Chapter 18 - Global Human Resource Management

Global Human Resource Management

Learning objectives
Articulate the strategic role of
human resource management
in the international business.
Discuss the pros and cons of
different approaches to
staffing policy in the
international business.
!plain "hy managers may
fail to thri#e in foreign
postings.
Articulate ho" management
de#elopment and training
programs can increase the
#alue of human capital in the
international business firm.
!plain ho" and "hy
performance appraisal
systems might #ary across
nations.
!plain ho" and "hy
compensation systems might
#ary across nations.
Human resource management is $ey to the
competiti#eness of international firms.
HRM refers to those acti#ities underta$en by an
organi%ation to effecti#ely apply its human resources.
&hese acti#ities include human resource strategy' staffing'
performance e#aluation' management de#elopment'
compensation' and labor relations.
(irm success re)uires that HRM policies are congruent
"ith the firm*s strategy and "ith the firm*s formal and
informal structure and controls.
+trategies li$e ,thin$ globally and act locally- sound
good' but to be successfully implemented' effecti#e HRM
policies are necessary.
&he opening case on .eno#o and the closing case on /C0
China both illustrate practices of firms to increase the
international orientation of management.
18-1
18
01&.23 0( CHA4&R 185 G.06A. H1MA3 R+01RC MA3AGM3&
0pening Case5 .eno#o
2ntroduction
&he +trategic Role of 2nternational HRM
+taffing 4olicy
&ypes of +taffing 4olicy
!patriate Managers
&he Global Mindset
Management (ocus5 Managing !patriates at Royal Dutch7+hell
&raining and Management De#elopment
&raining for !patriate Managers
Repatriation of !patriates
Management De#elopment and +trategy
Management (ocus5 Monsanto8s Repatriation 4rogram
4erformance Appraisal
4erformance Appraisal 4roblems
Guidelines for 4erformance Appraisal
Compensation
3ational Differences in Compensation
!patriate 4ay
Management (ocus5 Global Compensation 4ractices at McDonald8s
2nternational .abor Relations
&he Concerns of 0rgani%ed .abor
&he +trategy of 0rgani%ed .abor
Approaches to .abor Relations
Chapter +ummary
Critical Discussion 9uestions
Closing Case5 /C0 China
C.A++R00M D2+C1++203 4023&
&ry to in#ite a couple of managers "ho ha#e had e!perience "or$ing on foreign mar$ets
to be guest spea$ers. As$ them to discuss "hy they "ere selected for the assignment and
about the training they may ha#e recei#ed prior to their foreign assignments. &hen' as$
them about their e!periences in the foreign country:"hat they found especially
challenging' "hat surprised them most' "hat differences they encountered bet"een their
domestic "ay of doing business and the "ay of business in the foreign mar$et' and so on.
&hen' as$ them "hat else their companies could ha#e done' if anything' to ma$e their
transition to the foreign mar$et easier.
04323G CA+5 .eno#o
&he opening case e!plores .eno#o8s mission to become a ma;or player in the global
personal computer industry. .eno#o ac)uired 26M8s personal computer di#ision in <==>
to become the third largest personal computer firm in the "orld. After the ac)uisition'
.eno#o immediately put a ne" management team in place led by an American' and
mo#ed the company8s head)uarters from China to the 1nited +tates. Discussion of the
case can re#ol#e around the follo"ing )uestions5
1. 2mmediately after it ac)uired 26M8s personal computer di#ision' .eno#o shifted its
head)uarters to the 1nited +tates' and named an American to head the company.
.eno#o has also stated that nglish "ill be the company8s business language. ?hy is
.eno#o trying to distance itself from its Chinese origins@
<. Ho" has .eno#o human resource function supported the company8s intention to be a
truly global company@ ?hat type of human resource strategy does .eno#o follo"@
Another 4erspecti#e5 &o learn more about .eno#o8s strategy' go to the company8s "eb
site at Ahttp577""".leno#o.comB.
