Which of the following statements is true regarding assessing the performance of a foreign subsidiary and its managers?

Question

Quizplus · Accepted Answer

Evaluating foreign subsidiary managers in local currency terms is a fair and reasonable approach, as it takes into account factors outside of their control, such as exchange rate fluctuations. However, comparing subsidiaries on the basis of ROI may not be appropriate, as each subsidiary may operate in vastly different economic, political, and social conditions. Additionally, it may not be advisable to combine the evaluation of a subsidiary with that of its manager, as the subsidiary's performance may be influenced by factors beyond the control of the manager, such as local regulations or economic conditions.

Which of the Following Statements Is True Regarding Assessing the Performance