduction
In this analysis, the focus will be on the cultural perspectives of conducting business in
Romania. Further, the analysis will reflect on how the dimensions and elements are integrated
when conducting businesses across the country. On the same note, the analysis will evaluate how
culture and other dimensions will be compared with the American business culture. The study
will consider eight different elements when conducting this analysis. The elements and
dimensions in question include communication, ethics, religion, manners, values and attitudes,
Education, customs, and social structures.
The major elements and dimensions of culture in this region
Communication
Like most regions, Romanians have two formal ways of communicating, non-verbal and
verbal communication. Part of verbal communication includes direct communication, raised
voices, and formality communication style (Klepper, 2002). Romanians are known to have a
direct communication way. In fact, they usually speak matter-of-factly. They are also known to
be honest, abrupt talkers, and quite frank in their conversations. They never hide their opinions
and emotions (Beissinger, Rădulescu, & Giurchescu, 2016).
Expressing themselves with passion and emotion demonstrates a lively combination that
is often combined with some form of body language and animated tones. Romanians prefer using
stories, jokes, and anecdotes when stressing a particular opinion. In some cases, they speak
loudly, especially when mad (Rotar, 2013). Raised voices usually give the notion that they might
be arguing.
GLOBAL BUSINESS CULTURAL ANALYSIS 3
Some Romanians tend to be formal, especially during their first interactions (Beissinger,
Rădulescu, & Giurchescu, 2016). However, they tend to build trust after some time. Non-verbal
communication is usually characterized by attributes such as eye contact, personal space,
expressions, and physical contact (Klepper, 2002). Romanians are known to maintain some
distance when conversing with other people. Such behavior is usually applicable when they are
speaking with strangers.
However, in some cases, they become affectionate and tactile (Sehgal, & Khetarpal,
2008). They normally express affectionate through hand-holding, kissing, and hugging.
Touching shows they remain part of the conversation or engagement. They also maintain direct
eye contact as a way of expressing themselves in the conversation (Beissinger, Rădulescu, &
Giurchescu, 2016). Romanians are naturally expressive, especially with their body language and
facial expressions.
Religion
Romania, as a country, is globally known to be a religious nation. Christianity remains the
largest faith across the nation. Research studies indicate that at least 81.9% of Romania's
population are Orthodox Christians (Rotar, 2013). On the other hand, 6.4% are Protestant
Christians, whereas 4.3% are Catholics. Other common denominations are Judaism and Islam.
Religious affiliations across the country tend to follow the various ethnic lines (Beissinger,
Rădulescu, & Giurchescu, 2016). However, the majority are of Eastern/Romanian Orthodox.
Research experts claim that Romania fails to have a state religion. In fact, the Romanian
government is known to pay the country's registered clergy groups.
GLOBAL BUSINESS CULTURAL ANALYSIS 4
During communist rule across the region, religious culture was seen by many as a
personal issue (Klepper, 2002). In fact, the government undermined the religious culture, with
many observers claiming that the government preferred empiricism and science. Despite that,
most Romanians continued devoting themselves to Christianity (Beissinger, Rădulescu, &
Giurchescu, 2016).
Ethics
In most cultural settings, ethics entails a system of moral standards and principles. In
most cases, it is fretful with what is upright for individuals or the community, in what is known
as moral philosophy. It entails aspects such as character, custom, habit or disposition (Sehgal, &
Khetarpal, 2008). Romania is currently operating under four ethical categories that include
utilitarianism, deontology, virtues and rights.
The deontological ethical class dictates that Romanians should observe to their duties and
obligations especially when they are engaged during their decision making processes (Sehgal, &
Khetarpal, 2008). In Romania, ethics are essential in guiding Romanians behaviors and moral
aspects. In other words, ethics across the country is used to give the Romanians an effective or
rather the right way of living. In other words, ethics helps establish the principles, rules and
values that the Romanians can use as their conduct (Sehgal, & Khetarpal, 2008).
