Which of the following best explains why foreign subsidiary managers are often reluctant to propose divestments in the countries where they are working?
A) They are afraid of proposing the elimination of their jobs.
B) They are usually poorly trained in how to sell units or how to close them down.
C) They are too nationalistic to examine political risk objectively.
D) Many are in countries where the cultural attribute of power-distance is very high.

Question

Quizplus · Accepted Answer

Foreign subsidiary managers may fear that proposing divestments could lead to the elimination of their own positions, as divestment often involves downsizing or closing operations.

Which of the Following Best Explains Why Foreign Subsidiary Managers