Many U.S.firms prefer to sell in Canada,England,and Australia-rather than in larger markets such as German and France-because they feel more comfortable with the languages,laws,and culture,which reflect the ________ between these countries and the United States.

Question

Quizplus · Accepted Answer

Psychic proximity refers to the similarity in cultural, linguistic and legal aspects between countries, which influences trade patterns. In this case, U.S. firms feel more comfortable selling in Canada, England and Australia due to their psychic proximity with the United States, which facilitates business transactions.

Many USFirms Prefer to Sell in Canada,England,and Australia-Rather Than in Larger