University Of Central Florida (UCF) GEB3375 Intro To International Business Practice Exam 3

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What term is used for employees who are citizens of the nation where the parent company is headquartered?
Correct Answer:
Home country national
Explanation:
The term used for employees who are citizens of the nation where the parent company is headquartered is "home country national." This designation specifically refers to individuals who are from the country where the organization's central operations are based, meaning that if a company is located in the United States and employs U.S. citizens, those individuals would be considered home country nationals. In the context of international business, understanding the distinction among different types of employees is crucial. Host country nationals are employees who are citizens of the country where the subsidiary is located, while third country nationals are those who are citizens of a country other than the home or host country. Local country nationals, although similar in concept to host country nationals, usually refer specifically to employees hired from the local community of the subsidiary rather than from the country of the parent company. Thus, recognizing who home country nationals are helps in understanding various strategic approaches companies might take in managing their workforce across international borders.

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