International businesses generally follow one of three policies on staffing: ethnocentric, polycentric, or geocentric. Corporate culture and the firm's strategy shape and are shaped by the policy. No one correct staffing policy exists for all multinational enterprises. Each Of the three major approaches has advantages and disadvantages for a firm. Selecting the best approach depends. On the values and norms of the firm, on the way the firm sees opportunities in the host country, and how the firm plans its future.

Identify whether each item is an advantage or disadvantage of a specific staffing policy.

a. Builds strong
b. Expensive
c. Cultural myopia
d. Inexpensive
e. Competency transfer
f. HQ Isolated

A Ethnocentric Staff policy attempts to mirror the staffing practices of the parent company. They usually hire senior management from the home of the parent company.

Polycentric Staff policy believes every country has it's own uniqueness and so companies following this will attempt to tap into that uniqueness by hiring more locals.

Geocentric Staff policy believes that the best of talents around the world should be integrated to find the best way and so hire from across the globe.

Ethnocentric

Advantage - Competency transfer

Disadvantage - Cultural Myopia

When bringing in the senior management from the home country where the company is successful, it will pass on the skills that the company used to gain success there to the new country. However, because there is no focus on the local population, the company will not be as knowledgeable in respect to their way of life leading to Cultural Myopia.

Polycentric

Advantage -  Inexpensive

Disadvantage - HQ Isolated

As they are hiring from the local population who are already in their home country and do not need to be transported from other countries, this policy is cheaper than the rest. However, because mostly locals were hired, there is a chance of disconnect from the HQ in the home country because both sets of people might not be very familiar with one another.

Geocentric

Advantage - Builds strong Networks

Disadvantage - Expensive

As a result of globe trotting to find the best talent, an expansive and strong network will be built across nations. However, this type of recruitment is very expensive as it involves both sourcing across nations and transporting staff as well.

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