Mondy hrm12 inppt14
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The document discusses several topics relating to global human resource management. It begins by describing laws prohibiting bribery of foreign officials and cases where large companies were fined for paying bribes. It then covers the evolution of global business models from exporting to multinational and transnational corporations. The rest of the document addresses global staffing approaches, developing expatriates, compensation, labor relations, trade agreements, and legal/political considerations for global human resource management.
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Mondy hrm12 inppt14
- 1. Human Resource Management 12th Edition Chapter 14 Global Human Resource Management Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-1
- 2. HRM in Action: Getting Tougher to Bribe in the International Arena • Foreign Corrupt Practices Act prohibits U.S. firms from bribing foreign officials. • 43% reported that they had lost business because a competitor had paid a bribe. • Conducting business globally exposes companies in the U.S. and other countries to an environment that permits bribery. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-2
- 3. HRM in Action: Global Bribery (Cont.) • Attacks of 9/11/2001 caused authorities to take much closer look at financial data as they searched for terrorists' funds. – Found bribery corruption in the process • Siemens agreed to pay $1.6 billion to settle enforcement actions. • Lucent recently paid multimillion-dollar fine. • Baker Hughes paid $44 million in penalties. • KBR and Halliburton fined $579 million over bribes. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-3
- 4. Evolution of Global Business • Not long ago, Mercedes-Benz was still a German company, General Electric was American, and Sony was Japanese. • Many United States firms, such as Coca-Cola, Procter & Gamble, and Texas Instruments, do most of their business and employ most of their workers outside the U.S. • Many non-U.S. companies make products here; for example, Toyota American makes cars in Kentucky. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-4
- 5. Evolution of Global Business • Exporting: Selling abroad retaining foreign agents and distributors • Licensing: Organization grants foreign firm right to use intellectual property • Franchising: Parent company grants another firm right to do business in prescribed manner Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-5
- 6. Evolution of Global Business (cont.) • Multinational corporation: Firm based in one country that produces goods or provides services in one or more foreign countries • Global corporation: Corporate units in countries are integrated to operate as one organization worldwide • Transnational corporation: Moves work to places with talent to handle the job and time to do it at right cost Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-6
- 7. Global Professional in Human Resources • New certification for HRCI • Focuses on: – Strategic HR management – Global talent acquisition and mobility – Global compensation and benefits – Organizational effectiveness – Talent development – Workforce relations – Risk management Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-7
- 8. Global Human Resource Management • Functional areas similar to domestic HR • Manner in which they are implemented may differ Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-8
- 9. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-9 Environment of Global Human Resource Management 1 Human Resource Managemen t Other Functional Areas OperationsMarketing Finance LegalConsiderationsEconomy Technology Society Shareholders Unions Customers Competition Labor Market Hum an Resource Developm ent Compensation Staffing Employeeand LaborRelations Safety and Health INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT UNITED STATES GLOBAL ENVIRONMENT Unanticipated Events PoliticalParties
- 10. Global Staffing • Types of global staff members • Approaches to global staffing Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-10
- 11. Types of Global Staff Members • Expatriate: Employee working in firm who is not a citizen of country in which firm is located, but a citizen of country where organization is headquartered • Host-country national: Employee’s nationality same as location of subsidiary • Third-country national: Citizen of one country, working in second country, and employed by organization headquartered in third country Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-11
- 12. Approaches to Global Staffing • Ethnocentric staffing: Primarily hiring expatriates for higher-level foreign positions • Polycentric staffing: More host- country nationals are used throughout the organization, from top to bottom Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-12
- 13. Approaches to Global Staffing (cont.) • Regiocentric staffing: Regional groups of subsidiaries reflect organization’s strategy and structure work as a unit • Geocentric staffing: Using worldwide integrated business strategy to hire the best person for the job Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-13
- 14. Selecting Expatriates Four distinct stages: 1. Self-selection 2. Creating a candidate pool 3. Technical skills assessment 4. Making a mutual decision Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-14
- 15. Background Investigation • Conducting background investigations in other countries is equally, or more, important than in U.S. • Differences across cultures and countries often create barriers. • Each country has own laws, customs, and procedures for background screenings. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-15
