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Using the Hofstede cultural dimensions as a guide. A cultures risk appetite is best predicted by reference to:Group of answer choicesLong term / Short term orientationMasculinity / FemininityUncertainty AvoidanceIndividualism / Collectivism

Question

Using the Hofstede cultural dimensions as a guide. A cultures risk appetite is best predicted by reference to:Group of answer choicesLong term / Short term orientationMasculinity / FemininityUncertainty AvoidanceIndividualism / Collectivism

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Solution

Using the Hofstede cultural dimensions as a guide, a culture's risk appetite is best predicted by reference to "Uncertainty Avoidance". This dimension measures the extent to which members of a culture feel threatened by ambiguous or unknown situations. Cultures with high uncertainty avoidance tend to be more risk-averse, while cultures with low uncertainty avoidance are more comfortable with risk and uncertainty.

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