Final answer:
The cultural barrier for service firms that expand internationally via FDI is that a firm's corporate culture being overly influenced by its national culture can lead to challenges in foreign markets. This could result in misunderstandings and miscommunications due to cultural differences in management practices and communication styles.
Step-by-step explanation:
The cultural barrier inherent to service firms that internationalize via Foreign Direct Investment (FDI) would be: C) A firm's corporate culture is overly influenced by its national culture. This happens because when service firms expand to international markets, they often face challenges due to the differences in cultural practices, expectations, and norms that exist between their home country and the foreign market. Service industries rely heavily on customer interaction, and perceived cultural insensitivity can impact relationships with customers and even in-house staff, leading to a risk of misunderstandings or miscommunications.
Additionally, globalization of business requires companies to be aware of how local culture can influence workers, and they may face difficulties if their management practices or communication styles do not adapt to the local environment. Conversely, companies might attempt to 'Americanize' or adjust their products and approaches to align more with their home culture, which can create a sense of xenophobia in the international market.