Page 112 - Business Principles and Management

Chapter 4 • International Environment of Business

business globally, they employ more and more people from various backgrounds
and countries. However, although working several years overseas may promote facts
workers’ careers in many companies, it may hurt their careers in others. Workers &
abroad lose close contact with people and developments in the parent firm.
Today, both businesses and government agencies recruit extensively for jobs figures
that require skills useful for international business. These include not only knowl-
edge of business but also foreign-language ability, familiarity with foreign coun-
tries, and being comfortable with and in a foreign culture. Many colleges and Americans vote with their
universities provide coursework and academic degrees in international business. dollars. In a free-market system,
Many offer programs that allow students to do part of their studies in a foreign customers are free to buy what-
country or even in a foreign company. ever goods and services they
want. For many Americans, this
means buying foreign products
EMPLOYMENT OF INTERNATIONAL MANAGERS that are perceived as cheaper
and/or of higher quality. Ameri-
Firms need managers who can work successfully in a wide variety of countries. cans will buy domestic products
Such managers adapt readily to other cultures and are competent, socially flexible, if they offer a greater value
and receptive to new ideas. Managers benefit from knowing the foreign language than imported products, or
and from having strong self-confidence, a motivation to live abroad, and a skill they can vote to pay more for
for innovative problem solving. domestic products.
During the start-up phase of foreign operations, firms tend to rely on man-
agers sent from headquarters. However, most managers are citizens of the host
country where the business is situated. Occasionally, businesses hire citizens of
other countries (neither the home nor the host countries) because they are excep-
tionally qualified or because host country managers are not available. Sending
managers abroad is expensive, because companies must provide extra benefits
(such as housing, airfare for families, and cost-of-living allowances). Managers
sent to a country that is culturally different from their own may experience cul-
ture shock. Many firms provide cross-cultural training to managers before send-
ing them abroad.

PHOTO: © GETTY IMAGES/PHOTODISC. Jobs in international business

take many forms. What kinds
of international careers appeal
to you?

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