China vs. Hungary

Russia vs. HungaryMerle Schulze Gbor VargaMark Balazs Nagy Szilvia Prandovszki Fruzsina Beres-Deak1

Agenda1. Where are the countries placed?2. Hungary2.1. Facts2.2. Culture2.3. Economy2.4. Transportation3. Russia3.1. Facts3.2. Culture3.3. Economy3.4. Transportation4. Hofstedes 5 dimensions5. Summary2

1. Where are the countries placed?

3Total area: 93.030 km2Population: 9.942.000Total GDP: 99 876 million

Total area: 17.075.400km2Population: 143.300.000Total GDP: 1329 billion

2. Hungary

42.1. FactsOfficial language: HungarianCapital city: Budapest (population:1,7 m.)Currency: Hungarian Forint (Ft)300 Ft = 1 Member of the EU since 20045

2.2. CultureTradition: buildings, carvings, thermal bath, folk dance, famous ceramics (Herendi, Black plottery)Food: prefer hot meals and use a lot of pepper (goulash and soups)Drinks: Plinka, wine(Tokaj), Unicum, soda water

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2.3. EconomyMedium-sized in EuropePrivate sector accounts for more than 80% of the Hungarian GDPMain sectors: Agriculture(Great Plain), Health care(famous doctors), Industry, Automobile production(Audi, Mercedes, Suzuki, Opel), Services, Tourism(Balaton, Budapest, Hortobgy)

72.4. TransportationRoads: 31 628 kmRailways: 7183kmHarbours: 6Airports: 2 (Budapest, Debrecen)

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3. Profile of Russia

93.1. FactsOfficial Language: Russian Capital City: Moscow (population:11,5m.)Currency: Russian Ruble (RUB)41 RUB = 1 Member of World Trade Organisation (WTO)

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3.2. CultureTradition: Samovar, Matrjoska puppets, Balalajka, Cyrillic script

Food: Blini, black bread, pirog, soups

Drinks: Vodka, Champagne, Bingos, ardent spirits, Black tea, strong coffee11

3.3. EconomyImport tariff: 7,8% (WTO)The main import products: machines and equipment, medicines, foodsHungary is 20th most important trade partnerIn Moscow the income is twice as high as in the countryMarketing limitation : packaging must not be coloredAdvertisement since 1995

123.4. TransportationRoads: 776.000 km Railway: 87.157 km Harbour: 24Airports: there are more than thousands but 50 of them are the busiest

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4. Hofstedes 5 dimensions

144. 1. Power distanceHungaryRussia lowhighbeing independent, equal rightshuge discrepancy between the less and the more powerful peoplemanagers count on the experience of their team membersdictatorial stilcontrol is dislikedapproach should be top-down and provide clear mandates for any taskattitude towards managers are informalformal attitudes154.2. IndividualismHungaryRussiaIndividualistic Collectivistictake care of themselves and of their immediate families onlyWe with friends instead of I and my friendsemployer/-ee relationship is a contract based on common advantage relationships are important for successful negotiationshiring and promotion decisions are supposed to be based on effort onlypersonal, authentic and trustful before one can focus on tasks164.3. Masculinity / FemininityHungaryRussiamasculine societyfeminine societypeople live in order to work

personal meeting is very importantmanagers are expected to be assertivedominant behaviour might be accepted when it comes from the boss, but not among stafffocus is on equity, competition and performance174.4. Uncertainty avoidance Hungary Russiapreference for avoiding uncertaintyone of the most complex bureaucracies in the worldthere is an emotional need for rulesmany long negotiations, very good preparedpeople work hardfixing the appointments are problematicprecision and punctuality are the norm

when they interact with strangers they appear very formal and distant, used as a sign of respect184.5. Long term orientationHungary Russialong term orientation cultureshort term orientation cultureshow an ability to adapt traditions to a modern context i.e. pragmatismconserve their traditionsstrong interest in saving and investingthriftiness195. Summary

206. ConclusionGet the partners trust to work with themOld relationships with RussiaArrive in time to the negotiationExport products could be: machines and equipment, medicines, foodsExperienced transporter21Russia vs. HungaryMerle Schulze Gbor VargaMark Balazs Nagy Szilvia Prandovszki Fruzsina Beres-Deak22