The "Liability of Foreignness" Is the

question 16

Multiple Choice

The "liability of foreignness" is the

• A) inability of most U.S. managers to truly comprehend foreign cultures.
• B) political disadvantage that U.S. firms have when doing business abroad.
• C) overall risk a domestic firm encounters when entering global competition.
• D) strong cultural preference for "buying local," which puts foreign firms at a disadvantage when competing in the U.S. market.

---

Definitions:

Living Standards

Indicate the wealth, comfort, material goods, and necessities available to an individual or society.

Per Capita Energy Use

The average amount of energy consumed per person within a given geographic area.

Modernizing Economies

Refers to economies undergoing a transition from traditional agricultural methods to more industrial and technological methods of production.

Declining Birthrates

A situation where the number of births per year decreases over a period of time, affecting population growth.