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Irresponsible - and false - scaremongering on the FT's front page | 56 comments (56 topical, editorial, 0 hidden)
Re: False - but necessary scaremongering? (none / 1)
Well said slaboymni,

I think a lot of us occasionally fall back on reflex (Cold War) anti-Russian (or anti-American) responses.  It's a human failing.  As long as there are people to point out the fallacy, all's well.  Besides which it's a very easy political point for western leaders to score, and fear seems to be the political currency of choice in the UK at present.  This does not make for a well informed, rational debate about the choices that country faces, and the media are doing precisely nothing to improve the level of debate - as regularly demonstrated here.

Your comments on expats (I am one) struck a chord: how is it possible, and efficient for these pay differentials to exist?  Is local labour so completely disadvantaged in the wage bargaining process, and why does the same not apply to expats doing the same jobs?  

I will eventually get round to writing a diary on the analogous situation in Azerbaijan, where labour unrest has started to become a prominent factor in the oil extraction business.

by GreatGame2 (fishy_logic_at_yahoo.co.uk) on Tue Apr 25th, 2006 at 11:01:58 AM EST
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Re: False - but necessary scaremongering? (none / 0)
The expat bonus is (supposedly) what you need to pay people to compensate them for the inconvenience of expatriating. Which means the number of expats should be really, really small and the need for expats restricted to managing roles. Not that it's like that in reality.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Tue Apr 25th, 2006 at 11:12:42 AM EST
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Re: False - but necessary scaremongering? (none / 0)
Good points, but people described (derogatorily, unfortunately) as economic migrants do not receive a similar bonus.  
by GreatGame2 (fishy_logic_at_yahoo.co.uk) on Tue Apr 25th, 2006 at 11:37:57 AM EST
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Re: False - but necessary scaremongering? (none / 0)
Economic migrants have the least bargaining power because they are the most desperate for a job, while expats are sent abroad to fulfill the needs of the employer so they command a bonus. It's not the fact that you're abroad, but why and how you're abroad.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Tue Apr 25th, 2006 at 11:43:36 AM EST
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Re: False - but necessary scaremongering? (none / 0)
Thanks, GG2 -

I've always wondered what justification a company could possibly have to expatriate someone from the home office in the U.S. to Russia, for example.

I can't think of a single area of expertise in America that is not present in Russia, and at a lower price.

Are you in Azerbaijan?  I had two roommates in Russia.  One was from there and the other was Russian, but of Armenian heritage.  They got along great, though.

by slaboymni on Tue Apr 25th, 2006 at 11:35:31 AM EST
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Re: False - but necessary scaremongering? (none / 0)
The only thing that it makes economic sense to expatriate from the US to Russia (or any other place with an educated workforce) is managers [including engineers as project managers or for training local engineers to work with specific American technology]. Anything else I'd attribute to cultural factors.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Tue Apr 25th, 2006 at 11:46:22 AM EST
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Re: False - but necessary scaremongering? (none / 0)
I would agree about expatriating managers back in the early 90's when Russia had no managers with, for example, significant retail experience.

But now, there are many highly qualified and experienced local managers.

Besides, we all know managers don't do anything ;-)

I still cannot understand why a company that would prosecute you for stealing a $10 stapler would willingly pay someone 10x more than they would have to pay a local.

by slaboymni on Tue Apr 25th, 2006 at 11:50:48 AM EST
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Re: False - but necessary scaremongering? (none / 1)
What expatriates have which has real value is trust by the management in the head office, and knowledge, to some extent, of the politics of that office.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Tue Apr 25th, 2006 at 11:55:31 AM EST
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Re: False - but necessary scaremongering? (none / 0)
If you want to establish a new branch office or production facility it makes sense to send at least one of your own people to manage it who is familiar with your procedures. Then you can hire local managers if you need more than one manager. Or you can repatriate your expat after a few years.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Tue Apr 25th, 2006 at 11:57:00 AM EST
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Re: False - but necessary scaremongering? (none / 0)
It would seem to make more sense to recruit a local in the target country, bring them to the home country for extensive training, then send them back to the target country.  If necessary, a manager from the home country could visit on a regular basis to provide oversight/mentoring.

Being familiar with your company's procedures is absolutely useless abroad, as these procedures are based on the customs, laws, and best practices of the home country - none of which are the same in the target country.

Being an expat just seems to be a way to provide an employee with perks and compensation that would not be tolerated by shareholders in the home country.  My belief of this is reinforced by reading sites like www.expat.ru, as well as other country-specific sites.

by slaboymni on Tue Apr 25th, 2006 at 12:15:21 PM EST
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Irresponsible - and false - scaremongering on the FT's front page | 56 comments (56 topical, 0 editorial, 0 hidden)
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