Ethics as part of the country’s cultural perspectives are essential for Romanians in terms
of making things better, and assisting them to consider some of their action’s consequences. As
previously mentioned, Romanians are known to be honest, abrupt talkers and quite frank in their
conversations. They never hide their opinions and emotions. Most of these attributes tend to
describe their ethical perspective (Sehgal, & Khetarpal, 2008). Compassion, caring, personal
GLOBAL BUSINESS CULTURAL ANALYSIS 5
responsibility, and honesty are important values, which assist Romanians to behave ethically
especially when they experience ethical issues in their lives.
Values and Attitudes
Romanians value their families the most. In fact, they tend to place high respect and
value on their children (Klepper, 2002). Therefore, there well-being and protection tend to be
considered as main parental responsibilities. Substantial efforts are usually made in providing
them with their necessities. Reciprocal and interdependent relationships are usually encouraged
by different families. Another important value is the dedication to friends and extended family
(Beissinger, Rădulescu, & Giurchescu, 2016).
A complex system of obligations and rules usually regulates some of the family
responsibilities Education is also another important aspect that Romanians tend to value. The
school usually holds a primary role, especially for the children.
Romans are usually quiet and shy in nature (Sehgal, & Khetarpal, 2008). Most people admire
their humility and modesty. The fact that they are open and honest, most people love their
attitude. Once they are close to you, Romans usually open up (Klepper, 2002). As much as they
are known to be polite, in most cases, they tend to change their attitudes in case of provocations.
When conducting the study based on collectivism or individualism, the study revealed that
the individualism aspect seems to be low. In fact, it was evident that Romania remains a nation
based on collective type (Beissinger, Ra
dulescu, & Giurchescu, 2016). The actual recorded
individualism value as seen in the research is 30 based on the collective type of cultural value
GLOBAL BUSINESS CULTURAL ANALYSIS 6
across the population. Illogically, it was evident that the future is likely to increase the
individualism levels with a possible culture of individual type predominance (Beissinger,
Rădulescu, & Giurchescu, 2016). Such a cultural shift is likely to be resulted by the country's
market dispersion of consistent foreign financing, which Romania seemed to benefit from. In this
study, individualism reflects the manner of presenting relations intensity, especially between
community members (Klepper, 2002). Here, aspects such as high incomes, entrepreneurial spirit
and the tendency to increase middle-class share are evaluated. Generally, Romanian
individualism remains low (Klepper, 2002). Apart from that, it was evident that the country has a
close cultural dimension estimation due to pro-individualism media responses.
In terms of femininity and masculinity, research studies reveal that Romania remains a
feminine nation. In fact, most employees are always seeking a collaborative work environment.
Therefore, they always call for support while basing on groups they tend to belong (Beissinger,
Ra
dulescu, & Giurchescu, 2016). Another aspect that was also evident was that the work to live
principle remains applicable in Romania. Businesswise, profit and performance are not
considered as main values, which guide Romanian businesses and companies (Beissinger,
Ra
dulescu, & Giurchescu, 2016).
The Gallup survey established that the country's masculinity index seemed to be valued at
39. On the other hand, values of femininity cultural type tend to determine the competitiveness
levels of businesses and companies in the country compared to other nations such as the U.S
(Beissinger, Rădulescu, & Giurchescu, 2016). Romanian workers are likely to contribute some
small percentage or rather proportion to alter the situation since they mostly place additional
emphasis on cooperation and free available time at the expense of their business targets.
GLOBAL BUSINESS CULTURAL ANALYSIS 7
When basing on pro-masculinity organizational/business behaviors, the sample average
option is at least 47% in line with Hofstede scale estimation. In terms of uncertainty avoidance, it
was evident that Romania's anxiety levels remain high, according to the Gallup study
(Beissinger, Rădulescu, & Giurchescu, 2016). Further, Hofstede's study reveals that the country
has a high index of at least 90%. Most Romanian businesses and companies have poor long-term
planning, whereas their defensive mechanisms are preponderating.
Linking these factors (dimension value) with the country's low individualism index
shows indicates that there is an obvious high reluctance degree among the Romanians when it
comes to minority views (Beissinger, Ra
dulescu, & Giurchescu, 2016). Romanian business
individuals and employees usually prefer identifying some of the solutions, which tend to solve
their equivocal situations, especially in the future.
