According to Hofstede, in low-power-distance countries, the government uses taxation and social welfare programs to reduce inequality and improve the welfare of the least fortunate.

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Hofstede's concept of power distance refers to the degree to which people in a society accept and expect unequal distribution of power. In low-power-distance countries, individuals tend to value equality, and therefore the government may use taxation and social welfare programs to reduce inequality and improve the welfare of the least fortunate.

According to Hofstede, in Low-Power-Distance Countries, the Government Uses Taxation