Headquarters is more likely to rely on subsidiary management if:
A) subsidiary managers are from another country.
B) conditions in the host country are very similar to those in the home country.
C) the subsidiary is located far away from headquarters.
D) the host country has similar institutions and politics to those in the home country.

Question

Quizplus · Accepted Answer

Headquarters' reliance on subsidiary management also depends on how far away the host country is. A U.S. parent company is likely to place more reliance on the management of an Indonesian subsidiary than on the management of a Canadian subsidiary for two reasons: U.S. management typically perceives that it understands management conditions in Canada more easily than conditions in Indonesia, and Indonesia is much farther from the United States than Canada is-not merely geographically but also in terms of culture, institutions, politics, and other variables.

Headquarters Is More Likely to Rely on Subsidiary Management If