Question

A multinational company expands its operation to Brazil and hires Brazilians to manage the operation of the new branch. The company is using which type of approach to expand its operations?

a. Ethnocentric
b. Polycentric
c. Monocentric
d. Geocentric
e. Egocentric

Answer 1

The multinational company is using a Polycentric option (b) approach to expand its operations in Brazil.

Step-by-step explanation:

The multinational company that is expanding its operation to Brazil and hiring Brazilians to manage the new branch is using a Polycentric option (b) approach to expand its operations.

A polycentric approach involves hiring local employees to manage the operations of the new branch, considering the cultural and market differences in the host country. This approach allows the company to adapt to the local environment and benefit from the knowledge and expertise of local employees.

In contrast, an ethnocentric approach would involve hiring employees from the home country to manage the operations, without much consideration for the local culture or market.