What does power distance describe in a society?

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Prepare for your UCF GEB3375 Intro to International Business Exam 1. Utilize flashcards and multiple choice questions with explanations to ace your test. Get fully equipped!

Power distance refers to the extent to which less powerful members of a society defer to and accept the unequal distribution of power among individuals. It highlights how a culture perceives and handles disparities in authority, influence, and status. In societies with high power distance, hierarchies are pronounced, and subordinates are more likely to accept directives without questioning the authority of those in higher positions. Conversely, in cultures with low power distance, there is a tendency towards egalitarianism, where power is more equally distributed, and people are encouraged to voice their opinions and challenge authority.

This concept is significant in the study of international business, as understanding the power distance of a culture can inform approaches to management, negotiations, and organizational behavior within different societies.