.C&1R 01&.23 (0R CHA4&R
&his lecture outline follo"s the 4o"er 4oint 4resentation C44&D pro#ided along "ith this
instructor8s manual. &he 44& slides include additional notes that can be #ie"ed by
clic$ing on ,#ie"-' then on ,notes-. &he follo"ing pro#ides a brief o#er#ie" of each
4o"er 4oint slide along "ith teaching tips' and additional perspecti#es.
Slides 18-3-18-4 2ntroduction
Human resource management CHRMD refers to the acti#ities an organi%ation carries out
to utili%e its human resources effecti#ely. &he four ma;or tas$s of HRM are staffing'
management training and de#elopment' performance e#aluation' and compensation.
Slides 18-5-18-6 &he +trategic Role of 2nternational HRM
(irms need to ensure there is a fit bet"een their human resources practices and strategy.
Slide 18- +taffing 4olicy
A firm8s sta!!ing "olic# is concerned "ith the selection of employees "ho ha#e the s$ills
re)uired to perform a particular ;ob.
Slides 18-8-18-16 &ypes of +taffing 4olicy
&hree staffing policy choices at the international le#el are5 ethnocentric' polycentric' and
geocentric.
1. &he et$nocentric approach to staffing policy fills $ey management positions "ith
parent-country nationals
<. &he "ol#centric staffing policy recruits host country nationals to manage subsidiaries
in their o"n country' and parent country nationals for positions at head)uarters
E. &he geocentric staffing policy see$s the best people' regardless of nationality for $ey
;obs
Slides 18-1%-18-&4 !patriate Managers
'("atriate !ailure is the premature return of an e!patriate manager to his or her home
country. !patriate failures impact the company' as do near-failures.
Another 4erspecti#e5 1ntil the ad#ent of the 2nternet' e!patriates often felt isolated.
&oday numerous sites e!ist "here e!patriates can communicate "ith each other and share
their e!periences. 0ne e!ample of this type of site is Ahttp577""".e!pat-online.com7B.
+tudents can e!plore the site' or it can be an in-class acti#ity to see some of the issues
facing e!patriates.
Slide 18-&6 &he Global Mindset
A global mindset may be the fundamental attribute of a global manager.
Slide 18-& &raining and Management De#elopment
)raining focuses upon preparing the manager for a specific ;ob. Management
develo"ment is concerned "ith de#eloping the s$ills of the manager o#er his or her
career "ith the firm.
Slide 18-&8 &raining for !patriate Managers
*ultural training Csee$s to foster an appreciation for the host country*s cultureD'
language training Can e!clusi#e reliance on nglish diminishes an e!patriate manager*s
ability to interact "ith host country nationalsD' and "ractical training Chelps the
e!patriate manager and her family ease themsel#es into day-to-day life in the host
countryD ha#e all help reduce e!patriate failure.
Another 4erspecti#e5 3umerous companies offer e!patriate training ser#ices. 0ne great
e!ample is F"intessential Ahttp577""".$"intessential.co.u$7cultural-
ser#ices7articles7e!pat-cultural-training.htmlB. &he company8s "eb site includes a "ealth
of information on the e!patriate process' country profiles' and e#en an online )ui% on
cultural a"areness. Consider using the site in-class' or as$ing students to e!plore it on
their o"n.

Slide 18-&% Repatriation of !patriates
HRM needs to de#elop good programs for re-integrating e!patriates bac$ into "or$ life
"ithin their home country organi%ation once their foreign assignment is o#er' and for
utili%ing the $no"ledge they ac)uired "hile abroad. &he benefits from foreign
assignments can be lost by firms if they are not careful in the repatriation of the
e!patriates.
Slide 18-3+ Management De#elopment and +trategy
Management de#elopment is often used as a strategic tool to build a strong unifying
culture and informal management net"or$' both of "hich are supporti#e of a
transnational and global strategy.
Slide 18-31 4erformance Appraisal
#aluating e!patriates can be especially comple!.
Slide 18-3& 4erformance Appraisal 4roblems
&ypically' both host nation managers and home office managers e#aluate the
performance of e!patriate managers. 6oth types of managers are sub;ect to unintentional
bias.
