Which of the Following Is a Disadvantage of the Host-Country

question 16

Multiple Choice

Which of the following is a disadvantage of the host-country national strategy?

• A) This strategy can adversely affect motivation of local workers.
• B) Language and cultural barriers can hinder the success of this staffing strategy.
• C) The added cost of visa and hiring factors add up to be a major expense.
• D) Adapting to foreign environment may be for a manager and his/her family, resulting in less productivity when using this strategy.
• E) The host-country manager may not understand business objectives as well as his/her home-country counterpart without proper training.

Assess the impact of capital budgeting decisions on a firm's long-term financial health.

Identify the suitability of capital budgeting methods based on project characteristics and managerial objectives.

Calculate and interpret the discounted payback period for investment projects.

Justify the use of NPV as the "best" decision rule in principle for project evaluation.

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