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Advantages
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Disadvantages
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Parent-company nationals
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Knows headquarters goals, objectives, practices,
people
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Not familiar with local language and situation
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Proven competence
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High cost of selecting, training, maintaining
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Easy communication with headquarter
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Less career opportunities for local managers
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Easy to control from headquarter
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Private problems, adjustment for family
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Host country nationals
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Familiar with local situation and language
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Not very familiar with headquarters goals, objectives,
practices, people
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In many cases lower costs
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Difficult to control from headquarter, may have local
obligations
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Prove of commitment for local society
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Difficult communication with headquarter
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No resistance against localization of other staff
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No chance for parent-company nationals to gain cross-culture
experience
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Third country nationals
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Often proven competence from former posting for same
company
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All problems as two other groups mentioned above,
albeit in a smaller degree
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Experience in cross-culture communication
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Sensitivities towards nationals of specific countries
may exist
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Career-orientated manager
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May have prior experience in the region
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Bridge/hinge function between parent and local company
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