Slide 18-33 Guidelines for 4erformance Appraisal
(irms need to see$ "ays to reduce bias in performance appraisals.

Slide 18-34 Compensation
+hould e!ecuti#e pay in different countries reflect the standards in each country or be
e)uali%ed on a global basis@ Ho" should e!patriates be paid@
Slide 18-35 3ational Differences in Compensation
Slides 18-36-18-3% !patriate 4ay
An e!patriate8s compensation pac$age is made up of5
1. base salary
<. a foreign ser#ice premium
E. #arious allo"ances
>. ta! differentials
G. benefits
Slide 18-4+ 2nternational .abor Relations
&he $ey issue in international labor relations is the degree to "hich organi%ed labor is
able to limit the choices a#ailable to an international business.
Another 4erspecti#e5 &he 2nternational .abor 0rgani%ation C2.0D supports "or$er issues
throughout the "orld. &o see some of the issues the 2.0 is currently in#ol#ed in' go to
Ahttp577""".ilo.org7B.
Slide 18-41 &he Concerns of 0rgani%ed .abor
&he bargaining po"er of unions comes from their ability to threaten to disrupt production
by stri$ing or protesting.
Slide 18-4& +trategy of 0rgani%ed .abor
0rgani%ed labor has responded to the increased bargaining po"er of multinational
corporations by5 setting-up their o"n international organi%ationsH lobbying for national
legislation to restrict multinationalsH and trying to achie#e regulations of multinationals
through international organi%ation such as the 1nited 3ations. Ho"e#er' none of those
efforts has been #ery successful.
Slide 18-43 Approaches to .abor Relations
Many firms are recogni%ing that the "ay in "hich "or$ is organi%ed "ithin a plant can be
a ma;or source of competiti#e ad#antage.
CR2&2CA. &H23F23G A3D D2+C1++203 91+&203+
91+&203 15 ?hat are the main ad#antages and disad#antages of the ethnocentric'
polycentric and geocentric approaches to staffing policy@ ?hen is each approach
appropriate@
A3+?R 15 An ethnocentric staffing policy is one in "hich $ey management positions
are filled by parent country nationals. &he ad#antages of the ethnocentric approach are5
C1D 0#ercomes lac$ of )ualified managers in host country' C<D 1nified culture' and CED
Helps transfer core competencies. &he disad#antages of the ethnocentric approach are5
C1D 4roduces resentment in host country' and C<D Can lead to cultural myopia. An
ethnocentric approach is typically appropriate for firms utili%ing an international strategy.
A polycentric staffing policy re)uires host country nationals to be recruited to manage
subsidiaries' "hile parent country nations occupy $ey positions at corporate head)uarters.
&he ad#antages of the polycentric approach are5 C1D Alle#iates cultural myopia' and C<D 2t
is ine!pensi#e to implement. &he disad#antages of the polycentric approach are5 C1D
.imits career mobility' and C<D 2solates head)uarters from foreign subsidiaries. A
polycentric approach is typically appropriate for firms utili%ing a multidomestic strategy.
A geocentric staffing policy see$s the best people for $ey ;obs throughout the
organi%ation' regardless of nationality. &he ad#antages of a geocentric approach are5 C1D
1ses human resources efficiently' C<D Helps build strong culture and informal
management net"or$. &he disad#antages of the geocentric staffing policy are5 C1D
3ational immigration policies may limit implementation' and CED 2t is e!pensi#e to
implement. A geocentric approach is typically appropriate for firms uniti%ing a global or
transnational strategy.
