1) Culture is defined as the shared beliefs, values, and practices of a group. It includes aspects like aesthetics, attitudes, religion, language, and social organization. 2) Geert Hofstede identified five cultural dimensions that can be used to analyze differences between cultures: individualism vs collectivism, power distance, uncertainty avoidance, masculinity vs femininity, and long vs short-term orientation. 3) Understanding cultural differences is important for international business as aspects of culture influence marketing, management, and other business functions. Firms must be aware of cultural norms to avoid mistakes and establish trust when operating across borders.