Cross-border mergers are an infrequently used form of direct foreign investment because of differing languages and cultures.

Cross-Border Mergers

Transactions where companies from different countries combine their operations or assets, often to expand market reach or leverage strategic advantages.

Direct Foreign Investment

A financial commitment made by a company or individual in one country to business interests in another country, typically via acquiring business assets or establishing business operations.

Differing Languages

The existence or use of distinct linguistic systems or dialects within communication that can lead to diversity in expression and misunderstanding.