Question 1 In regard to the cultural risks related to ownership structure, which

Question

Question 1

In regard to the cultural risks related to ownership structure, which of the statement below is False?

a. cultural norms work their ways into laws and regulations so that the interests of the host country will take precedence over the interest of the foreign country, the original home of the business

b. in order to start a new business operation in a foreign country, it may be necessary to utilize a joint venture business form

c. today, there are practically no industries protected against foreign ownership in host countries

d. the ownership structure of a business can be restricted once the business ventures overseas and faces the additional constraints of meeting ownership requirements of more than one government.

Question 2

Specific issues related to the cultural differences can arise in the management of a multinational enterprise. All of the following are related to the cultural differences EXCEPT

a. A requirement to have local management

b. Issues with the promotion of women into management positions

c. Issues with the observation of religious holidays

d. Nationalization of the assets of a company by the foreign government

Explanation / Answer

Q1

c. False:

As the statement that says no industries protected against foreign ownership in host countries in recent time, is false as many industries are protected for their ownership rights and culture have little impact on them.

Q2:

d.False:

Nationalization of the assets of a company by the foreign government is not related to the Cultural difference subject as this is more of legal and regulatory subject under which it has be dealt.

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