Worldwide Consulting Limited is an Italian-based service company with activities in 23 countries.The company operates by embedding a large number of expatriates in foreign subsidiaries,even though the expatriates are not always familiar with the host country to which they are assigned.What is the most important benefit Worldwide Consulting is most likely to achieve through this practice?
A) An exchange of information and knowledge across subsidiaries facilitated by the expatriates.
B) The presence of expatriate employees enhances the prestige of the foreign subsidiaries and increases client satisfaction.
C) The presence of a large number of expatriates improves employee motivation and reduces employee turnover.
D) Having ex-pat employees allows the parent company to keep tighter control of its offshore subsidiaries.

Question

Quizplus · Accepted Answer

One of the most difficult tasks facing a transnational organization is the coordination of the huge flow of strategic information and proprietary knowledge required to operate a transnational organization.The diversity and changeability of the flow make it impossible to coordinate through formal systems and the sheer volume and complexity of the information would overload headquarters if coordination were centralized.The most effective way to ensure that worldwide organizational units analyze their diverse environments appropriately is to sensitize local managers to broader corporate objectives and priorities.One of the best ways to achieve this goal is to transfer personnel with the relevant knowledge.In fact,this socialization process is the classic solution for the coordination of information and knowledge flows across subsidiaries
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Worldwide Consulting Limited Is an Italian-Based Service Company with Activities