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Figure 15.1
MARKET VALUE
(BILLIONS OF U.S. DOLLARS)
Source: Chester Dawson, “The Global 1000,” Business Week, July 14, 2003, 34.
Copyright © 2008 by Nelson, a division of Thomson Canada Ltd. 15–7
Top International Companies (cont’d)
SALES
(BILLIONS OF U.S. DOLLARS)
Source: Chester Dawson, “The Global 1000,” Business Week, July 14, 2003, 34.
Copyright © 2008 by Nelson, a division of Thomson Canada Ltd. 15–8
Top International Companies (cont’d)
PROFITS
(BILLIONS OF U.S. DOLLARS)
1. Citigroup $15.32
2. General Electric 15.13
3. Altria Group 11.10
4. ExxonMobil 11.01
5. Royal Dutch/Shell 9.42
6. Bank of America 9.25
7. Pfizer 9.18
8. Wal-Mart Stores 8.04
9. Toyota Motor 7.90
10. Microsoft 7.83 Figure 15.2
Source: Chester Dawson, “The Global 1000,” Business Week, July 14, 2003, 34.
Copyright © 2008 by Nelson, a division of Thomson Canada Ltd. 15–9
How International Companies Affect the
World Economy
• Their production and distribution extend beyond
national boundaries, making it easier to transfer
technology.
• They have direct investments in many countries,
affecting the balance of payments.
• They have a political impact that leads to
cooperation among countries and to the
breaking down of barriers of nationalism.
Figure 15.3
Figure 15.4
Highlights 15.4
Figure 15.6
Figure 15.7
• Family adjustment
• Lifestyle issues
• Work adjustment
• Bad selection
• Poor performance
• Other opportunities arise
• Business reasons
• Repatriation issues
Figure 15.8
Figure 15.11
Source: Steven Gross and Per Wingerup, “Global Pay? Maybe Not Yet!”
Compensation and Benefits Review 31, no. 4 (July/August 1999): 25–34.
Copyright © 2008 by Nelson, a division of Thomson Canada Ltd. 15–32
Compensation of Host-Country Employees
• Hourly wages vary dramatically from country to
country.
• Pay periods are different.
• Seniority may be an important factor.
• High pay rates can upset local compensation
practices.
• Bonuses, profit-sharing, benefits and paid leave
may be more extensive and legally required.
Norway 31.55
Germany (former West) 31.25
Switzerland 27.87
Belgium 27.73
Sweden 25.18
United States 21.97
France 21.13
Britain 20.37
Japan 20.09
Australia 20.05
Canada 19.28
Italy 18.35
Spain 14.96
Israel 11.73
Korea 10.28
Portugal 6.23
Taiwan 5.84
Brazil 2.67
Mexico 2.48
China 0.63
*Hourly compensation costs in U.S. dollars Figure 15.12
for production workers in manufacturing. Sri Lanka 0.49
Source: U.S. Department of Labor, Bureau of Labor Statistics, November
2004.
Copyright © 2008 by Nelson, a division of Thomson Canada Ltd. 15–34
Compensation of Expatriate Managers
• Provide an incentive to • Consider foreign taxes the
leave Canada employee is likely to have
• Allow for maintaining a to pay (in addition to
N.A. standard of living domestic taxes) and help
with tax forms and filing
• Provide for security in
countries that are • Allow for maintaining
politically unstable or relationships with family,
present personal dangers friends, and business
associates.
• Include provisions for
good healthcare • Facilitate reentry home
• Be in writing
• Provide for the education
of children
Source: Andrea Poe, “Selection Savvy,” HRMagazine 47, no. 4 (April 2002): 77–83.
Copyright © 2008 by Nelson, a division of Thomson Canada Ltd. 15–39
International Organizations and Labour
Relations
• International Differences in Unions
The level at which bargaining takes place (national,
industry, or workplace)
The degree of centralization of union-management
relations
The scope of bargaining (parties and issues)
The degree to which government intervenes
The degree of unionization and union strength.