The environments within which international business is carried out in the first decade of the new millenium is increasingly competitive.

• The technological environment is such that technology supremacy is fleeting and since it does not last long - cannot be considered a strong advantage of a company.
• The economic environment is effected by too many uncontrollable factors which means a stable economic situation is less certain. The economy can be effected negatively by things which large companies and federal governments have no control over.
• The political environment responds to the socio-cultural environment - which in many countries, is undergoing the stresses of large immigration movements and cultural and religious frictions. Very few regions of the world are free of conflict so no place has a distinctively advantageous political environment
• The geographic environment, long affected by rampant pollution, deforestation, greenhouses gases from autos and factories, acid rain from coal fired generators, declining water reserves etc. etc. has seen a bit of Mother Nature fighting back in 2003-2008 with some spectacular events such as a massive tidal wave, numerous destructive tornadoes, larger and more frequent hurricanes, volcanoes, mudslides, sandstorms, drought and crop failures an so on. As a consequence of the changes to and changes by the geographic environment, almost everyplace on the planet has had to endure weather that has negatively effected business and agricultural productivity.

Therefore one of the key things for companies in the "new new" economy is to focus on the people in the company, and the customers they serve - ergo, Human Resource Management has become a "big issue" for international business.

WTGR

Bovaird explains that for economies where the majority of the business is the provision of services, "the one single key differentiator for corporations over the next generation or two will the ability to attract and retain clever, innovative, flexible, willing, intelligent people - people will be the outstanding resource which will make the west succeed"

since companies are more and more challenged to cut expenses, and the # 1 expense cut is staff cuts - meaning, more productivity out of fewer people.

The way to get more productivity is partly by enhancing morale.

WTGR

simply defined as a citizen of one country working abroad in another country

Another slang expression often used is "the expat community" to describe a group of foreign country nationals, most often educated executives with good jobs, benefits and privelages, who can sometimes be seen by the local population as behaving in a way that is "elite".

• Ethnocentric Staffing Policy
• when the company sends people from the country of the home company, overseas
• all senior managers are people who are "parent-company nationals"
• eg. a Korean company operating in Canada like Hankook Tires, all executives are Koreans from Korea
• not such a popular policy among large multi-nationals in Y2K and beyond
• can lead to resentment among motivated and educated local managers
• can effect high staff turnover among junior managers
• Polycentric Staffing Policy
• when the company allows local staff to rise to the executive level and be managers
• like Doug Wilson, President and C.O.O. of SONY Canada
• host country managers less likely to make mistakes arising from cultural understandings
• cheaper than expatriate managers
• negatives - creates a gap between head office and regional offices
• Geocentric Staffing Policy
• when the company uses staff in foreign operations - no matter what country they come from
• expensive to implement
• inreased training and relocation costs

Things that make it difficult for companies to manage Human Resources situations in other countries.

    o Compensation varies
    o Labour Laws
    o Social-Cultural Environment

• effects Canadian managers operating Canadian companies overseas
• effects Canadian managers operating in large "multi-cultural" cities in Canada
• effects Foreign Company managers operating Foreign Companiesin Canada

• Canadian managers of "european background"
• Canadian managers who's background matches the region in which the company operates
• eg. Canadian IT company using Chinese-Canadian managers in China

• Canadian managers of "european background"
• trying to deal with employees of non-Northern European background - "Managing Diversity"
• eg. Canadian Bank Vice Presidents dealing with branch managers from a "blended" community
• American example of how hotel executives deal with Spanish employees
•  http://www.4hoteliers.com/4hots_fshw.php?mwi=2674 
• which bring to mind our list
•  http://www.witiger.com/marketing/cultures.htm 

• Canadian managers who's background matches the workers in the company
• eg. Canadian ISP company using Canadian-Desi for call centre employees from from India, Pakistan, Bagladesh and Sri Lanka

• Foreign Company managers using English to manage Canadians of European Background
• Foreign Company managers communicating and managing employees in Canada, who do not have English as a first language
• eg. Japanese auto executives managing employes of South-Asian heritage

"Programs or corporate environments that value multiculturalism must answer hard questions about managing diversity."

Promoting Diversity
- equal treatment ?
- or differential treatment? 

Antidiscrimination laws in Canada and other OECD countries require that employers do not treat applicants for jobs, and employees, differently.

Treating people "equally" can be both a positive and negative for ethnic minorities and those who laud and "celebrate diversity".

For example - If we treated people "equally", we'd have just one written drivers test - in English

"On the other hand, treating people differently often creates resentment and erodes morale with perceptions of preferential treatment."

Some employees resent other employees who gets special consideration for holidays, or prayer times, or special food considerations.

"Other questions to be answered are: Will the company emphasize commonalities or differences in facilitating a multicultural environment? Should the successful diverse workplace recognize differentiated applicants as equals or some as unequals? How does the company achieve candor in breaking down stereotypes and insensitivity towards women and minority groups?"

How do you make decisions about managing situations where it might be considered "favourtism" to make allowances or considerations for a special category of "diversity"?

• If 9 students in a class of 35 ask for the exam to be on a different day 

- do you?
• What if it is 4, how about 2?

There are a number of good articles available herein which would be useful for you to read.