91+&203 <5 Research suggests that many e!patriate employees encounter many
problems that limit both their effecti#eness in a foreign posting and their contribution to
the company "hen they return home. ?hat are the main causes and conse)uences of
these problems' and ho" might a firm reduce the occurrence of such problems@
A3+?R <5 &he primary causes of e!patriate problems are the inability of the spouse to
ad;ust' inability of the employee to ad;ust' other family problems' personal7emotional
maturity' and an inability to cope "ith the larger o#erseas responsibilities. &he
conse)uences of such problems are that an employee can be ineffecti#e or detrimental
o#erseas' and7or may return prematurely before the assigned ;ob tas$s are completed. A
firm can reduce the occurrence of e!patiate problems by de#eloping an effecti#e selection
process' training' and repatriation program. &he most successful e!patriates seem to be
those "ho ha#e high self-esteem and self-confidence' get along "ell "ith others' are
"illing to attempt to communicate in a foreign language' and can empathi%e "ith people
of other cultures. An e!patriate training program should include cultural' language' and
practical training. Cultural training see$s to foster an appreciation of the host country*s
culture so that the e!patriate beha#es accordingly. .anguage training in#ol#es training in
local language both from a business and personal perspecti#e. 4ractical training is aimed
at assisting the e!patriate manager and her family to ease themsel#es into day-to-day life
in the host country. &he sooner a day-to-day routine is established' the better the
prospects are that the e!patriate and family "ill adapt successfully. 6efore lea#ing'
ho"e#er' specific plans and procedures should be in place for the repatriation of the
employee.
91+&203 E5 ?hat is the lin$ bet"een an international business8s strategy and its
human resource management policies' particularly "ith regard to the use of e!patriate
employees and their pay scale@
A3+?R E5 2n firms pursuing a locali%ation strategy' a polycentric staffing approach is
most common and there are relati#ely fe" e!patriates or the associated pay issues.
!patriates are more common in firms "ith international strategies' and "hen an
ethnocentric staffing approach is utili%ed. 2n this situation the pay is often based on home
country le#els' "ith ad;ustments as re)uired for differing li#ing costs and ta!es as
outlined by the balance sheet approach. (irms pursuing global or transnational strategies
most often use a geocentric approach to staffing' "here the best indi#iduals Cregardless of
nationalityD are chosen fill positions in any country. Here the pay issues for e!patiates
can become particularly comple!' as allo"ances must be made for home country norms'
host country costs and e!pectations' and global norms across the company.
91+&203 >5 2n "hat "ays can organi%ed labor constrain the strategic choices of an
international business@ Ho" can an international business limit these constraints@
A3+?R >5 0rgani%ed labor can significantly constrain the choices firms ma$e "ith
respect to location. 2nternational firms Cor domestic ones for that matterD often choose to
locate ne" facilities in places "here there is relati#e labor peace and harmonious "or$ing
relations. .abor can also raise ob;ections and threaten disrupti#e beha#ior if a firm
decides to mo#e some acti#ities to other locations - "hich in some cases only reinforces
the need for relocating the acti#ities. 0rgani%ed labor has also attempted to CiD set-up its
o"n international organi%ations' CiiD lobby for national legislation to restrict
multinationals' and CiiiD achie#e regulation of multinationals through international
organi%ation such as the 1nited 3ations. Ho"e#er' none of these broader efforts ha#e
been #ery successful. 2nternational businesses ha#e the ad#antage of being able to
pro#ide or ta$e a"ay ;obs' and in today*s labor mar$et that gi#es them considerable
po"er. As a condition of opening or e!panding a facility' firms can negotiate fa#orable
conditions "ith local unions and force unions to compete against each other for the gains
in membership.
91+&203 G5 Reread the Management (ocus on McDonald8s global compensation
practices. Ho" does McDonald8s approach help the company to ta$e local differences
into account "hen re#ie"ing the performance of different country managers and
a"arding bonus pay@
A3+?R G5 ?hen McDonald8s re#amped its global compensation practices it as$ed for
input from local managers on ho" the ne" system should "or$. 6y doing so'
McDonald8s not only identified the issues local managers felt "ere important' the
company also ga#e some o"nership of the ne" system to local managers:o"nership
that could facilitate the implementation of the ne" system. 1nder the ne" system'
head)uarters pro#ides local managers "ith a list of $ey areas on "hich to focus' and then
allo"s local managers to select se#eral areas to emphasi%e. &hen' country managers
"or$ together "ith head)uarters to set targets and goals. Compensation is then based on
ho" "ell goals are met. Again' the t"o-"ay interaction allo"s the company to
incorporate local differences "hen re#ie"ing performance and a"arding bonus pay.
