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 2
Which 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.
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