Informal cognitive institutions are not important to international managers because such managers localize their hiring, and so they can draw on local talent.

Question

Quizplus · Accepted Answer

Informal cognitive institutions, such as cultural norms and beliefs, can have a significant impact on business practices and should be considered by international managers, even if they hire local talent. Ignoring these informal institutions can lead to misunderstandings, miscommunications, and other difficulties in conducting business globally.

Informal Cognitive Institutions Are Not Important to International Managers Because