One of the potential problems for an MNE that practices too much polycentrism is ________.
A) demanding that local communication methods be replaced with modern technology
B) underestimating the complexity of introducing new management practices
C) losing innovative capabilities to less-risky host-country practices
D) relying too much on home-country directions and policies

Question

Quizplus · Accepted Answer

Polycentrism involves giving significant autonomy to local subsidiaries or offices, which can lead to the adoption of host-country practices that may be less innovative than the practices used in the home country. This can result in the MNE losing its innovative capabilities and potentially losing competitive advantage. The other options are potential problems for an MNE practicing too much ethnocentrism or geocentrism.

One of the Potential Problems for an MNE That Practices