Which approach uses natives of the parent country to fill key positions?

The ethnocentric approach is characterized by its practice of utilizing nationals from the parent country to occupy key positions within the organization. This approach assumes that individuals from the home country have the necessary skills, values, and corporate culture that align well with the company's goals and operations in foreign markets.

The ethnocentric strategy is often employed in situations where there is a high level of integration and control desired from the headquarters, as it facilitates consistent corporate practices and ensures that the company's core values and philosophies are maintained across subsidiaries. Companies may prefer this approach when expanding into foreign markets, especially when they seek to ensure that their operations are closely aligned with the corporate headquarters' strategic objectives.

In contrast, the other approaches focus on different hiring practices that either favor local nationals, emphasize a regional perspective, or adopt a more global philosophy in staffing. This distinction has significant implications for international business practices, as each approach can influence company culture, employee relations, and overall effectiveness in diverse market environments.