The concept of 'psychic distance' and its meaning for the global activity of small, medium, large sized businesses operating in foreign markets

Research Paper (undergraduate) from the year 2016 in the subject Politics - International Politics - Topic: Globalization, Political Economics, grade: 1,7, Heilbronn University; Künzelsau, language: English, abstract: This assignment explains the concept of psychic distance and what this means for the global activity of small, medium, large sized businesses operating in foreign markets. After giving a literature review about psychic distance, it's influencinng factors and different entry modes in foreign market, an example of Stabucks Corporation acting global in South Korea is clearly presented. The example specifies all the different factors like economy, environment, politics etc. which are important in this case between the United States and South Korea. Moreover the pontential benefits, risks, drawbacks and a recommend entry mode are explained. The goal is to give an overview about the topic psychic distance and to show which factors contribute to this particular type of distance especaiily for the global work of Starbucks operating in South Korea.