Reasons for organisations to risk the move abroad

Résumé du document

Companies of substantial size, which have a good establishment in their country, understand that their capacities of development will be lower in their own markets than abroad, hence drive for internationalization. On the surface, there are plenty of advantages that the move abroad holds for growing organizations: the opening of new markets, standardization of the modes of consumption, enhanced search for foreign partners, benefiting from lower costs of labour, increasing flexibility in relation to variations of demand or penetrating new markets physically and not only by exports. Lastly, internalization of human resources will become less limited which offers a solution to the problem of having to react to a steady moving geopolitical climate. Hence, in order to leave the old approaches of the French system many enterprises practise a shift towards a greater exchange of human resources between countries. Alongside this change, other adaptations are inevitable for the companies to succeed, notably legislative ones. Furthermore, social reporting procedures as well as new working methods are made us of.

Extraits

[...] More and more young candidates wishing to continue their experience abroad are being recruited by a French company but with local contracts. The status of ‘expatriate' is in the majority of cases matched with a number of certain advantages. Currently companies tend to match wages in France with the advantages related to the expatriation itself (adjustment to the local cost if living, tax advantages, housing, car, school fees). Large multinational firms employ specific ‘Compensation and benefit' managers who follow these questions. [...]

[...] Reasons for organisations to risk the move abroad Companies of substantial size, which have a good establishment in their country, understood that their capacities of development will be lower in their own markets than abroad, hence a drive for internationalisation. On the surface, there are plenty of advantages that the move abroad holds for growing organisations: The opening of new markets, standardization of the modes of consumption, enhanced search for foreign partners, benefiting from lower costs of labour, increasing flexibility in relation to variations of demand or penetrating new markets physically and not only by exports. [...]

[...] On average offers are being posted at a time connections are made established every month CVs are being sent on a monthly basis. Moreover, four other similar sites exist and many more are in the process of creation. Nevertheless, none of them concentrate of specialise on expatriation. In detail, the organisation ‘Webexpat' became a crucial help for possible candidates who are eager to find a new employment. A professional support specialized in its economic sector or a trade can be interesting if it is read by the international community. [...]

[...] Unfortunately for the firm years can go down the line before the succession is completed. Often it is the expatriate himself who engages in the search of finding a suitable successor. Nowadays in a considerable number of less developed or emerging economies the legal frame of work permits for foreigners includes the obligation for the enterprise to consider local successors. This can especially be found in the case of joint ventures or cooperation agreements between large multinational organisations and sizable local firms. [...]

[...] What are the problems for companies in relation to expatriation? Unfortunately they are faced with a paradox: On the one side they are confronted with more risk which means they are giving a very close look to safety measures of the firm. On the other side, this risk does very often not pay off which means that the company needs to undertake a risky, yet not very profitable action. In addition, as more and more high executives are sent abroad, costs for claims for minimum comfort and safety for the family rise. [...]