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

The concept of psychic distance is explored in relation to businesses of various sizes operating in foreign markets. The paper provides a literature review on influencing factors and entry modes, using Starbucks Corporation's expansion into South Korea as a case study. It highlights key factors such as economic, environmental, and political considerations impacting the U.S.-South Korea relationship. Additionally, it discusses potential benefits, risks, and drawbacks of international expansion, concluding with recommendations for effective entry strategies.