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.

Question

Quizplus · Accepted Answer

Local managers may delay difficult decisions due to their close ties with the local community and potential conflicts of interest, leading to postponement until issues become unavoidable.

The Use of Local Nationals as Managers in Foreign Subsidiaries