The industries most affected by economic distance are those for which ________.

Question

Quizplus · Accepted Answer

Economic distance refers to the cost and complexity of conducting business across borders. Industries with products that have very elastic demand (i.e., highly sensitive to changes in price) are more affected by economic distance because they are more likely to lose customers if prices increase due to higher costs associated with economic distance. In contrast, industries with very stable supply chains are less likely to be affected by economic distance because they are able to maintain their production processes without significant disruption despite challenges posed by distance. Geographic and administrative distance are also important factors, but their impact on industries depends on the specific context.

The Industries Most Affected by Economic Distance Are Those for Which