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Exam Code: CFE-Financial-Transactions-and-Fraud-Schemes
Exam Name: Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam
Vendor: ACFE

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NEW QUESTION: 3
For a multinational firm, which of the following is a disadvantage of an ethnocentric staffing policy in which all key management positions are filled by parent-company nationals?
A. An ethnocentric staffing policy limits career mobility for parent-country nationals.
B. An ethnocentric staffing policy isolates headquarters from foreign subsidiaries.
C. An ethnocentric staffing policy produces resentment among the firm's employees in host countries.
D. An ethnocentric staffing policy significantly raises compensation, training, and staffing costs.
Answer: C
Explanation:
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(2)
training and relocation costs may be high;
(3)
host-country governments prefer local control;
(4)
the morale and performance of host-country employees will suffer.


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