The policy in which the foreign subsidiary is staffed with host-country nationals and its home-office headquarters with parent-country nationals is known as
A)geocentric.
B)polycentric.
C)ethnocentric.
D)multicentric.
E)homocentric.

Question

Quizplus · Accepted Answer

The policy in which the foreign subsidiary is staffed with host-country nationals and its home-office headquarters with parent-country nationals is known as polycentric. In this approach, local managers have more autonomy, and the company responds to the needs of the local market. It is also less likely to experience cultural clashes and may be more politically acceptable to the host country's government.

The Policy in Which the Foreign Subsidiary Is Staffed with Host-Country