Is globalization reducing distances between countries? Some empirical evidence from foreign software firms operating in Japan

Abstract

Introduction: Nowadays, one of the most discussed topics is globalization and how it reduces cultural differences and distances between countries. This has been seen as a consequence of the development of communication technologies, improvement of transportation connections between countries, establishment of free trade areas, and emergence of global cultures. It is also a commonly held view that, with the help of information technology, business can be conducted regardless of time or place. In addition, travel connections between and within countries have increased becoming faster and cheaper. From all of this, it is easy to conclude that internationalization of firms has also become easier and that geographical or cultural distances do not matter anymore. However, globalization is a complex phenomenon and its impact to the international trade is not self-evident. [Continues, please see the article]