Cultural Differences: As the world has become globalised, countries are opening up their economies to increase trade and decreasing trade barriers to set up business in another country. So before setting business in another country it is essential for the managers to understand the cultures of host country because every country has different culture. As the Australia and New Zealand are going to do business with Indonesia. As Indonesia is the part of the Southern Asia cultural cluster and Australia and New Zealand are the part of the Anglo cultural clusters (Deresky 2011). There is lot of cultural differences between these. So before doing business foreign investors should check the cultural differences.

Cultural Dimensions by Geert Hofstede: Different sources has identified different cultural dimensions. (Phatak, Bhagat and Kashlak 2009) has identified 5 cultural dimensions that are Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long Term Orientation. But in the website resources Geert Hofstede has added six dimension that is indulgence. For the study purposes, six dimensions are discussed here.

• Power Distance: It means dealing with inequalities which occurs within cultures. It sees the superiors and subordinate’s relationship and what are power distances between them. As we see in the case, Indonesia is a highly power distance country where business relationships are paternal and maternal, subordinates think that superiors should take care of their interests as parents. They are too much dependent on the superiors and there is lot of unequal rights to both. Communication is inappropriate. While in Australia and New Zealand, the power distance is low that means they believe that everyone in the business know why they are in the organisations, what the organisations expect from them and top management feels that employees should communicate their problems to them and gain equal rewards for their work.

• Individualism: It describes the norms, cultures to focus on the relationship between individuals and groups. It sees whether people works individually and as a part of group. Indonesia has low individualism means that employees work as a group in the workplace, they give more importance to family, friends etc. They generally try to select that persons who are their favoured. Where as in western countries like Australia and New Zealand the people work for themselves and they keep their personal and professional life separate and fulfil their own contracts, needs.

• Masculinity: It means to see whether emphasis i