The "liability of foreignness" means that many firms need to focus more on local adaptation or risk problems such as the Walt Disney Company faced opening its theme park in France.

Question

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The liability of foreignness is a term used to describe the challenges and costs faced by companies operating in unfamiliar cultural, political, and legal environments. To mitigate these risks, firms often need to adapt their products, services, and operations to local conditions. Walt Disney's experience in France is a famous example of the challenges that can arise when companies fail to understand and respond to local cultural differences. Therefore, the statement is true.

The "Liability of Foreignness" Means That Many Firms Need to Focus