C.0+23G CA+5 /C0 China
&he closing case e!plores the efforts of Iohn Ross' general manager of /C08s Chinese
;oint #enture' to impro#e producti#ity. Despite considerable impro#ement in the ;oint
#enture8s operations' Ross' "ho too$ o#er the #enture four years earlier' "as frustrated
both at his inability to further impro#e the situation' and at his head)uarters for not
understanding the Chinese mar$et and "ay of operating. Discussion of the case can
re#ol#e around the follo"ing )uestions5
91+&203 15 ?hy do you thin$ Iohn Ross8 prior e!perience failed to prepare him for
the tas$ of managing /C0 China@
A3+?R 15 ?hen Ross arri#ed at /C0 China' he "as totally unprepared for the chaotic
mess that confronted him. 0ne factor limiting his ability to impro#e producti#ity "as the
reluctance by the Chinese partner to reduce employment le#els. A second factor "as the
inefficient nature of the operation. ?ith poor product )uality and la! enforcement of
in#entory controls' the #enture "as doomed to failure despite the lo" "ages that
employees earned. Another $ey issue for Iohn Ross "as his boss8 lac$ of $no"ledge of
the Chinese "ay of business.
91+&203 <5 ?hat does the e!perience of /C0 "ith American e!patriates tell you
about the problems of "or$ing abroad' and the difficulties of using home country
employees to transfer #aluable $no"ledge "ithin a multinational firm@
A3+?R <5 +tudents "ill probably conclude that the human resources department
essentially failed Iohn Ross. He had re)uested t"o specialists to pro#ide assistance to the
Chinese. &he goal "as to impro#e producti#ity. ?hile head)uarters selected t"o highly
)ualified indi#iduals from a technical perspecti#e' it failed to consider the need to find
employees "ho could also fit in culturally. 0ne e!patriate left almost immediately' and
the other' "hile staying for year' could not interact "ith the Chinese employees' and had
to be repatriated. 2n retrospect' both indi#iduals might ha#e been more successful had
they been trained for the cultural differences they "ere to encounter.

91+&203 E5 2n order to transfer #aluable $no"ledge' "hy "as it apparently more
effecti#e to ta$e Chinese employees to the 1nited +tates' and then transfer them bac$
home' than it "as to use 1.+. e!patriates@
A3+?R E5 2nitially' Ross tried to bring Americans to China to help Chinese production
employees impro#e producti#ity le#els. Ho"e#er' the American e!patriates "ere
unprepared for the culture shoc$ they e!perienced "hen they arri#ed in China. &he
company had failed to pro#ide any cultural training' and both employees left "ithin a
year. Ross then sent four Chinese employees to the 1.+. to learn the latest production
techni)ues. &his approach pro#ed to be more successful. &he Chinese "or$ers "ere
e!cited to share their ne" $no"ledge "ith /C0 China' and of course' did not e!perience
culture shoc$.
91+&203 >5 Ho" might /C08s performance appraisal system be ad;usted so that Ross
gets credit' if it is deser#ed' for the difficult "or$ he is doing in China' "or$ that is not
reflected in a le#el of performance at /C0 China that matches /C08s operations
else"here@
A3+?R >5 Many students "ill sympathi%e "ith Ross. He is operating in a highly
competiti#e mar$et' and "hile he has managed to impro#e producti#ity le#els
considerably' his ;oint #enture partner has limited his ability to cut his "or$force.
According to Ross' corporate head)uarters is failing to ta$e these issues into account' and
instead is simply focusing on the numbers. Many students "ill probably argue that the
company needs to be more sub;ecti#e and less ob;ecti#e in its appraisal of Ross8 efforts.
23&GRA&23G iGL,-'S
&here are se#eral iGL,-' #ideo clips that can be integrated "ith the material presented
in this chapter. 2n particular' you might consider the follo"ing5
Title: High-tech Companies +ee$ to Hire More (oreign ?or$ers
Companies ?ant More (oreign Help
Run Time5 J5G<
Abstract: &his #ideo e!plores the effort by American companies to bring more foreign
"or$ers to the 1.+.