- 16. Cyberwork in the Global Environment • Can communicate throughout the world virtually instantaneously. • Creates possibility of a never-ending workday. • Smart phones make a worker available for work 24 hours a day. • Some workers believe that their employer wants them available 24/7. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-16
- 17. Global Human Resource Development • Pre-move orientation and training • Continual development: Online assistance and training • Repatriation orientation and training Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-17
- 18. Expatriate Preparation and Development Program Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-18 Expatriate Preparation and Development Prior to Departure: Orientation and Training During Assignment: Continual Development Near Completion: Repatriation Orientation Training Language Culture History Local Customs Living Conditions Expanding Skills Career Planning Home-Country Development U.S. Lifestyle U.S. Workplace U.S. Employees
- 19. Global E-Learning • Globalization has created special need for e-learning. • Challenges for global e-learning implementation include language and localization issues. • Companies that want to offer courses in several languages usually turn to translators. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-19
- 20. Virtual Teams in Global Environment • Necessity of everyday working life • Enable companies to accomplish things more quickly and efficiently Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-20
- 21. Difficulties that Virtual Teams Confront • Do not feel as connected or committed to team • Communication problems directly proportional to number of time zones separating them • Language and culture problems Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-21
- 22. Compensation for Host-Country Nationals • Organizations should think globally but act locally. • Compensation is normally slightly above prevailing wage rates in the area. • Variations in laws, living costs, tax policies, and other factors must be considered. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-22
- 23. Compensation for Host-Country Nationals (cont.) Factors to consider: –Minimum wage requirements –Working time information such as annual holidays and vacation time and pay –Hiring and termination rules –Regulations covering severance practices Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-23
- 24. Compensation for Host-Country Nationals (cont.) • Culture often plays a part. • North American practices encourage individualism and high performance. • Continental European programs typically emphasize social responsibility. • Traditional Japanese approach considers age and company service as primary determinants of compensation. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-24
- 25. Expatriate Compensation • Largest expatriate costs include overall remuneration, housing, cost-of-living allowances, and physical relocation. • U.S. citizens living overseas can exclude up to $91,400 of income earned abroad. • Additional challenges in the last few years include devaluation of the U.S. dollar. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-25
- 26. Global Safety and Health • Employees who work in safe environment and enjoy good health more likely to be productive and yield long-term benefits to organization. • U.S.-based global operations are often safer and healthier than host-country operations, but not as safe as similar operations in U.S. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-26
- 27. Global Safety Programs • Global companies continue to face global safety risks. • Bhopal Disaster of 1984 was the worst industrial disaster in history. • Companies have discovered that the way they treat their workers anywhere on the planet can pose a risk to their corporate reputation. • It is easier to teach someone the company global standards than the local mores. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-27
- 28. Global Employees and Labor Relations Strength and nature of unions differ from country to country, with unions ranging from nonexistent to relatively strong. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-28
- 29. Global Employees and Labor Relations in European Countries • Codetermination: Requiring firms to have union or worker representatives on their boards of directors, is very common. • Laws make it hard to fire workers, so companies are reluctant to hire. • Generous and lengthy unemployment benefits can discourage jobless from seeking new work. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-29
- 30. Global Employees and Labor Relations in South American Countries • In countries such as Chile, collective bargaining for textile workers, miners, and carpenters is prohibited. • Unions are generally allowed only in companies of 25 workers or more. • This practice has encouraged businesses to split into small companies to avoid collective bargaining. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-30
- 31. North American Free Trade Agreement (NAFTA) • Between Canada, Mexico, and United States • Facilitated movement of goods across boundaries within North America • Free-trade zone of over 400 million people • Combined gross domestic profit of about $12 trillion Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-31
- 32. Central American Free Trade Agreement • Ratified after long political battle, and signed into law in 2005 • Could provide huge economic boost for region Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-32
