The complexity posed by differences in the cultural, political, legal, and economic environments creates a so-called “liability of foreignness.” This idea holds that foreign companies, because of their poorer familiarity with local conditions, incur additional costs. In theory, the liability of foreignness makes IB activity too expensive. In practice, companies offset this liability by capitalizing on their unique advantages as well as selecting the mode of international business that best reflects their resource profile and risk tolerance--Always in the effort toward minimizing the intrinsic higher costs of international operations. The higher costs of international operations, executives point out, are driven by things as varied as the cost of legally establishing businesses, real estate costs, customs duties, and translation costs. Managing these costs is complicated by the report that _53_______%___ of global CEOs are concerned about the impact of __bribery and corruption_______ on their organizations. Difficulty managing that threat, given the complexity of the _________ (liability of nativeness, liability of foreigness, or liability of naturalization) poses ongoing challenges to the cost of going global.
The complexity posed by differences in the cultural, political, legal, and economic environments creates a so-called “liability of foreignness.”
This idea holds that foreign companies, because of their poorer familiarity with local conditions, incur additional costs. In theory, the liability of foreignness makes IB activity too expensive.
In practice, companies offset this liability by capitalizing on their unique advantages as well as selecting the mode of international business that best reflects their resource profile and risk tolerance--Always in the effort toward minimizing the intrinsic higher costs of international operations.
The higher costs of international operations, executives point out, are driven by things as varied as the cost of legally establishing businesses, real estate costs, customs duties, and translation costs.
Managing these costs is complicated by the report that _53_______%___ of global CEOs are concerned about the impact of __bribery and corruption_______ on their organizations.
Difficulty managing that threat, given the complexity of the _________ (liability of nativeness, liability of foreigness, or liability of naturalization) poses ongoing challenges to the cost of going global.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
