chapter  10
The implications of being culturally distant
Pages 14

The goal of this book has been to provide information on the relationship between cross-societal cultural differences and economic globalization – specifically, through the potential influence of cultural differences on the transaction costs that may affect international trade flows, foreign direct investment, and international migration. A second, related topic that we have explored is the common criticism that repeated economic interaction and intensified international economic integration (i.e., economic globalization) diminish cultural differences and, thus, result in a loss of cultural diversity and in greater cultural homogeneity. Developing a better understanding of the relationship between cross-societal cultural differences and the facets of economic globalization we have examined in this work provides a more complete understanding of international economic integration and, more generally, the process of globalization.