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

Companies doing business in countries that share a common cultural base face a large liability of foreignness.

Companies doing business in countries that are geographically proximate face a small liability of foreignness.

Companies doing business in countries that are economically dissimilar face a small liability of foreignness.

Companies doing business in countries that have few administrative differences face a large liability of foreignness.