The Liability of Foreignness Is

question 9

Multiple Choice

The liability of foreignness is:

• A)​The inherent disadvantage foreign firms experience in host countries.
• B)​Related strictly to the formal institutions that govern the way business is done in a foreign country.
• C) ​A challenge when it comes to resource supply but not to competitive advantage.
• D) ​Irrelevant in the process of entering foreign markets.

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Definitions:

Nonsufficient Funds Checks

Checks that cannot be processed due to the drawer’s account lacking sufficient funds, leading to a bank refusal to honor the check.

Collections

The process of pursuing payments of debts owed by individuals or businesses.

FOB Shipping Point

A term in shipping contracts indicating that the buyer is responsible for the goods, including the risk of loss and transportation costs, once the goods leave the seller's premises.

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility for goods until they are delivered to the buyer's location.