In the context of companies entering foreign markets, identify a true statement about the liability of foreignness?
A) Companies doing business in countries that are geographically distant face a small liability of foreignness.
B) Companies doing business in countries that are economically similar face a small liability of foreignness.
C) Companies doing business in countries that share a common cultural base face a large liability of foreignness.
D) Companies doing business in countries that have few administrative differences face a large liability of foreignness.

Question

Quizplus · Accepted Answer

Companies doing business in countries that are economically similar face a smaller liability of foreignness because they encounter fewer differences in economic practices, regulatory environments, and market dynamics, making it easier to operate in the foreign market.

In the Context of Companies Entering Foreign Markets, Identify a True