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In the same way, working away from home normally involves a lot of challenges relating to the aspects of orientation and education. Expatriates have to adapt and learn different languages in order to effectively cope. In this regard, education and orientation allowances are normally included in their pay so as to enable them to address some of these challenges. Human resource managers are therefore normally in a fix regarding the strategies to use in paying the expatriates and those for domestic nationals. In any case, an improper policy might greatly affect the motivation and performance of the local employees which might eventually be detrimental to the organization.
In the same way, most organizations pay their expatriate employees other additional allowances which might include overseas premiums, leave reimbursement and payments for termination of contracts. These bonuses are normally a consequence of the need to create no difference between working...
More often, human resource managers are confronted with challenges emanating from the totally different bonus and allowance programs for different countries. In most cases, countries rarely exhibit the same programs in paying their expatriate workers. In this case, creating a sense of uniformity becomes a great challenge to the human resource managers. Whichever the case, any payment made to expatriates must always incorporate the aspects of exchange rate changes often realized in currencies. This is done in order to avoid disadvantaging the workers who might greatly lose incase exchange rates disfavor them.
Courtesy of globalization and a borderless society as currently emerging, there is a need to harmonize the compensation of foreign nationals and those of domestic workers in order to limit some of these challenges realized in the process. However, much of this process is still at its experimental state.
These can create significant management problems due to the impact of different cultures, taxation and pricing, the complexity of choosing the optimal structure for international business, high political risks and many other issues. The specifics of financial planning is determined by the following problems, including volatility in exchange rates, particularly the national taxation, revaluation of currencies, possible difficulties with the export of funds from abroad, problems with in-house transfer pricing,
International Business Environment Outline and critically discuss the criteria by which they judge whether or not a country is stable. International businesses faces a number of risks when they decide to operate overseas. Their ability to make sound investment decisions and to address those risks is directly related to the stability of the country in question. Firms therefore need to develop mechanisms for measuring stability before making the decision to enter a
International Business of Starbucks Starbucks Corporation established in 1971 has its headquarters based in Seattle, Washington. The company is the leading and largest coffeehouse company, with a wide coverage of the market across the globe (Simon, 2009). It is a global coffee company and chain of coffeehouse stores, operating in over 50 countries all over the world. At its founding, it was a mainstream coffee bean roaster and retailer. The company
International Business The Effect of National Culture on the Choice of Entry Mode Foreign direct investment has increased dramatically over the last couple of decades and this trend has been studied. However, it is argued that the entry model form many of these investments has not been studied with the same rigor. It is commonly thought the composition of national cultures on Hofstede's scale and the distance between the two cultures influences
International Business South Korea International Business South Korea: Introduction and Business Potential South Korea is the 12th largest economy in the world. It has made tremendous growth in all manufacturing, industrial, and services sectors to become economically and technologically strong. Due to rapid economic growth and positive governmental behavior, South Korea has become an attractive target country for foreign corporations for their international business expansion strategies (Central Intelligence Agency, 2013). However, these foreign
International Business Over the last several decades, globalization has been having profound impact on the way businesses are operating. This has created shifts in the markets for a wide variety of corporations seeking to aggressively expand into these areas to increase their overall profits. A good example of this can be seen with a study that was conducted by the UN Conference on Trade and Development. They found that nearly 90%