Abstract
Several macroeconomic measures of linkages across numerous national borders are used to explore the impact of cultural distance on international business linkages. Greater distances between Hofstede's (1980) cultural dimensions are associated with lower total monetary value of several linkages, especially for power distance and individuality. The work here suggests there is cultural bias or constraint in choosing destinations of cross-border linkages. Implications of that bias include costs associated with firms that venture outside established paths.
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