The "Liability of Foreignness" Is The

question 12

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 of participating outside a firm's domestic country when entering global competition.
• D) preference for "buying local," which always puts foreign firms at a disadvantage when competing in the U.S. market.

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Definitions:

Dramaturgical Analysis

Dramaturgical analysis is a perspective in sociology that interprets social interactions as if they were part of a theatrical performance, where individuals manage impressions in front of others.

Rational Choice Theory

A framework in social sciences that explains individual behavior as the outcome of rational decisions made by individuals aiming to maximize their benefits and minimize their costs.

Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.

Social Interaction

The dynamic, reciprocal exchange of actions, words, or feelings between two or more individuals, forming the basis of societal relationships.