The liability of foreignness is the inherent disadvantage faced by _____.
A) domestic firms against other domestic firms that have engaged in global business
B) foreign firms in host nations due to their non-native status
C) domestic firms from foreign firms setting up in their country
D) foreign firms from their home country governments

Question

The liability of foreignness is the inherent disadvantage faced by _____.
A) domestic firms against other domestic firms that have engaged in global business 
B) foreign firms in host nations due to their non-native status 
C) domestic firms from foreign firms setting up in their country 
D) foreign firms from their home country governments

Quizplus · Accepted Answer

The liability of foreignness refers to the inherent disadvantage that foreign firms face in host nations due to their non-native status. This can manifest in various ways, such as cultural differences, legal and regulatory barriers, and challenges in building relationships with local stakeholders. Domestic firms do not necessarily face this disadvantage, as they are already established within the host nation.

The Liability of Foreignness Is the Inherent Disadvantage Faced by _____