Answer: a) Language and culture
b) Taxes and regulations
When international businesses merge, two compatibility issues that may arise are:
a) Language and culture: Differences in language and cultural norms can lead to communication challenges and misunderstandings among employees and management from different regions or countries. These differences can affect teamwork, decision-making processes, and overall corporate culture integration.
b) Taxes and regulations: Merging international businesses often involves dealing with different tax laws, regulations, and compliance requirements in various countries. Harmonizing these tax structures and ensuring compliance with regulations can be complex and may require legal and financial expertise to navigate effectively. Failure to address tax and regulatory issues properly can lead to legal and financial complications for the merged entity.