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Reading 1-2: Distance Still Matters: The Hard Reality of Global Expansion by Mind Map: Reading 1-2: Distance Still Matters: The Hard Reality of Global Expansion
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Reading 1-2: Distance Still Matters: The Hard Reality of Global Expansion

Distance still matters, and companies must explicitly and thoroughly account for it when making decisions about global extensions. Traditional country portfolio analysis needs to include an evaluation of several dimensions of distance and their probable impact on opportunities in foreign markets

Companies often overestimate the potential of untapped markets and overlook the obstacles they have to overcome

Tools managers use for decision-making underestimate the costs of doing business internationally

Four Dimensions of Distance

Cultural Distance

Administrative or Political Distance

The European Union is a good example for of deliberate efforts to diminish administrative distance and political distance among trading partners.

Geographic Distance

the farther you are from a country, the harder it will be to conduct business in it

Economic Distance