Research suggests that wholly owned subsidiaries and expatriate staff are inappropriate for service industries because those industries require close contact with customers, high levels of professional skills, specialized know-how, and customization. True False

The answer is True

Explanation:

Service industries would prefer not to hire an expatriate because they require close contact with customers, high levels of professional skills, specialized know-how, and customization.

They avoid expatriates because the new responsibilities, different culture and daily stress may lead to problems coping with their new position and location.

Besides, Expats are Expensive & Problematic, they are expensive to maintain and may even attract some legal risks.

True

Explanation:

Using wholly owned subsidiaries and expatriate staff in the service industry is not an effective way to ensure good service delivery. When a subsidiary interacts with a customer they cannot meet customer needs due to unspecialised staff and secondhand information, and lack of customisation of products.

However if the parent company has direct contact with the customer they will adequately attend to the customer needs because they have high levels of professional skills, specialized know-how, and customization.