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Cultural differences are investigated a great deal in cross cultural marketing in order to tailor strategies to adapt to diverse cultural environments. Existing research views cultural diversity and national identities of different localities as obstacles for business. The author of this paper believes that diverse cultures should be viewed as opportunities for business, as resource, capital and ‘set of tools’. They can be used as unique source of competitive advantage by companies in today’s globalised world. Thus diverse cultures can serve as source of value and differentiation for business community. In order to use national culture as business tool, it is necessary to explore, understand and measure it and split in applicable components. In this paper existing theories about culture, national identity are reviewed and possible measures of Latvian cultural and national identity are proposed. Cultural distance index developed …