Evaluation of a subsidiary should be separate from the evaluation of its manager.

Question

Quizplus · Accepted Answer

Foreign subsidiaries do not operate in uniform environments; their environments have widely different economic, political, and social conditions, all of which influence the costs of doing business in a country. Thus, the manager of a subsidiary in an adverse environment that has an ROI of 5 percent may be doing a better job than the manager of a subsidiary in a benign environment that has an ROI of 20 percent. Accordingly, it has been suggested that the evaluation of a subsidiary should be kept separate from the evaluation of its manager.

Evaluation of a Subsidiary Should Be Separate from the Evaluation