Despite a heightened tendency toward borderless activities and a growing contribution from foreign production and sales, most MNEs do not retain their home country roots and characteristics.

Question

Quizplus · Accepted Answer

The statement is incorrect. Most MNEs do retain their home country roots and characteristics, even as they engage in cross-border activities and foreign production/sales. This is known as the "liability of foreignness" and refers to the hurdles and risks that MNEs face when operating in unfamiliar environments, such as cultural differences and legal/regulatory barriers. As a result, many MNEs strive to maintain their core values, practices, and identity from their home country, even as they adapt to local market conditions.

Despite a Heightened Tendency Toward Borderless Activities and a Growing