The "Liability of Foreignness" Is the

question 16

Multiple Choice

The "liability of foreignness" is the

• A) inability of most U.S. managers to truly comprehend foreign cultures.
• B) political disadvantage that U.S. firms have when doing business abroad.
• C) overall risk a domestic firm encounters when entering global competition.
• D) strong cultural preference for "buying local," which puts foreign firms at a disadvantage when competing in the U.S. market.

---

Definitions:

Competitive Industry

A competitive industry is one where numerous firms are in competition with each other to sell similar products or services, with none having a dominant market position.

Cost Information

Refers to data related to the expenses incurred in producing goods or providing services, which is vital for budgeting, pricing, and financial planning.

Demand Curve

The Demand Curve is a graphical representation showing the relationship between the quantity of a good consumers are willing to buy and its price, typically downward-sloping.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a particular price level in a given time period.