In the Context of Companies Entering Foreign Markets, Which of the Following

Multiple Choice

In the context of companies entering foreign markets, which of the following statements is true of the liability of foreignness?

A) Companies doing business in countries that are geographically proximate face a small liability of foreignness.
B) Companies doing business in countries that are economically dissimilar face a small liability of foreignness.
C) Companies doing business in countries that share a common cultural base face a large liability of foreignness.
D) Companies doing business in countries that have few administrative differences face a large liability of foreignness.