Power distance refers to the way in which power is distributed and the extent to which the less powerful accept that power is distributed unequally. Put simply, people in some cultures accept a higher degree of unequally distributed …show more content…
For instance, fairness is a primary virtue for Americans, while the Japanese give priority to maintaining harmony within a group. American individualism encourages independence and aims for free competition so that individuals are able to display their ability. In America, companies compete with one another by trying to establish that their products are of a higher quality than those of their competitors. All parties are expected to "play by the rules." By contrast, Japanese culture is a collectivist culture. It is more aptly described as having an affinity for interactional relativism and consideration of the overall balance. This method of decision-making aims at ensuring that all parties are happy with the outcome rather than who is in the right and deserving. Harmony and feelings of all members of a group are considered more important than fairness. This does not mean that fairness is unimportant but rather that greater emphasis is placed on the maintenance of harmonious relationships. In business, networks are formed and the members within the networks conduct their transactions so as to avoid competition and