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International Human Resources (IHRM) is the procurement, allocation, utilization, and motivation of human resources in the international arena.  With quality and conflict among the top issues for international managers, firms deal with multiculturalism, dispersion, international taxation, relocation, and foreign culture orientation in selecting and developing expatriate managers. Strategic IHRM has three orientations: The Adaptive System: seeks to imitate local HRM practices The Exportive System: that seeks to replicate the HRM system of the home country in host country, affiliates, partners, and subsidiaries The Integrative System: that seeks to emphasize global integration while permitting some local variation Firms seeking a global orientation generally start with the Board so they gain needed international insight into markets, customer demands, and country specific business issues. Firms typically start with nationals who have international experience, and then move on to foreign nationals.  Firms go through different stages in order to staff the the Multinational Enterprise’s employees: Ethnocentric Staffing. Polycentric Staffing.Regiocentric Staffing. Geocentric Staffing. Staffing issues: adjustment to corporate policies; variations in employment markets and labor policies; HCN adjusting to higher productivity requirements and finding skilled HCN. The Expatriate Workforce  Pros: frequently, locals are not ready to take the responsibility. Expatriates contribute essential knowledge and corporate history. Expatriates serve as a mechanism for performance control, and transmit corporate culture and goals. Cons: There is a disincentive to the local workforce whose promotion is blocked and who earn poor wages. Expatriates can rob a company of skill development, insight development, and initiative of locals. Expatriates also have a high risk of failure which can lead to huge costs Expatriates need three sets of skills to be successful: personal skills, people skills and perception skills. Preparation is essential to expatriate success so they need to work on several stages: Practical Information, Area studies , Cultural awareness information  Expatriate compensationSalary.Insurances.Housing.Service allowances and premiums.Tax equalization.  Repatriation  It represents a major adjustment for the expatriate. Many firms do not provide a guarantee of reassignment prior to departure, and most don’t know what their next assignment will be. Those reassigned frequently feel their employer does not make effective use of their foreign experience.  Most firms do not provide spouse career counseling or other forms of family repatriation assistance. Many expatriates leave within 1 year of repatriation.Global Strategic Alliances (GSA) They are cross-border partnerships between two or more firms from different countries with an attempt to pursue mutual interests through sharing their resources and capabilities. There are two types of GSAs:  Equity Joint Ventures (EJV): separate organizations, created by two or more parent organizations that invest financial and other resources, Cooperative Joint Ventures (CJV): contractual arrangements where profits and responsibilities are assigned through contractual agreement. CJV types: 1.Joint Exploration: non-equity alliances Joint R&D: R&D costs, rights, and profits are contractually shared.Joint production: Production stages are sharedJoint Marketing: shares marketing and distribution channels to reach a larger set of targets.Joint Supply: supply chain and inputs are shared Joint Management: cross border partners share in management functions like HR, production, organizational design, IT development, or value chain integration.When firms havedifferent strategic interests and objectives are difficult to manage. We can suffer from a loss of autonomy, property leakage, differing strategic goals or a chance that partners may become global competitors. To prevent this you should: select local partnerswhohave compatible goals, negotiate alliance contracts and structure global strategic alliances to ensure effective and representative ownership, sharing of resources, and equity distributions.What should you consider for selecting a local partner? Compatibility of GoalsComplementarily of Resources: The extent to which one party’s contributed resources is complementary to the other party’s resources, resulting in synergies pursued by both. Cooperative Culture: the extent to which each party’s corporate culture is compatible, thus leading to a more cooperative atmosphere during GSA operations. Commitment: the extent to which each party constantly and continually contributes its resources and skills to joint operations and be dedicated to enhancing joint payoff. Capability: market power, marketing competence, technological skills, relationship building, industrial experience and corporate image.Management issues of global strategic alliances:Managing inter-partner learning, Exercising managerial control, Accentuating cooperation and trust, Thinking ahead of exit ///// Inter-partner learning is sometimes an overriding intention behind GSAs, especially those in developed countries.After acquiring a partner’s knowledge, the firm must integrate it with its own knowledge base.  No firm can build a sustained competitive advantage solely on the basis of acquired knowledge.Joint payoffs from GSAs depend in part on trust-building and ongoing cooperation. Continued commitment, parent support, mutual compromise and understanding, as well as satisfactory resolution of conflicts are necessary steps toward this end.                        Country competitiveness.is the extent to which a country is capable of generating wealth, when measured against other countries, in world markets. To be competitive, governments must create and sustain a domestic and international competitive environment that favors business operations and productivity in one or more industries.Ctry Comp: Productivity is important to competitiveness. Productivity is the value of the output by a unit of labor or capital. It is the prime determinant of a country’s standard of living, and the main source of national income. Productivity depends on the quality and features of products and the efficiency with which they are produced. Productivity does not come from what a country has, but from how it uses those resources. Country Competitiveness and MNEs Nations have become influential in international business operations: government policies, national values, national culture, economic structures, economic and governmental institutions, and national histories all contribute to country competitiveness.