Denise Smithson, CEO of Lytle International, Inc., said to her vice president of international operations, Paul Robinette, "Pete has been managing our Indian operations for two years. As you know, the costs that we are incurring for Pete's and his family's relocation and in-country support in Mumbai are significant-living expenses for his family, transportation, escalated salary, private education for his children, and trips home, just to name a few. What is our current staffing plan?" Paul replied, "Pete has been training Ram Reddy to take over as Indian operations manager, so that Pete can come back to headquarters. That will help with customer relations and will significantly reduce our costs. For many reasons, it makes sense for a(n)________ to manage our Indian operations."

Question

Quizplus · Accepted Answer

It makes sense for a host-country national, such as Ram Reddy, to manage the operations in India since they have the necessary cultural and local knowledge and can reduce costs by not requiring the same level of support as an expatriate.