Global Dimensions of Business
The need to develop global business, as well as growth of new business ventures overseas is prompting a massive rise when it comes to global mobility. Taking this into consideration, many businesses are assigning various personnel to carryout overseas assignments. These assignments are in various forms, and range from business representations to business operations in countries abroad (Reiche & Harz 2009). With regards this, there are some organizations which opt to use expatriates, while others opt to use third county nationals (TCN). The nationality of the expatriates is usually the same as that of the company’s headquarters. On TCNs, their nationality is neither that of the company’s headquarters nor that one of the local subsidiary.
Taking above into account, it is better to use expatriates than TCN. Expatriates are usually familiar with the objectives, goals, practices and policies of the organization as compared to the TCN (Reiche & Harz 2009). This implies that there are in a better position to represent the organization as compared to the TCN. In addition, they are usually able to communicate effectively with home office, as compared to the TCNs, who do not usually have a better knowledge of the company.
Expatriates usually play a significant role in staffing subsidiaries of international companies as well as other organizations. On this they usually help in making sure that there is well representation of the companies in overseas countries. They do this through permitting closer control as well as coordination of international business assignments. In addition, they help in providing a wider global perspective of the business. When it comes to controlling, expatriates are easier to control as compared to the TCNs (Reiche & Harz 2009). This is because they are usually familiar with the managers of the home office. This puts the company at a better position to control its subsidiaries. With regard to this, it is better to use expatriates than TCNs in overseas assignments.
References
Reiche, S., & Harz, A. (2009). International Assignment. International Human Resource Management, 1, 1-58.
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