Many US firms prefer to sell in Canada, England, and Australia

Question

Many US firms prefer to sell in Canada, England, and Australia - rather than in larger markets such as Germany and France - because they feel more comfortable with the languages, laws, and culture, which reflect the ________ between these countries and the United States.
A) self-serving bias
B) coincident development
C) psychic proximity
D) cognitive dissonance
E) backward invention

Quizplus · Accepted Answer

Psychic proximity refers to the similarity in culture, language, and institutions between countries that makes it easier for firms to conduct business. This explains why many US firms prefer to sell in Canada, England, and Australia instead of larger markets like Germany and France.