A Geocentric Staffing Policy

question 96

Multiple Choice

A geocentric staffing policy

• A) requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters.
• B) leads to ineffective use of human resources.
• C) requires extensive documentation.
• D) is compatible with both international and localization strategy.

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Definitions:

Price Competition

A market situation where businesses attempt to outdo competitors by offering goods or services at lower prices.

Product Differentiation

The method of differentiating a product or service from competitors, aiming to make it more appealing to a specific target audience.

Low Entry Barriers

Conditions that make it easy for new competitors to enter an industry, typically leading to increased competition.

Collusion

A non-competitive, secret agreement between rivals to limit competition, set prices, or control market shares.