Chapter 4, Problem 1RDQ

Summary Introduction

To determine:

The difference between the Ethnocentric, Polycentric, and Geocentric attitudes regarding the global business.

Introduction:

Ethnocentric Attitude: Ethnocentric attitude refers to the belief that the best approach of work and practices are the ones that are followed in an individual’s or an organization’s home country.

Polycentric Attitude: Polycentric attitude refers to the belief that the best approach of work and practices of business are known by the employees of the host country.

Geocentric Attitude: Geocentric attitude refers to a global view that emphasizes the usage of the best approach and people from around the world.

Explanation of Solution

The difference between these 3 terms is given as follows:

S.No .	Basis	Ethnocentric Attitude	Polycentric Attitude	Geocentric Attitude
1.	Attitude of the managers	The managers who have this type of attitude are of the opinion that other countries do not possess the required skills, expertise or experience needed for decision making for the betterment of the organizations.	The managers with this type of attitude find all the foreign operations different and tough to understand.	Managers with this type of attitude consider and appreciate the differences of customs and practices between various countries of the world and to find the best approach and practice of work to prevent costly blunders.
2.	Belief	This attitude operates on the belief that the working culture and style of functioning that works in the home country will work everywhere.	This attitude is based on the belief that every country is very different from each other, and the managers of the respective countries have the best understanding about theirworking culture and style of functioning.	This attitude is based on the belief of integrating the good things from all around the globe and find the best working culture and style of functioning.
3.	Staffing of Management	Companies operating with this attitude have their managers mostly from their home country.	Companies operating with this attitude appoint local employees as their managers.	Companies operating with this attitude appoint the best candidates available as managers internationally.