Orientations
In terms of the country's short-term/long term orientation, it was evident that such kinds
of orientation across the country are prevailing. The prevalence signifies some radical
modification towards past/present at the long-term vision's expense (Beissinger, Rădulescu, &
Giurchescu, 2016). Generally, the country's savings level remains low. In fact, most Romanians
are consumer-oriented, whereas most of them prefer credits. Such attributes demonstrate a
disturbing concern for the Romanians in maintaining their image (Beissinger, Rădulescu, &
Giurchescu, 2016). Gallup study established an average score of at least 42 based on such a
dimension. Most companies and businesses across Romania register lower scores in terms of
maintaining their norms, especially at the societal level.
GLOBAL BUSINESS CULTURAL ANALYSIS 8
On the other hand, businesses that register high scores prefer using a pragmatic approach.
In most cases, such an approach encourages modern education efforts, which is also important,
especially in preparation for the future (Klepper, 2002). Another important business cultural
element is the restraint or rather an indulgence aspect. In business, restrain/indulgence entails a
certain degree to which business or sometimes the general public focuses on maintaining and
controlling their impulses and desires depending on their ways of life or education levels
(Beissinger, Rădulescu, & Giurchescu, 2016). Currently, Romania has a score of 20 in terms of
indulgence. Such an assumption simply means that the country is inclined in holding its people.
It also means that most Romans have the discernment that tends to be limited by the various
social norms.
Customs
Romanians depend on the various religious traditions for their daily guidance. For
instance, ethnic Romanians tend to follow various Eastern Orthodoxy traditions and practices.
Such practices allow them to engage in ceremonies and customs during Easter (Klepper, 2002).
On the other hand, the German minorities and the Hungarians that belong to Protestant churches
and the Roman Catholic insist on celebrating Christmas (Călin, & Dumitrana, 2001). Lastly, the
German and Hungarian communities are known to wear the traditional folk dress. Another
custom linked to the Romanians is their cuisine, which owes much to the Greek and Turkish.
Desserts include baklava, saraille, and placinta. Local beers and Moldavian wines remain
popular across the region.
GLOBAL BUSINESS CULTURAL ANALYSIS 9
Romania is also known to value special occasions/days in their calendar. In fact, national
holidays are part of their customs. They tend to include Orthodox Easter, New Year, Christmas
Day and the Romanian unification with Transylvania. Romanian culture usually offers various
attributes of fork art. Wood carvings, skillfully woven carpets, ornamented costumes and pottery
are also part of the region's custom (Beissinger, Rădulescu, & Giurchescu, 2016). Folk art in the
region is mostly characterized by various aspects, including stylized representations and
geometric designs. Romanians value their music. They consider their music an important
expression medium (Călin, & Dumitrana, 2001). Major instruments include the cobza, which is a
stringed instrument that resembles a lute. Other instruments include the flute and tambal.
Social Structures and Organizations
In the socialism age, the structural Romanian society configuration and dynamics such as
political, cultural and economic processes tend to be conditioned by the establishment of the
economy (Călin & Dumitrana, 2001). Certain socio-economic indicators highlight the dynamism
and achievement of the region's economy. Today, the region has attained a global production
achievement unlike before. The region's economy's dynamism tends to be attained from a
multifaceted social mobility process (Klepper, 2002).
In turn, such a process determines vital quantitative and qualitative changes, especially in
the country's class structure, production of material, social categories and strata. It is distinctive
of the region's social dynamics to enhance a new social order. Here, groups of people would
simply shift from different social classes across the country. Romania is usually categorized
based on the different social structures and categories (Călin, & Dumitrana, 2001). Some of these
GLOBAL BUSINESS CULTURAL ANALYSIS 10
categories include the cooperative peasantry, working-class, administrative officers,
intelligentsia, and handicraftsmen categorized in different cooperatives.
