The Use of Third-Country Nationals as IC Executives in Least

question 60

Multiple Choice

The use of third-country nationals as IC executives in least developed countries (LDCs) is a growing practice because

• A) they tend to prefer working in LDCs.
• B) there is frequently a shortage of skilled host-country nationals.
• C) they will work for lower wages and benefits than will employees from the home or host country.
• D) they do not need work permits for the host country and they have knowledge of its language and culture.

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Definitions:

Base Wage

The initial rate of pay that an employee receives, excluding additional compensation such as bonuses, overtime, or allowances.

Incentive Compensation Systems

Payment programs designed to motivate employees' performance by aligning their incentives with the organization's goals, typically through bonuses, profit sharing, or stock options.

Work Motivation

The drive or incentive that pushes individuals to attain work-related goals or engage in work tasks.

Gain-sharing Plan

is a system in which employees receive a share of the profits based on the performance of their company or department, intended to increase productivity and align employees' interests with those of the organization.