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

question 35

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 difficult 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.

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Definitions:

Deferral Method

An accounting method where certain revenues or expenses are deferred on the balance sheet until they can be realized in the income statement.

Not-for-profit Organization

An organization that operates for purposes other than generating profit, typically focusing on social, educational, or charitable objectives.

Endowment Contribution

A donation made to an organization, often a nonprofit or educational institution, with the stipulation that the principal amount is to be kept intact while the investment income generated is used for specific purposes.

Unrestricted Contribution

Donations made to a not-for-profit organization without specified restrictions, allowing the organization to use the funds for any purpose.