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

Question

Quizplus · Accepted Answer

Psychic proximity refers to a psychological sense of closeness or familiarity that a company feels towards certain countries based on shared language, culture, and legal systems. Therefore, option A is the most suitable definition of psychic proximity.

While Choosing Countries to Invest In, Companies Sometimes Choose Psychic