In the Context of the Liability of Foreignness, Customers Exhibit

question 27

Multiple Choice

In the context of the liability of foreignness, customers exhibit a(n) _____ when they prefer and are willing to pay more for local brands even when the quality is inferior.

• A) ethnocentrism bias
• B) neglecting probability bias
• C) observational selection bias
• D) confirmation bias

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Definitions:

Supply Curve

A graph showing the relationship between the quantity of a good that producers are willing to sell and the price of the good.

Y Axis

The vertical axis in a graph or chart, typically used to represent the range of a second variable in comparison to the first variable on the X axis.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded.

Movement

Refers to a change in position, location, or state of an object or concept over time.