The influence of physical and social distance upon remote economies
The influence that distance from markets has upon remote economies, particularly asit relates to developed economies, remains under researched and lacks a theoreticalbase. The influence of distance and small size often has a compounding effect whichplaces small, remote countries at a disadvantage in relation to many types of productsand services. This paper contributes to the literature on this topic by proposing thatthere are two types of distance that influence business location and operationaldecisions. The first of these is physical distance, which is closely related to thegeographic distance between centres. This is the way that distance has traditionallybeen viewed. The second is social distance, which relates to the advantages obtainedfrom being close to sources of socially embedded communication. These types ofdistance form two dimensions which may be used to construct a two by two matrix.The resulting four quadrants assist in clarifying the effects of the different types ofdistance have upon on a diverse range of products, industries and businesses. Thepaper highlights that distance is not a simple one-dimensional relationship. Byidentifying the different types of distance greater understanding of it effects may beobtained.
|Year of publication:||
|Other Persons:||Rose, E (contributor)|
Australia and New Zealand International Business Academy
|Type of publication:||Other|
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