Key Concepts: globali%ation' economic differences' competiti#eness' human resources
Notes: 2n +ilicon Kalley these days there is a shortage of )ualified engineers and
scientists. 6usiness leaders li$e 6ill Gates argue that the shortage has reached a crisis
point' and that it is time to rethin$ 1.+. policy on "or$ permits for foreigners. According
to business leaders' there are plenty of )ualified "or$ers in countries li$e 2ndia' 4a$istan'
and Canada' but current 1.+. la" allo"s ;ust LG'=== speciali%ed "or$ers to enter the
country under H-16 #isas that allo"s holders to remain and "or$ in the 1.+. for up to si!
years. Companies li$e Microsoft and 0racle claim that "hile they "ould li$e to hire
American "or$ers to fill the hundreds of ;ob openings each company currently has' there
simply are not enough )ualified American "or$ers a#ailable. 0racle already employs
o#er 18== H-16 holders' but still has ;ob openings it cannot fill.
6usiness leaders ha#e ta$en their concerns to ?ashington "here' according to Robert
Hoffman of 0racle' the House and +enate ha#e made the issue a top priority. Hoffman
notes that if things remain in their current state' the company "ill ha#e no choice but to
mo#e ;obs offshore. Hoffman' li$e other business leaders' is pushing for a free flo" of
"or$ers across borders. He belie#es that maintaining such a policy "ould be beneficial
because it "ould encourage the best "or$ers to "or$ in the 1.+.' rather than their home
countries' or other countries "ith more liberal permit policies.
Ho"e#er' some American "or$ers claim that the lobby by companies li$e Microsoft to
allo" more foreign "or$ers into the 1.+. is simply another e!ample of ho" cut-throat
business has become. +ome' li$e 4ete 6ennett' an unemployed soft"are de#eloper' argue
that companies are ;ust trying to sa#e money. He belie#es that the real reason he cannot
find a ;ob is not because he lac$s )ualifications' but because he is too e!pensi#e. His
arguments may ha#e some #alidity. A recent study by the conomic 4olicy 2nstitute
found that o#er half of employees "ith H-16 #isas are paid belo" comparable American
colleagues. 4erhaps the bigger issue though' is the claim by +enator Dic$ Durbin that H-
16 "or$ers "ill return home "ith their ne" $no"ledge and create companies that "ill
ultimately compete "ith American companies.
Discussion Questions:
1. 1.+. business leaders are pushing for a change in the 1.+. la" "ith regard to the H-61
#isa. ?hat "ould a reform in the la" mean to American companies@ ?hat are the
implications for American companies if the la" is not changed@
<. Ho" "ould Adam +mith and Da#id Ricardo #ie" the re)uest by American business
leaders to reform the H-61 legislation@ ?hat "ould a free flo" of "or$ers mean to the
1.+. economy@
E. +ome American "or$ers claim that the efforts by companies li$e Microsoft and 0racle
to lobby for reform are ;ust a part of a bigger strategy to sa#e money. Do you agree@
>. Democratic +enator Dic$ Durbin has suggested that a $ey concern related to H-61
#isas is that #isa holders might e#entually return to their home countries "ith ne"
$no"ledge and establish firms that compete "ith 1.+. companies. Discuss Durbin8s
concerns. Do you agree "ith him@ ?hy or "hy not@
23&GRA&23G K2D0+
&here are also se#eral longer #ideo clips that can be integrated "ith the material
presented in this chapter. 2n particular' you might consider the follo"ing5
Title 11: GM8s Global Research 3et"or$
Notes: A ma;or change is under"ay at GM' the "orld8s largest automa$er. Despite
profitability issues' the company has increased its RMD budget demonstrating its
commitment to inno#ation. GM belie#es the "ay of the future re)uires the company to
le#erage its global engineering resources' relationships' s$ills' and $no"ledge. &he
company hopes that this global approach "ill e#entually pay off in the form of higher
profits. &o that end' GM has established the Global Research 3et"or$ designed to bring
together technical e!pertise from around the "orld' and in the process' eliminate the
traditional more isolated approach to inno#ation.
