The Informational, Political, and Cultural Disadvantages That Foreign Firms Face

question 89

Multiple Choice

The informational, political, and cultural disadvantages that foreign firms face when trying to compete against local firms in the host country market are referred to as ________.

• A) opportunity costs
• B) liability of foreignness
• C) internalization disadvantages
• D) the burden of internationalization

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Definitions:

Planning Budget

A budget designed for a particular level of activity, used for planning purposes at the beginning of a period.

Spending Variance

The difference between the actual amount spent and the budgeted amount in a specific period.

Selling

The process of persuading potential buyers to purchase a product or service, often involving marketing, negotiation, and sales strategies.

Administrative Expense

Costs related to the general operation of a business that are not directly linked to the production or selling of goods or services.