International Business Study Set 9

What is brain drain, and why does it occur? What actions might countries take in order to reduce or even reverse brain drain?

Classical economists assumed the labor factor of production to be immobile. Is this assumption correct in the modern world? Explain.

Why is the average age of the population increasing in some nations, particularly the developed countries? What are some of the implications of this trend, especially for international companies?

What issues she should focus on in making such a decision?

Why are problems involving the trailing spouses of expatriate executives so common? What are some companies doing to solve those problems?

Why should the international human resource management approaches used by an international company be closely linked to the competitive strategy the company is using?

Using the company example in question 12, suppose another position becomes available, this one as treasurer of the Japanese subsidiary. The chief financial officer of the company's California division applies for this job. She has performed to everyone's satisfaction, and she seems thoroughly qualified to become the treasurer in Japan. In addition, she speaks and writes Japanese. She is the daughter of a Japanese mother and an American father, and they encouraged her to become fluent in both English and Japanese. Would you give her the job? Why or why not?

Use the globalEDGE site (http://globalEDGE.msu.edu/) to complete the following exercises: HSBC Expat Zone, which provides insight into expatriate life, publishes an Expat Experience report every year. Locate and download the most recent report. What does this report focus on? Specifically, what factors are considered when ranking the countries with the best life experience? Briefly summarize the key findings of this report, and identify the top five countries that offer the best overall experience to expatriates. Are these findings surprising?

If you were a good friend of Brittany Miller, what recommendation would you give regarding whether she should accept the international assignment that has been offered to her?

Use the globalEDGE site (http://globalEDGE.msu.edu/) to complete the following exercises: The text discusses the importance of establishing a good compensation plan for foreign employment. Using the Quarterly Reports for Living Costs Abroad, published by the U.S. Department of State, provide a report comparing the cities of Rio de Janeiro and Mexico City.

Why are expatriate employees frequently paid more than their colleagues at equivalent job levels in the home office?

Why has there been an increasing use of third-country nationals in the foreign operations of ICs?

In staffing a multinational organization for service outside the IC home country, what are some advantages and disadvantages of hiring home-country personnel?

Suppose you are the CEO of an American multinational. On your staff and in the U.S. operating divisions of your company are several bright, able, dedicated female executives. They are also ambitious, and in your company, international experience is a must before an executive can hope to get into top management. An opening comes up for the position of executive vice president in the company's Mexican subsidiary. One of the women on your staff applies for the position, and she is well qualified for the job, better than anyone else in the company. Would you give her the position? What are the arguments pro and con?

Compare and contrast ethnocentric, polycentric, regiocentric, and geocentric staffing policies.

What are some of the quality-of-life issues executives should consider before taking their families into an expatriate experience?

Why are compensation packages for expatriates more complicated than those for domestic employees?

Are Women Appropriate for International Assignments? Although women make up about 47 percent of the workforce in the United States, they represent a relatively small (albeit growing) fraction of the population of expatriates. Why this difference, especially with the pressing need for finding and developing competent global leaders? Adler examined three myths about women in international management: Myth 1: Women do not want to be international managers. Myth 2: Companies refuse to send women abroad. Myth 3: Foreigners' prejudice against women renders them ineffective. When Adler tested these myths empirically, neither the first nor the third was supported, but the second one was. Adler's research suggested that 70 percent of her sample of international companies were hesitant to select women for expatriate assignments. Why? Among the reasons expressed were that women in dual-career relationships would experience problems with international assignments, that gender-based prejudice would limit women's performance in many challenging countries or cultures, that women might feel lonely and isolated in an international assignment or be subjected to sexual harassment, or that the men making selection decisions regarding international assignments were themselves biased by traditional views and stereotypes regarding the appropriateness of assigning women to expatriate positions. Is this hesitancy by companies regarding selecting women for international assignments justified? Research has shown that women are just as eager to go abroad as are men, sometimes more so. Additional research has shown that gender is unrelated to the performance ratings of expatriates, with the adjustment of expatriates to the host-country context, or with the intention of expatriates to leave their ICs. Recent studies have even suggested that the skills and identity typically associated with women (e.g., attentiveness to personal aspects of business and skill in building interpersonal relationships) may actually give women an edge over men for some expatriate assignments. In addition, rather than cultural attributes serving as a barrier to the effectiveness of women expats (e.g., a women-unfriendly environment in some host-country cultures), as has sometimes been argued in explaining why women could not or should not be assigned to international positions, these structural aspects may serve as an advantage for women in international roles. Indeed, women may be able to divert attention from gender by demonstrating individualized sources of legitimacy and power, such as functional expertise and experience, and thereby enhance their effectiveness in international assignments. Similarly, although studies have reported that women assigned to countries where females have lower social status often have a more difficult time adjusting, they are nevertheless rated as being equally effective as men at their jobs. Some Japanese even refer to female expats as "the third gender" because they are accorded a different role and status than local women. A recent Australian study showed that childless single women were most likely to take expatriate roles because they did not encounter the same role conflicts and social pressures that married women or women with children might face. Women expatriates who are married are much less likely to take a partner overseas with them than is the case for male expatriates. Only 16 percent of women bring partners, versus 57 percent for male expatriates. Should ICs select more women for expatriate assignments?