Education
In Romania, Education remains an important cultural value. The education system is
mostly based on the egalitarian system, which is also known for its free-tuition Education.
Article 32 of Romania's Constitution guarantees a free education system. The National Education
Ministry regulates the education sector across the country (Klepper, 2002). The ministry has also
ensured that modules within the system are systematically followed. In fact, each stem tends to
have its own organization form (Beissinger, Rădulescu, & Giurchescu, 2016).
The sector is also subject to various directives and laws. The education system in
Romania has been through several reforms since the fall of communism to streamline it further
to better serve and support the new systems in the country. Today, children are expected to go
through 11 years of compulsory education which includes 5 years of primary school, 4 years of
middle school, and then 2 years of high school with 2 more years of optional high school
education. Education has become an important structure of the Romanian society to ensure that
its people remain literate to compete in the global market environment.
The education system in the country follows the popular direction like most countries in
the world; kindergarten, elementary school, high school, and higher education which is not
mandatory but expected if one wishes to succeed in the corporate world. The kindergarten
education offers pre-school training for kids between three years and six years which prepares
them for the school environment and culture.
GLOBAL BUSINESS CULTURAL ANALYSIS 11
Children between the ages of six and seven are expected to go through the preparatory
school that is mandatory in order to join grade one. The elementary school included the primary
school and the middle school. This constitutes of the preparatory year and grades one through
grade eight. As earlier stated, this is compulsory for all children living in Romania. Most of the
elementary schools are public and state-run which are free for all children.
To enter high school which is compulsory for the first two years, there is a nationwide
exam that students take at the end of their 8th-grade year which is in June. Students apply to the
high school they wish to attend and judging from their scores in the exam, they are chosen to the
rightful school to attend. Students who do not qualify for academic high school must attend
vocational schools for the two compulsory years of high school. Vocational schools are designed
to match the current work market and therefore are always under reforms. There are five types of
high schools in Romania and the national test scores determine which school a student attends.
They include;
The national colleges which are the most prestigious high school in Romania and are
deeply rooted in the tradition of Romania's education as most of them are over 100 years
of age.
Standard high schools are the common high schools in the country providing one or two
academic programs. These schools vary in quality and results which depend on how each
school is run by the administration.
GLOBAL BUSINESS CULTURAL ANALYSIS 12
Military colleges are three high schools in the country that are like the army offering high
school education. Students in these schools should be members of the army and abide by
the rules of the institution.
Technical Colleges or Economic Colleges are high schools offering academic programs
with good results and students must pass the national test to attend these schools.
Technological High School is a type of high school academic programs in the technical
field or educational services.
Vocational-dual education is a type of high school education that runs for three years and
offers apprenticeship and vocational training. Once a student accomplishes this
education, they can transfer to a technological high school and graduate with a diploma.
Needless to say, this type of high school is not popular in Romania.
Integration of these elements and dimensions by locals in conduction business.
Communications
Communication is perhaps the essential aspect when conducting business. Local business
people across Romania have always valued communications during their businesses (Sehgal, &
Khetarpal, 2008). Here, communication tends to serve at least four roles. The first aspect is that
communication tends to foster motivation through clarifications and what is needed in the
business (Klepper, 2002). On the other hand, communication is essential in terms of expressing
emotions and information.
Locals Romanians are known to have a direct communication way, especially when
handling their business Dumitrana, 2004). As previously mentioned, they usually speak matter-
GLOBAL BUSINESS CULTURAL ANALYSIS 13
of-factly and are known to be honest, abrupt talkers and quite frank in their conversations. Such
aspects are then incorporated when conducting business, thus allowing easier business.
Communication is also used when controlling business (Klepper, 2002). Expressing themselves
with passion and emotion demonstrates a lively combination that is often combined with some
form of body language, which is important in business.
Religion
The fact that Romania is a religious nation means that the religious factor guides 90% of
their business. In this case, religion tends to play a measurable impact, especially in the
business's social and human development (Călin & Dumitrana, 2001). Religious teachings
usually encourage positive attributes, which are then adopted by the local businessmen.
