Global Business Cultural Analysis: Estonia
Abstract
Estonia is a small nation with a population of 1.3 million bordering the Baltic Sea between Russia and Latvia. Estonia was forcefully occupied and controlled by the Soviet Union from 1944 to 1991 until gaining its independence after the collapse of the Soviet system. Upon liberation, Estonia established a parliamentary democracy form of government and held free elections. By opening its borders to world trade and encouraging foreign direct investment, Estonia took deliberate steps to become a free-market economy. Estonia dramatically reduced import tariffs and export regulations and privatized state controlled enterprises. The government eliminated industry subsidies and minimized social spending. As a result of these actions, Estonia achieved steady economic growth and became a member of the European Union in 1994. Estonians never supported the communist ideology and during the Soviet occupation still considered themselves Europeans and clung to their heritage of independence. The Estonian culture is highly individualistic and taking personal responsibility for one’s self is expected. Estonia’s economic growth has slowed since the global financial crisis; high unemployment is lingering problem.
Global Business Cultural Analysis: Estonia
Estonia is a small former Soviet Bloc nation in Eastern Europe with a population of 1.3 million bordering the Baltic Sea between Russia and Latvia. Upon gaining independence from the Soviet Union in 1991, Estonia reinvented itself as a free market, pro-business nation. By embracing global business and encouraging foreign direct investment, Estonia achieved steady economic growth of over 6% annually prior to the global financial crisis in 2008 (Barry, 2004, p. 37). This paper will analyze Estonia’s cultural dimensions, discuss the impact of those dimensions on business practices, and evaluate...