A global brand is now the most important arsenal in the firm’s efforts to offset the so-called liability of foreignness (Zaheer 1995).
Hymer (1976) was among the first to point attention to higher costs of operations, in comparison to local firms, that an MNE will experience in international markets.
Without a deep understanding of the local market’s nuances, a foreign enterprise will not be able to carry on its business activities as effectively as will a local firm (Lu and Beamish 2004). This phenomenon is discussed widely in the international business literature (Apéria et al. 2004; Fombrun and Van Riel2004).