Therefore, it remains evident that local business people in Romania have incorporated religion in
their businesses to foster respect, limit illegalities such as corruption, encourage broader
freedoms, and develop the national economies (Călin, & Dumitrana, 2001). In other words, the
religious factor is instrumental in building trust.
GLOBAL BUSINESS CULTURAL ANALYSIS 14
Ethics
The ethical aspect remains important in business, given that they tend to set the platform
or the tone for how local Romania business people run their businesses on a daily basis. Through
the country's prevailing ethical practices and behaviors, local Romania businessmen can direct
their employees and their customers by guiding them during decision making (Beissinger,
Ra
dulescu, & Giurchescu, 2016). Most of these decisions are essential for the business and for
their own benefits. Running a business ethically or rather using the right ethical codes, the
businessmen are likely to build effective bonds and stability within the company.
Values and attitudes
Local business people that see the importance of attitude and value usually develop some
marque that will encourage long-lasting success, establish strong relationships and build a loyal
customer following (Dumitrana, 2004). In turn, this usually influences attitudes, thus making the
business value to them (Klepper, 2002). The fact that religious aspects and ethical codes guide
most businesses across Romania, local business people are therefore forced to maintain a
positive attitude when conducting their business (Beissinger, Rădulescu, & Giurchescu, 2016).
Lastly, in turn, this will be infectious, especially to customers.
Manners
Business etiquette remains an essential aspect since it helps establish a conjointly
respectful environment and enhance communication that helps the business remain productive
(Beissinger, Rădulescu, & Giurchescu, 2016). Romania's business people integrate this element
into their business by setting standards for their behaviors when conducting their business. In
most cases, they display good manners, especially during the interactions and treat the customers
GLOBAL BUSINESS CULTURAL ANALYSIS 15
respectfully. Good etiquette allows them to put their perfect behavior towards the protection of
their business (Dumitrana, 2004).
Customs
In business, customs and traditions are essential in giving a sense of belong and comfort.
In most cases, it brings together individuals, thus allowing them to connect effectively. Apart
from that, it reinforces various values, including integrity, freedom, good Education, faith and a
strong work ethic that is also essential in business (Beissinger, Ra
dulescu, & Giurchescu, 2016).
In some cases, it creates a value of selflessness. Differently, the custom is essential in controlling
people's social behavior.
The significance of customs, especially in business, cannot be underestimated. In fact,
they are known to be powerful in the sense that no business person can escape their range. In
most cases, they regulate social life and behaviors among people (Dumitrana, 2004). Local
Romania business individuals can integrate it by learning some of the country's traditions and
customs (Beissinger, Rădulescu, & Giurchescu, 2016). Lastly Learning about the customs would
allow them to apply them effectively in their businesses.
Social structures
Social structures are mostly based on some of the established patterns that pertain to
social interactions between individuals or different relationships. In most cases, the shared values
and accepted norms regulate social structures (Dumitrana, 2004). Components such as roles,
status, organizations and social networks form part of the social structure. As demonstrated in the
analysis, certain socio-economic indicators highlight Romania's economy's dynamism and
achievement. In fact, the region's economy's dynamism tends to be attained from a multifaceted
GLOBAL BUSINESS CULTURAL ANALYSIS 16
social mobility process. Therefore, it simply means that social structures are essential for any
Romania business (Beissinger, Rădulescu, & Giurchescu, 2016). Local Romania people in
business can achieve this by enhancing dynamism and learning about the region's social
structures.
Education
Education remains the most vital aspect in any sector, including the country's business
sector. Education mostly provides local businessmen with various networking opportunities. In
most cases, it gives the businessmen chance to meet within the industry and establish new
connections, especially with people or other business personalities with similar interests
(Beissinger, Rădulescu, & Giurchescu, 2016).
Lastly, Education allows business people in the region to attain knowledge and
experience that is important in business. Therefore, local business people can integrate it by
engaging in various educational activities, which would be helpful for them, especially in their
business (Beissinger, Rădulescu, & Giurchescu, 2016). They can also integrate the knowledge
attained in the business studies into their business.
