IBS: Les 4

Question 1

4 types of distance

Answer 1

1. Cultural distance = pertains to differences in social norms and language
2. Administrative distance = difference in national institutions such as laws, political systems and corruption
3. Geographic distance = physical remoteness between countries
4. Economic distance = pertains to differences in economic development

Question 2

Verbeke’s reinterpretation of distance

Answer 2

1. Diminishes a firm’s stock of NLB FSAs (moeilijk NLB FSAs door te geven)
2. Necessitate greater investments in LB FSAs (hogere investeringen nodig in LB FSAs)

Question 3

UPSALA model

Answer 3

Bedrijven die willen internationaliseren gaan eerst uitbreiden naar landen dichtbij en later naar verder gelegen landen

Question 4

Hutzschenreuter et al.

Answer 4

CAGE-distances are ‘added psychic distance stimuli’