Ethnocentrism continues to characterize many MNEs: knowledge transfer is typically one way-from headquarters to subsidiaries via expatriates.

Question

Quizplus · Accepted Answer

Ethnocentrism, a belief in the superiority of one's own ethnic group or culture, is still prevalent in many multinational enterprises (MNEs). As a result, knowledge transfer often occurs in only one direction, from the MNE's headquarters to its subsidiaries, through the use of expatriates. This means that the subsidiaries are not given the opportunity to share their own perspectives and innovations, thus hindering the overall efficacy of the MNE's operations.

Ethnocentrism Continues to Characterize Many MNEs: Knowledge Transfer Is Typically