The concept of psychic distance is explored in relation to businesses of various sizes operating in foreign markets. The paper provides a literature review on influencing factors and entry modes, using Starbucks Corporation's expansion into South Korea as a case study. It highlights key factors such as economic, environmental, and political considerations impacting the U.S.-South Korea relationship. Additionally, it discusses potential benefits, risks, and drawbacks of international expansion, concluding with recommendations for effective entry strategies.
