Which of the following is an inherent disadvantage to being a multinational enterprise?
A)An MNE does not initially have the native understanding of local laws, customs, procedures, practices, and relationships.
B)An MNE does not have the same assets as those held by its local competitors in the host market.
C)An MNE does not enjoy comparative advantages in the same goods as those of its local competitors in the host market.
D)An MNE's profits are doubly taxed by two governments.

Question

Quizplus · Accepted Answer

A disadvantage to being a multinational enterprise is that they do not initially have the native understanding of local laws, customs, procedures, practices, and relationships. This can lead to challenges in navigating the local market and building relationships with local stakeholders.

Which of the Following Is an Inherent Disadvantage to Being