Once a decision to establish a foreign subsidiary has been made, it is irreversible. Therefore, no periodic monitoring of the project is necessary. True False

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Business

Madeline Hays

19 August, 05:29

Once a decision to establish a foreign subsidiary has been made, it is irreversible. Therefore, no periodic monitoring of the project is necessary. True False

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Answers (1)

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Marlene Kerr · Answer 1

FALSE.

Explanation:

Once a decision to establish a foreign subsidiary has been made, it is irreversible. Therefore, no periodic monitoring of the project is necessary is a false statement because establishing a foreign subsidiary requires huge investment and needs very careful focus and attention of the top level management and if they decided to make it but after sometimes they have got some other very useful information and insights about the market where they are going to make that subsidiary. According to the latest information, the decision regarding establishing a subsidiary is not appropriate and profitable, therefore, managers must and should consider that particular up-to-dated information in order to re-consider, re-think and re-evaluate their decision. It is better to step back as compared to bearing heavy loss after establishing a subsidiary in the foreign country.