A Greater Cultural Distance Between Two Trading Countries

question 15

Multiple Choice

A greater cultural distance between two trading countries

• A) increases linguistic similarities between the two countries.
• B) increases the liability of foreignness.
• C) reduces the uncertainty of doing business.
• D) reduces the transaction costs associated with business.

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Definitions:

Negative Impact

Detrimental effects resulting from an event, action, or decision on an individual's or group's well-being or performance.

Stress

The physical or psychological response to internal or external stressors.

Humor

The quality of being amusing or comic, especially as expressed in literature or speech.

Systematic Problem-Solving

A step-by-step approach to addressing and resolving issues by identifying the problem, generating potential solutions, and implementing a chosen solution.