“…Usually defined as the perceived difference between two countries, these concepts have been invoked to explain a wide range of international business phenomena, such as the choice of export markets and foreign entry modes (critically reviewed in Harzing, 2004), but including also, for example, the design of human resource management practices (Rosenzweig and Nohira, 1994;Björkman and Furu, 2000), the power of foreign distributors (Griffith and Harvey, 2001), negotiating tactics (Rao and Schmidt, 1998), the propensity to undertake R&D in foreign subsidiaries (Muralidharan and Phatak, 1999) and the design of knowledge transfer practices (Simonin, 1999;Minbaeva et al 2003). The general assertion in most of these studies is that the more different a foreign environment is as compared to that of a firm's (or an individual's) country of origin, the more difficult it will be to collect, analyze and correctly interpret information about it, and the higher are therefore the uncertainties and difficulties -both expected and actual -of doing business there.…”