Douglas Wind and Pelmutter advocated four approaches to international business: the ethnocentric approach, polycentric approach, regiocentric approach, and geocentric approach. The ethnocentric approach involves exporting the same products designed for the domestic market to foreign countries. The polycentric approach decentralizes decision-making to foreign executives. The regiocentric approach markets similar products designed for a region to neighboring countries. The geocentric approach operates subsidiaries globally as independent companies coordinated by the headquarters.

1. EPRG
International
Business
Approaches

2. Douglas Wind and Pelmutter
advocated four approaches of
international business.
They are:
 E th n o c e n tric A p p ro a c h
 P o ly c e n tric A p p ro a c h
 R e g io c e n tric A p p ro a c h
 G e o c e n tric A p p ro a c h
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3. ETHNOCENTRIC APPROACH
The domestic companies normally formulate their strategies,
their product design and their operations towards the national
markets, customers and competitors
Export the excessive production to foreign countries
Views the foreign markets as an extension to the domestic
markets
Exports the same product designed for domestic markets to
foreign countries
Domestic Personnel take care of foreign business
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4. ETHNOCENTRIC APPROACH
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5. POLYCENTRIC APPROACH
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The company establishes a foreign subsidiary company and
decentralizes all the operations and decision making to their foreign
executives.
Company appoints the key personnel from the home country and all
other vacancies are filled by the people of the host country
The executives of the subsidiary formulate the policies and strategies,
design the product based on the host country's environment (culture,
customs, laws, government policies etc.) and the preferences of the local
customers.

6. POLYCENTRIC APPROACH
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7. REGIOCENTRIC APPROACH
 The company after operating successfully in a foreign country,
thinks of exporting to the neighbouring countries of the host
country.
 The foreign subsidiary considers the regional environment (for
example, Asian environment like laws, culture, policies etc.) for
formulating policies and strategies.
 Markets more or less the same product designed under
polycentric approach in other countries of the region, but with
different market strategies
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8. REGIOCENTRIC APPROACH
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9. GEOCENTRIC APPROACH
 The entire world is just like a single country for the company.
They select the employees from the entire globe and operate
with a number of subsidiaries.
The headquarters coordinate the activities of the subsidiaries.
Each subsidiary functions like an independent and
autonomous company in formulating policies, strategies, product
design, human resource policies, operations
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10. GEOCENTRIC APPROACH
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