The superb value of firm-specific resources and capabilities results in foreign entrants being:
A)Faced with serious dissemination risk.
B)Less able to leverage such assets overseas.
C) Better able to overcome the liability of foreignness.
D) None of the above.

Question

Quizplus · Accepted Answer

Firm-specific resources and capabilities, when leveraged properly, can help foreign entrants overcome the liability of foreignness, which refers to the challenges and disadvantages faced by foreign firms operating in another country. By having unique resources and capabilities that are difficult for local competitors to imitate, foreign entrants can gain a competitive advantage and establish themselves in the market. Conversely, there is a risk of dissemination if these resources and capabilities are too easily shared or replicated by local competitors. However, overall, the benefits of firm-specific resources and capabilities outweigh the risks for foreign entrants.

The Superb Value of Firm-Specific Resources and Capabilities Results in Foreign