For internationalizing firms, the consequences of poor business management decisions are usually more costly when mistakes occur abroad than when they occur at home.

Question

Quizplus · Accepted Answer

When firms operate internationally, they face additional complexities such as cultural differences, legal and regulatory requirements, and market dynamics that they may not be familiar with. Mistakes in these areas can lead to significant financial losses, reputational damage, and sometimes legal penalties, making the consequences more costly than similar mistakes made in the domestic market where the firm is likely more knowledgeable and established.

For Internationalizing Firms, the Consequences of Poor Business Management Decisions