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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
[ Parent ]
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
[ Parent ]
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
[ Parent ]
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
[ Parent ]
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
[ Parent ]
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
[ Parent ]

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