Drawbacks to the Common Option of Recruiting Parent-County Nationals (PCNs)

question 26

Multiple Choice

Drawbacks to the common option of recruiting parent-county nationals (PCNs) for top management positions in foreign subsidiaries include which of the following?

• A) They have an immediate grasp of local cultures and business practices
• B) They are well-known to top management in the company
• C) They can more easily carry out the organization's mission
• D) They are the most expensive option and success is not assured

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Definitions:

Allowable Cost

This refers to the maximum cost that can be incurred on a project while still achieving the desired level of profit or meeting budget constraints.

Upstream Costs

Expenses incurred in the early stages of a product's life cycle, such as exploration and development costs in the oil and gas industry.

Downstream Costs

Costs incurred after the production process, including distribution, marketing, and customer service expenses.

Business Process Re-engineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.