Question

Which of the following is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates?

A. They are more efficient in communicating with and influencing headquarters' personnel.
B. They cost the firm less with respect to maintenance.
C. They are more knowledgeable about the company and its product line.
D. They have greater technical expertise.
E. They are less likely to accept any form of bribe.

Answer 1

A sales force of local nationals is likely to cost a firm less in terms of maintenance compared to a sales force of expatriates. Local nationals have a better grasp of local business practices and cultural nuances, which can lead to more effective operations within the market.

Step-by-step explanation:

An advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates is that they cost the firm less with respect to maintenance.

This cost efficiency comes because local nationals do not require the same level of compensation, relocation expenses, or additional maintenance that is often associated with expatriates, such as housing allowances, international schooling for children, and regular travel expenses back to the home country.

Local nationals are also better positioned to understand and navigate the cultural, social, and business nuances of their own country, which can lead to more effective communication and business practices within the local market.

However, it is a misconception to associate a lower likelihood of accepting bribes with local sales forces, as this can be influenced by many factors including individual ethics and company policies.

Therefore the correct answer is B. They cost the firm less with respect to maintenance.