The Internet has eased international transactions in all of the following ways except
A) allowing service companies to outsource operations to low-cost-labor countries.
B) reducing the amount of investment needed to expand into foreign markets.
C) substantially reducing the liability of foreignness.
D) increasing the efficiency of networking capability among business.

Question

Quizplus · Accepted Answer

The Internet has not substantially reduced the liability of foreignness, which refers to the difficulties and costs that firms encounter when entering foreign markets due to differences in language, culture, legal systems, and other factors. While the Internet has reduced some barriers to international trade, such as communication and information costs, many challenges associated with doing business in foreign markets persist.

The Internet Has Eased International Transactions in All of the Following