Cultural Dimensions Theory is a framework developed by Geert Hofstede to understand how cultural values influence behavior in different societies. It identifies several dimensions, such as individualism vs. collectivism and power distance, which help explain how people from various cultures interact and make decisions. By analyzing these dimensions, researchers and businesses can better navigate cross-cultural communication and collaboration. Understanding these cultural differences is essential for effective management, marketing, and international relations, as it allows for more tailored approaches that respect local customs and values.