UN Organization Entering a New Foreign Market Discussion Responses

Module 6: Discussion R

3. After submitting your own post, respond to at least two of your peers’ posts. Your response will not limited to:

Build on the peer’s ideas: Expand upon the author’s insights by adding your own perspectives, experiences, or knowledge.
Ask clarifying questions: If there are aspects of the peer’s thread that you would like to understand better, ask thoughtful questions to seek clarification.
Relate personal experiences: Share relevant personal experiences or examples that relate to the topics discussed in the peer’s thread. How have your experiences shaped your understanding of the concepts or theories explored?
Provide additional resources: Offer recommendations for supplementary readings, articles, or other resources that can contribute to the topic under discussion.

Late Posting –  If your initial post or first two response postings are late, they will be penalized 1 point

Additional Posting – You are welcomed and encouraged to add posts beyond the minimal requirements, however, they will not be included in the grading.


Culture is one of the most important factors that influence international HRM. When an organization expands into international markets it allows them to expand sales, profits and acquire a larger consumer base. One of the main reason organizations enter international markets is to capitalize on the low labor costs of unskilled jobs reducing their overhead costs, increase revenue in attempt to gain a competitive advantage. We can see the impact of laws and treaties such as NAFTA, EU, and the growth of the global markets. Additionally with the increase in free trade across the globe there are a framework of rules and principles countries must follow to maintain control and profit internationally. This is why General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) were created to negotiate and regulate the world trade.

Our chapter has given a few key examples regarding the implications of culture in HRM. Examples included how employees in Germany expect their leader to have niche technical skills, in the Netherlands employee expected their leaders to have the ability to problem solve and balance interests. This is a clear depiction of how market is heterogenous. When entering international markets organizations must analyze and identify if they’re individualist or collectivist to strategize how they can align to the work culture and help achieve the company’s goals. However, to I believe that one of the major obstacles in HRM when entering international markets is the effects of the country’s political-legal systems, the economy and education because these all impact the workforce. Companies my adapt their HRM practices to the laws and customs of the host country which is not an easy task.

A company can be successful in their own country but fail in another. For example, when Airbnb entered the market in China back in 2015 and unfortunately, they had to pull back their operation in 2022. The root cause was the culture difference between this American company and the Chinese culture. A study showed that it was difficult to regulate the business in the foreign market and the residents were not aligned with the idea of “sharing their homes with strangers”. Airbnb has a business model that excelled in the parent country but failed the host. This is why its effective for HR to follow transnational scopes to balance uniformity with flexibility to meet the needs of employee and stakeholders in different countries.

Managing human resource procedures in a global context can provide many challenges for an organization. Most large-scale companies operate on a global scale, meaning they have to navigate barriers to ensure organizational effectiveness and uphold best business practices. Factors such as culture, legal practices, human capital, and the overall economy of an area strongly influence international areas. This means that human resource managers must work around these barriers to maximize their effectiveness as a firm. All parts of a company, domestic or international, must be on the same page with communication. While it may be hard to keep healthy communication practices with international barriers, companies should implement HRM practices that ensure a healthy flow of information.

In terms of global supply chain management, the Panama Canal is currently facing a crisis. A severe drought caused shipping speeds to slow down and even cease. Companies are finally getting over the hurdles of the COVID-19 pandemic in terms of supply chain issues, and now they are facing a new issue that may threaten their operations. Without a doubt, this issue recalls back to the notion of managing human resources in a global context. In terms of dealing with supply chain issues, managers of companies that are reliant on materials and goods from another country must navigate these barriers. The rise of global supply chain issues may force companies to rethink their manufacturing strategies. Employing a domestic manufacturing plant would ensure that transportation disruptions would not occur for important goods. Without a doubt, this chapter is relevant to the turbulent times that many companies are facing. Human resource managers must evaluate how to handle these disruptions while maintaining order for the company. It’s interesting to see how the pandemic and other obstacles will affect a company’s willingness to produce within its own region. In the end, a new trend may arise where managers realize that outsourcing goods and materials may have more cons than benefits.

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