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•Two disadvantages of the ethnocentric approach are (1) lack of opportunities or development for local managers, thereby decreasing their morale and their loyalty to the subsidiary, and (2) the poor adaptation and lack of effectiveness of expatriates in foreign countries. Japanese expatriates experience significantly fewer incidences of failure than their U.S. counterparts. Japanese multinationals typically have recall rates of below 5 percent, signifying that they send abroad managers who are far better prepared and more adept at working and flourishing in a foreign environment. 

While this success is largely attributable to training programs, it is also a result of intelligent planning by the human resource management staff in most Japanese organizations, as reported by Tung. This planning begins with a careful selection process for overseas assignments, based on the long-term knowledge of executives and their families. An effective selection process, of course, will eliminate many potential "failures" from the start. Another factor is the longer duration of overseas assignments, averaging almost five years, which allows the Japanese expatriate more time to adjust initially and then to function at full capacity. In addition, Japanese expatriates receive considerable support from headquarters and sometimes even from local divisions set up for that purpose.