Discuss the advantages and disadvantages of employing third-country managers.
What will be an ideal response?
Answers may vary but should include elements such as the following: Hiring personnel who are citizens of neither the home country nor the host country is often advantageous. TCNs may accept lower wages and benefits than will employees from the home country, and they may come from a culture similar to that of the host country. In addition, they may have worked for another unit of the IC and thus be familiar with the company's policies, procedures, and people. This can simplify the training and development requirements for such recruits. The use of TCNs has become particularly prevalent in the developing countries because of shortages of literate, not to mention skilled, locals. It can be an advantage to get someone who already resides in the country and has the necessary work permits and knowledge of the local languages and customs. If the host government emphasizes employment of its own citizens, third-country nationals will not be welcomed any more than will home-country people. Actually, third-country nationals could face an additional obstacle in obtaining necessary work permits.
We must be careful with generalizations about third-country personnel, partly because people achieve that status in different ways. They may be foreigners hired in the home country and sent to a host-country subsidiary either because they have had previous experience there or because that country's culture is similar to their own. Third-country nationals may have originally been home-country personnel who were sent abroad and became dissatisfied with the job but not with the host country. After leaving the firm that sent them abroad, they take positions with subsidiaries of multinationals from different home countries. Another way in which TCNs can be created is by promotion within an IC. As multinationals increasingly take the geocentric view toward promoting (according to ability and not nationality), we are certain to see greater use of TCNs. This development will be accelerated as more executives of all nationalities gain experience outside their native lands. Another, and growing, source for third-country nationals is the heterogeneous body of international agencies. These agencies deal with virtually every field of human endeavor, and all member-countries send their nationals as representatives to the headquarters and branch office cities all over the world. Many of those people become available to, or can be hired away by, international companies.
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a. (1) c. (3) and (4) b. (1) and (2) d. (1), (2), and (4)
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Answer the following statement true (T) or false (F)