Mercedes Hired Managers from the Local Community as Operations Managers

question 1

Multiple Choice

Mercedes hired managers from the local community as operations managers in its Kentucky plant. Mercedes used ________.

• A) parent country nationals
• B) host country nationals
• C) third country nationals
• D) primary country nationals

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Definitions:

Sunk Costs

Costs that have been spent and are non-recoverable.

Erosion Costs

Costs that occur when a new project or investment negatively impacts the revenue or profits of existing projects or investments.

Financing Costs

Expenses incurred by a company or individual in the process of raising capital through debt or equity.

Erosion

In finance, it refers to the gradual decline of an asset's value, or the negative impact one investment can have on the value of an existing investment.