Comparison with US culture and business
The American economy tends to offer a significant opportunity given its low living costs
and high wages. The country mostly emphasizes on meritocracy and efficiency, especially in its
businesses. America is driven by innovation or rather a modernization. In fact, it feels downright
redemptive to those habituated to strict hierarchies (Bian, & Caliyurt, 2018). Expatriates that
work in America tend to find themselves circumnavigating a working culture, which is full of
GLOBAL BUSINESS CULTURAL ANALYSIS 17
incongruity. The casual atmosphere of businessmen across America tend to contradict the fact
that they rely on the various cultural aspects to build their businesses.
The American business culture remains less hierarchical and less formal compared to
other nations including Romania. Just like the Romanians, Americans are known to address each
other by name. In fact, they tend to have greater access, especially to superiors. Apart from that,
they display a relaxed approach to communication (Bian, & Caliyurt, 2018). Other fields usually
prize conventionalism more than others. For instance, those in business, sales or financing tend
to speak formally compared to individuals from other fields such as media, tech or academia.
Romanians and Americans mostly use the non-verbal and verbal forms of
communication, especially in business. In both nations, the aspect of communication tends to
substitute enthusiasm through amplification (Bian, & Caliyurt, 2018). In fact, communications
always come in handy in business. In both countries, (Romania and America) communication
remains vital especially for business people when expressing their business desires, and
information about the business or the business needs.
Americans are usually known to speak pragmatically and honestly given that they are
always controlled by religious guidelines and ethical aspects. The communication aspect remains
instrumental for business people in both countries in terms of negotiations. In most cases, it
enhances good working relationships mostly between the staff and the customers. In turn, it helps
improve business efficacy and morale.
GLOBAL BUSINESS CULTURAL ANALYSIS 18
Apart from the verbal communication, which Romania and America business people
prefer using, there is also the non-verbal communication aspect. As previously mentioned, non-
verbal communication is usually characterized by attributes such as eye contact, personal space,
expressions and physical contact. Business people in both Romania and America are always
affectionate in their business. They tend to express such desires through hand-holding or using
expressions. Part of the expressions includes maintaining direct eye contact as a way of
expressing themselves during business agreements.
When analyzing the religious aspect, it would be justified to state that both the U.S and
Romania share almost similar religious aspects. In fact, both nations are globally known to be
religious nations. For instance, Christianity remains the largest faith in both nations. The only
difference is that Romania seems to have more denominations compared to America. As
previously mentioned, 81.9% of Romania's population are Orthodox Christians whereas 6.4%
are Protestant Christians. Further studies indicate that.3% are Catholics. Romania also has other
common denominations such as Judaism and Islam. As much as most of these religious
denominations are similar, America has a lesser number of religious affiliations. For example,
denominations such as the Orthodox are not common in America.
Research experts claim that Romania fails to have a state religion, something that is
common in America. It is also evident that both the Romanian and American governments are
known to pay the country's registered clergy groups. Another similar aspect is the fact that
religious culture is seen by many as a personal issue. However, the Romanian government was
initially known to undermine the religious culture, with many observers claiming that the
GLOBAL BUSINESS CULTURAL ANALYSIS 19
government preferred empiricism and science. Despite that, most Romanians continued devoting
themselves to Christianity.
This is different from the American religious culture, which most experts claim to be
open. It is also evident that the religious aspect in both countries is integrated into the business.
In both Romania and America, religious teachings are used to encourage positive attributes,
which are then adopted by the local businessmen. In fact, local business people in both nations
have incorporated religion in their businesses to limit aspects such as corruption, enhance
morality in business, respect, and encourage broader freedoms. In other words, religious
attributes are important in developing national economies in both countries.
The ethical aspect is usually standard in most countries. Therefore, it is not surprising that
Romania and America share almost similar ethical aspects. For instance, the moral standards and
principles in both countries are almost the same. Romania and America are operating under four
ethical categories. The categories, in this case, include rights, utilitarianism, deontology, and
virtues.
