human resources final exam

Parent Country

country in which an organization’s headquarters is located

Host Country

Country (other than the parent country) in which an organization operates a facility

Third Country

A country that is neither the parent country nor the host country of an employer

Expatriate

Employees assigned to work in another country 

International Organization

an organization that sets up one or a few facilities in one or a few foreign countries

Multinational Company

organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs

Global Organization

An organization that chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage

Transnational HRM system 

type of HRM system that makes decisions from a global perspective, includes managers from many countries, and is based on the ideas contributed by people representing a variety of cultures

Culture Shock

disillusionment and discomfort that occur during the process of adjusting to a new culture

Cross-Cultural Preparation

training to prepare employees and their family members for an assignment in a foreign country 

Repatriation

the process of preparing expatriates to return home from a foreign assignment

culture, education, economic systems, political-legal systems 

Factors that strongly influence HRM international markets

culture in international markets

community’s set of shared assumptions about how the world works through religion, language, rites & rituals, etc. and what ideals are worth striving for

education in international markets

companies relocate where they can find suitable employees, US skills gap, outsourcing to India, areas that are more impoverished, developing countries ten to hav low-skilled, low-wage work

economic systems in international markets

economic system and culture closely ties, socialistic vs capitalistic societies and compensation

political-legal system in international markets

cultural context of society creates legal system, Western Europe (socialism and workers rights), US discrimination laws, must hire experts to decipher the law

pros of growth in international business

billions of new customers, lower labor costs, lower supply costs, technology enables communication, and trade agreements

difficulties of growth in international business

people who understand customers and supplies, the need to understand customs and languages, adaptation of policies and procedures to culture and laws, competencies to lead global teams