Ferguson Manufacturing, an American MNE, has facilities in India and Mexico. Ferguson fills management positions at the facility in India with Indians and management positions in Mexico with Mexicans.
Ferguson most likely follows a(n) ________ approach to staffing.
A) ethnocentric
B) geocentric
C) polycentric
D) intercentric
Question 2Which of the following is a drawback of the polycentric approach?
A) Host-country nationals become more committed to company headquarters than to their local colleagues.
B) Successful local units may increasingly function independently and pay less attention to headquarters.
C) Local units depend too much on headquarters for resources and innovations, with little incentive to develop their own.
D) Local managers study international business and cultural practices in other markets in preparation for international assignments at the expense of not fully investing in understanding the host country.
Question 3Advantages of adopting a polycentric approach include which of the following?
A) capitalizing on the availability of qualified local managers
B) helping transfer core competencies from the home nation to local subsidiaries
C) increasing the international career mobility for local managers
D) offsetting tendencies for the company to adapt excessively to the local market
Question 4Liability of foreignness refers to the internalization advantages that make it desirable to produce a good or service in-house.
Indicate whether the statement is true or false
Question 5A(n) ________ manager champions the ways of foreign markets as comparable, if not more enlightened, than the practices of his or her parent company and home nation.
A) ethnocentric
B) geocentric
C) monocentric
D) polycentric
Question 6What is the primary advantage of an MNE using an ethnocentric framework?
A) minimizing relocation costs
B) developing community support
C) transferring core competencies abroad
D) encouraging innovative business practices
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