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Individual culture shock is a well known and evidenced phenomenon. It describes the psychological and also physical reactions of a person staying abroad. These reactions are the result of confrontation with a foreign culture. According to the authors such reactions also exist on the level of society as a whole. This “collective culture shock” influences management and business relations and causes problems. A theory of the collective culture shock is developed that analyses these problems and provides a framework for solutions. This theory suggests that cultural processes and features in transition countries that are usually attributed to the communist heritage are the result of collective culture shock.