When a firm transfers a headquarters manager to a subsidiary, assuming foreign managers lack capability, this reflects which attitude?

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Multiple Choice

When a firm transfers a headquarters manager to a subsidiary, assuming foreign managers lack capability, this reflects which attitude?

This item tests ethnocentric attitude in international management. When a firm transfers a headquarters manager to a subsidiary because it assumes foreign managers lack capability, it reflects a belief that the home country’s methods and people are superior and should control foreign operations. This centralizes authority at the parent organization and relies on expatriates to run overseas units, signaling bias against local talent. By comparison, a geocentric stance would seek the best person for the job regardless of nationality, a polycentric approach would empower host-country nationals to lead, and parochialism would reflect a narrow, country-centric view that doesn’t justify relying on home-country managers to run foreign subsidiaries.

This item tests ethnocentric attitude in international management. When a firm transfers a headquarters manager to a subsidiary because it assumes foreign managers lack capability, it reflects a belief that the home country’s methods and people are superior and should control foreign operations. This centralizes authority at the parent organization and relies on expatriates to run overseas units, signaling bias against local talent.

By comparison, a geocentric stance would seek the best person for the job regardless of nationality, a polycentric approach would empower host-country nationals to lead, and parochialism would reflect a narrow, country-centric view that doesn’t justify relying on home-country managers to run foreign subsidiaries.

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