As Firms Expand into More Countries, They Should Recognize That

question 30

Multiple Choice

As firms expand into more countries, they should recognize that:

• A)Foreign firms are less likely to be discriminated against.
• B)Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness.
• C) Foreign firms seldom are able to offset the liability of foreignness and still have some competitive advantage.
• D) Discrimination against foreign firms happens in informal ways and rarely in formal ways.

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Definitions:

Specific Price

A precise cost or valuation assigned to a particular item, service, or financial instrument.

Long-Term Debt

Financial obligations of a borrowing entity that are due for repayment in more than one year's time.

Fixed Stream of Income

Income generated from investments that provide a constant amount of money at regular intervals.

Hang Seng

Refers to the Hang Seng Index, a stock market index in Hong Kong representing the performance of the largest companies listed on the Hong Kong Stock Exchange.