A U.S.firm expands into China and Canada at exactly the same sales volume.The physical distance is the only factor that affects the true distance between the countries.

Question

Quizplus · Accepted Answer

When we look at what we might call the true distance between the U.S. and China, the effects of geographic distance are multiplied by distance in terms of culture, language, religion, and legal and political systems between the two countries. On the other hand, although U.S. and Australia are geographically distant, the true distance is somewhat less when one considers distance along the other dimensions.

A USFirm Expands into China and Canada at Exactly the Same