Home and host country location advantages - Distance between home & host country
6 important questions on Home and host country location advantages - Distance between home & host country
What is meant by distance between home & host country?
- Cultural distance
- Administrative distance
- Geographic distance
- Economic distance
What is administrative distance?
- Absence of colonial ties
- Absence of shared monetary or political asociation
- Plotical hostility
- Government policies
What is Geographic distance?
- Physical remoteness
- Lack of a common border
- Lack fo sea or rivier access
- Size of country
- Weak transportation or communication links
- Differences in climates
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What is economic distance?
- Differences in consumer incomes
- Differences incosts and quality of:
- Natural resources
- Financial resources
- Human resources
- Infrastructure
- Intermediate inputs
- Information or knowledge
What is the influence of distance on Non-LB FSAs?
What is the influence of distance on LB FSAs?
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