In the Context of Companies Entering Foreign Markets, Identify a True

question 12

Multiple Choice

In the context of companies entering foreign markets, identify a true statement about the liability of foreignness?

• A) Companies doing business in countries that are geographically distant face a small liability of foreignness.
• B) Companies doing business in countries that are economically similar face a small liability of foreignness.
• C) Companies doing business in countries that share a common cultural base face a large liability of foreignness.
• D) Companies doing business in countries that have few administrative differences face a large liability of foreignness.

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Definitions:

Naturalist Intelligence

One of Howard Gardner's multiple intelligences, characterized by an ability to recognize, categorize, and draw upon certain features of the environment.

Existential Intelligence

The capacity to ponder deep questions about human existence such as the meaning of life, why we die, and how we got here.

Convergent Thinking

A cognitive approach involving the bringing together of different ideas to determine the single best solution to a given problem.

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality, a fundamental mechanism for understanding complex scenarios.