The risks associated with learning to do business in a new culture are reduced if the firm acquires an established host-country enterprise. However, acquisitions raise additional problems, including:
A) speed of execution.
B) increased risk.
C) trying to marry divergent corporate cultures.
D) complexity of the contract.

Question

Quizplus · Accepted Answer

Acquiring an established host-country enterprise indeed reduces the risks associated with learning to do business in a new culture, but it introduces the challenge of integrating potentially divergent corporate cultures. This cultural integration can be complex and difficult, impacting employee morale, corporate identity, and operational efficiency.

The Risks Associated with Learning to Do Business in a New