A sound business reason for pursing an ethnocentric staffing policy is:

Question

Quizplus · Accepted Answer

An ethnocentric staffing policy favors the employment of parent-country nationals (PCNs) for key positions in foreign subsidiaries. This approach is based on the assumption that PCNs are better qualified than host-country nationals (HCNs) to manage and control overseas operations. While this approach might ignore the importance of cultural and linguistic differences in the foreign market, there is a sound business reason for pursuing this policy when there is a perceived lack of qualified HCNs. In such cases, employing PCNs can ensure that the company's overseas operations are managed by experienced and knowledgeable personnel. However, this policy can also be expensive and may affect the local acceptability of the company.

A Sound Business Reason for Pursing an Ethnocentric Staffing Policy