BUS 432 Chapter 4: Chapter 4 Readings

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A: why firms transfer practices (page 69) Market motives: refer to the idea that the transfer of practices is seen as a means to enhance the efficiency of the organization by sharing best practices throughout the organization. This is based on the idea that organizations need to develop an integrated network of subunits that share expertise and knowledge with each other in order to survive in an internationally competitive environment. Cultural motives: involve the influence that national culture has on the mne by encouraging it to take aspects of the national culture with it as it expands internationally. Political motives: involve any number of organizational actors who, in order to advance their own interest or gain legitimacy, initiate the transfer of practices: factors influencing transfer of hr practices (page 71) The reason why some countries may use country of origin practices is because those mnes are not as multinational as their name implies.

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