Intl Mgmt Final Study Guide - Selection Options US company...

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Selection Options- US company wants to do business in Brazil -Parent Country National (Expatriates) -Traditional Option -Positive -Overcome lack of expertise available locally -Monitor or control local operations -Negative -Expensive -High Failure Rates -Limits opportunities for local managers -Third-Country Nationals -Nationals from other than home or local country, usually from a neighboring country or a country with a similar language/ culture -Positive -May have necessary skill set -often less expensive than expatriates -Negative -Hard to assess work experience -Varying legal systems and inadequate criminal records -Language barriers -Need to consider conflict or rivalries between countries -Host-Country Nationals Nationals from local country -Positive -Better grasp of local business practices, and language -Prior interaction with local customers, suppliers, employees, or officials -Bridges cultural gaps -Often less expensive than expatriates -Good public relations -Negative -Less control or unified corporate culture -Difficulty of coordination between parent and subsidiary -Conflicting loyalties Appropriateness of Options Parent Country National (Expatriates) -Top Management (CEO/CFO) -Substance vs. Symbolism -Early internationalization stage -Centralized structures -Corporate strategy is focused on global integration -Confidentiality in the staff position is an issue -Company-specific technology or knowledge
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-Need for speed (faster to profitability) -work rules regarding local workers are restrictive -Less familiar cultures and less-developed economies Host-Country and Third-Country Nationals -The need to interact with local customers, suppliers, employees, or officials is paramount. -The corporate strategy is focused on multidomestic or market-oriented operations. -Cost is an issue (High relocation/ travel costs) -Immigration rules regarding foreign workers are restrictive. -There are large cultural distances between the host country and candidate expatriates. Host-County Nationals Consider: Pay Scale Cost of Living Roles of Unions Gov’t Involvement in benefits Effects on Compensation: -East European Managers= 65-80% cash -US Managers= 40% cash International Employee Unions - International Labor Organization (ILO) ~Guidelines and standards for labor conditions and treatments ~Ratification and compliance -International Confederation of Free Trade Unions (ICFTU) ~ Assist national unions in dealings with MNCs -International Trade Secretariats (ITSs)
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  • Summer '17
  • Ginger Dennis
  • Financial Accounting, Expatriate, foreign assignment, local business practices, -Parent Country National, foreign business trips, Make foreign assignment

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