The psychic distance paradox relates to culture shock sometimes experienced by managers entering foreign markets that they previously perceived as being similar to their home markets.

Question

Quizplus · Accepted Answer

The statement accurately describes the psychic distance paradox, which occurs when managers enter foreign markets that they perceived as similar to their home markets but experience culture shock due to underestimated cultural and institutional differences.

The Psychic Distance Paradox Relates to Culture Shock Sometimes Experienced