Expats And Their Jobs Research Paper

Length: 7 pages Sources: 4 Subject: Transportation Type: Research Paper Paper: #47043081 Related Topics: Another Country, Aliens, Market Entry Strategy, Foreign Countries
Excerpt from Research Paper :

Domestic Co. Goes Global

The possible countries for expansion

Expansion Advice

Leveraging Expatriates over Country Nationals for Business Overseas

Advantages to Company

Choosing of Expatriates

Incentives for Expats

Books to help Expats

The Importance of the Report

Outline of a guide for expatriates for one to two years

The possible countries for expansion

For the international expansion of the company, we choose two countries -- the United Kingdom and China. The basis for choosing the two countries for expansion of business purposes include factors such as the demand in the local market for the company goods in the foreign country, the level of competition in the new market (Burton, Chapman and Cross, 1999), the economic performance of the country being targeted (Conrad, 2005), the possible barriers to trade and business in the new country, the ease of doing business in the new country and the infrastructure that are available there and the political risks that are involved in the political system of the country (Cuervo-Cazurra, 2011).

Other issues to be considered include environmental laws and regulations and currency conversions ease and the rate of exchange. One also has to consider other factors which might seem minor but often has a great impact on the business of a company in a foreign market. These are associated with the cultural factors in the new country and the extent to which it matches to mismatches with the existing culture of the company. Also important to be considered are the outlook to business in general in the society and the degree local cultural influence on business.

Expansion Advice

Based on the factors discussed it is advised that both UK and China would be ideal for the company at this moment to expand its business. The reasons for choosing these two countries vary. While in the UK it is easy to set up business, the country is plagued with some problems that include stagnation in demand in the last few years and the growth rate has fallen to an extent. However in the very recent years, the economy is showing signs of a revival post 2008-2009 global economic crisis. There is a forecast of disposable wealth coming into the hands of the consumers and growth in value is expected. One of the factors that go in favor of UK is it's nearness to other European markets as well as with the U.S. A single flight across the Atlantic for a few hours enables reaching this new market. Moreover, culturally and language wise UK is very similar to the U.S. and hence it would be easy for doing business. The open economic system in the UK would enhance the setup and the ease of doing business there.

On the other hand, China also is a very good destination or international expansion right now. The strongest factor in Chinas favor is the huge consumer population, the rising trend of awareness about foreign brands, the rise in online sale being the highest in the world and yet the limited number of international brands in the local market and the economy moving towards a consumer based one and these are the primary reasons for choosing the China (Wu & Chen, 2014). For China, which has certain market entry barriers primary related to a huge difference in culture, language political hegemony with the U.S., it is advised to go for the joint venture as a market entry vehicle in this country. The economic factors and other trade enablers are very favorable compared to some other countries that were considered.

China stood out to be among the best in the terms of international expansion. Some of the factors that make China stand out as a potential destination or international expansion include rules and regulations for easy set-up for business in China, despite the physical distance from the U.S., the costs of market entry are relatively low as and this can be taken advantage of especially during the early stages of business. furthermore, having a joint venture partner would help in utilizing the already existing infrastructure of the partner...


Apart from the huge population and the local market, setting up business in China would also enable easy access to the nearby emerging like India, Thailand, and South Korea and additionally Australia and Japan would also be within the vicinity for exporting from China.

Leveraging Expatriates over Country Nationals for Business Overseas

At this juncture, it is important to consider whether to recruit local talents to form the new international markets or to send employees from the U.S. to the new countries to set up and conduct business. in this aspect, the following arguments should be considered. Extensive research in human resources management has shown that there are three main staffing strategies for a company that is planning to enter a foreign market with cultural conditions and situations similar or varying from the home country. Each of the strategies has their advantages and disadvantages. The three main strategies include sending over employees from the home country to the targeted country to run a business. Such employees are identified as being expatriates. The second is to employ people from the local market or the host country and the third is to employ people from a third or a neutral country other than the home or the host country (Walsh & Nandedkar, 2015).

While the third strategy is not being considered for recruitment at this moment, we would limit ourselves to studying the pros and cons of employing expatriates or local talent. One of the major advantages of sending over two employees from the company abroad to a new country for setting up a business is that the employees would already be aware of the company, its way of functioning, the mission, visions, and objectives and would be able to relate very easily with the company. This would not be possible for a new recruit from the local country for whom the company from the U.S. would most probably be an absolutely new one and would have very little knowledge about the ways and means and the functioning of the company.

These factors grant the expatriates a greater control over the functioning of the company and enhance the coordination with the company bosses in the home country. The business strategy of the company would probably be better understood by an expatriate compared to a local talent or a new employee appointed from the host country. This would also be enhanced by the an already existing understanding of the culture and work ethics of the parent company. For a new recruit from the home country, these are aspects that he/she would have to learn which could take up vital time in setting up and running a business and can lead to hic-ups in the beginning of the business in the new country (SHAY & BAACK, 2002).

However, some of the disadvantages for an expatriate would be the language and cultural barrier that he/she would have to face in the new country. This, on the other hand, is an advantage for the local talent. Secondly, the local talent would already have established sources in the host country acquired by the fact of being a local resident which an expatriate would have to acquire over time. The local talent would also probably be in a position to better understand the rules and regulations.

Yet, from the company perspective, e sending over and expatriate to the new country saves the company of changing or adopting a new set of payment procedures. for local talents, companies might need to set up payment and salary frameworks that have to be in line with the local rules and regulations. However, the existing rules and framework can be maintained in the case of an expatriate that would save the company time and money. Also, there can be additional costs in the case of an expatriate in the form of visas and for arranging accommodations and transport in the host country (Newlands & Hooper, 2009).

Advantages to Company

From the above discussion, it should not be a problem to realize that sending over an expat has some very obvious advantages over hiring from the local market. the most important being the understanding of the company functioning and existing close ties with bosses in the home country which would help in better coordination for setting up and running of business. Additionally, the aims and objectives of the company would be very clear to the expatriates from the beginning which would help them in taking fruitful decisions in the host country that ca help faster setting up and enhancement of business. Existing connections with the company bosses in the home country would also help expedite any critical decision-making process in the host country. The disadvantages that would arise out from cultural differences can be reduced with prior training in the home country.

Choosing of Expatriates

One of the critical factors is, however, choosing the right candidate to be sent to the new country…

Sources Used in Documents:


Cuervo-Cazurra, A. (2011). Selecting the country in which to start internationalization: The non-sequential internationalization model. Journal Of World Business, 46(4), 426-437. http://dx.doi.org/10.1016/j.jwb.2010.10.003

JOHNSON, J. & CERRETO, M. (1975). INTERNAL-EXTERNAL CONTROL AND INTERPERSONAL ATTRACTION TO A SIMILAR AND DISSIMILAR STRANGER.Psychological Reports, 37(3f), 1122-1122. http://dx.doi.org/10.2466/pr0.1975.37.3f.1122

Newlands, D. & Hooper, M. (2009). The global business handbook. Farnham, Surrey, England: Gower.

Proctor, R., Nof, S., & Yih, Y. (2012). Cultural factors in systems design. Boca Raton, FL: CRC Press.
Walsh, C. & Nandedkar, A. (2015). CULTURAL ADJUSTMENT AND THE MODERN EXPATRIATE. California Business Review, 3(2), 41-46. http://dx.doi.org/10.18374/cbr-3-2.6
Wu, J. & Chen, X. (2014). Home country institutional environments and foreign expansion of emerging market firms. International Business Review, 23(5), 862-872. http://dx.doi.org/10.1016/j.ibusrev.2014.01.004

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