Why Would an MNE Assign Vanguard Status to a Subsidiary

question 2

Multiple Choice

Why would an MNE assign vanguard status to a subsidiary?

• A) To ensure head office practices are implemented
• B) To create a more distant relationship between the parent and subsidiary
• C) To encourage reverse diffusion
• D) To discourage reverse diffusion

---

Definitions:

Intelligence A

Hebb’s term for innate intellectual potential, which is highly heritable and cannot be measured directly.

Convergent Thinking

A cognitive process in which a person focuses on a single, optimal solution to a problem, contrasting with divergent thinking.

Frontal Lobe Injury

Damage to the frontal part of the brain, affecting mood, behavior, and cognitive functions.