Common Information for Each Country
Argentina has its cultural peculiarities that should be considered when doing business there. The main rule is to make an excellent first impression. One needs to come to business appointments on time, but he or she may need to wait if they are going to meet an important person (Cirocco, 2018). In addition, it is necessary to schedule meetings a few weeks in advance. Moreover, Argentine people prefer face-to-face meetings, especially when vital matters have to be discussed (Cirocco, 2018). In formal contexts, addressing individuals must include their professional degree, but the titles in the table above will also suit.
The second consideration is business language, which is essential in business relationships. Notably, Argentine Spanish slightly differs from the Spanish spoken in Spain. However, the knowledge of European Spanish will fit the Argentine business context (Cirocco, 2018). In large cities, such as Buenos Aires, people widely use English. Nevertheless, it is better to speak Spanish to show loyalty and respect to Argentine business partners.
The last tip concerns conducting business, as it may also differ depending on the locality. Although the working day looks similar — from 8 or 9 am to 5 or 6 pm, it may be interrupted by a four-hour siesta, especially in smaller cities (Cirocco, 2018). However, in the Argentine capital Buenos Aires, people work eight hours without a siesta. In addition, the operation pace may be slower compared to the U.S. The Argentineans attach high importance to negotiations and discussions, so the partners may need to conduct several meetings to finalize an ultimate decision. Moreover, foreign businesspeople should have local guidance and support due to bureaucratic difficulties in the country.
Hofstede Model of National Culture
Summary
The way of conducting business in Argentina has its specifics in some instances. One can see the most significant differences in scores concerning Individualism Versus Collectivism (91 for the U.S. and 46 for Argentina) and Uncertainty Avoidance Index (46 for the U.S. and 86 for Argentina). Therefore, these indicators must be analyzed regarding their impact on business.
Culture always plays a crucial role because it impacts how people run businesses in different countries. Grahovac and Rađenović-Kozić (2020) state that culture comprises patterned ways of feeling and thinking and also relies on historically derived beliefs and values attached to traditions. That is why learning the culture of potential business partners is crucial for organizational success.
Individualism is a predominant feature of American culture and business. The justice-for-all principle is embodied in the way the American corporate hierarchy is constructed. Senior management is always accessible, and middle managers tend to trust important tasks to employees (Hofstede Insights, n.d.). Argentina is the most individualist nation of all countries in Latin America (Hofstede Insights, n.d.). Undoubtedly, urban areas lead a more conventional ‘Western’ lifestyle, but collectivistic attitudes still prevail in the country. Furthermore, Argentine companies can have a clear hierarchy in which using titles is desirable (Scroope, 2018). Argentineans are committed to family and community and pay high attention to obligation, which is why they strictly divide work and personal life.
Uncertainty avoidance also dramatically differs in both countries. The lower score for the U.S. demonstrates that people here are more open to innovative ideas and trying something new (Hofstede Insights, n.d.). Americans stick to freedom of expression and tolerate any opinions and views. Usually, American employees do not need strict rules, and they may work independently without additional instructions. In addition, they express emotions less than in Latin American countries, which allows for handling conflicts quietly and constructively. On the contrary, people in Argentina need strict rules, though they do not tend to obey them. It means that employees may need more time to go beyond and burst with ideas. It is a national tendency to add new rules when the existing ones are not followed. One law can have other provisions that mitigate or deny it (Hofstede Insights, n.d.). Given this, legal loopholes are widely spread in Argentina, which enhances corruption and black markets.
- The attitudes to business life and work are different in the U.S. and Argentina. While American society is highly individualistic, the Argentine one is more collectivistic, which will reflect in the work-life balance of potential employees of Argentine origin.
- Americans show more tolerance to different opinions and ideas, while Argentineans need rules but do not follow them. Furthermore, they make decisions slower, and that is why discussions on business matters can take a long time.
- Contrary to the U.S., attitudes to laws in Argentina can make conducting business encounter various obstacles. The difficulty for American partners can encompass unfamiliarity with Argentine laws and possible loopholes, which may allow illegal practices from the side of dishonest Argentine business partners.
References
Cirocco, C. (2018). Cultural considerations when doing business in Argentina. TMF Group. Web.
Grahovac, D. and Rađenović-Kozić, B., (2020). The importance of business culture for international business. LIMEN 2020. Conference Proceedings, pp. 301-313.
Hofstede Insights. (n.d.). Country comparison. Hofstede Insights. Web.
Scroope, C. (2018). Business culture. Cultural Atlas. Web.