When FDI Takes the Form of an Acquisition of an Established

question 78

Multiple Choice

When FDI takes the form of an acquisition of an established enterprise in the host economy,research suggests that once the initial period of restructuring is over,enterprises acquired by foreign firms tend to:

• A)grow their employment base at a faster rate than domestic rivals.
• B)engage in downsizing and retrenchment.
• C)reduce their pay scales to match those of local companies.
• D)reduce employment to cut costs and control prices.

---

Definitions:

Global Managers

Leaders who operate in an international context, adept at managing across diverse cultures and economies.

Repatriation

The process of returning a person to their place of origin or citizenship, which can include the return of refugees, prisoners of war, or employees back to their home country after working abroad.

Leadership Skills

Refers to the ability to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members.

Cross-cultural Adjustment

The process through which individuals learn to adapt and function effectively in a cultural environment different from their own.