Which attitude emphasizes using local practices for each host country?

• A. Ethnocentric Attitude
• B. Geocentric Attitude
• C. Polycentric Attitude
• D. Parochialism

Answer: (C)

Using host-country practices in each location reflects a polycentric stance. This approach recognizes that different countries have distinct cultures, regulations, and market conditions, so subsidiaries are managed locally and policies are adapted to fit the local context. It often leads to better acceptance and effectiveness in each host country because actions align with what works there. In contrast, an ethnocentric orientation pushes home-country methods everywhere, ignoring local differences. A geocentric approach looks for the best people and practices globally rather than focusing on local adaptation. Parochialism describes a narrow, inward-looking view that fails to acknowledge other countries’ practices.