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Exhibit 10.1: Paying for the Expatriate Manager: Indices of Cost of Living Abroad

Exhibit 10.1: Paying for the Expatriate Manager: Indices of Cost of Living Abroad

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Reasons for U.S. Expatriate

Failure

•• Individual

Individual

•• Personality

Personality ofof the

the manager

manager

•• Lack

Lack ofof technical

technical proficiency

proficiency

•• No

No motivation

motivation for

for assignment

assignment

•• Family

Family

•• Spouse

Spouse or

or family

family members

members fail

fail toto adapt

adapt

•• Family

Family members

members or

or spouse

spouse do

do not

not want

want toto be

be there

there

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Reasons for U.S. Expatriate

Failure (cont.)

•• Cultural

Cultural

•• Manager

Manager fails

fails toto adapt

adapt

•• Manager

Manager fails

fails toto develop

develop relationship

relationship with

with key

key

people

people

•• Organizational

Organizational

•• Excessively

Excessively difficult

difficult responsibilities

responsibilities

•• Company

Company fails

fails toto pick

pick the

the right

right person

person

•• Company

Company fails

fails toto provide

provide the

the technical

technical support

support

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Strategic Role of Expatriate

Assignments

••

••

••

••



Helps

Helps managers

managers acquire

acquire international

international skills

skills

Helps

Helps coordinate

coordinate and

and control

control operations

operations dispersed

dispersed

activities

activities

Communication

Communication ofof local

local needs/strategic

needs/strategic information

information toto

headquarters

headquarters

In-depth

In-depth knowledge

knowledge ofof local

local markets

markets



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



International Cadre: Another

Choice

Separate

Separate group

group ofof expatriate

expatriate managers

managers who

who specialize

specialize

inin aa career

career ofof international

international assignments

assignments

•• Have

Have permanent

permanent international

international assignments

assignments

•• Move

Move from

from international

international assignments

assignments toto international

international

assignments

assignments

•• Recruited

Recruited from

from any

any country

country

•• Sent

Sent toto worldwide

worldwide locations

locations toto develop

develop cross-cultural

cross-cultural

skills

skills

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Key Success Factors for

Expatriate Assignments

••

••

••

••

••

••



Technical

Technical and

and managerial

managerial skills

skills

Personality

Personality traits

traits

Relational

Relational abilities

abilities

Family

Family situation

situation

International

International motivation

motivation

Language

Language ability

ability



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 10.2: Expatriate

Success Factors and

Selection Methods



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Priority of Success Factors

•• Assignment

Assignment length

length

•• Technical

Technical and

and professionals

professionals skills

skills are

are key

key for

for short

short

assignments

assignments

•• Cultural

Cultural similarity

similarity

•• Required

Required interaction

interaction with

with local

local people

people

•• Job

Job complexity

complexity and

and responsibility

responsibility



Copyright© 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 10.1: Paying for the Expatriate Manager: Indices of Cost of Living Abroad

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