Which of the following is NOT true in regard to institution-based considerations?
A)Externally, MNEs are subject to the formal institutional frameworks erected by various home- and host-country governments.
B)Host-country governments often encourage, or coerce MNEs into undertaking certain activities.
C) To staff the position of the head of a subsidiary, MNEs, in the absence of formal regulations, essentially have only one choice: to use a home-country national as the head of a subsidiary.
D) Formal organizational charts do not necessarily reveal the informal rules of the game, such as organizational norms, values, and networks.

Question

Quizplus · Accepted Answer

This statement is incorrect. In the absence of formal regulations, MNEs have several choices when staffing the position of the head of a subsidiary, including hiring a host-country national or a third-country national.

Which of the Following Is NOT True in Regard to Institution-Based