ABSTRACT
This chapter aims to define, measure, and estimate the outcomes of administrative distance in international marketing. It also focuses on the central role of governmental and nongovernmental institutions in creating or reducing distance across countries through the administration of international trade, the establishment of standards and classification, and the resolution of commercial disputes. The chapter addresses some of the issues at stake, such as the debated convergence toward global rules, the numerous impacts on marketing, and the challenges in overcoming administrative distance. It explains administrative distance as the degree of dissimilarity between the home- and foreign-country political, legal, and institutional environments. The chapter discusses the central role of governments and global institutions in facilitating international trade and thereby in impacting administrative distance between countries. In a nutshell, this role is twofold: administrating international trade and solving disputes. The chapter looks at some important issues, including the evolution over time of administrative distance, its impact on marketing, and possible remedies.
