Additional Case 17.1 Hollar, Inc. Is a U.S.-Based, International Car Manufacturer with Assembly

question 102

Multiple Choice

Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.
-Refer to Additional Case 17.1.Which of the following best supports the decision to fill management positions in India with host-country nationals?

• A) Hollar wants to exhibit trust in the local citizenry.
• B) Hollar wants to maintain significant control from headquarters.
• C) Hollar anticipates extensive government intervention.
• D) Hollar's domestic and foreign operations are highly interdependent.

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Definitions:

Used Oil

Recycled or waste oil that has been used and then collected for reprocessing or disposal, often considered hazardous waste.

Marginal Social Costs

The total cost to society of producing one additional unit of a good or service, including both private costs and any externalities.

Social Welfare

The overall well-being of a society, encompassing economic, social, and environmental dimensions, often considered in policy-making.

Pollution

The entry of pollutants into the natural ecosystem resulting in harmful modifications.