- 33. Legal and Political Factors The nature and stability of legal and political systems vary throughout the world. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-33
- 34. Legal and Political Factors (cont.) • Legal and political forces are unique to each country, and sometimes laws of one country contradict those of another. • HR regulations and laws vary greatly among countries. • “Does operating under local laws and customs free a company of all ethical considerations?” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-34
- 35. Tariffs and Quotas • Tariffs: Taxes collected on goods shipped across national boundaries • Quotas: Limits on the number or value of goods imported across national boundaries Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-35
- 36. Global EEO and Sexual Harassment • Women currently make up nearly 25% of expatriates. • Gains in female expatriate participation rates have not been equally distributed worldwide. • A disproportionate number of cross-cultural sexual harassment complaints involve perpetrators and victims from different ethnic, racial, or national origin groups. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-36
- 37. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 14-37 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Editor's Notes
- The United States is rigorously enforcing the Foreign Corrupt Practices Act, which prohibits U.S. firms from bribing foreign officials. However, countries other than the United States face far fewer constraints when dealing with bribery. Not having the ability to use bribery as a tool of doing business has been costly for American companies. In one survey, 43 percent of the companies surveyed reported that they had lost new business in the last five years because of bribery practices used by competitors.
- The number of convictions under the Foreign Corrupt Practices Act continues to grow. Some notable examples include the following: Siemens agreed to pay $1.6 billion to settle enforcement actions in Germany and the United States, implicating parties as high up as the CFO and the managing board. Lucent recently paid a multimillion-dollar fine for “training” trips it had arranged for executives from state-owned firms that involved visits to Las Vegas and Orlando, rather than to factories. Baker Hughes paid $44 million in penalties to settle charges of bribery in Kazakhstan. In 2009, KBR and Halliburton were fined $579 million over bribes paid to obtain contracts in Nigeria.
- Not long ago, Mercedes-Benz was still a “German” company, General Electric was “American,” and Sony was “Japanese,” but today these companies are truly global. Now, U.S. firms, such as Coca-Cola, Procter & Gamble, and Texas Instruments, do most of their business and employ most of their workers outside the United States. Today, globalization is not limited to large organizations—it is now an inevitable and important factor for most firms.
- Most companies initially become global by exporting, licensing, or franchising. Exporting entails selling abroad, either directly or indirectly, through foreign agents and distributors. It is the way that many small businesses enter the global market. Licensing is an arrangement whereby an organization grants a foreign firm the right to use intellectual property, such as patents, copyrights, manufacturing processes, or trade names, for a specific period of time. Franchising is an option whereby the parent company grants another firm the right to do business in a prescribed manner. Franchisees must follow stricter operational guidelines than do licensees. Franchising is popular with service firms, such as restaurants and hotels.
- A multinational corporation is based in a home (or parent) country and produces goods or services in one or more foreign (or host) countries. Many firms have evolved from being multinational to becoming global corporations, organizations that have corporate units in a number of countries that are integrated to operate as one organization worldwide. A transnational corporation goes one step further and moves the work to the places with the talent to do the job most cost effectively.
- The importance of human resource management in the global environment is illustrated by the fact that the Human Resource Certification Institute now has an international component. Their Global Professional in Human Resources certification focuses specifically on strategic HR management issues relevant to global and multinational organizations.
- While the functional areas associated with effective global human resource management may be similar to domestic HR issues, the manner in which they are implemented may differ significantly. As with domestic human resources, the functional areas are not separate and distinct, but are highly interrelated.
- The functional areas associated with effective global human resource management are shown in this figure, and an extra layer has been added to represent the added complexity of the global environment.
- Before the staffing process for an international assignment begins, a thorough understanding of what is involved in the job should be developed through job analysis. A global organization must systematically match the internal and external supply of applicants with anticipated job openings in the organization over a specified period of time. Individuals should be recruited and selected based on the specific qualifications identified. Without proper identification of the qualities needed for an overseas assignment, an outstanding worker in the United States may fail on a global assignment.
