Psychic distance is the name of the phenomenon when managers believe that success in the home market is more easily transferable to markets similar to the one in which they currently compete.

Question

Quizplus · Accepted Answer

Psychic distance refers to the extent of cultural, economic, and political differences between two countries or markets. The closer the similarity between two markets, the lower the psychic distance. Therefore, managers may believe that their success in the home market can be replicated in markets with lower psychic distance.

Psychic Distance Is the Name of the Phenomenon When Managers