Final answer:
The recruitment strategy of hiring nationals from the host country's branch is called a polycentric approach. This approach is part of multinational corporations' strategies to adapt to local markets and cultures, and it serves as a countermeasure to ethnocentrism.
Step-by-step explanation:
When a firm adopts a strategy of limiting recruitment to nationals of the host country where a branch is located, this approach is referred to as a polycentric approach. This contrasts with an ethnocentric approach, where a company would primarily employ individuals from the home country, and a geocentric approach, which involves hiring the best individuals for the job irrespective of nationality. The fourth term mentioned, a regiocentric approach, entails hiring within a specific regional bloc.
Ethnocentrism, as described by sociologist William Graham Sumner, is a belief that one's culture is superior to others. This can create challenges in multicultural work environments and multinational corporations (MNCs), as it can lead to mistreatment of individuals from different backgrounds.
A polycentric recruitment strategy can help to mitigate issues of ethnocentrism in multinational companies by valuing local expertise and reducing the risk of cultural misunderstandings in the workplace.