Power distance refers to the relationship between higher-ranking and lower-ranking individuals that depends on how the latter react to the former. It is an anthropological concept used in cultural studies to understand the relationship between individuals with varying power, the effects, and their perceptions. It uses the Power Distance Index (PDI) as a tool to measure the acceptance of power established between the individuals with the most power and those with the least. In these societies, power distance is divided into two categories that resemble a culture's power index; people in societies with a high power distance are more likely to follow a hierarchy where everybody has a place and does not require further justification, and high-ranking individuals are respected and looked up to. In societies with a low power distance, individuals aim to distribute power equally. Without regards to the same level of respect of high-power distance cultures, additional justification is often needed among those in low power distance societies. Research has also indicated that before any other relationships in a business can be established, a cross-cultural relationship must be created first.
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