1. What are some current issues facing Russia? What is the climate for doing business in Russia today?
A few issues are facing Russia that can affect the business environment that MNC will need to be a concern about. The economic is having trouble growing with a shortage of job openings, as there is a lack of production. This is causing poverty to increase while the youth emigrate, particularly to Europe and to the United States. In fact, from 2000 to 2010, over 1.25 million Russians emigrated which is more that the number of people who left after the collapse of the Soviet Union. For the last two decades, the demographic has been of an aging population due to a decline in birth rates. On top of these issues …show more content…
What are some of the benefits of using home-country nationals in overseas operations? What are some of the benefits of using host-country nationals?
For home-country nationals, it allows consistency in corporate culture and similar management styles. If a company uses a Theory Y management style, then the environment will match the remote location with the home location. If there were not a matching style, conflict among managers would occur, as the two different management styles would not be compatible. Another benefit is that it allows the headquarters to maintain control of the remote venture with a deployed workforce that understands what the objective is and what is expected of them from the upper management back in the home country.
For having local nationals employed in a host country helps the company understand the local culture and the community surrounding the location. This is vital for customer relations and understanding what people look for in a product or service. Getting inside tips on how local, state, and nation governments behave which can reduce some unnecessary red tape delays. To keep things running smoothly, the local nationals will be able to communicate with suppliers and supervisor in their native tongue, which is important to keep an operation running …show more content…
What criteria should EI use in selecting personnel for the overseas assignment in Russia?
Earth, Inc. (EI) should make the same considerations, as any multinational company would need to consider when deploying home country nationals to a foreign country for an extended period away from their countries of origin. The persons need to be comfortable working with the language barrier, preferably, know the language, so they do not always have to be relying on a translator or other host country locals that sort of understands English. The persons need to be willing to be away from family or have a family that is willing to relocate with their spouse to a new country. This can include climate adjustment, along with culture shock, as the country to be resigning will be very different, leading to homesickness. The persons should be prepared for changing conditions as places such as Russia is far from the familiar stability of the United States. Building a new satellite for the company alone will be full of challenges and changing developments as they prototype the workflows and pipelines in a new foreign location. The persons need to be highly motivated with lots of patience, as they will work with lots of various people. People skills will be put to the test as the diverse culture and management styles are merged in a working environment. All of these variables listed inside a struggling economy. Sharing the vision and end goal with the persons will be a constant reminder to keep