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

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Definitions:

Social Setting

The context or environment in which social interactions occur, including the cultural, historical, and physical aspects that influence these interactions.

Productivity

The measure of how efficiently goods and services are produced, often evaluated as output per unit of input.

Theory X

The assumption that people dislike work, lack ambition, act irresponsibly, and prefer to be led.

Motivating

The process of stimulating someone's interest or enthusiasm for doing something.