_________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances.
A) Transnational risk
B) Regionalization
C) Liability of foreignness
D) International risk

Question

Quizplus · Accepted Answer

The set of costs described in the question is known as the liability of foreignness, which refers to the difficulties and costs that a firm faces when operating in a foreign country due to differences in economic, administrative, and cultural factors, as well as the challenges of coordinating activities over long distances. Transnational risk and international risk refer more broadly to the risks associated with operating in foreign markets, while regionalization refers to the trend towards greater economic integration within specific regions.

_________ Is the Set of Costs Associated with Unfamiliar Operating