Final answer:
When a company must decide on the composition of its foreign sales force, hiring expatriate salespeople is generally the most expensive option.
Step-by-step explanation:
When a company must decide on the composition of its foreign sales force, the alternative that is generally the most expensive is hiring expatriate salespeople.
Hiring expatriate salespeople involves relocating employees from the home country to work in the foreign market. This option is usually more expensive due to the additional costs associated with expatriate compensation, such as relocation expenses, housing allowances, and tax equalization benefits. Expatriate salespeople may also require higher salaries to compensate for the challenges and risks of working in a foreign country.
In contrast, hiring local salespeople is often a more cost-effective option as they are already familiar with the local market and culture, reducing the need for extensive training and support. Outsourcing sales to a third-party company can also be a cost-saving alternative as it allows the company to leverage the expertise and resources of the outsourcing partner. Using a combination of local and expatriate salespeople can be a balanced approach that combines cost-effectiveness and market knowledge, but it may still incur higher expenses compared to hiring solely local salespeople.