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. For each of these operations, the firm must find the best location.