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Expatriates: The pros and cons

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research
Level
Advanced
Study
accounting
School/University
westminster

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documents in English
Format
Word
Type
term papers
Pages
13 pages
Level
Advanced
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  1. Abstract
  2. Introduction
  3. Background
  4. Expatriates from the human resources viewpoint
  5. Expatriate economic and cultural considerations
  6. Advantages and disadvantages: Local host country manager
  7. Advantages and disadvantages: Expatriate manager
  8. Expatriate decisions based on costs
  9. Familiarization expenses
  10. Know-how transference expenses
  11. Organization expansion expenses
  12. Business strategies and staffing decisions
  13. Conclusion
  14. References

Research concerning human resource staffing issues as regards international business personnel needs has emphasized the importance of the selection decision. Little has been done concerning the integration of this decision in the context of foreign business strategies. One analytical methodology for determining the attractiveness of using expatriate versus a host country national concerning staffing requirements is done purely on a cost basis based upon three principal types. The first type of expenses concern those needed for the parent organization to be able to familiarize itself with the foreign marketing culture. The next types of expenses are those associated with the transference of internal know-how to the foreign market under consideration.

[...] For the four basic types of foreign operations the parent company can utilize, communication flows will be highest for integrated constituent operations, somewhat less for worldwide innovators and implementer enterprises, and the lowest for subsidiaries that are local innovators. For the analysis contained herein, managers sourced on the host country level would be viewed as more cost-effective concerning the familiarization of the parent company with the local culture and market in the new foreign operation. If one was to assume that any company considering expansion into a foreign market would wish to minimize the costs of such an operation, all other things being equal, a host country manager would have to be viewed as less expensive concerning familiarization expenses. [...]


[...] This paper has attempted to examine the advantages and disadvantages as to how the expenses associated with an expatriate manager as compared to a host country source manager should be viewed by a company in order to optimize performance of the foreign operation in the organization as a whole. Conclusion Research concerning human resource staffing issues as regards international business personnel needs has emphasized the importance of the selection decision. Little has been done concerning the integration of this decision in the context of foreign business strategies. [...]


[...] The human cultural environment is diverse and in some cultures individual public recognition is coveted while in others it is considered an embarrassment that may actually draw ridicule. As a result, due to their expertise concerning the local culture, managers sourced from the foreign market under consideration, should be viewed as superior to an expatriate manager as concerns labor relations and communication within the local operation and market. Therefore, the expenses associated in this area for the host country manager are less than those for an expatriate. [...]

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