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International HRM.docx

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MANA 298
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INTERNATIONALHRM Advantages of having Foreign workers i. Cheap First of all, foreign labour is almost always cheap. Workers and economic migrants are attracted to countries with strong economies because they can earn higher salaries than at home. This means that the host country can get a good supply of cheap labour and this will make it more competitive and increase profits. ii. Already Trained Second, foreign workers are already trained. There is no need to wait years to train them in college or on the job. This also saves a lot of money and means that projects can be completed rapidly. iii. Prepared to do any jobs Athird point is that foreign workers are prepared to do jobs that local people do not want to do, such as work in remote areas or do dangerous or dirty jobs. These often include jobs in construction or in jobs with anti-social hours such as hotels. All of these mean that companies can provide a wide range of services at lower costs. 1 Difficulties encountered by these workers in the host country i. Not loyal First of all, foreign workers may not be loyal to a company. This means they may change job often or leave the country quickly if there is a problem. ii. Lack of employment opportunities Secondly, they may create a lack of employment opportunities among locals. Employers may not want to give locals high salaries if they can employ expatriates more cheaply. iii. Lower wages Athird problem is that they lower wages for certain jobs. Jobs which are attractive in some countries such as construction become very lowly paid if they employ mostly foreign workers. These factors may cause serious problems and imbalances in the host economy, such as too many locals in the government or public sector. iv. Treated badly Foreign workers may be abused and treated as second-class citizens by the governments and/or lack of unions to assert worker rights v. Work permit Difficulties in obtaining a work permit, even in countries where there are labour supply shortages. vi. Chances of acquiring the citizenship of host countries Citizenship determines more favourable conditions in access to several skilled occupations, such as public sector employment, the professions and business activity. vii. Discrimination It can arise from the freedom of employers in a market economy to decide whom they want to hire, whom they want to promote, and how they want to organize the work. viii. Exploitation Migrants may be exploited. 2 In conclusion, it’s a difficult balance between finding workers at the right price and developing a strong and diversified economy with good employment opportunities for all. Countries have to decide between protecting their own workforce and creating a competitive environment for business. Expatriate An expatriate is any person living in a different country from where they are a citizen. Problems with expatriate • Family Stress They need to spend a lot of time at work since they
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