The Following Are All Reasons to Rely on Local,host-Country Management

question 24

Multiple Choice

The following are all reasons to rely on local,host-country management for filling a foreign subsidiary's management ranks EXCEPT

• A)the multinational corporation may be seen as a "better citizen."
• B)lower costs incurred with expatriates.
• C)preference of government for the "nativization" of local management.
• D)preference of employees to not work in a foreign country.
• E)lower costs incurred with local management.

Appreciate the importance of understanding cultural differences for global management and international business operations.

Understand the implications of Trompenaars' cultural framework for interpersonal relationships, environmental attitudes, and management practices.

Understand the factors contributing to the successful adjustment to new cultures.

Recognize the importance of personal attributes for employees in international assignments.

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Definitions:

Accounting Profit

The total revenue of a business minus the explicit costs, representing the financial gain on its income statement.

Economic Cost

The total cost of choosing one action over another, including both the costs incurred and the opportunity costs of forgone alternatives.

Financial Capital

Refers to the funds provided by lenders (and investors) to businesses to purchase real capital.

Machinery

Equipment and devices that perform specific tasks in industries, contributing to production processes.