Global Strategy 3rd Edition by Mike Peng

Exercise 3

ON ETHICS: You are the head of the best-performing subsidiary in an MNE. Because bonuses are tied to subsidiary performance, your bonus is the highest among managers of all subsidiaries. Now headquarters is organizing managers from other subsidiaries to visit and learn from your subsidiary. You worry that if your subsidiary is no longer the star unit when other subsidiaries' performance catches up, your bonus will go down. What are you going to do? State your answer in a one-page paper.