Analytically, the deontological ethical class in both nations’ states that respective citizens
must always maintain high moral standards and behaviors. Ethics in America and Romania tend
to give the citizens an effective platform that guides them to live in the right way. It also remains
evident that ethics in both nations is essential in establishing the principles, rules and values that
the citizens can use as their conduct.
GLOBAL BUSINESS CULTURAL ANALYSIS 20
In both nations, the ethical aspect is essential in business since they set the tone for how
local Americans and Romania business people operate their businesses. Through prevailing
ethical practices and behaviors, local Romania and American businessmen direct their employees
and their customers by guiding them during decision making. Most of these decisions are
essential for the business and for their own benefits. Running a business ethically or rather using
the right ethical codes, the businessmen are likely to build effective bonds and stability within
the company.
Hofstede Analysis
Few studies have been done/conducted based on the acknowledgment and identification
of Romania's and America’s cultural dimensions. A recent study conducted using the Value
Survey Module established a hypothesis that confirmed that both countries seemed to have
identical cultural values (Beissinger, Ra
dulescu, & Giurchescu, 2016). Here, aspects such as
femininity, large gap power, short term orientation, and collectivism were observed. In the study
(the power distance), Romanians are not prompt to discuss their cultural behaviors across the
society within a formalized framework. However, Americans, more so the American business
people are somehow prompt when discussing their business activities and their cultural behaviors
(Klepper, 2002). The research further reveals that the aspect of power spread across Romania
remains higher unlike in America. The study estimates that the power spread in Romania is
likely to attain a high of 70.
GLOBAL BUSINESS CULTURAL ANALYSIS 21
Geert Hofstede's score established that both country’s score (power distance) to be
about 90. Based on the research, it was established that Romanians seem to have a high
insincerity degree, something that is quite different from the Americans. When the researchers
analyzed the Hofstede score, it was evident that most Romanians seem to support the
hierarchical order whereby each order seems to have an evasion place.
On the contrary, Americans including American businessmen are never sure about the
hierarchical order. (Beissinger, Rădulescu, & Giurchescu, 2016). Therefore, it does not
necessarily require some justification. Centralization also remains a common prospect by the
Romanians, which is different from the Americans. In Romania, centralization means that most
people across the country like to be directed on what to do in what analysts claim that Romania's
ideal superior remains the benevolent authoritarian (Călin, & Dumitrana, 2001).
The implications for US businesses that wish to conduct business in Romania
Romania is a growing economy and American business may find it to be a favorable
landing place to establish new businesses as well as expand its market for an already established
business. Romania, like any country on the planet, has its own challenges that foreign businesses
have to consider before affirming their business prospects in the country. Businesses have to
weigh in the elements and culture against the business interest to ascertain the viability of their
business within Romania.
In this analysis, it is clear to see that American business would do well in Romania based
on the elements and dimensions of culture. The American business is driven on innovation and
this is a learned attribute that can be duplicated in Romania. Judging from how Romanians value
GLOBAL BUSINESS CULTURAL ANALYSIS 22
the hierarchical of power, it would be easy to assimilate them to the ways of doing business the
American businesses prefer.
Despite the lack of formality in the American business culture, it would be easy to
assimilate to the way of doing business in Romania because of their relaxed approach towards
each other. Romanians are friendly people who appreciate different cultures due to t the diversity
of culture that already exists in their country and therefore would respond well to the mannerism
of American businesspeople and accommodate their business culture. Nevertheless, a relaxed
manner of approaching a business relationship is always welcome in any culture.
People like other people who are easy to deal with. The relaxed manner of the Americans
would be appreciated within the environment of the Romanians. Romanians and Americans
mostly use the non-verbal and verbal forms of communication, especially in business which
works well to integrate business in the country. How the people of these two nations
communicate is very similar and would work to provide easy integration of American business in
the country.
Entrepreneurship opportunities are available for US businesses that want to revive the
economy in Romania. However, the businessenvironment present in the country still raises
security concerns, not only for local entrepreneurs but also to international businesses. Due to
this reason, companies willing to invest must be ready to take high risks, have high tenacity,
beingenious and highly motivated. Such businesses must learn to quickly adapt to changes and
anticipate any changes within the economy beforehand. The company should revolutionize and
upgrade their services and knowledge acquisition to match the challenges of the 2020 era.
