Establishing a new business can put a new foreign division in a disadvantageous position relative to local foreign competitors.

Question

Quizplus · Accepted Answer

This statement is true. Local foreign competitors may have established relationships with suppliers, customers, and other important stakeholders, as well as knowledge and experience of the local market that a new foreign division may not have. This can put the new division at a disadvantage when trying to gain market share and compete in the local market.

Establishing a New Business Can Put a New Foreign Division