Question

How do you think different ethnocentric approaches to doing business might damage international business relationships?

Answer 1

ethnocentric approaches mean that the business's ultimate important decision is made by the parent country and the employee-manager working there standardize the business process all over the global locations in which they are working. The organization tends to follow all the practices which are there in the parent country. so following this approach they made assumptions that they are superior in decision making and strategy and the host country cannot level the expertise that the parent country executives have this form of approach and bias thinking may not be good in the international business environment as the business is done in the host country and all the important decision which are made has to be followed according to the executives of the parent country. There may be good executives in the host country also and they are good at important decision making for the company but due to the ethnocentric approach company is not taking their help so it creates a cultural bias being isolated from the decision-making also it is like colonizing the host country which can deteriorate the relation in the international business market. This type of approach does not lead to healthy decision making as it creates a sense of cultural biases towards the host country.