Host-country nationals

Host-country nationals

• A. Liaison
• B. Local nationals
• C. Licensing
• D. Lump-sum compensation

Answer: (B)

Host-country nationals are local nationals—employees who are citizens of the country where the subsidiary operates. They bring knowledge of local language, culture, labor practices, and regulatory requirements, and are typically hired locally and compensated according to local market rates rather than expatriate packages. This makes them a natural fit for managing day-to-day operations in the host country and helps with smoother integration into the local business environment. The other terms refer to different concepts: a liaison is a bridging role between groups, licensing is a market-entry method, and lump-sum compensation is a type of pay structure, not a category of employees.

Host-country nationals are local nationals—employees who are citizens of the country where the subsidiary operates. They bring knowledge of local language, culture, labor practices, and regulatory requirements, and are typically hired locally and compensated according to local market rates rather than expatriate packages. This makes them a natural fit for managing day-to-day operations in the host country and helps with smoother integration into the local business environment. The other terms refer to different concepts: a liaison is a bridging role between groups, licensing is a market-entry method, and lump-sum compensation is a type of pay structure, not a category of employees.