Question

Harvest master, a maker of farm equipment based in nebraska, is planning to send a u.s. marketing manager to lead a product launch in a country with a socialist economic system. as the human resource department plans this assignment, what impact of the host country's economic system will it need to address?

Answer 1

The options attached to the question above are given below:

A. The culture of the host country is likely to be much more individualistic than U.S. culture is.

 B. The manager will have greater difficulty finding educated workers in the host country than in the United States.

 C. The manager may not be familiar with the host country’s language.

D. The host country will likely tax a larger percentage of the manager’s income than the United States would.

E. The host country will likely have few protections for its workers.

ANSWER

The correct option is D.

A socialist system is a type of economic system in which the factors of production are jointly owned by all the citizens and production affair is regulated by the government. Such a country does not encourage individuals to operate personal business. Thus, such a country will lay high tax on the income of the manager in order to discourage him from selling his machine in their country.