The Liability of Foreignness Sometimes Has a Positive Effect on Customers

question 32

Multiple Choice

The liability of foreignness sometimes has a positive effect on customers' perception and their desire for products from a certain country. This concept is known as:

• A)​Strategic hedging.
• B)​Country-of-origin effect.
• C) ​OLI advantage.
• D) ​Co-marketing.

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Definitions:

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

An accounting method that includes only variable costs - costs that change with production levels - in product cost calculations.

Net Operating Income

It refers to the profit generated from a company's ordinary, core business operations after subtracting operating expenses from operating revenues.

First Year

The initial year of operation, production, or accounting period.