The Liability of Foreignness Suggests That Foreign Firms Are at a Disadvantage

question 118

True/False

The liability of foreignness suggests that foreign firms are at a disadvantage when competing with a local firm because the local firm knows more about local customs, culture, political processes, and so on than the foreign firm. In sports, this is called the home field advantage.

---

Definitions:

Cross-Docking

Avoiding the placement of materials or supplies in storage by processing them as they are received for shipment.

Distribution Centers

Facilities that store and distribute products or goods to retailers or end consumers, playing a key role in the supply chain.

Layout Strategy

The plan and methodology behind organizing physical space, machinery, and operations in an efficient and productive manner in a facility.

Competitive Requirements

The essential conditions or capabilities that a company must meet or exceed to effectively compete in a given market.