BUS6003 International Management: Expatriate Success & Failure Factors

This report examines the reasons for expatriate failure, including cultural shock, family issues, increased responsibilities, wrong candidate selection, emotional attachment to home country, and language differences. It also identifies factors that ensure expatriate success, such as adventurousness, cultural sensitivity, curiosity, flexibility, and open-mindedness. Furthermore, the report discusses factors affecting the globalized economy, including the reduction of trade barriers, decreased transportation costs, increased internet users, the development of multinational corporations, the creation of trade blocs, and technological advancements. Finally, it outlines ethical policies for running businesses internationally, emphasizing adherence to labor standards, environmental acts, human rights legislation, respect for the host country's culture, and avoidance of corruption. Desklib is a platform where students can access this document along with numerous other study resources and solved assignments.

International Management (BUS6003), Part 2
BUS6003 International Management
Part 2: Assignment
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International Management (BUS6003), Part 2
Contents
Introduction......................................................................................................................................3
Reasons for expatriate failure..........................................................................................................3
Factors that ensure the success of expatriates..................................................................................5
The factors that affect the globalized economy...............................................................................6
Ethical policies in running business internationally........................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11
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International Management (BUS6003), Part 2
Introduction
Expatriate failure means the low performance and premature return of expatriates without
accomplishing the international assignment properly. In this modern world, globalization is one
of the most effective approaches that is adopted by organizations to expand their businesses and
earn more revenue as well. So, they are sending their employees to different countries of the
world to complete international projects.
Reasons for expatriate failure
Expatriate failure can occur for so many reasons including cultural factors, emotional factors,
adaptability, flexibility, etc.
Figure 1: Reasons for expatriate failure
Source: (Laurent, 2019)
Cultural shock: According to Laurent (2019), cultural shock is one of the main reasons for
expatriate failure because all the countries have a different culture so that it is not an easy task
for an inexperienced employee to go to an overseas country and adapt to their culture properly.
He further added that the Lewis model has described the behavior of the different regions which
has shown that the people of the UK are linear-active who like to stay moderate talkative,
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Cultural shock
Family issues
Increment of responsibilities
Selection of wrong candidates
Eotional attachment to home country
Language difference

