Question

Should a firms operation abroad be judged by the standards (legal, economic, cultural, and moral) of the country in which it is operating or by the standards of its home market?

Answer 1

Generally, the local (abroad) conditions of the operating market have more influence on the company operations. However, sometimes, the conditions at the home market also affect operations. There might be legal restrictions that the home country impose on countries operating abroad (such as restrictions on lobbying). Economic crisis in home market migh affect parts of the operations which are carried at the home market and hence affect the entire company. If the management is not composed of local citizens, culture of the home market also influences the culture of the company