Economic distance

Economic distance refers to the differences in economic factors between two countries or regions, affecting trade and business interactions. This includes disparities in income levels, economic development, infrastructure, and market size. For example, a wealthy country may have more purchasing power compared to a developing one, leading to different market potentials. Economic distance influences how businesses approach international expansion, pricing strategies, and competitiveness. Understanding these differences helps companies navigate global markets effectively, adapt their strategies, and identify opportunities for growth.