What Challenges Does a Multinational Company Face in Using Performance-Based

question 42

Multiple Choice

What challenges does a multinational company face in using performance-based pay?

• A) Differences in laws, tax regulations, and cultural values all affect the applicability of performance-based pay.
• B) Any incentive system developed in the parent country would immediately become policy in the host country.
• C) Compensation for incentive systems is always paid in the currency of the host country.
• D) Stock option plans are typically more valued by employees working in host countries as they are by employees working in the parent country.
• E) Compensation for incentive systems is always paid in the currency of the parent country.

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Definitions:

Abstract Logic

Abstract logic involves thinking in a way that is not tied to concrete physical reality, allowing for manipulation of ideas and concepts independently.

Intentional

Done with purpose; deliberate actions that are often contrasted with accidental or involuntary ones.

Punishment

A consequence applied to reduce or eliminate an undesired behavior.

Cognitive Development

How individuals assimilate, reflect upon, and grasp their surroundings via the combined effects of innate and experiential influences.