- An expatriate (or expat) is an employee who is not a citizen of the country in which the firm’s operations are located, but is a citizen of the country in which the organization is headquartered. The U.S. expat population has grown rapidly, mainly because of the large numbers of workers who are being sent to China and India. A host-country national is an employee who is a citizen of the country where the subsidiary is located. An example would be a U.S. citizen working for a Japanese company in the United States. Normally, the bulk of employees in international offices are host-country nationals. A third-country national is a citizen of one country, working in a second country, and employed by an organization headquartered in a third country. An example would be an Italian citizen working for a French company in Germany.
- With ethnocentric staffing, companies primarily hire expats to staff higher-level foreign positions. This strategy assumes that home-office perspectives and issues should take precedence over local perspectives and issues, and that expats will be more effective in representing the views of the home office. When host-country nationals are used throughout the organization, from top to bottom, it is referred to as polycentric staffing. The rationale for using this model is that host-country nationals are better equipped to deal with local market conditions.
- Regiocentric staffing is similar to the polycentric approach, but regional groups of subsidiaries reflect the organization’s strategy and structure work as a unit. Geocentric staffing is a staffing approach that uses a worldwide integrated business strategy. The firm attempts to always hire the best person available for a position, regardless of where that individual comes from. The geocentric staffing model is the most complex and likely to be used only by truly global firms.
- Expats are often selected from those already working within the organization, using a process with four stages: 1.In self-selection, candidates determine whether they are right for a global assignment, whether their spouses and children are interested in relocating internationally, and whether this is the best time for a move. 2.The next stage involves creating a candidate database organized according to the firm’s staffing needs. Included in the database is information such as availability, languages spoken, country preferences, and the jobs for which the employee is qualified. 3.Stage three involves assessing the technical and managerial readiness of all the potential candidates for the assignment. 4.In the final stage, one person is identified and is tentatively selected.
- Conducting background investigations when working in the global environment is equally, or more, important than in the U.S., but differences across cultures and countries often create barriers. Each country has its own laws, customs, and procedures for background screenings. For instance, the United Kingdom does not allow third parties to have direct access to criminal records held by local police. Instead, the job applicant and the recruiting organization must sign and submit a formal request, and it can take up to 40 business days to get information.
- Smart Phones, email, and around-the-clock computer access create endless possibilities for instant work communication. This technology has now created the potential for cyberwork, which is a real asset to employees in the global workforce, but it has also raised the possibility of a never-ending workday. Some workers believe that their employer wants them available 24/7 and that they can’t turn off their communication devices without it being detrimental to their career. Balancing the needs of the employee and the company will likely be an important HR challenge for many years to come as new technologies emerge.
- Many U.S. businesses operate under the assumption that American ways and business practices are standard across the globe. Unfortunately, nothing could be further from the truth. Global training and development for expats is necessary because people, jobs, cultures, and organizations are different in every country.
- Pre-move orientation and training of expatriate employees and their families are essential before a global assignment begins. The orientation needs to be rigorous and thorough enough so that the expat understands cultural dos and don’ts and is immersed in the language. Merely providing a cultural “dummies” guide and a basic phrasebook for speaking won’t be enough. Next, relevant local and virtual support need to be provided for the duration of the assignment. Finally, orientation and training are also necessary prior to repatriation, which is the process of bringing expats home.
- Globalization has created a special need for e-learning, and companies are embracing it to train the global workforce. In the past, a training program in the Far East for a U.S.-based company would likely cost between $250,000 and $500,000 for travel and related expenses. Many believe that live, instructor-led training is still more effective, but the question that must be asked is how much more effective it is. E-learning often allows companies to save money and still receive a good training product. The most obvious challenge for any global e-learning implementation is failure to recognize the impact of cultural differences on the programs’ success. Developing programs in partnership with locals is one of the best ways to ensure that the programs are relevant culturally and meet the firm’s needs.
