MGT 480: ch.15

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