Final answer:
The most frequently cited reason for the failure of expatriate managers is cultural differences.
Step-by-step explanation:
The most frequently cited reason for the failure of expatriate managers who work in foreign subsidiaries of U.S. or European companies is cultural differences. When managers are not aware of or do not understand the cultural differences in the foreign country, it can lead to miscommunication, misunderstandings, and ultimately failure in managing the foreign subsidiary effectively.
For example, a manager who is not familiar with the local customs, traditions, and values may unintentionally offend employees or make decisions that are not aligned with the local culture, which can negatively impact employee morale and overall business performance.
Therefore, it is crucial for expatriate managers to undergo proper cultural training and have a deep understanding of the cultural nuances in the foreign country in order to succeed in managing the foreign subsidiary.