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MNE Staffing Policies: The Ethnocentric Approach

Ethnocentric staffing policy:  fills all key management positions with home-country nationals

Core competency:  the special outlook, skill, capability, and/or technology that creates unique value for a firm and is hard for rivals to imitate

People transferred from headquarters to pursue an international strategy are more likely to best under-stand and protect the firm’s core competencies.

An ethnocentric policy can result in a narrow perspective of foreign operations.

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