Scenario 15.2
Coffee Emporium has been one of Canada's premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald's, which has now moved into the coffee business with its signature McCafe. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US)and the United Kingdom (UK), where the cultures are somewhat similar to Canada's. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.
-Refer to Scenario 15.2. All of the following are advantages of Coffee Emporium hiring host-country nationals EXCEPT which one?

Question

Quizplus · Accepted Answer

The given options list the advantages of hiring host-country nationals for Coffee Emporium. Option A states that hiring host-country nationals is generally more costly than relocating expatriates, which is not an advantage. Therefore, Option A is the answer. The other options (B, C, and D) provide advantages of hiring host-country nationals, such as their experience with running the business, knowledge of the cultural and political landscape of the country, and the perception of being a local company/people.

Scenario 15.2 Coffee Emporium Has Been One of Canada's Premium Coffee Shops