Hofstede's Cultural Dimensions is a framework for understanding cultural differences across countries by analyzing six dimensions of culture: Power Distance, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance, Long-Term vs. Short-Term Orientation, and Indulgence vs. Restraint. This model helps organizations and individuals navigate cross-cultural interactions by providing insights into how cultural values influence behavior and decision-making processes.