Final answer:
A company that recognizes and adapts to the uniqueness of each country it operates in follows a polycentric management orientation. Ethnocentrism, the belief that one's own culture is superior, is contrasted with this localized approach to management and business practices.
Step-by-step explanation:
A company that treats each country as unique and adopts localized management practices is following a polycentric management orientation. This approach recognizes that each country has its own distinct business environment and cultural nuances, which need tailored strategies and operations. Companies that take this approach typically have local managers in their foreign offices who are nationals of the host country, because they are presumed to understand the local environment and culture better. This contrasts with an ethnocentric orientation, where a company uses the same practices worldwide as it does in its home country, assuming its way of doing things is superior to local approaches.
Ethnocentrism, as described by sociologist William Graham Sumner, is the belief that one's own culture is better than all others. However, in a business context, embracing different cultures and minimizing ethnocentric views can contribute to greater success in multinational corporations.