The liability of foreignness is generally unaffected by the cultural distance between the two countries in an international transaction.

Question

Quizplus · Accepted Answer

Cultural distance refers to the differences in language, norms, values, and customs between two countries. The greater the cultural distance, the higher the liability of foreignness. Therefore, the liability of foreignness is affected by cultural distance in an international transaction.

The Liability of Foreignness Is Generally Unaffected by the Cultural