Geodyne Follows a Polycentric Staffing Approach in That Key Positions

question 58

Multiple Choice

Geodyne follows a polycentric staffing approach in that key positions at the company's U.S.headquarters are staffed by U.S.nationals while foreign subsidiaries are managed by locals.In recent years,Geodyne's international business has grown substantially while its U.S.business has dwindled due to competition.Which of the following is a drawback of Geodyne adopting a polycentric staffing approach?

• A)It is expensive to implement.
• B)It leads host-country managers to make mistakes due to cultural misunderstandings.
• C)It limits advancement opportunities for host-country nationals.
• D)It invariably makes a firm suffer from cultural myopia.
• E)It bridges the gap between the headquarters of a firm and its foreign subsidiaries.

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Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Shortage

A situation in which demand for a good or service exceeds its supply in a market.

Demand And Supply

Economic model describing the interaction between the desire of consumers to buy goods at certain prices and the quantity of goods that producers are willing to sell at those prices.

Factors Of Production

Four basic inputs for effective operation: land, labor, capital, and entrepreneurship.