Gregor Just Turned 2½

question 78

Multiple Choice

Gregor just turned 2½. By this age, the video deficit effect

• A) declines.
• B) increases.
• C) peaks.
• D) stabilizes.

---

Definitions:

Liability of Foreignness

The additional costs and risks that firms operating in a foreign country incur, compared to domestic firms.

Administrative Differences

Discrepancies in management practices, regulations, or procedures within or between organizations.

Ethnocentrism Bias

A bias indicating that customers prefer local brands over foreign brands and are willing to pay more for local brands even when the quality is inferior.

Liability of Foreignness

Disadvantages faced by companies operating in a foreign market, including cultural differences, and legal and economic barriers.