Question

Axtara, an automobile manufacturer, has several factories in foreign countries. The management strongly believes in giving precedence to the values and perspectives of its home office over those of its foreign subsidiaries. As a result, the management hires workers from the home country to staff the upper-management positions in all the foreign offices of the company. In the context of the different staffing strategies used by international businesses, Axtara most likely uses the _____.

A) geocentric staffing modelB) regiocentric staffing modelC) polycentric staffing modelD) ethnocentric staffing model

Answer 1

The answer is: D) ethnocentric staffing model

Step-by-step explanation:

Ethnocentric staffing model: involves hiring expatriates from the company´s home country to fill the most important positions in foreign subsidiaries. This usually happens within multinational corporations where a current employee working in the headquarter´s office gets transferred to a foreign subsidiary.

The main advantage of this approach is that expats should be better aligned with the interests and perspective of the home office. On the other hand, the main disadvantage is that the company loses local perspective and insights.