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International companies
Companies that export or import, but their investments are within one home country
Multinational companies
Companies operating in multiple countries but with clearly designated headquarters in their home country
Transnational companies
Companies that have operations in multiple countries and do not view themselves as belonging to any one country
Offshoring
When companies produce physical goods or perform some of their operations overseas
Outsourcing
Moving some operations of the organization to a different organization
Global integration
When a company standardizes its HR practices around the world
Local differentiation
When organizations vary their HR practices in consideration of the local environment
Expatriate
A person who is living and working in a different country than their country of origin
Organizationally assigned expatriate
When an expat is sent by the organization for a predetermined time to work in an overseas operation
Self-initiated expatriate
A skilled professional who moves to a different country for a specific period of time with the intention of gaining overseas work experience
Cultural adjustment
Adjusting to the new culture one is now living in, including factors such as transportation, entertainment, health system, education, and general living conditions
Work adjustment
Feeling comfortable at work and with one’s new tasks
Interactional adjustment
The comfort felt with interacting with local individuals inside or outside work
Global mindset
Refers to being open to learning about different cultures, having a sense of adventure, being comfortable dealing with ambiguity, and having a nonjudgmental attitude toward those from other cultures
Culture shock
The feeling of disorientation individuals experience when they enter a new culture
Coreflex plan
A plan that provides some services (such as paying for movers and travel expenses) to all expatriates, with the remainder of benefits personalized to the unique situation of the expatriate