GLOBAL BUSINESS CULTURAL ANALYSIS 23
Carrying out a SWOT analysis of the Romanian Entrepreneurship represents the
implications new businesses from the US are likely to face.
Strengths:There is a potential for the development of new business ideas in the service
market. This provides a platform for young and focused business innovators.Also, businesses are
preferably required by the young generations as it offers a sense of freedom and independence as
compared to corporate businesses. Flexibility is also a part of the Romanian business
entrepreneurship. The market also attracts a pool of loyal customers in small market
enterprisesas compared to corporate business.
Weaknesses: When investing in these markets, it is essential to note that most of the
entrepreneurs are untrained on business management.There are little investmentsin education and
training on management.Most of the companies are established on small capital. Therefore they
cannot expand.It is also hard for companies to access credit facilities which makes it hard for
technological advancement investments.
Opportunities: There are plenty of market gaps in Romania that businesses can easily
convert into profitable opportunities without stiff competition.Also, due to the lack of a
structured economy and enhanced flexibility, there is a booming growth of SMEs. Besides,
businesses from this region have a lot to learn from companies in other areas, which offers a
suitable opportunity for benchmarking.
Threats:Businesses in the region face globalization and intense competition from well-
developed economies. There is an unfair competition of small businesses with the
GLOBAL BUSINESS CULTURAL ANALYSIS 24
hypermarket.Also, the legislative structure is not compact; it keeps on changing, which poses a
threat to upcoming or existing companies.
Foreign Direct Investments (FDI) are likely to increase if businesses from the US are set up in
Romania. This is mainly aided by the availability of cheaply, affordable skilledlabour for new
companies willing to settle in the region.Also, flat tax rates at 16%, flexiblelabour laws and
attractive geographical locations imply more profitability for businesses, hence offering
attractive terms for US businesses to move here.
Religion plays a guidance role between the two countries which will work to unify their
business practices. Religion allows people to be morally upright which translates to the way they
conduct their businesses. This common factor is important for American businesses to thrive
within Romania. Good communication is also important as it enhances good working
relationships between the staff and the customers creating a thriving business relationship.
The way the people from the two countries communicate is very similar from their
expressions and enthusiasm towards the other person as well as being friendly and attentive will
ensure that American businesspeople will not clash with the communication culture in Romania
and will be able to foster good working conditions for their workers and create a proper customer
relationship that supports the business.
As much as the ethical aspects of many countries across the globe are standard, the
similarities of the ethical aspects of America and Romania will work to enhance business
integration within the country. American business would be pleased to know that their businesses
are in a country where the people are held in high moral standards and therefore the business
GLOBAL BUSINESS CULTURAL ANALYSIS 25
environment will be conducive (Satterlee, 2009). A country that has positive principles, rules,
and values that every citizen is encouraged to adhere to is a country where a business can thrive.
Romania may be different in culture from America but their business practices offer a chance for
American businesses to grow and thrive.
Conclusion
America and Romania are countries with apparent differences but because of the
emerging business globalization trends, American businesses have been seeking viable business
prospects across the globe. Romania seems to be a viable candidate for such a prospect. A recent
study conducted using the Value Survey Module established a hypothesis that confirmed that
both countries seemed to have identical cultural values (Beissinger, Ra
dulescu, & Giurchescu,
2016). This would work to successfully integrate an American business in the country. There can
be a few culture clashes like the abrasive way the American people conduct their businesses but
these are not major differences that can prevent a business to thrive. Geert Hofstede's score
established that both country’s score (power distance) to be about 90 which is a major difference
culminating in the hierarchical order of doing business in Romania versus the decentralized
manner the Americans conduct their business. This cannot deter any business function as new
mannerisms are always learned and ways of doing business can change over time. American
business would do well in the Romanian environment.
GLOBAL BUSINESS CULTURAL ANALYSIS 26
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