In literature many models and frameworks have been conceived to aid decision makers in International market selection (IMS). This is because the success of internationalisation is dependent on the criteria and model for market entry strategy.
The traditional models of international market selection, according to Papadoulos & Denis (1988) include (1) a systematic approach, using formalised decision making process including various statistical methods to analyse the potential of target markets, and (2) an unsystematic approach, suggesting the rules of thumbs such as selection of those foreign markets that minimise the perceived psychic distance.
The psychic proximity as mentioned is one of the mot common tool for IMS or international market selection pertaining to the internationalisation of the business operations. “The actual operation of psychic distance in research is usually undertaken by estimating or calculating in some fashion the real or perceived ‘differences’ between the firm’s environment and target countries. However this does not reflect the original definition of the concept which emphasised the importance of information flows from country market to firm” (Brewer, 2001) The specific psychic stimuli for the business pertains to the difference that exist in the cultures, the languages and the religions in the different international markets and the education and socio political environments. These environments influence and effect the operations and the profitability of the company as well as the marketing efforts for the products and services
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