When Things Go Wrong

Disappointment and even disasters are more frequent than success for most foreign firms investing in Asia. These are often associated with the break-up of joint venture relationships and the consequent deterioration of the company’s investment. Sometimes the break-up is reasonably amicable, sometimes it can end in a protracted court case. An acquisition, too, is more likely to disappoint than prosper, and can be even more expensive if a firm paid a premium for what it thought was a rising star, only to discover it was a black hole. In many cases, Western companies decide to cut their losses and withdraw, but those who do often return to the region later, unable to resist the lure of those untapped markets, only to make similar mistakes. History repeats itself because few people listen sufficiently the first time around, and rarely are mistakes dissected. People are normally too busy ducking for cover.