Question

EXPLAIN THE ADVANTAGES AND DISADVANTAGES OF EMPLOYING HOME COUNTRY, HOST COUNTRY, AND THIRD COUNTRY MANAGERS.

Answer 1

DEFINITION
S.No.	Home country managers	Host country managers	Third country managers
1	Home country managers are the citizens from the country of the parent company in which it has registered and has its headquarters.	The host country manages are citizens who belong to the country on which the plant or branch of the company is located.	The third country managers do not belong to both the home country or the host country but are from a third country which maybe because of the experience or expertise in the job.
2	Example: An American national working in an Americal company located in Italy.	Example: An Italian national working in an American company located in Italy.	Example: An Indian national working in an American company located in Italy.
ADVANTAGES
S.No.	Home country managers	Host country managers	Third country managers
1	Home country managers have greater control over the organization.	The language barrier is eliminated for the host country managers.	An international perspective of business is achieved when the organization has appointed managers belonging to the third country.
2	The managers gain experience in local markets which can benefit both the individual and the organization.	The host country nationals have a better understanding of the local rules and regulations.	The managers gain experience in local markets which can benefit both the individual and the organization.
3	Has a greater understanding and implementation of business strategy.	Costs related to hiring like visa cost, traveling cost, etc., are reduced.	The hiring costs may be less expensive when compared with the home country nationals especially when the company has it’s business widespread across the world.
DISADVANTAGES
S.No.	Home country managers	Host country managers	Third country managers
1	The managers have to adapt to the new environment which may be difficult and takes time which results in lower productivity.	The host country managers may not understand the business strategies quickly and take a lot of time.	Must consider traditional national hostilities
2	Lack of cultural sensitivity may affect both the internal and external environment of the company resulting in creating a bad reputation.	May create a perception of ‘us’ versus ‘them’ that creates a barrier among the top management and the managers to create a unity in the work.	The hiring of a third-country national may demotivate the local workers which can also have a negative impact on creating a bad reputation.
3	The company has to spend on visas and other hiring costs.	The company has to spend on training	The company has to spend on visas and other hiring costs.