Asked by
Tyler Perez
on Nov 22, 2024Verified
In the context of companies entering foreign markets, identify a true statement about the liability of foreignness?
A) Companies doing business in countries that are geographically distant face a small liability of foreignness.
B) Companies doing business in countries that are economically similar face a small liability of foreignness.
C) Companies doing business in countries that share a common cultural base face a large liability of foreignness.
D) Companies doing business in countries that have few administrative differences face a large liability of foreignness.
Liability of Foreignness
The additional costs and risks that firms operating in a foreign country incur, compared to domestic firms.
Administrative Differences
Discrepancies in management practices, regulations, or procedures within or between organizations.
- Recognize the concept of the liability of foreignness and its impact on companies entering new markets.
Verified Answer
OU
Learning Objectives
- Recognize the concept of the liability of foreignness and its impact on companies entering new markets.
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