The danger in using primarily foreign nationals to staff managerial positions in subsidiaries is the increased likelihood of suboptimization.

Question

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When a company relies heavily on foreign nationals to staff managerial positions in its subsidiaries, there is a risk of suboptimization. This is because foreign managers may not fully understand local customs, laws, and business practices, leading to decisions that are not optimal for the particular market. Additionally, foreign managers may not have a strong understanding of the company's values and culture, which can lead to a lack of alignment with headquarters and possible conflicts.

The Danger in Using Primarily Foreign Nationals to Staff Managerial