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Discuss the factors determining the slope of the short-run Phillips curve. Is the linear shape appropriate? Why, or why not?
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.
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