- Virtual teams are becoming commonplace in many organizations. Intel Corporation recently conducted a study that revealed that approximately two-thirds of its employees collaborated with team members located at different sites and in different regions. With virtual teams, team members do not have to meet face-to-face to work, thereby eliminating “dead time” caused by traveling. These teams operate across boundaries of time and geography and enable companies to accomplish things more quickly and efficiently. However, global teams can be more difficult to manage effectively because they rarely come together for face-to-face sessions. Communication and trust are the keys to keeping virtual teams cohesive and working effectively together.
- Dispersed team members often do not feel as connected or committed to the team as they would to a team that was not dispersed. There may be a feeling of disconnect caused by communicating primarily through email, instant messaging, and audio conferencing. Communication problems among team members increase with the number of time zones that separate them. If their workdays overlap enough to allow phone calls, it is more manageable. If the workdays do not overlap at all, then they must rely exclusively on email and voice mail. Finally, there are language and culture problems. Those for whom English is a second language may be at a disadvantage. In addition, many Asians are concerned with saving face if they do not understand something. They may be hesitant to ask questions that would reveal their ignorance, thus widening the communication gap.
- Certainly, in compensation-related matters, organizations should think globally but act locally. One reason that organizations relocate to other areas of the world is to increase their ability to compete on a global basis. Globally, the question of what constitutes a fair day’s pay is not as complicated as it is in the United States; normally, compensation is slightly above the prevailing wage rates in the area. However, variations in laws, living costs, tax policies, and other factors must be considered when a company is establishing global compensation packages.
- In order to establish appropriate compensation practices in each country, an organization will want to get a precise picture of local employment and working conditions. Some of the factors that should be considered include: minimum wage requirements; working-time information such as holidays, vacation time, standard working hours, probation periods, and overtime regulations; and hiring and termination regulations.
- Culture often plays a part in determining compensation as well. North American compensation practices encourage individualism and high performance, whereas European programs typically emphasize social responsibility. The traditional Japanese approach considers age and company service as primary determinants of compensation. The bottom line is that there is no “one” universal compensation philosophy that can address all of these cultural variables equally.
- For expatriate managers, the situation is more complex than simply paying above local host-country compensation rates. The largest expat costs for a company include overall pay, housing, cost-of-living allowances, and physical relocation. One tangible benefit of expat compensation is that U.S. citizens living overseas can exclude up to $91,400 of gross income earned abroad from taxation in the U.S. In the past few years, additional challenges have hit companies as they have attempted to go global. The devaluation of the U.S. dollar and changes in tax codes have had major impacts on expat compensation. Meeting these challenges will affect how effectively the United States competes in the global market.
- U.S.-based global operations are often safer and healthier than host-country operations, but frequently not as safe as similar operations in the United States. Safety and health laws and regulations often vary greatly from country to country. Such laws can range from virtually nonexistent to as stringent as those in the United States.
- Global companies continue to face global safety risks. The worst industrial disaster in history was the 1984 disaster at Union Carbide’s Bhopal, India pesticide plant; this accident released tons of toxic chemicals and killed thousands of people. The Bhopal Disaster led many global companies to revaluate their operations and change to a “single safety management system” that applies to all their operations throughout the world. Companies have found that it can be difficult to find the right people with safety and health expertise in the host countries to operate these programs; however, most find it is easier to train locals in proper safety techniques than to try and teach expats the local customs and values.
- Obviously, the strength and nature of unions differ from country to country, with unions ranging from nonexistent to relatively strong. In fact, unionism in private companies is a declining phenomenon in nearly all developed countries.
- Codetermination, which requires firms to have union or worker representatives on their boards of directors, is very common in European countries. Even though they face global competition, unions in European countries have resisted changing their laws and removing government protections. Laws make it difficult to fire workers, so companies are reluctant to hire. A recent example is that Motorola had to pay $83 million in severance fees for jobs cut in Germany. In addition, wage bargaining remains centralized, and companies have little flexibility to create contracts that fit their needs.
