"Professor’s Office" [img]2012q1/ct_etoefm_etoeflistz_1021_20121[/img] [br] Why

Narrator: Listen to a conversation on campus between a student and a professor.
Student: Thanks for seeing me, Professor Williams.
Professor: Glad to, Alice. What do you have on your mind?
Student: Well, I got a little mixed up when l started to go over my notes from the last class, so I  Q18
   had afew questions.
Professor: Shoot.
Student: Okay. I understand the three basic sources of personnel for multinational companies.
   That’s fairly self-explanatory.
Professor: Host country, home country, and third country.
Student: Right. But then you started talking about staffing patterns that... let me see... okay
   ... you said, "staffing patterns may vary depending on the length of time that the  Q19
   multinational company has been operating," and you gave some examples, but I got
   confused and now I can’t read my notes.
Professor: Okay. Well, one pattern is to rely on home country managers to staff the key positions
   when the company opens, but gradually moving more host country nationals into upper
   managernent as the company grows.
Student: So, for example, if a French company opened a factory in Canada, then French
   management would gradually replace themselves with Canadian managers. Is that what
   you mean?
Professor: Right. I think I used that very example in class. So do you want to try to explain the
   second pattern to me?
Student: Sure. I think it’s the one where home country nationals are put in charge of the
   company if it’s located in a developed country, but in a developing country, then home
   country nationals manage the company sort of indefinitely.
Professor: Right again. And an example of that would be...  Q20
Student: ... maybe using German management for a Swiss company in Germany, but, uh, they
   might send Swiss management to provide leadership for a Swiss company in... in...
Professor: How about Zimbabwe?
Student: This is one of the confusing parts. Zimbabwe has a very old and highly developed
   culture, so...
Professor: ... but it’s still defined as a developing country because of the economic base—which
   is being developed now.
Student: Oh, okay. I guess that makes sense. Then the example of the American company with  Q21
   British management... when the company is in India... that would be a third-country
   pattern. Professor:Yes. In fact, this pattern is fairly prevalent among multinational companies in the United
   States. Many Scottish or English managers have been hired for top managernent
   positions at United States subsidiaries in the former British colonies—lndia, Jamaica, the
   West Indies, some parts of Africa...
Student: Okay. So I’ve got all the examples right now.
Professor: Anything else?
Student: Just one thing. There were some typical patterns for certain countries.
Professor: Like the last example.
Student: No. This came later in the lecture. Something about Japan and Europe.
Professor: Oh. Right. I probably said that both Japanese multinational companies and European  Q22
   companies tend to assign senior-level home country managers to overseas locations
   for their entire careers, whereas multinational companies in the United States view
   overseas assignments as temporary, so they may actually find themselves reporting to
   a senior-level manager from the host country who has more experience.
Student: So, for example, a Japanese company in the United States would most probably have
   senior-level Japanese managers with mid-level managers maybe from the United
   States. But in Japan, the senior-level Japanese managers at an American company
   would probably have mid-level American managers reporting to them?
Professor: Well, generalities are always a little tricky, but for the most part, that would be a typical
   scenario. Because living as a permanent expatriate is a career move in Japan, but a
   temporary strategy in the United States.
Student: Okay. That’s interesting.
Professor: And important for you to know as a business major with an interest in international
   business. You’re still on that track, aren’t you?
Student: I sure am. But, you know, I wasn’t thinking in terms of living abroad for my entire career.
   That really is a huge commitment, and something to ask about going in. Anyway, like
   you say, most American companies view overseas assignments as temporary. That’s
   more what I have in mind, for myself, I mean.