What Is a Disadvantage of Using Host Country Nationals to Manage

question 25

Multiple Choice

What is a disadvantage of using host country nationals to manage foreign operations?

• A) high relocation costs to firm
• B) unfamiliarity with firm's practices
• C) loss of key talent from headquarters
• D) inability to understand local customs

---

Definitions:

Alternate Dividend Policy

A strategy employed by a company to distribute earnings to shareholders through dividends that may vary in amount and frequency depending on the company's earnings, investment opportunities, and capital needs.

Stock Repurchase

A financial transaction in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

P/E Ratio

The price-to-earnings ratio, a valuation metric for stocks calculated by dividing the market value per share by its earnings per share.

EPS

Earnings Per Share, a measure of a company's profitability that is calculated by dividing its net income by the number of outstanding shares.