Factors Affecting Expatriate Success and Globalized Economy

This article discusses the factors that contribute to the success of expatriate employees and the notion of a globalized economy. It explores the importance of cultural adjustment, family support, HRM practices, and ethical international policies.

International
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK A...........................................................................................................................................3
Critically discusses about expatriate failure, especially with regard to cultural adjustment.......3
Consider the factors that maximise expatriate success...............................................................4
Consider the extent to which culture shock of the expatriate employee and their families can
be overcome................................................................................................................................5
TASK B...........................................................................................................................................6
Discuss the factors that contribute to the notion of a globalised economy demonstrating an
awareness of ethically sound and accountable international policies.........................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International management referring to managing and effectively functioning of the
human resource of company who are placed internationally for work purpose. The international
management is becoming one of a significant determinant over which company's success and
failure is dependent as workforce efficiency is related with their motivations and resources
available (Apte and Kapshe, 2020). Expatriate employees are those who have been moved to
new international location in which company operates on project or permanent basis. The present
assignment is inclusive of discussion over expatriate employee failure and success due to number
of factors, majorly focusing over cultural difference which creates uncomfortable environment of
employees and their families. In continuation of it number of variable which leads to
maximisation of migrant employee success are discussed with suggestions about how employee
and their families can overcomes with expatriate and movement in new locations. In addition to
it, the report includes a discussion over the factors which contributes to the notion of globalised
economy and spread awareness for ethical international working polices and procedures.
TASK A
Critically discusses about expatriate failure, especially with regard to cultural adjustment.
Expatriate employees are those who are sent out that is to abroad for respective
assignments most commonly for longer period. The jobs are assigned for long term and
significantly on project basis. For instance, senior managers who have place in new location
internationally for establishing a new offices and setting up a new launch representing the
company in global waters and business environment.
Expatriate failure was a vague concept in past that is in early age of globalisation and
internationalisation. But in recent, decade the idea that expatriate became a significant reason for
company's failure and which can lead it to unsatisfactory outcomes of projects and
unaccomplished certain aims. There are number of factors which are considered while
identifying the major reason behind expatriate failure and amongst those a major factor is
Cultural Differentiation and Adjustment (Uphoff, 2019).
Culture is a wide umbrella that encompasses number of factors like social behaviours,
language, religion, colour and other which are inherited by human beings with their growing age.
Every certain areas has their respective cultural features which are incorporated by the

population while leading their lives in particular society. Thus, cultural diversification is known
to be the major factor that leads to hindrances in employee productivity who are working abroad.
Employee belonging to one culture faced huge difficulties to adjust in new one is they are
expatriated and placed in new work locations. In case of expatriating employee it is long and on-
going process which leads to multiple dislocation of the personnels and some cases of their
families too (Barkun and et. al., 2019). This can cause dissatisfaction form the job role as
employees are not happy and comfortable in regular moving and leading to redundancies. Morals
or motivation levels of individuals are reduced too which affects their efficiency and most
commonly over their will of working.
There are some other general elements too which leads to failure in expatriate and
continue with firms failure. For instance, Communication Barriers, people are unable and
incompetent to build a conversation with others in staff because of lack of understanding of
language. This affects employee professional performances as well as personal relationships.
Lack and ineffective communication stops them in exchanging their ideas and innovating.
Moreover, a healthy environment is must for personnel to work efficiently which is not
developed as they are unable to communicate and develop any friendly bond with others and
leads to dissatisfaction from the job role, demotivation, inefficiency and barrier to their
professional and personal growth.
Consider the factors that maximise expatriate success.
Expatriate success is dependent upon number of elements in which major role is played
by the company, the sender that is senior management and the human resource department. A
very critical and essential factor involved in expatriate success is Family Ranks. Amongst all the
related success factors family's comfort and acceptance plays a vital role. Individual Employee
with no family of their own faces less issues in moving and working abroad. But those with
family that involves wife and kids prominently faces huge issues. Thus, the first factor that
contributes to success of migrant while working in new location and in new work culture is
acceptance by family of the new environment and place they have moved too (Shapiro and
Hanouna, 2019).
Some other factors which play crucial role in success and prosperity of employee
purposes and company's aims are as follows:

 Effective Human Resource Management concept and practices- The HRM team of
organisations are the critical link and bridge between the workforce and management. In
case of expatriate HRM concepts and practices leads the path to success of expatriate.
The management can adopt number of rewarding techniques to keep morals of employee
high. As well as other extra benefits which helps in gaining attention of personnel and
attract them towards the proposal of moving in new place of work.
 Training and Development- Moving to a new place of work involves huge discomfort
and favourableness for people. Thus, in order to render certain support to staff and
increasing enthusiasm training and induction concept of management is helpful. Through
which personnel will be introduced and oriented with new styles of working as well as
introducing them to new culture of the place they are being moved. In such trainings the
employee will be oriented about their job roles, their positions, aim behind sending them
to new location and majorly the responsibilities they are accountable for and complete on
behalf of company (Danne and et. al., 2019).
Consider the extent to which culture shock of the expatriate employee and their families can be
overcome.
As discussed and identified above in the information collected the cultural difference and
change do shake the families of expatriate employee and themselves that results in lacking and
unproductive performances of the personnel and even leads to failure. There are certain ways in
consideration which culture can shake of the employee and their families with movements. For
instance, unequal behaviours due to separate religion and languages and many other. Thus, in
order to overcomes these influences and negative factors of expatriate certain ways are as
presented under.
Cultural trainings a indefinite process which can understand the management styles and
communication ways that are most likely are suitable for assignments to be performed perfectly
and in certain ways. Cultural trainings simplifies the phenomena and idea of working abroad for
the employee and their family members. Cultural differences varies form place to place and
getting comfortable to cultural norms if difficult for individuals. For which the concept of SHRM
that is Strategic Human Resource Management supports the ideas of employee trainings and to
their family members which offers them a vague but a supportive idea of what they can explore
and expect from new environment (Murrell and et. al., 2020).

