From a resource-based view, managers need to:
A) Develop more trained workers
B) Develop overwhelming capabilities to offset the liability of foreignness
C) Enter into more joint venture agreements
D) Outsource work to the lowest bidder

Question

Quizplus · Accepted Answer

According to the resource-based view, a company's success is based on its unique resources and capabilities. When entering into foreign markets, a company may face a liability of foreignness, which refers to the disadvantages that arise from being foreign to a market, such as lack of knowledge of local customs and regulations. To overcome this liability, managers need to develop overwhelming capabilities that can offset it. This means that they need to identify and develop unique resources and capabilities that give them a competitive advantage in the foreign market. Developing more trained workers, entering into joint ventures, and outsourcing work to the lowest bidder do not necessarily address the liability of foreignness or improve a company's unique resources and capabilities. The resource-based view emphasizes the importance of a company's unique resources and capabilities, which can give them a competitive advantage. When a company enters into a foreign market, they may face a liability of foreignness, which refers to the difficulties and disadvantages they may face due to being unfamiliar with the new market. To offset this liability, managers need to develop overwhelming capabilities, such as unique products, advanced technology, or strong brand reputation, that will give them an advantage over local competitors. Developing more trained workers (A), entering into joint venture agreements (C), and outsourcing work to the lowest bidder (D) may not necessarily create unique resources or capabilities that can provide a sustainable competitive advantage.

From a Resource-Based View, Managers Need To