Cultural, institutional, and psychic distances between countries are critical determinants of bilateral trade. In this paper we examine if ethical distance and difference between an exporting country and an importing country matter in international trade. Using data from 53 countries that participated in the World Values Survey, we show that the closer the ethical distance between countries the greater the trade. We also find that the ethicality of importers matter more than exporters as a determinant of bilateral trade.
Institutional distance in international business research in PedersenT.M.TihanyiT.DevinneyL. eds. Advances in International Management: The Past Present and the Future of International Business and Management Emerald New York pp. 328–349
The impact of cross-national carriers of business ethics on attitudes about questionable practices and form of moral reasoningJournal of International Business Studies27 (2) pp. 391–411.
The internationalization process of the firm – a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies8 (1) pp. 25–34.
Egalitarianism, cultural distance and FDI: A new approach. American Law and Economics Association Annual Meetings Paper 133BE Press. Downloadable from http://law.bepress.com/alea/18th/art133
SinghJ. J.VitellS. J.Al-KhatibJ.ClarkI. (2007)
The role of moral intensity and personal moral philosophies in the ethical decision making of marketers: A cross-cultural comparison of China and the United States. Journal of International Marketing15(2): 86–112.
Industrial buyer evaluation of the ethics of salesperson gift giving: Value of the gift and customer vs. prospect status. Journal of Personal Selling & Sales Management9 (2) pp. 31–37.
VitellS. J.PatwardhanA. (2008)
The role of moral intensity and moral philosophy in ethical decision making: a cross-cultural comparison of China and the European Union. Business Ethics: A European Review17(2): 196–209.