For a Multinational Organization, Which of the Following Is a Disadvantage

question 222

Multiple Choice

For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy? 1. It significantly raises compensation and staffing costs. 2. It produces resentment among the organization's employees in host countries. 3. It limits career mobility for parent-country nationals. 4. It can lead to cultural myopia.

• A) 1 and 4 only
• B) 2 and 3 only
• C) 1, 2, and 3 only
• D) 1, 2, and 4 only

---

Definitions:

Early-stage Financing

Capital provided to startups and young companies to fund initial operations, product development, and market research, often in exchange for equity.

Entrepreneurs

Individuals who take the risk of starting and managing a business venture to capitalize on innovative ideas or products.

Business Concept

An idea for a business that includes basic information on the product, service, target market, and competition.

Startups

Newly established businesses, typically in the early stages of operation, often aimed at addressing a novel or untapped market need.