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Your assignment is to prepare and submit a paper on successful domestic company goes global.

Your assignment is to prepare and submit a paper on successful domestic company goes global.

While having expatriates to manage foreign subsidiaries may have its advantages, it also has a few challenges. For instance, the assigning of certain positions to expatriates gives locals the impression that the company is not to be treated as one of their own since they have no sense of identity with the company. Lang (2003) argues that this may prove problematic for the company especially if they want to give it a local or regional appeal. As a result, the consumers may feel left out due to the absence of one of their own within management. In addition, expatriates may experience cultural shock if they are not well versed with foreign cultures, traditions and practices. The time needed for them to adopt may prove too costly for the company especially if the expatriate is experiencing difficulties adjusting. Likewise, the compensation packages required in such situations are usually high as a person requires to be paid a high salary to be in tandem with the prevailing economic conditions in the country he is relocated to. This raises the company’s expenses and eats into their profit margins. Finally, expatriates cost quite a lot of company resources which would otherwise have been allocated for other pressing undertakings (Ahlstrom & Bruton, 2009).

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