The Use of Local Nationals as Managers in Foreign Subsidiaries

question 22

Multiple Choice

The use of local nationals as managers in foreign subsidiaries will most likely:

• A) act as a disincentive to local morale and motivation.
• B) create problems of adaptability due to the lack of cultural flexibility.
• C) lead to the postponement of difficult local decisions until they are unavoidable.
• D) lead to increased government restrictions regarding transfers, salaries, and taxes.

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Definitions:

Anecdotal Evidence

Evidence based on personal accounts, observations, or stories, rather than on systematic scientific research or statistics.

Case Studies

A research method involving the detailed examination of an individual or group, providing in-depth data and insights into complex issues.

Systematic

Having a methodical plan or process, characterized by order and planning.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables change together, but does not automatically imply causation.