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Some of the specific ways that cultural differences can affect international business relations are group mechanics, employee behavior, and norms.
Professor Geert Hofstede initially developed a model that identified four primary dimensions to assist in differentiating cultures: Power Distance index - PDI, Individualism - IDV, Masculinity - MAS, and Uncertainty Avoidance Index - UAI. Geert Hofstede later added a fifth dimension after conducting an additional international study with a survey instrument developed with Chinese employees and managers. That dimension, based on Confucian dynamism, is Long-Term Orientation ? LTO...
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