- In some South American countries, such as Chile, collective bargaining for many workers is actually prohibited. Unions are generally allowed only in companies of 25 workers or more. This practice has encouraged businesses to split into small, separate companies to avoid collective bargaining, leaving workers on their own.
- The North American Free Trade Agreement (or NAFTA) is an agreement between Canada, Mexico, and the United States that has facilitated the movement of goods in North America. Although no agreement is perfect, NAFTA has opened markets and established a record of growth and success that could prove key to strong future growth. It forms a free-trade zone of over 400 million people with a combined gross domestic profit of about $12 trillion dollars. Labor relations also took a major step forward, as NAFTA established a Commission for Labor Cooperation, governed by a council of labor ministers from Canada, Mexico, and the United States. This agreement protects workers in all three countries from the effects of competitive economic pressures.
- CAFTA, the Central American Free Trade Agreement, was signed into law in 2005. If increases like those that occurred in Mexico in the wake of NAFTA take place, it would provide a huge economic boost for a region whose infrastructure remains relatively undeveloped. However, there are those who believe that CAFTA has failed to live up to expectations. For example, there are claims of fraud from textile executives who are calling on Congress and the Administration to overhaul the textile enforcement division of U.S. Customs and Border Protection and to crack down on what they claim are soaring levels of fraud.
- The growing complexity of legal compliance in the global environment is one of the most important trends affecting global business. Managers working for global businesses have to contend with a growing tide of employment legislation that cuts across national boundaries.
- Legal and political forces are unique to each country, and sometimes the laws of one country contradict those of another. Further, the nature and stability of political and legal systems vary around the world. U.S. firms enjoy relatively stable legal and political systems, and the same is true in many of the developed countries. In other nations, however, the legal and political systems are much less stable. Legal systems can sometimes become unstable unexpectedly, with contracts suddenly becoming unenforceable because of internal politics. Not surprisingly, HR regulations and laws vary greatly among countries. In many Western European countries, laws on labor unions and employment make it difficult to lay off employees. Because of political and legal differences, it is essential that a comprehensive review of the political and legal environment of the host country be conducted before beginning global operations. Some have asked the question, “Does operating under local laws and customs free a company of all ethical considerations?” For example, Yahoo! said it was obeying Chinese law when it turned an email from a private email account over to the Chinese government. The email revealed the identity of an individual, leading to a conviction and 10-year prison sentence for something not illegal in the U.S. These types of ethical questions clearly transcend national boundaries, but getting consensus on what it means to be ethical in business remains elusive.
- Tariffs are taxes collected on goods that are shipped across national boundaries. For example, in 2005, Mexico imposed tariffs of $21 million in three U.S. export categories, including a 30 percent duty on dairy products, a 20 percent duty on wine, and a 9 percent duty on candy. Recently, the United States ordered an additional tariff of 35 percent on Chinese tires on top of the 4 percent tariff the U.S. traditionally levies. Quotas are policies that limit the number or value of goods that can be imported across national boundaries. For example, the amount of textiles that can be imported to the United States is often limited by quotas.
- Women currently make up almost 25 percent of expatriates, which is up from 14 percent not long ago. Unfortunately, these gains have not been equally distributed worldwide. Gender gaps still exist in the Middle East, South Asia, and sub-Saharan Africa. There are some countries in which the sexist culture is so ingrained that women have extreme difficulty participating on equal footing in the workforce. In fact, there are some cultures today that will not accept a woman as a boss. A disproportionate number of cross-cultural sexual harassment complaints involve perpetrators and victims from different ethnic, racial, or national origin groups. Some behaviors that violate U.S. cultural norms may not be perceived as problems in another culture. For example, in many Mediterranean and Latin countries, physical contact and sensuality are a common part of socializing.