As well as according to experts cultural shock is very common in expatriate which can
last to long period of time or finishes in smaller time zone depending upon several external and
internal factors. Thus, another suggestive option for resolving the issue is of Frequent Visits to
Home Country. The HRM team should consider the factor of cultural shock and the dilemma of
the people who moved. A strategic move for reducing its influence is to offer flexible
arrangements which covers travel of employee and their family to home country frequently and
according to convince of the expatriate employee (Foss and Pedersen, 2019).
TASK B
Discuss the factors that contribute to the notion of a globalised economy demonstrating an
awareness of ethically sound and accountable international policies.
Globalised Economy stating the increasing interdependencies and relationships of varied
economies around the globe. Inducing interdependencies of economies over each other is an
outcome of significant and rapid growth of cross border business transactions and free flow of
international capitals into separate economies. Technology have also added up to value and need
to establish a common economic platform and bring balance amongst different regions and
countries.
In previous sections of the report number of factors are identified which creates and leads
to failure of expatriate employee and their performances which are assigned to them for
potentially attaining company's goals and aims. There are some respective factors which
contributes to the notion of a globalised economy demonstrating an awareness of ethically sound
and accountable international policies (Gornik and et. al., 2019). Inequality in Society- The international work environment is new and unknown to the
visiting employee form an entirely different culture, society and region. The major factor
which causes failure of expatriate is cultural difference and unfamiliar environment for
the employees and their family members. In the receptive manner the society and
domestic citizens can induce their enthusiasm for moving in to a new location and in a
different cultural society. Thus, it is a supportive notion that equal and fair norms are
being flourishing in society which makes people aware about the acceptance and offering
a warm welcome to those visiting them the first time. According, to the successive and
contributive point of view inequality needs to be removed form the society and form the

general laws and regulations of region. People have to be made aware about the needs for
keeping a safe and equal environment around them for others in which they can work and
live peaceful even when they are away form their homeland.
 Differentiating Tax rates for foreign and domestic citizens- The taxes comes under a
basis responsibility of a citizen who is living in the region and making use of resources
mad available to them by the government and through natural resources of the particular
location (Madura, 2020). The taxes are the contribution a responsible citizen of society
makes towards it for utilising the resources and other benefits. Government of each
country establishes certain tax rates for different payments and facilities being provided.
Taxes are the revenue which government earns for making developments in society and
maintaining it. These tax rates are different of individuals and for foreign citizen living in
their country for work purpose has altogether separate tax slabs. This factor can lead to
failure of expatriate as people most commonly can not adjust and bear with the fact that
they have to pay higher taxes by living in the same society as others just because they are
foreign citizens and not part of the respective culture. For contributing to the notion of
globalised economy and spreading awareness in public as well countries and most
specifically governments should come together for saving extra payment being made in
name of international citizen laws. A centralised and common should be passed for
treating people same in case of paying taxes and making contribution to the whole
world's economy (Woodey, 2020).
CONCLUSION
The above report discusses and summarise the influence of the expatriate phenomena
over employee and company's success and failure is huge. This concept can have positive or
negative influences over performances and productivity of work performed by the individual
moved abroad. There are several success and failure factors out of cultural adjustment and
understanding plays critical role. Effective implementation of HRM and SHRM concepts like
Trainings and Development, Rewarding and offering Extra Benefits or Perks will attract
individuals and assist in keeping their morals high. Moreover, there are certain notions which
supports cultural diversity for nurturing globalisation and development of sound accountable
polices for regulating international workforce and spread awareness.

REFERENCES
Books and Journals
Apte, P. G. and Kapshe, S., 2020. International Financial Management|. McGraw-Hill
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Barkun, A. N. and et. al., 2019. Management of nonvariceal upper gastrointestinal bleeding:
guideline recommendations from the International Consensus Group. Annals of internal
medicine. 171(11). pp.805-822.
Danne, T. and et. al., 2019. International consensus on risk management of diabetic ketoacidosis
in patients with type 1 diabetes treated with sodium–glucose cotransporter (SGLT)
inhibitors. Diabetes Care. 42(6). pp.1147-1154.
Foss, N. J. and Pedersen, T., 2019. Microfoundations in international management research: The
case of knowledge sharing in multinational corporations. Journal of International
Business Studies. 50(9). pp.1594-1621.
Gornik, H. L. and et. al., 2019. First international consensus on the diagnosis and management of
fibromuscular dysplasia. Vascular Medicine. 24(2). pp.164-189.
Madura, J., 2020. International financial management. Cengage Learning.
Murrell, D. F. and et. al., 2020. Diagnosis and management of pemphigus: Recommendations of
an international panel of experts. Journal of the American Academy of
Dermatology. 82(3). pp.575-585.
Shapiro, A. C. and Hanouna, P., 2019. Multinational financial management. John Wiley & Sons.
Uphoff, N., 2019. Improving international irrigation management with farmer participation:
Getting the process right. Routledge.
Woodey, J. C., 2020. 15 International Management of Fraser River Sockeye Salmon. Sustainable
Fisheries Management: Pacific Salmon, p.207.
Online:
Expatriate Success Factors: Why Family Support Is Key, 2018. [Online] Available Through:
<https://insights.learnlight.com/en/articles/expatriate-success-factors-family-support/>
Helping Expatriate Employees Deal with Culture Shock, 2019. [Online] Available Through:
<https://www.shrm.org/hr-today/news/hr-magazine/summer2019/pages/helping-
expatriate-employees-deal-with-culture-shock.aspx/>