An introduction to global business issues

International business is no longer reserved for a few large, multinational corporations. Recent international developments - passage of the North American Free Trade Agreement (NAFTA), formation of the European Union - have led to increased overseas business for more U.S. companies. This increased activity has generated new concepts, terms, practices and regulations that all human resource managers should understand, regardless of their organization's level of international involvement.

WHEN KNOWING IS ESSENTIAL

Most HR managers find themselves rudely awakened into the world of international HRM. They are required to obtain instant knowledge because of pressing problems. Imagine yourself in one of these situations:

* You are appointed to an executive committee assigned to assess the feasibility of moving production facilities to another country. High labor costs already threaten your competitive position, and union leaders say they will demand substantial increases in pay and benefits at the next contract talks. You have two weeks to evaluate the advantages and disadvantages of manufacturing in a foreign country and to recommend a location.

* You receive a phone call Friday night telling you the plant in Denmark will go on strike if negotiations with the national union fail. You must be there Monday to negotiate an agreement to keep the plant running.

* Your company has been awarded a contract to produce and distribute its products in a foreign country. But first, you must hire and train a new workforce to produce the products and a new sales force to distribute them.

* Your company wants to consolidate its manufacturing from seven plants in seven different European countries into just two. You are expected to arrange the transfers, layoffs and retirements of those involved in this restructuring.