What is the main idea suggested by linguistic distance that helps in determining differences in values across countries and the amount of trade between countries?
A) The closer the languages the tougher the interactions.
B) Crossing "wider" language differences increases transaction costs.
C) The more distant a language from the other, the more valuable the brand becomes in the new territory.
D) Major languages have "syntactical superiority" over minor languages or dialects which help in brand positioning.
E) A 'neutral' language is required to address the differences arising out of linguistic distances.

Question

Quizplus · Accepted Answer

Linguistic distance has been shown to be an important factor in determining differences in values across countries and the amount of trade between countries. The idea is that crossing "wider" language differences increases transaction costs.

What Is the Main Idea Suggested by Linguistic Distance That