This paper examines the role of firm capabilities, psychic distance and choice of country risk variables in the entry mode decision between developed and emerging countries. The conceptual model extends previous studies built on gravity models by considering the potential effect of colonial ties...

It has been widely argued that, with the decline in trade costs (e.g., transport and communication costs), the importance of distance has declined over time. This paper examines the evolution of the geographic profile of countries' trade by studying the evolution of their distance of trade (DOT)...