Albath and Koina, two countries in the same continent, have different trading blocs. In the context of the liability of foreignness, which of the following forms of distances does this illustrate?
A) Geographic distance
B) Cultural distance
C) Administrative distance
D) Economic distance

Question

Quizplus · Accepted Answer

Administrative distance refers to the differences in governance, legal systems, and trading policies between countries. Albath and Koina being in different trading blocs highlights differences in their administrative policies and regulations, which is a form of administrative distance.

Albath and Koina, Two Countries in the Same Continent, Have