One major problem facing MNCs is that they sometimes attempt to manage across cultures in ways similar to those of their home country. MNC dispositions toward managing across cultures can be characterized as $(1)$ ethnocentric, $(2)$ polycentric, $(3)$ regiocentric, and $(4)$ geocentric. These different approaches shape how companies adapt and adjust to cultural pressures around the world.

$2.$ One major challenge when dealing with cross$-$cultural problems is that of overcoming parochialism and simplification. Parochialism is the tendency to view the world through one's own eyes and perspectives. Simplification is the process of exhibiting the same orientation toward different cultural groups. Another problem is that of doing things the same way in foreign markets as they are done in domestic markets. Research shows that in some cases this approach can be effective: however, effective cross$-$cultural management more commonly requires approaches different from those used at home. One area where this is particularly evident is human resource management. Recruitment, selection, training, and compensation often are carried out in different ways in different countries, and what works in the United States may have limited value in other countries and geographic regions.

$3.$ Doing business in various parts of the world requires the recognition and understanding of cultural differences. Some of these differences revolve around the importance the society assigns to time, status, control of decision making, personal accomplishment, and work itself. These types of cultural differences help explain why effective managers in China or Russia often are quite different from those in France, and why a successful style in the United States will not be ideal in Arab countries.