Jose Miguel Vienes Ms.

Maria Felisa Calicdan

BSBA 311
14 Quiz 1

Short Quiz (2 items x 5 points)

1. In what ways can organized labor constrain the strategic choices of an international
business? How can an international business limit these constraints?
Answer:

The organized labor can significantly restrict the strategic choices that the international
business makes with respect to location. International business often chooses to locate
new facilities in places where there is relation in labor which balanced working relations.
The labor can also have problems and having inappropriate behavior if a business
decides to move some activities to other location, which it happens in various situations
only in strengthening the need in moving the activities. Organized labor has also met to
set-up international organizations, to regulate multinationals and achieve regulation of
multinationals through international organization. International businesses have the
advantage of being able to provide or take away jobs, and in today's labor market that
gives them significant power. As a condition of opening or expanding a facility,
businesses can cooperate with national unions to compete against each other to attract
investment from international business and jobs.

2. What are the main advantages and disadvantages of the ethnocentric, polycentric, and
geocentric approaches to staffing policy? When is each approach appropriate?
Answer:

An ethnocentric staffing policy is one in which key management positions are fill all key
management positions. The advantages of the ethnocentric approach are, first is
overcomes lack of qualified individuals to fill senior management positions in host
country, and second is an ethnocentric staffing policy as the best way to maintain a
unified corporate culture, and last it helps to create value by transfer core competencies
to a foreign operation. While the disadvantages of the ethnocentric approach are, first
the produces resentment in host country, and second it can lead to cultural myopia. An
ethnocentric approach is typically appropriate for firms utilizing an international strategy.
A polycentric staffing policy requires host country nationals to be recruited to manage
subsidiaries, while parent country nations occupy key positions at corporate
headquarters. The advantages of the polycentric approach are, the firm is less to suffer
from cultural myopia, and It is less expensive to implement, reduce the costs of value
creation while the disadvantages of the polycentric approach are, it limits opportunities to
gain experience outside their own country, and isolates headquarters from foreign
subsidiaries. A polycentric approach is typically appropriate for firms utilizing a
localization strategy. A geocentric staffing policy seeks the best people for key jobs
throughout the organization, regardless of nationality. The advantages of a geocentric
approach are, it uses human resources, and it helps build a cadre of international
executives who feel at home working in many cultures and strong culture and informal
management network. The disadvantages of the geocentric staffing policy are, National
immigration policies may limit implementation, and It is expensive to implement. A
geocentric approach is typically appropriate for firms unitizing a global or transnational
strategy.