Internationalising firms often begin the process by entering similar markets to their own. This strategy has been given as the explanation for the focus by Australian businesses on Britain as the location for much of their foreign direct investment. This paper extends research into Australian investment in Britain published in an earlier edition of this journal by examining problems related to unanticipated differences between Australian and British management styles. It examines the impact on interpersonal relations when the perceived cultural distance between two countries is small and actual distance much greater. Implications for international management are also considered.