Which one of the following explains why so few firms are global?
A) Culture, language, and religion are similar between countries.
B) Legal and political systems are similar between countries.
C) Governments are increasing trade restrictions in general.
D) Geographic distance is multiplied by distance in culture, language, religion, and legal and political systems.

Question

Quizplus · Accepted Answer

Distance, in the final analysis, may be viewed as a concept with many dimensions, not just a measure of geographical distance. When the effects of geographic distance are multiplied by distance in terms of culture, language, religion, and legal and political systems between two countries, companies will choose to remain regional or, at best, biregional.

Which One of the Following Explains Why So Few Firms