Question

In: Economics

which of the following is an advantage of hiring parent company nationals (PCNs)?

which of the following is an advantage of hiring parent company nationals (PCNs)?

Solutions

Expert Solution

Parent Company Nationals (PCNs) are the employees whose nationality is the same as that of the firm headquarters. For Example, a French employee of a French company who is working at an Indian subsidiary.

Many organizations have traditionally relied on PCNs for staffing top management positions abroad for a number of reasons:

1. The expatriate's technical and business expertise could play major role in the business.
2. The ability to transfer the headquarters' culture to the foreign operation could be another reason for hiring PCNs.
3. There could be a possibility of better political understanding of the headquarters' organization.
4. Greater ability of expatriates to transfer know-how from the parent company to its subsidiary as effective communication can take place between the headquarters and its subsidiary.
5. Sometimes, there is a lack of qualified host country nationals (HCNs) abroad.
6. It could be a measure of personnel development, career and promotional opportunities for PCNs.
7. Rapid substitution of expatriates is possible when hiring PCNs and thus there would be no need of well-developed international internal labor market.


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