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QUESTION 9 What is the disadvantage of using host-country locals? O Employing ho

ID: 432817 • Letter: Q

Question

QUESTION 9 What is the disadvantage of using host-country locals? O Employing host-country nationals is more expensive than employing third-country nationals, especially in lower-wage countries. O It does not enhance host-country employees' morale because these employees do not appreciate working for foreigners. O It may be difficult to find qualified people at the local level with the right skills for the assignment, especially in less-developed countries O Employing host-country nationals may diminish the multinational's reputation especially in a country that has strong populist government.

Explanation / Answer

The disadvantage of using host country locals It may be difficult to find qualified peopleat the local level with the right skills for the assignment especially in less developed countries. The locals may also not be able to understand the norms and policies of the firm they will be working for. The insufficiency of the required knowledge may cause loss to the company.

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