International Management (BUS6003), Part 2
perform a single task at a time and show a more confined behavior. So, when an employee of the
UK will go to Brazil to perform an international assignment where people are very talkative, an
expert at multi-tasking and show more expressive behavior, will not be able to adapt to it.
Harzing and Pinnington (2018) argued that the highest level of cross-cultural training can make
the employees competent to adjust to a new culture with ease because the employees will know
what are the common values, beliefs, perceptions, and behavior of the people of the new location
which will help them to react according to these.
Family issues: According to Eriksson, et al. (2017), the international assignment is very difficult
for an employee, and the level of difficulty increases further because of the relocation of the
family members. Johanson and Vahlne (2018) criticized that if the organization can ensure all the
facilities sufficiently, the employees will not face any of the difficulties.
Increment of responsibilities: It is stated by Oviatt and McDougall (2019) while working in the
native country, the employees have to deal with only the roles and responsibilities in the office
but in the international assignments, they have to deal with cultural issues, language barrier, the
attitude of customers and team members besides the job responsibility which increases the
number of responsibility and make it for them to give their finest performances. Harzing (2019)
opposed that a highly trained employee will not face the pressure of extra responsibilities
because he or she will know the right techniques to adapt to them.
Selection of wrong candidates: According to Choi and Johanson (2018), if the wrong
candidates are selected, the accomplishment of the overseas assignment will be impossible. Lee
and Kartika (2017) argued that the right selection process can ensure success which can be done
by several assessment processes.
Emotional attachment to home country: Hung-Wen (2017) depicted that the emotional
attachment to the home country is a psychological factor that can create a great influence on the
performance of expatriates because the high attachment to the native country will make them
frustrated. Stone (2019) criticized that the motional attachment cannot create any impact on the
performance because of technological advancement which will enable the workers to stay around
the native people from a longer distance.
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International Management (BUS6003), Part 2
Language difference: Gupta, et al. (2018) illustrated that language is the best medium of
communication which ensures that both the parties are understanding each other and no
misinterpretation is taking place. But while working in a foreign country, the employees will fail
to communicate properly with others and there will be a high possibility of misinterpretation and
misunderstanding. Martinko and Douglas (1999) opposed that language cannot be a big issue for
trained employees who have sufficient knowledge about the language and behavior of the people
of the host country.
Factors that ensure the success of expatriates
Several factors make sure of the success of expatriates. These factors are- Adventurousness,
cultural sensitivity, curiosity, flexibility, and open-mindedness.
Figure 2: Significance of success factors
Source: (Shay and Tracey, 2017)
Adventurousness: Adventurousness means the employee's interest and excitement about
experiencing something new. 74% of people think that the adventurousness factor is very
important for the success of expatriates and 21% think it is an intermediate important success
factor (Van Oudenhoven, et al. 2019). Elango, et al. (2018) opposed that adventurousness should
not be a big factor of success if sufficient motivational factors can be ensured.
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International Management (BUS6003), Part 2
Cultural sensitivity: It is the competency of an employee to understand and adjust to the new
culture in a short time. 96% of people are agreed with the importance of this factor because it
makes sure that the employee can perform better with proper enthusiasm (Carter, 2020). Laurent
(2019) argued that understanding the language of people is more important than culture because
nothing can be done without proper communication.
Curiosity: It is the employees’ hunger to explore new things and learn all the insights. 96% of
people consider it as necessary for the success of expatriates because it ensures the satisfaction
and expertise of employees which will be reflected in their performance (Harzing, and
Pinnington, 2018). Eriksson, et al. (2017) opposed that curiosity is not a big factor of success
rather rigorous training will ensure whether the employee will perform better or not.
Flexibility: Flexibility refers to the ability and desire of employees to learn new ways of
accomplishing the tasks and adjust to a new environment as well. 97% of people agree that it is a
necessary factor for success because it will remove all the obstacles for the employees (Johanson
and Vahlne, 2018). Oviatt and McDougall (2019) argued that over flexibility will lower the
expertise of employees and eliminate their core competencies because they will try to learn new
things continuously.
Open-mindedness: It is the ability to show positivity and accepting everything with an open
mind which will make sure that the performance level is not getting affected by the failure. It is
accepted by 97% of people as a success factor because it increases positivity and decreases
frustration (Harzing, 2019). Hung-Wen (2017) argued that positivity can be a negative factor for
organizations because the employee will not try to improve them instead, they will stay satisfied
with their poor performances.
The factors that affect the globalized economy
The advancement of the globalization process has made the internationalization process easier
and effective as well (Stone, 2019). There are so many factors that are contributing to the
improvement of the globalized economy.
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International Management (BUS6003), Part 2
Figure 3: Factors affecting the globalized economy
Source: (Stone, 2019)
Reduction of trade barriers: The multi-national organizations are creating a great impact in the
economy of the developing and developed countries so that the government of such countries
including the UK is removing the trade barriers such as higher tax rate, strict legislations, etc. to
attract the business organizations to expand their businesses to these countries (Gupta, et al.
2018).
Decrement of transportation cost: In the recent past, the transportation cost for
internationalized businesses was very high so that the organizations were showing disinterest to
expand their businesses in other countries. But in this modern era, the cost of transportation is
very low because of the advancement of technology which is decreasing the cost of flights, ships,
and other vehicles. In the recent 25 years, the cost of sea vehicles was decreased by around 71%.
The cost of air vehicles is reducing continuously with a good percentage of around 4 to 4.5%
(Martinko and Douglas, 1999).
Increment of internet users: The number of internet users is increasing at a rapid pace which is
making the communication process easier and lowering the cost of research as well. Besides that,
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Reduction of trade barriers
Decrement of transportation
cost
Increment of internet users
Development of MNCs
Creation of trade blocs
Advancement of technology

International Management (BUS6003), Part 2
the advancement of the internet has accelerated the growth of e-commerce which is enabling
organizations to sell their products to the customers of different countries of the world.
Figure 4: Number of regular internet users of the UK
Source: (Shay and Tracey, 2017)
The graph is showing that the number of internet users in the UK is increasing at a good pace
and in 2019, the regular users of the internet are 46.6 Million which around 70% of the total
population (Shay and Tracey, 2017).
Development of MNCs: There are around 900+ multinational companies are carrying out their
business across the world which has created a great impact on the globalized economy (Van
Oudenhoven, et al. 2019). As the transportation cost, communication cost, trade barriers, and the
other cost are reducing continuously, the number of MNCs are increasing rapidly which affecting
the globalization of the economy greatly.
Creation of trade blocs: The trade blocs are also called regional trade agreements where the
government of different countries sings an agreement of removing the trade barriers which helps
the organizations of those countries to expand their businesses and run their operations with
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International Management (BUS6003), Part 2
minimum tariff and other costs. There are around 421 trade blocs in the world which are ensuring
the enhancement of economic globalization (Choi and Johanson, 2018).
Advancement of technology: The advancement of technology has contributed a lot to the
globalization of the economy. It has reduced the cost of communication, transportation,
production, etc. all the operations as a result, the internationalization of businesses are becoming
very easier and cheaper as well.
Ethical policies in running business internationally
To run a business internationally, organizations have to follow some rules, regulations, and
policy that ensures that the business is carrying out its operations ethically.
Figure 5: Ethical practices in running business internationally
Source: (Lee and Kartika, 2017)
Following the labor standards: The labor standard of the host country has to be followed by the
organizations. In the UK there are several acts of labor standards such as the national minimum
wage act 1998, the working time regulations act 1998, etc. which are concerned about the well-
being of the workers (Lee and Kartika, 2017). Similarly, every country has some labor standards
that are to be followed by the organizations properly.
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Following the labor standards
Mainataing the environmental acts
Obeying the legislations of human rights
Respecting the culture of host country
Avoiding corruption

