Robinson (1978: 297) states that, ‘The firm will opt for an approach of using parent-country nationals in foreign management positions by default, i.e., simply as an automatic extension of domestic policy, rather than deliberately seeking optimum utilisation of management skills’. Do you agree with this, if so what are its implications for MNEs?

What will be an ideal response?


? It could be argued that for better control and coordination of activities MNEs do
use parent-country nationals (PCNs), as expatriates, to fill foreign management
positions
? However, MNEs use of expatriates or PCNs could also be due to lack of relevant
expertise/skills available in the host country market
? Hence the MNEs might not opt by default for PCNs, though in such
circumstances they might have no other option other than filling senior
management positions by sending PCNs

Business

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