However, by ownership test, very few multinationals can be called multinational. The ownership of the overwhelming majority of MNCs are uninational. Usually, managers of the headquarters are nationals of the home country. This may be a transitional phenomenon. However, very few companies pass this test currently.
Ethnocentric companies follow policies that are home country-oriented.
Polycentric companies follow policies that are host country-oriented. Geocentric companies follow policies that are world-oriented. MNCs exhibit no loyalty to the country in which they are incorporated. Once the firm chooses foreign production as a method of delivering goods to foreign markets, it must decide whether to establish a foreign production subsidiary or license the technology to a foreign firm. It requires the decision of top management because it is a critical step.