Linguistic distance is an important factor that helps in determining differences in values across countries and the amount of trade between countries because:
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 that 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.

Linguistic Distance Is an Important Factor That Helps in Determining