With regard to foreign market entry,the resource-based view argues that foreign firms need to
A) take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.
B) be aware of the numerous regulatory risks and trade and investment barriers.
C) deploy overwhelming resources and capabilities to offset their liability of foreignness.
D) understand the numerous differences in cultures, norms, and values.

Question

With regard to foreign market entry,the resource-based view argues that foreign firms need to 
A) take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries. 
B) be aware of the numerous regulatory risks and trade and investment barriers. 
C) deploy overwhelming resources and capabilities to offset their liability of foreignness. 
D) understand the numerous differences in cultures, norms, and values.

Quizplus · Accepted Answer

The resource-based view argues that foreign firms need to deploy overwhelming resources and capabilities to offset their liability of foreignness. This means that they need to have a competitive advantage that will allow them to overcome the challenges of entering a foreign market. Options A, B, and D are important considerations, but they are not specific to the resource-based view.

With Regard to Foreign Market Entry,the Resource-Based View Argues That