Question

Ome country nationals are also known as parent country nationals. They are citizens of the

country in which the multinational company has its headquarters (so an Indian working for OM's
subsidiary in Australia is a home-country national, as well as an expat).

a) Using your own understanding, provide three (3) benefits and two (2) drawbacks of hiring employee from parent country nationals.

b) Examine five (5) factors that contributes to the success or failure of an expatriates

Answer 1

The benefits of hiring parent country nationals include their knowledge and understanding of the MNC's culture, expertise and skills, and the transfer of best practices. However, there are drawbacks such as cultural differences and expensive relocation.

Step-by-step explanation:

When it comes to hiring employees, multinational companies (MNCs) often choose to hire parent country nationals, who are citizens of the country where the MNC is headquartered. There are several benefits to hiring parent country nationals:

1. Knowledge and understanding: Parent country nationals have a deep understanding of the MNC's culture, values, and business practices, which can help ensure consistency and alignment across different subsidiaries.
2. Expertise and skills: Parent country nationals often possess specialized skills and knowledge that may not be readily available in the host country. This can be particularly valuable when it comes to technical or managerial positions.
3. Transfer of best practices: Parent country nationals can serve as ambassadors for the MNC, transferring best practices and knowledge from the headquarters to the subsidiaries.

However, there are also some drawbacks to hiring parent country nationals:

• Cultural differences: Parent country nationals may face challenges in adapting to the local culture, which can affect their ability to effectively communicate and collaborate with local employees.
• Expensive relocation: Hiring and relocating parent country nationals can be costly for the MNC, as it involves expenses such as work visas, housing, and relocation assistance.