When US Firms Cross Borders and Set Up Subsidiaries Overseas, They

question 58

Multiple Choice

When U.S. firms cross borders and set up subsidiaries overseas, they easily lose competitive advantage if:

• A) they fail to retain sole ownership of the venture.
• B) they do not try to superimpose American HR practices on the subsidiary.
• C) they try to superimpose American HR practices on the subsidiary.
• D) they properly develop employees to work in cross culture environments.

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Definitions:

Purchase

The act of acquiring goods or services, often in exchange for money.

Hybrid Costing Systems

Accounting methods that combine features of both job costing and process costing systems to handle unique costing needs.

Manufacturing

The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

Direct Labor

The wages paid to employees who are directly involved in the production of goods or services.