Final answer:
Companies might prefer to hire host country nationals for their specialized skills and knowledge of the local market. They might prefer to hire third country nationals to promote cultural diversity.
Step-by-step explanation:
Companies might prefer to hire host country nationals when they need specialized skills and knowledge of the local market. By hiring locals, companies can benefit from their understanding of the cultural nuances and preferences of the local customers. This can help companies tailor their products and services to better meet the needs of the local market and gain a competitive advantage.
On the other hand, companies might prefer to hire third country nationals when they want to promote cultural diversity. By hiring individuals from different backgrounds and nationalities, companies can bring in diverse perspectives and ideas, which can lead to innovation and better decision making.