Chapter 15 Flashcards
Host Country
A country in which an international corporation operates.
International Corporation
A domestic firm that uses its existing capabilities to move into overseas markets.
Multidomestic Corporation (MDC)
A firm with independent business units operating in multiple countries.
Global Corporation
A firm that has integrated worldwide operations through a centralized home office.
Transnational Corporation
A firm that attempts to balance local responsiveness and global scale via a network of specialized operating units.
Expatriates, or Home-Country Nationals
Employees from the home country who are on international assignment.
Host-County Nationals
Employees who are natives of the host country.
Third-Country Nationals
Employees who are natives of a country other than the home country or the host country.
Work Permit, or Visa
A government document granting a foreign individual the right to seek employment.
Guest Workers
Foreign workers invited to perform needed labor.
Transnational Teams
Teams composed of members of multiple nationalities working on projects that span multiple countries.
Global Manager
A manager equipped to run an international business.
Cultural Environment
The communications, religion, values and ideologies, education, and social structure of a country.
Core Skills
Skills considered critical to an employee’s success abroad.
Augmented Skills
Skills helpful in facilitating the efforts of expatriate managers.
Failure Rates
The percentage of expatriates who do not perform satisfactorily.
Culture Shock
Perpetual stress experienced by people who settle overseas.
Repatriation
The process of transition for an employee home from an international assignment.
Global Compensation System
A centralized pay system whereby host-country employees are offered a full range of training programs, benefits, and pay comparable with a firm’s domestic employees but adjusted for local differences.
Home-Based Pay
Pay based on an expatriate’s home country’s compensation practices.
Balance Sheet Approach
A compensation system designed to match the purchasing power in a person’s home country.
Split Pay
A system whereby expatriates are given a portion of their pay in the local currency to cover their day-to-day expenses and a portion of their pay in their home currency to safeguard their earnings from changes in inflation or foreign exchange rates.
Host-Based Pay
Expatriate pay comparable to that earned by employees in a host country.
Localization
Adapting pay and other compensation benefits to match that of a particular country.
Codetermination
Representation of labor on the board of directors of a company.
