Many U.S. firms prefer to sell in Canada, England, and Australia-rather than in larger markets such as Germany and France-becaus
e they feel more comfortable with the languages, laws, and culture, which reflect the ________ between these countries and the United States. a. self-serving bias
b. coincident development
c. psychic proximity
d. cognitive dissonance
e. backward invention
The above scenario in the question reflects the psychic proximity between the countries and the United States.
In international business, psychic proximity simply has to do with the national differences between countries which influences a country's perception towards another country.
