The Power Distance Index (PDI) is a tool used to measure the degree of acceptance of hierarchical power structures within a certain culture. It was developed by Dutch social psychologist Geert Hofstede, who sought to understand how different cultures view and deal with power. The index is composed of five specific components: authority, unequal relationships, power-based social structures, centralized organizations, and respect for authority.

The underlying principle of power distance is that in certain cultures, power is more concentrated among certain people and classes. These people and classes are often seen as more powerful and influential than others, resulting in a structure of unequal relationships. This inequality can often be observed in business and government, where the highest levels of leadership are held by those of higher social standing.

The Power Distance Index exists on a scale of 1-100, with higher scores representing cultures that are comfortable with power inequalities, while lower scores represent cultures where people are more hesitant to accept and support unequal power dynamics. Research suggests that countries with higher PDI scores are often characterized by trust in authority figures as well as loyalty to hierarchical structures.

The Power Distance Index has had a significant influence in international business training. Companies that expand into global markets must be aware of PDI in order to successfully communicate and engage with new customers and markets. By understanding cultural attitudes towards power, companies can design products, services, and communications that fit with the values and expectations of the people in a given country or culture. Global managers must be aware of the power inequalities that exist within certain cultures and take these into account when it comes to strategy, workflow, communications, and customer service.

Overall, the Power Distance Index is an important tool for understanding cultural values and expectations of power, and has been an influential factor for international business for decades. Companies can use the PDI to better understand complex cultural dynamics, which in turn can help facilitate more effective communication and product design.