distance still matters
Distance Still Matter
According to the Harvard article “ Distance Still Matters ” economists and researchers use the term “distance” as the unit of difference from country to country in the four main dimensions: cultural, administrative, geographical, and economic, based on the art. Please describe them.
Cultural dimensions have an impact on distance first off because of the different languages. There are different ethnicities and there is a lack of communication between the different cultures, which makes it hard to understand each other. Religion holds a main part in distance because each religion has its own values and beliefs therefore it makes it hard to understand one another.
Administrative dimensions have a great absence of colonial ties. Each government has different views and political power. Government policies go back to cultural and political views. For example in some Muslim Countries they abide by the sharia law and in the U.S we have democrats and republicans. There’s also an absence of shared monetary or political association.
Geographic dimensions relate to distance because of physical remoteness. The size of a country can have an impact on power. The lack of sea or river access/ weak transportation can make it hard for goods to go in and out therefore it makes it hard to do business. The differences in climate can affect agricultural businesses.
Economic dimensions have differences such as consumer incomes. In every country there are differences in costs and quality of material and natural resources. Economic demand varies with income levels and the lifestyles that people are living. For example in the U.S, California has a higher rate of expenses compared to India, and that is because the nature of demand. Globally many foreign countries fear of no insurance in businesses. For example when a store is struck by a natural disaster there is no way of recouping the value of what that store costs unlike in America.
According to the Harvard article “ Distance Still Matters ” economists and researchers use the term “distance” as the unit of difference from country to country in the four main dimensions: cultural, administrative, geographical, and economic, based on the art. Please describe them.
Cultural dimensions have an impact on distance first off because of the different languages. There are different ethnicities and there is a lack of communication between the different cultures, which makes it hard to understand each other. Religion holds a main part in distance because each religion has its own values and beliefs therefore it makes it hard to understand one another.
Administrative dimensions have a great absence of colonial ties. Each government has different views and political power. Government policies go back to cultural and political views. For example in some Muslim Countries they abide by the sharia law and in the U.S we have democrats and republicans. There’s also an absence of shared monetary or political association.
Geographic dimensions relate to distance because of physical remoteness. The size of a country can have an impact on power. The lack of sea or river access/ weak transportation can make it hard for goods to go in and out therefore it makes it hard to do business. The differences in climate can affect agricultural businesses.
Economic dimensions have differences such as consumer incomes. In every country there are differences in costs and quality of material and natural resources. Economic demand varies with income levels and the lifestyles that people are living. For example in the U.S, California has a higher rate of expenses compared to India, and that is because the nature of demand. Globally many foreign countries fear of no insurance in businesses. For example when a store is struck by a natural disaster there is no way of recouping the value of what that store costs unlike in America.