Geocentric Policy

A geocentric policy is a staffing framework adopted by MNEs that fill management positions with the best people regardless of their nationality. This policy has advantages and disadvantages

1. Advantages: MNEs use the geocentric policy when:

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– The MNE has adopted the global strategy or the transnational strategy

– The MNE needs to generate new ideas through worldwide learning opportunities

2. Disadvantages: Drawbacks of the geocentric policy include:

– High costs of identifying, developing and keeping world-class talents

– Having to deal with legal contingencies such as immigration and workplace regulations

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