While choosing countries to invest in, companies often choose psychic proximity to their own country. Psychic proximity can best be defined as countries ________.
A) in which the company feels comfortable with the language, laws, and culture
B) that are located close
C) that the home country's management team have visited
D) that have no trade barriers
E) with good infrastructure and stable political environment

Question

Quizplus · Accepted Answer

Psychic proximity refers to the psychological distance between countries, which includes factors such as language, culture, and laws. Companies prefer to invest in countries where they feel comfortable and familiar with these factors, hence A is the best choice.

While Choosing Countries to Invest In, Companies Often Choose Psychic