An ethnocentric approach is typically appropriate for firms utilizing an international strategy. A polycentric staffing policy requires host country nationals to be recruited to manage subsidiaries, while parent country nations occupy key positions at corporate headquarters. The advantages of the polycentric approach are: Alleviates cultural myopia, and it is inexpensive to implement. The disadvantages of the polycentric approach are: Limits career mobility, and isolates headquarters from foreign subsidiaries. A polycentric approach is typically appropriate for firms utilizing a multidomestic strategy. A geocentric staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality. The advantages of a geocentric approach are: Uses human resources efficiently, helps build strong culture and informal management network. The disadvantages of the geocentric staffing policy are: National immigration policies may limit implementation, and it is expensive to implement.
A geocentric approach is typically appropriate for firms unitizing a global or transnational strategy” (Hill, p. 534).
b. Research suggests that many expatriate employees encounter problems that limit both their effectiveness in a foreign posting and their contribution to the company when they return home. What are the main causes and consequences of these problems, and how might a firm reduce the occurrence of such problems? “The number one reason for expatriate failure is the spouses’ inability to adjust. Some other reasons include manager’s inability to adjust, other amily problems, managers’ personal or emotional maturity, and inability to cope with larger overseas responsibilities”(Hill, p. 536).
The Essay on PROBLEM SET Monetary policy
1. What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain. The money supply in an economy is the benchmark by which interest rates are determined. The supply of money is directly tied into the amount of money that can be loaned ...
The main cause is the spouse is like a “fish out of water” so to speak. Meaning they are an unfamiliar setting. They don’t know anyone and more than likely don’t speak the language. This makes it impossible to adjust with people you can’t even communicate with. I can relate to this because I moved to Arizona to be with my fiance and even though it’s not as far as overseas I understand the frustration. They often feel alienated.
The spouse who is feeling trapped at home is probably not the easiest person to get along with either causing the expatriate to be miserable as well. Immigration regulations often prohibit the spouse from having employment so that intensifies the issues. The consequences could be the expatriate resigns from the overseas position, divorces the spouse, or the spouse divorces and leaves. Either outcome is horrible. c. What is the link between an international business’s strategy and its human resource management policies, particularly with regard to the use of expatriate employees and their pay scale? The most common approach to expatriate pay is the balance sheet approach. This approach aims to equalize purchasing power so employees can enjoy the same living standard in their foreign posting that they had at home”(Hill,p. 551).
d. In what ways can organized labor constrain the strategic choices of an international business? How can an international business limit these constraints? Organized labor can significantly constrain the choices firms make with respect to location.
International firms often choose to locate new facilities in places where there is relative labor peace and harmonious working relations. Labor can also raise objections and threaten disruptive behavior if a firm decides to move some activities to other locations, which in some cases only reinforces the need for relocating the activities. “Organized labor has tried to counter the bargaining power of multinationals by forming international labor organizations. In, general these efforts have not been effective” (Hill, p. 551).
The Term Paper on International Market Marketing Standardization Firms
Managing Marketing Standardization in a Global Context Boris Sustar, Roxana Sustar. Journal of American Academy of Business, Cambridge. Hollywood: Sep 2005. Vol. 7, Iss. 1; pg.302, 8 pgs INTRODUCTION The evolving world of international business is witnessing the emergence of additional players, including firms from the former Eastern block. These firms are playing a game of catch-up as they ...
