Which policy allows a company to adapt its practices to local markets while maintaining overall corporate identity?

The correct choice is the polycentric policy, which enables a company to tailor its business practices and strategies to fit the unique cultural, economic, and regulatory contexts of the local markets in which it operates. This approach recognizes the importance of local preferences and values, allowing the company to develop products and marketing strategies that resonate with each specific market, thereby enhancing its relevance and effectiveness.

In a polycentric approach, local managers often have significant autonomy and decision-making power to adapt practices as necessary, fostering a sense of ownership and improving the company's ability to respond effectively to local consumer needs. At the same time, while the company allows for local adaptation, it can still maintain its overall corporate identity by ensuring that the central brand values and mission are consistent across different markets.

In contrast, a global policy tends to standardize practices across all markets, which may overlook local nuances. A geocentric policy would promote a balance of global and local practices but does not emphasize local adaptation as much as polycentric policy. An ethnocentric policy typically applies home-country practices to foreign markets without modification, which can lead to a disconnect with local consumers.