Companies Using a Polycentric Staffing Approach, Avoid Using Parent-Country Nationals

question 78

True/False

Companies using a polycentric staffing approach, avoid using parent-country nationals to fill in key managerial positions.

---

Definitions:

Natural Monopoly

is a situation where a single firm can supply a product or service to an entire market more efficiently than could multiple competing firms, often due to high fixed costs.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, leading to a reduction in per-unit cost.

Capital Facilities

Physical assets such as buildings, machinery, and equipment used in the production of goods and services.

Principal-Agent Problems

Conflicts of interests that arise when one party (the agent) is expected to act in the best interest of another (the principal) but has an incentive to act in their own interest.