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date: 25 October 2020

Abstract and Keywords

This article outlines the literature on country of origin and other effects related to the reputations of countries, with the aim of better understanding the degree to which firm reputations are determined by the reputations of the countries from which they hail. It also explores the liability of foreignness (LOF) literature and the more recent country reputation literature. Organisational legitimacy significantly contributed to LOF. Empirical evidence supports the view that foreign firms do face liabilities, particularly within developed country contexts. It is strongly suggested that developed countries have higher reputations than their developing country counterparts. As multinational corporations and international trade continue to grow, understanding the impact of home country reputations on the reputations of companies and their products and services will become increasingly important.

Keywords: country of origin, firm reputations, liability of foreignness, organisational legitimacy, foreign firms, multinational corporations, international trade, country reputations

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