Question

Discuss some of the problems of cross-border corporate power.

Answer 1

ANS: There is a concept of Globalisation due to which various companies extend, enhance or spread their business across the different countries i.e cross - border business. The various factors like - Privatisation, De-regulation, corporate restructuring etc has led to increasing cross border trading.

The problems associated to cross - border corporate power are :-

1. Legal, cultural and political differences amongst cross border.
2. Managers find it difficult to integrate the cross border deals.
3. Higher Integration cost reduces the value creation
4. VariousTax regulation norms like DTAA (Double taxation avoidance agreement) & Corporate Law compliance.