Multinational enterprises appoint home-country nationals as the head of a foreign subsidiary because the home-country nationals:
A) create a fiefdom of their enterprise in the host-country.
B) can deal effectively with two bosses without any major conflict.
C) have an understanding of the informal workings of multinational enterprises.
D) focus on implementing a localization strategy.

Question

Quizplus · Accepted Answer

Home-country nationals are often appointed as heads of foreign subsidiaries because they have a deep understanding of the informal workings and corporate culture of the multinational enterprise, which can be crucial for maintaining alignment with the company's overall strategic goals.

Multinational Enterprises Appoint Home-Country Nationals as the Head of a Foreign