Question

Subject = International Bussines q6

Which of the following best explains why MNEs often employ more locals than expatriate managers in foreign facilities?

a. lower compensation expense

b. better support from unions

c. improved economies of scale

d. better grasp of core competencies

Answer 1

Option A: Lower compensation expense

MNEs often employ more locals than expatriate managers in foreign facilities because local managers have lower compensation expense as compare to expatriate managers. Local managers has lower compensation because they have their own house and family in local city. So MNE's are hire local managers.