The uncertainty
avoidance index considers the extent that can be tolerated. These dimensions
are based on the uncertainty and ambiguity. The high uncertainty avoidance
index indicates low rate of tolerance and high risk taking. The issue can be minimized
through the strict rules and regulations. In case of low uncertainty avoidance
index the higher tolerance is required and it can be accepted through the lax
rules and regulations.
Cultural Barrier of
Nova Energy Drink
Argentina is a great country with a
lively, rich, and pure culture impacted through its various type of people and
gratified tradition. Argentina has resisted with the politically aware and
monetary chaos in the previous years. However, since the country was able to
liberalizing its markets, the economy has been sustaining to develop speedily.
The A Company could consider Argentina as an ideal place for the company to
expand its business. Thus, understanding and respecting the Argentinian community
along with its business culture would make sure the effective working relations
with the Argentinians. In general, Argentines are considered to be open-minded
and easy-going where every single issue could be addressed in a discussion.
Conversely, religion and political matters must be evaded or addressed
respectfully (tmf-group.com, 2018).
On the other hand, the A Company
also needs to understand and tackle the cultural barrier in doing business in
Brazil. The Brazilian business interactions are formed up on trust, and it is
quite essential to understand that, for the Brazilian, face-to-face meetings or
direct calls are more preferred than emails (tmf-group.com, 2018).
Regulatory Barrier of
Nova Energy Drink
The regulation
barrier that the A Company needs to understand to extend its market to
Argentina is that the regulation in this country mentions that foreign
companies would able to conduct their business in Argentina on a stable base.
In addition to this, the foreign companies also can engage a profitable local company,
make a branch, integrate a local company, or acquire stocks in a company that
already existed in Argentina (2016.export.gov, n.d.).
Even if there
are lots of multinational companies already have several of their most
commercial branches in Brazil, there are some complicated regulations, broad
system of government, and cumulative competition as the obstacles that need to
be tackled by the A company to enter the Brazil market (Rocha &
Dib, 2002).
References OF Business Report on A Company is a beverage manufacturer located in Oregon, Nova Energy Drink
2016.export.gov, n.d. Doing Business in
Argentina. [Online]
Available at: https://2016.export.gov/argentina/doingbusinessinargentina/index.asp
Rocha, A. d.
& Dib, L. A., 2002. The entry of Wal-Mart in Brazil and the competitive
responses of multinational and domestic firms. International Journal of
Retail & Distribution Management.
tmf-group.com,
2018. Cultural considerations when doing business In Argentina. [Online].
tmf-group.com,
2018. Cultural considerations when doing business in Brazil. [Online]
Available at: https://www.tmf-group.com/en/news-insights/articles/2018/may/cultural-considerations-when-doing-business-in-brazil/