International Staffing Policy

  1. 17.2 Explain international staffing policy.

A critical task for MNEs is to decide the ideal mix of employees in the firm’s foreign subsidiaries and affiliates. The ideal mix varies by location, industry, stage in the value chain, and availability of qualified local workers. Country laws may dictate how many employees can come from nonlocal sources.

Exhibit 17.3 shows the criteria and rationale for hiring each type of employee.6 Firms usually post PCNs abroad to take advantage of their specialized knowledge, especially in upstream value-chain operations, or to maintain local control over foreign operations. PCNs can also help develop local managers.

Exhibit 17.3

Criteria for Selecting Employees for Foreign Operations ...

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