In the Context of the Liability of Foreignness, Customers Exhibit

question 27

Multiple Choice

In the context of the liability of foreignness, customers exhibit a(n) _____ when they prefer and are willing to pay more for local brands even when the quality is inferior.

• A) ethnocentrism bias
• B) neglecting probability bias
• C) observational selection bias
• D) confirmation bias

---

Definitions:

Recovery Phase

A stage in the economic cycle where activity starts to increase again after a downturn, leading to improvements in employment, consumer confidence, and spending.

Recessionary Phase

A period in the business cycle where the economy is contracting, leading to reduced economic activity and increased unemployment.

Prosperity Phase

A period during an economic cycle characterized by high economic growth, employment, and consumer spending.

Recession Phase

An interval of economic downturn where commercial and manufacturing operations decrease, commonly indicated by two successive quarters of falling GDP.