Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.
-Refer to Additional Case 17.1.Which of the following best supports the decision to fill management positions in India with host-country nationals?
A) Hollar wants to exhibit trust in the local citizenry.
B) Hollar wants to maintain significant control from headquarters.
C) Hollar anticipates extensive government intervention.
D) Hollar's domestic and foreign operations are highly interdependent.

Question

Quizplus · Accepted Answer

The decision to fill management positions in India with host-country nationals is best supported by the fact that Hollar wants to exhibit trust in the local citizenry. This approach is consistent with the trend towards localization in global business, which emphasizes the importance of adapting to local culture and relying on local knowledge and expertise. Additionally, using local nationals may also help to avoid potential cultural misunderstandings and facilitate communication with local stakeholders.

Additional Case 17.1 Hollar, Inc. Is a U.S.-Based, International Car Manufacturer with Assembly