Question

A. Allowances and reimbursements for international assignments are costly. Should companies avoid international business activities? Explain your answer. If you answer no, what can companies to do minimize cost? B. Would you like to have a foreign assignment? If so what part of the world would you find acceptable? In what part of the world would you not want to receive an assignment? What do you think would be the most difficult adaptation issue involved in a foreign assignment? C. China is in the news every day now. Given recent news stories about trade wars and competition between China and the U.S., how big a threat is China to our economy?

Answer 1

A) It depends on the cost benefit analysis of such international assignements.THE COMPANY SHOULD NOT AVOID international assignments just because of the fear of Allowances and reimbursements. If the profit earned by undertaking such assignments exceed the cost of these assignments then theses should surely be undertaken. It’s not only the short term view that we should focus on. Sometimes such international assignments would prove beneficial in the long term. It helps the company to provide opportunity for growth and to diversify across several markets. in order to minimize the cost of international assignments the employees could be paid lump sum relocation to cover costs associated with travel and housing

B) China would be a good choice for an international assignment for its access to huge market place. She is no labor problem in china and it has good influence over e financial, commerce and technology industries. In terms of livelihood it is not too costly. The most difficult adaptation issue is to adapt to the culture of that foreign country

c) The trade war between china and US would affect both the economies. But since both the economies are strong enough, they would keep growing soundly unless it becomes out of control. Rather it would pose a bigger threat to global growth due to import levies on steel and aluminum. Imposition of tariffs on a broad range of Chinese imports would lift costs for American consumers.