Which of the Following Statements Is True About Localization as an Approach

question 15

Multiple Choice

Which of the following statements is true about localization as an approach to formulating compensation packages?

• A) According to Mercer's findings, localization is practiced in Latin America and Asia Pacific more than Europe and North America.
• B) Localization is a direct consequence of increasing corporate growth and profitability, as well as a stable economic environment.
• C) The increasing trend toward localization reflects companies' efforts to either tap into the local talents or to offer less generous packages to locally hired foreign workers.
• D) The trend toward localization failed in emerging markets because the local compensation and benefits packages are more generous than home-country plans.

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Definitions:

Organizational Analysis

The process of reviewing the structure, operations, and performance of an organization to identify areas of improvement.

Current State

The existing conditions or situation of an organization, system, or process at a given point in time.

Unfreezing Process

The initial stage of change in an organization, aiming to dismantle existing mindsets and strategies.

Survival Anxiety

A motivational factor that drives individuals or organizations to change due to the fear of failure or extinction.