Which of the Following Is an Advantage of the Home-Country

question 52

Multiple Choice

Which of the following is an advantage of the home-country national strategy?

• A) The language barrier is eliminated.
• B) This strategy allows managers to gain experience in local markets.
• C) The various hiring costs, like visas, are eliminated.
• D) The cultural understanding of the host country market is already present in the home-country national.
• E) It builds the morale of host country employees, motivating them to work er.

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Definitions:

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of its profits and assets.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control those policies, typically associated with owning a significant but not majority share of the investee.

Fair Value

The price that would be received for the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Book Value

The net value of an asset or liability recorded on the balance sheet, determined by subtracting its accumulated depreciation or amortization from its original cost.