EXPATRIATES AS INSTRUMENT IN INTERNATIONAL MANAGEMENT

Someone sent abroad by their company

• Important mechanism to coordinate the international activities of an MNC…
• …to create coherence in the company…
• …create a common understanding and common culture.

• Parent country nationals (PCNs) -->EXPATRIATE
  • Residents of the international business’s home country
• Host country nationals (HCNs)
  • Residents of the host country
• Third-country nationals (TCNs) -->EXPATRIATE
  • Not citizens of the firm’s home or host country

• PCNs (Parent-Country) for higher-level foreign positions
• Expat PCNs most effective representing HQ views

• HCNs know the local market best
• Fewer cultural problems
• Less expensive than ethnocentric

But:

• limited opportunity to gain experience
• gap can form between host country managers and parent country managers

Hire the best person available, regardless of where that individual comes from

• Supporting subsidiary operations
• Coordination mechanism
• Knowledge Transfer
• Incentive in the career path of executives
• Development of manager

• Job:
  • Technical
  • Functional
  • Managerial
• Location:
  • Adaptability (Tolerance for ambiguity, Tolerate multiple perspectives)
  • Location-specific skills
  • Personal characteristics