cultural distance versus institutional distance within interantional trade.
What does it mean by cultural distance versus institutional distance within interantional trade.
There are different cultures in our world. One culture is different from another. All cultures are unique. One culture of an area may be wrong for another society. Our world does not have a common culture. There is a cultural difference from one place to another. Cultural distance is defined as the difference in values, beliefs, communication, social structure, customs, style, demographic character, etc from one place to another. This distance is caused because of the distance between two places, the difference in language, the difference in geography, etc.
Not every institution has common characters. There are some similarities and dissimilarities between institutions. This difference is called institutional distance.
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