Additional Case 17.2

question 84

Multiple Choice

Additional Case 17.2
Golden Rod is an electronics firm based in Detroit with subsidiaries in several countries including Indonesia, Egypt, Argentina, and Thailand. The top management positions in these subsidiaries are filled by U.S. citizens. Golden Rod is planning on creating a new expatriate assignment in Egypt. The firm has created a selection board of expatriates to choose the best person for the job. In the past, Golden Rod has experienced a high turnover rate among repatriated managers, so executives hope to solve this problem.

-Refer to Additional Case 17.2.It would be most effective for the selection board to:

• A) choose someone who has had previous international experience.
• B) screen applicants but not their families.
• C) use technical ability as the most important qualifying criterion.
• D) never choose a foreign-born employee to serve as an expatriate.

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Definitions:

Bilateral Mistake

A misunderstanding where both parties involved in a contract have an incorrect belief about a basic assumption on which the contract is based.

Mistake Of Value

An error made by one or both parties at the time of entering into a contract, regarding the value or worth of the subject matter of the contract.

Voidable

Refers to a contract that is valid and enforceable unless challenged and declared void by a party to the contract who is deemed to have been disadvantaged or defrauded.

Fraudulent Misrepresentation

The intentional provision of false statements or concealment of information to deceive or mislead another party.