Based on most surveys of U.S.-based MNE performance evaluation systems,
A) completely separate performance evaluation systems are used for foreign operations.
B) return on investment is the most widely utilized performance evaluation measure.
C) capital and operating budgets are not very useful due to currency differences.
D) very few companies use local currency information for performance evaluation.

Question

Quizplus · Accepted Answer

According to most surveys of U.S.-based MNE performance evaluation systems, return on investment is the most widely utilized performance evaluation measure. Therefore, option B is the correct answer. Option A is incorrect because some companies use the same evaluation systems for domestic and foreign operations, while others use a modified system for foreign operations. Option C is incorrect because capital and operating budgets are still useful despite currency differences. Companies can convert their budgets to a common currency or use other tools such as hedging to manage currency risks. Option D is also incorrect because a significant portion of companies use local currency information for performance evaluation, especially for foreign operations.

Based on Most Surveys of U