What is the primary advantage of an MNE using an ethnocentric framework?
A)minimizing relocation costs
B)developing community support
C)transferring core competencies abroad
D)encouraging innovative business practices

Question

Quizplus · Accepted Answer

The primary advantage of an ethnocentric framework is that it allows for the transfer of core competencies from the parent company to subsidiary companies abroad. This approach assumes that the parent company has superior knowledge and expertise, and therefore, it is best to transfer these competencies to subsidiaries. This can lead to greater efficiency and competitive advantage for the MNE. Additionally, the use of an ethnocentric framework may also help maintain control over operations and ensure consistency in business practices across global divisions.

What Is the Primary Advantage of an MNE Using an Ethnocentric