Which of the following statements best describes the ethnocentric approach?

Which of the following statements best describes the ethnocentric approach?

• A. It encourages local customs and management styles
• B. It relies heavily on the parent company's practices
• C. It focuses solely on local market needs
• D. It supports decentralized management

Answer: (B)

The ethnocentric approach is characterized by the reliance on the parent company's practices and systems when making decisions for foreign operations. This approach assumes that the methods and practices that have been successful in the parent country are applicable to other countries as well. This often manifests in the foreign branches adopting the same management styles, organizational structures, and policies as those in the home country, with little regard for local culture or practices. By promoting the parent company's norms and strategies, the ethnocentric approach can ensure consistency across international operations. However, this may also lead to challenges such as cultural insensitivity and a potential disconnect from local market dynamics. In contrast, alternatives like emphasizing local customs and management styles would better describe a polycentric approach, while focusing solely on local market needs leans towards a more localized or indigenized strategy. Supporting decentralized management aligns more with a geocentric model, which seeks to integrate both local and parent company practices. Thus, the reliance on the parent company's practices is what distinctly defines the ethnocentric approach.

The ethnocentric approach is characterized by the reliance on the parent company's practices and systems when making decisions for foreign operations. This approach assumes that the methods and practices that have been successful in the parent country are applicable to other countries as well. This often manifests in the foreign branches adopting the same management styles, organizational structures, and policies as those in the home country, with little regard for local culture or practices.

By promoting the parent company's norms and strategies, the ethnocentric approach can ensure consistency across international operations. However, this may also lead to challenges such as cultural insensitivity and a potential disconnect from local market dynamics.

In contrast, alternatives like emphasizing local customs and management styles would better describe a polycentric approach, while focusing solely on local market needs leans towards a more localized or indigenized strategy. Supporting decentralized management aligns more with a geocentric model, which seeks to integrate both local and parent company practices. Thus, the reliance on the parent company's practices is what distinctly defines the ethnocentric approach.