International. As more competitors enter the domestic market, companies face the possibility of losing market share; thus they often seek other markets for their products. This usually means entering international markets, initially by exporting products but ultimately by building production facilities in other countries. The international corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas markets. Companies such as Procter & Gamble, Honda and General Electric used this approach to gain access to Europe—they essentially adapted existing products for overseas markets without changing much else about their normal operations.
The decision to participate in international competition raises a host of HRM issues. All the problems regarding locating facilities are magnified. For example, HRM professionals must consider whether a particular location provides an environment where human resources can be successfully acquired and managed.
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