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The higher risks associated with acquiring foreign firms come from the difficulty in integrating the acquired firms into the parent system. The business cultures, organizational structures, and technology differences within the acquired firm and the parent company tend to be great obstacles to overcome. The conveniences of acquiring a foreign firm which include pre-existing relationships with suppliers and customers, the expertise of existing personnel, and obvious familiarity with the local market are not as advantageous as they may seem. Molding the newly acquired firm's business culture into the parent company's formula usually ends in failure...
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