Which geographic diversification is most likely to reduce the liability of foreignness?
A)Culturally adjacent countries.
B)Extensive international scope.
C) Beyond geographically neighboring countries.
D) Beyond culturally neighboring countries.

Question

Quizplus · Accepted Answer

Culturally adjacent countries are those that share similar languages, customs, and traditions. By expanding into these countries, a firm is more likely to understand and be understood by the local population, reducing the liability of foreignness. In contrast, expanding into geographically or culturally distant countries can increase this liability. Therefore, option A is the best choice for reducing the liability of foreignness.

Which Geographic Diversification Is Most Likely to Reduce the Liability