Asked by
Alyssa Sailer
on Nov 22, 2024Verified
In the context of companies entering foreign markets, which of the following is likely to face a small liability of foreignness?
A) Abc Corp., a company located in the country of Neora, is entering the market in the country of Loen, where Neora and Loen have high economic dissimilarities
B) Octave Sys Inc., a company located in the country of Gota, is entering the market in the country of Hannat, where Gota and Hannat are geographically situated very close to each other
C) Mnk Creative Systems, a company located in the country of Plethod, is entering the market in the country of Koraew, where Plethod and Koraew do not share cultural bases
D) Syskant Corp., a company located in the country of Ghina, is entering the market in the country of Milkhan, where Ghina and Milkhan possess huge administrative differences
Economic Dissimilarities
The differences in economic conditions, structures, and performance between regions, countries, or groups.
Liability of Foreignness
The inherent disadvantages that foreign firms experience in host countries due to their non-native status, which can include cultural, legal, and economic barriers.
- Understand the idea behind the liability of foreignness and its effects on firms venturing into new markets.
- Analyze the perils and advantages of various approaches to entering foreign markets.
Verified Answer
TM
Learning Objectives
- Understand the idea behind the liability of foreignness and its effects on firms venturing into new markets.
- Analyze the perils and advantages of various approaches to entering foreign markets.
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