International Management (BUS6003), Part 2
Maintaining the environmental acts: As the operations of businesses can cause impacts on the
environment, the authorities of almost all the countries have set some limitations and restrictions
which should be adhered to by the organizations (Elango, et al. 2018). For instance, the UK
government has passed several acts to protect the environment - environmental protection act
1990, control of pollution act 1970, etc.
Obeying the legislations of human rights: The legislations of human rights should be
maintained by the organizations to ensure justice with the workers and community. All the
countries have different human rights acts such as the human rights act 1998 of the UK.
Respecting the culture of the host country: The products, services, and practices of the
organizations shouldn’t be against the common values and beliefs of the host country. The
company has to show proper respect for the cultural factors and include them in its practices
(Carter, 2020). The principles of international law direct the organizations not to demean or
overlook the culture of the host country.
Avoiding corruption: Taking unethical advantages with bribing or other practices is considered
as corruption which has to be avoided by the businesses to ensure the legal standard. All the
countries have passed laws to eliminate corruption. The organizations have to know all the legal
rules and regulations before entering a new country (Oviatt and McDougall, 2019). To expand
the business in the UK, the organizations have to know about the bribery act 2010 and other anti-
corruption acts of the UK.
Conclusion
The globalization of the world has increased the opportunity for businesses to run expand in
international markets which are ensuring a high amount of income that is increasing their
sustainability. While carrying out operations in overseas locations, the expatriates face so many
difficulties that can be reduced by emphasizing success factors and adopting several strategies.
The ethically sound international policies should be maintained by the organizations to ensure
the legality of their businesses.
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International Management (BUS6003), Part 2
Reference
Carter, C.R., 2020. Ethical issues in international buyer–supplier relationships: a dyadic
examination. Journal of operations management, 18(2), pp.191-208.
Choi, S.G. and Johanson, J., 2018. Knowledge translation through expatriates in international
knowledge transfer. International Business Review, 21(6), pp.1148-1157.
Elango, B., Paul, K., Kundu, S.K. and Paudel, S.K., 2018. Organizational ethics, individual
ethics, and ethical intentions in international decision-making. Journal of Business Ethics, 97(4),
pp.543-561.
Eriksson, K., Johanson, J., Majkgård, A. and Sharma, D.D., 2017. Experiential knowledge and
cost in the internationalization process. In Knowledge, networks and power (pp. 41-63). Palgrave
Macmillan, London.
Gupta, R., Banerjee, P. and Gaur, J., 2018. Exploring the role of the spouse in expatriate failure:
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Hung-Wen, L., 2017. Factors that influence expatriate failure: An interview study. International
Journal of Management, 24(3), p.403.
Johanson, J. and Vahlne, J.E., 2018. The internationalization process of the firm—a model of
knowledge development and increasing foreign market commitments. Journal of international
business studies, 8(1), pp.23-32.
Laurent, A., 2019. The cross‐cultural puzzle of international human resource
management. Human resource management, 25(1), pp.91-102.
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Lee, L.Y. and Kartika, N., 2017. The influence of individual, family, and social capital factors on
expatriate adjustment and performance: The moderating effect of psychology contract and
organizational support. Expert Systems with Applications, 41(11), pp.5483-5494.
Martinko, M.J. and Douglas, S.C., 1999. Culture and expatriate failure: an attributtonal
explication. The International Journal of Organizational Analysis.
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Shay, J.P. and Tracey, J.B., 2017. Expatriate managers: Reasons for failure and implications for
training. The Cornell Hotel and Restaurant Administration Quarterly, 38(1), pp.4-35.
Stone, R.J., 2019. Expatriate selection and failure. Human Resource Planning, 14(1).
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