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2. Describe the growth of international business
Identify and discuss global issues in international human resource management
Discuss the human resource management in international business

3. Identify and discuss domestic issues in international human resource management
Describe the issues involved in managing international transfers and assignments
Summarize the issues in international labor relations

4. The Growth of International Business
The British Empire was built around the financial and business interests of the British nobility
Forces that shaped today’s competitive international business environment began to emerge in the years following World War II
By the late 1970s, businesses from other countries emerged as major in the world economy

5. The Growth of International Business
Developments around the world have affected the new global economy
The growth of population has made nations interdependent and encourages international trade
Growth of regional alliances has substantial effects on the global business community

6. 3.2 Global Issues in International Human Resource Management

7. International Human Resource Management
Primarily uses parent-country nationals to staff higher-level foreign positions
Ethnocentric staffing model
Calls for the dominant use of host-country nationals throughout the organization
Polycentric staffing model
Puts parent-country, host-country, and third-country nationals all in the same category, with the firm attempting to always hire the best person available for a position
Geocentric staffing model

8. Understanding the Cultural Environment
Culture: Set of values that helps an organization’s members understand what it stands for, how it does things, and what it considers important
Cultural differences directly affect business practices in international situations
Language is an important cultural dimension that affects international HRM practices
Roles that exist in different cultures affects international business

9. 3.3 Political and Legal Issues of International Business

10. The Human Resource Function in International Business
General human resource issues in international business
Discrimination
Determination of the appropriate source of employees
Complex training and development challenges
Working conditions, compensation, and the cost of living

11. Strategies for Competing in the International Environment
Process of making a product in the firm’s domestic marketplace and selling it to another country
Exporting
Involves one company granting its permission to another company in a foreign country to manufacture or market its goods in its local market
Licensing
Occurs when a firm headquartered in one country builds or purchases operating facilities
Direct foreign investment
Two or more firms cooperate in the ownership or management of an operation on an equity basis
Joint venture

12. Domestic Issues in International Human Resource Management
Local recruiting and selection issues
Local training issues
Local compensation issues

13. Managing International Transfers and Assignments
Expatriates and corporate international strategy
Expatriates: Employees who are sent by a firm to work in another country
Firm should implement a knowledge contract
Organization systematically debriefs expatriate managers to make sure it has all the information acquired by the manager

14. Managing International Transfers and Assignments
Selecting expatriates
Define skills and abilities required to do the job
Define skills and abilities required to work in a foreign location
Training expatriates
Language training
Classroom training concerned with the history of the country or the area or the daily living conditions
Training on social manners and issues in social exchanges

15. Managing International Transfers and Assignments
Compensating expatriates
Jointly determined by labor market forces, professional licensing requirement, standard of living, occupational status, and government regulations
Hardship premium: Additional financial incentive offered to individuals to entice them to accept a less attractive international assignment
Repatriation - Requires adjustment on both professional and personal levels

16. International Labor Relations
Processes of dealing with employees who are organized into labor unions
Heavily regulated by laws
Different norms exist in countries about the relationships between unions and management

17. Forces that shaped today’s competitive international business environment began to emerge in the years following World War II
Issues in international human resource management include development of strategies, understanding the cultural environment, and understanding political and legal environment

18. Expatriates are employees who are sent by a firm to work in another country
International labor relations are the processes of dealing with employees who are organized into labor unions

19. Ethnocentric staffing model (p. 55)
Polycentric staffing model (p. 55)
Geocentric staffing model (p.55)
Culture (p. 55)
Exporting (p.62)
Licensing (p.62)
Direct foreign investment (p. 63)
Joint venture (strategic alliance [p. 63])
Expatriates (p )
Hardship premium (foreign service premium [p.69])