ABSTRACT
An important point Ghemawat makes in “Distance Still Matters” is that the four types of distances have differentiated effects. The second part of the article argues that industries are not uniformly affected by distance, but rather show varying degrees of sensitivity towards each of
the four dimensions. Ghemawat highlights that industries dealing with linguistic content and values such as television or foods are strongly affected by cultural distance. Administrative distance has the strongest impact on state-supported industries; geographic distance becomes a deciding factor for communications and products that are difficult to transport; and economic distance affects businesses that depend on standardization or agile supply networks, such as those dealing with appliances.
