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NEW QUESTION: 3
For a multinational firm, which of the following is a disadvantage of an ethnocentric staffing policy in which all key management positions are filled by parent-company nationals?
A. An ethnocentric staffing policy significantly raises compensation, training, and staffing costs.
B. An ethnocentric staffing policy isolates headquarters from foreign subsidiaries.
C. An ethnocentric staffing policy limits career mobility for parent-country nationals.
D. An ethnocentric staffing policy produces resentment among the firm's employees in host countries.
Answer: D
Explanation:
An ethnocentric staffing policy has the advantage that expatriates may understand the objectives, policies, and procedures of the parent firm better than local employees do. However, ethnocentrism in hiring has the following disadvantages, among others:(1) Expatriate managers have difficulty in adapting to a new culture, language, and physical environment;
(2)
training and relocation costs may be high;
(3)
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(4)
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