GM8s ne" business model has re)uired the company to ma$e some substantial changes
to the "ay its RMD di#ision operates. &he company is emphasi%ing collaboration
bet"een and among researchers' uni#ersities' national laboratories' suppliers' and e#en
other auto manufacturers. &o achie#e its goal' GM is promoting physical meetings
bet"een researchers' e-mailing' net meeting' and so on. GM has also established a
science center in +"eden that is situated such that not only are the technical people and
manufacturing people physically #ery close' but they also ha#e easy access to
uni#ersities.
Discussion Guide:
1. GM8s shift from the traditional lone "olf mentality to a highly collaborati#e model is
promoting a substantial change in its corporate culture in the area of research' Ho" can
the company ensure the transformation occurs@ ?hat can the company do to facilitate
the process@
<. GM8s ne" business model is centered around the +AA6. ?ill the model successfully
e!tend to its other products@ ?hy or "hy not@
E. GM8s ne" strategy emphasi%es collaboration bet"een its o"n researchers and
researchers at other firms including the competition and the company8s suppliers. Ho"
can the company protect itself from opportunistic beha#ior from its research partners@
>. GM hopes that a ne" science office in +"eden "ill benefit not only the +AA6 brand'
but the entire GM product line. Consider the center' its layout' ho" it came into
e!istence' and so on. Can this type of center e!ist else"here in the GM net"or$@ ?hy
or "hy not@
global'.G'/ '(ercise 0uestions
1se the globalDGN site Ahttp577globalDG.msu.edu7B to complete the follo"ing
e!ercises5
!ercise 1
.i#ing costs can #ary considerably from country to country. &he 1.+. Department of
+tate prepares a series of reports called Quarterly Reports for Livin Costs Abroad.
1sing the most current report' identify the countries that are regarded as ha#ing a high
cost of li#ing and those that are percei#ed as ris$y. ?hat are the li#ing allo"ances and
hardship differentials determined by the 1.+. Department of +tate for those countries@
!ercise <
Oou "or$ in the human resources department at the head)uarters of a multinational
corporation. Oour company is about to send se#eral American managers o#erseas as
e!patriates Cor' e!patsD. 1tili%e resources a#ailable on the globalDGN "ebsite
regarding ,e!pat- life to compile a short chec$list of concerns and steps for your
company to go through before sending these managers o#erseas.
Ans!ers to t"e #$ercises
!ercise 1
&he 9uarterly Reports for .i#ing Costs Abroad can be accessed by searching the terms
,9uarterly Reports for .i#ing Costs Abroad- at
Ahttp577globaledge.msu.edu7ResourceDes$7B. &he resource is titled ,1.+. Department of
+tate P 9uarterly Reports for .i#ing Costs Abroad- and is located under the globalDG
category ,Reference5 &ra#el7.i#ing Abroad-. 6e sure to chec$ the ,Resource Des$
only- chec$bo! of the search function on the globalDG "ebsite.
+earch 4hrase5 ,9uarterly Reports for .i#ing Costs Abroad-
Resource 3ame5 1.+. Department of +tate P 9uarterly Reports for .i#ing Costs Abroad
?ebsite5 Ahttp577aoprals.state.go#7content.asp@contentQidR18LMmenuQidR81B
globalDGN Category5 ,Reference5 &ra#el7.i#ing Abroad-
!ercise <
2nformation related to e!patriate life can be gathered from a #ariety of sources. &hese
resources can be reached by searching for the term ,e!pat- at
Ahttp577globaledge.msu.edu7ResourceDes$7B. 0ne such source is the !pat !change'
"hich pro#ides a collection of articles filled "ith ad#ice for companies on ho" to
manage the "hole e!patriate process. &he resource is located under the globalDG
category ,Reference5 &ra#el7.i#ing Abroad-. 6e sure to chec$ the ,Resource Des$
only- chec$bo! of the search function on the globalDG "ebsite.
+earch 4hrase5 ,e!pat-
Resource 3ame5 !pat !chage
?ebsite5 Ahttp577""".e!pate!change.comB
globalDGN Category5 ,Reference5 &ra#el7.i#ing Abroad-