Liability of foreignness is the inherent disadvantage experienced by foreign firms in host counties because of their non-native status.

Question

Quizplus · Accepted Answer

The statement accurately defines the concept of liability of foreignness, which refers to the challenges and difficulties that foreign firms face in host countries due to their non-native status. This can include cultural differences, unfamiliar institutional environments, language barriers, and other factors that make it harder for foreign firms to operate effectively and compete with local businesses. Research has shown that liability of foreignness can be a significant obstacle for foreign firms seeking to expand into new markets, and may require a range of strategies and adaptations in order to overcome.

Liability of Foreignness Is the Inherent Disadvantage Experienced by Foreign