Which of the Following Is a Disadvantage of an Ethnocentric

question 124

Multiple Choice

Which of the following is a disadvantage of an ethnocentric staffing policy?

• A)It leads to resentment in the host country.
• B)It isolates the headquarters from foreign subsidiaries.
• C)It does not allow transfer of core competencies.
• D)It leads to a dearth of qualified managers in the host nation.
• E)It diversifies corporate culture.

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Definitions:

Carrying Cost

Represents the total cost of holding a specific inventory over time, including storage, insurance, and spoilage costs.

Incremental Bad Debt

Additional amounts of money owed to a company that are determined to be uncollectible beyond the initially expected level of bad debt.

Bad Debt Losses

Bad debt losses refer to the amount of receivables that a company anticipates will not be collected due to customers' inability to pay.

Credit Policy

A set of guidelines that a company uses to determine the creditworthiness of customers and the terms under which it will extend credit.