The "psychic distance paradox" causes performance failures because:
A) Negotiators who are working in a similar culture to their own perceive the two cultures as being significantly different.
B) When doing business in cultures that are perceived to be similar, managers prepare less and do not realize the cultures are actually quite different.
C) Expatriate managers are unable to connect with the local culture after moving from a similar culture.
D) Managers do not understand the culture's behavior despite language proficiency.

Question

Quizplus · Accepted Answer

The "psychic distance paradox" refers to the phenomenon where managers underestimate the cultural differences between seemingly similar cultures, leading to performance failures. Therefore, the best answer is B, as it directly addresses this issue. Choices A, C, and D do not accurately describe the cause of the performance failures.

The "Psychic Distance Paradox" Causes Performance Failures Because