_____ is the inherent disadvantage that firms from other countries experience in host countries because of their nonnative status.
A) Foreign premium
B) Liability of foreignness
C) Liability of localization
D) International premium

Question

Quizplus · Accepted Answer

Liability of foreignness refers to the challenges and disadvantages that foreign firms face when operating in a host country due to their nonnative status, such as cultural differences, unfamiliarity with local market conditions, and potential biases from local consumers or regulators.

_____ Is the Inherent Disadvantage That Firms from Other Countries