The institutional distance between two firms, based on their country of origin, is the same thing as cultural distance.

Question

Quizplus · Accepted Answer

Institutional distance refers to the differences in the formal and informal rules and regulations governing business activities in different countries, such as laws, regulations, and political systems. Cultural distance refers to the differences in values, norms, and beliefs between different cultures. While institutional distance may be influenced by cultural factors, they are not the same thing.

The Institutional Distance Between Two Firms, Based on Their Country