Liability of Newness Is a Disadvantage That Tends to Increase

question 34

True/False

Liability of newness is a disadvantage that tends to increase as international diversification increases.

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Definitions:

New Capital

Additional funds or assets put into a business by the owners or investors intended for the expansion or improvement of the enterprise.

Profits

The financial gain realized when the revenue from an economic activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Industry

A sector of the economy characterized by the production of goods or provision of services within a certain field.

Interest Rate

The price paid for the use of borrowed funds, or the return earned on deposited funds.