Additional Case 17.1 Hollar, Inc. Is a U.S.-Based, International Car Manufacturer with Assembly

question 12

Multiple Choice

Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.
-Refer to Additional Case 17.1.Which of the following best supports the decision to fill management positions in India with expatriates?

• A) Hollar desires a greater understanding of local conditions and customs.
• B) Hollar needs to ensure a smooth transfer of business and management practices.
• C) Hollar wants to reduce the firm's compensation costs related to construction of the plant.
• D) Hollar's most globally skilled managers are part of dual-career couples with small children.

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Definitions:

Scatter Diagram

A graph in which the values of two variables are plotted along two axes, the pattern of the resulting points revealing any correlation present.

Standard Error Of Estimate

A measure of the accuracy of predictions made with a regression line, representing how spread out observed values are from the regression line.

Sum Of Squares For Error

The sum of squared differences between observed and predicted values in a regression model, measuring the discrepancy between the data and the model.

T-Test

An analysis technique designed to evaluate whether the mean values of two distinct groups differ significantly.