Douglas Almeida - Global Business News€¦ · Destination Europe, 28 Argentina, 38 UniGroup purchases Interdean Asian subsidiary, 44 LEGAL Cross-border Employment Law, 12 Immigration:

VOL. 5 / ISSUE 2US $10

[email protected]

DouglasAlmeida

GE BRAZIL

"...An internationalassignment can beconsidered animportant step incareer development.”

Read more on page 8I N S I D E :

A Happy Spouse

South America

Destination Europe

H1B Visa Alternatives

Cross-border Employment Law

Corporate Social Responsibility (CSR)

PUBLISHER’S DESK

Day atthe Beach

THURSDAY, 12 APRIL '07 (MISSION BEACH) — Beinglocated here in southern-most SouthernCalifornia, in the south-western corner of the

USA, as some of you know I live right on the "edge"... I mean here in South MissionBeach. I see and feel the "weather" in action every day; enjoying the salty air, observ-ing the "mobility scene"... people roller blading, biking, jogging, walking, surfers carryingtheir boards to and from the water... always a sea breeze, usually from the northwestabout 15-miles per hour. Life is good.

At 5pm today the temperature was about 63, the sky was brilliantly clear, a bright blueand the sun a bright yellow but a big storm had come to San Diego today roaring in fromthe Pacific Ocean with gale force winds of up to 50 miles-per-hour whipping-up mountain-ous waves and blowing sand so the windswept beach showed no "footprints". No rain,just wind. Palm trees swayed and the seagulls appeared to be floating on air in a station-ary pattern as a result of flying into the wind. Tide was coming in at this hour and scoresof Sandpiper birds were flitting across the shoreline as the water came in chasing them,running in unison from left to right and back...narrowly they avoid getting wet.

At the south end of Mission Beach is a channel, the jetty; actually the divide betweenOcean Beach and Mission Beach, and the entrance from the Pacific Ocean into theMission Bay fishing harbour located alongside the Hyatt Hotel. No boat traffic today.Standing along the rocks overlooking the water and watching the waves crash into therocks, swells in the jetty looked like 6 or 7-feet as strong winds quickly pushed water intothe harbour. I can just imagine the size and feeling of being in the swells about two hun-dred yards out having been there sailing on 10-footers during the Summer, gripping orshould I really say hanging-onto the steering wheel.

I walked north from the jetty on the sand right at the water's edge heading into the windand watching the scene... the water looked fierce with the choppy waves going left thenright then turning around going the other way...back and forth, creating a wicked rip-tidesituation. No sailors today and no surfers today; they are water-smart.

My walk today was surely invigorating, inspiring, and also good exercise. I came back tothe house, removed the windbreaker and the shoes, got some water, sat down at thecomputer and worked with a clearer head.

I welcome you to share your own "work-life" balance.

We p

rovid

e you w

ith news &

inform

ation

Free access • Free dow

nload

2 Volume 5 / Issue 2

GlobalHRNews

Volume 5 / Issue 24

CONTENTSPUBLISHER’S DESK, 2

XPat Moose, 45

WORLD TRADE

South America’s Southern Core, 10

How to Navigate a Globalized World, 16

Destination Europe, 28

Argentina, 38

UniGroup purchases InterdeanAsian subsidiary, 44

LEGAL

Cross-border Employment Law, 12

Immigration: H-1B Visa Alternatives, 20

Tax: Foreign Nationals in U.S., 40

MANAGEMENT

(CSR) Corporate Social Responsibility, 6

Executive Interview: Douglas Almeida,GE Brazil, 8

Global Candidates: 6 Things HR Can Do, 14

Choosing A School, 22

A Happy Spouse, 36

Repatriation: Can Companies Do More?, 43

ADVERTISERS

ACE RELOCATION SYSTEMS . . . . . . . . . . . . . C3ACS INTERNATIONAL SCHOOLS LTD . . . . . . . 15AIRES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27AIRINC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19AKA: KORMAN COMMUNITIES . . . . . . . . . . . 17ALLIANCE RELOCATION SERVICES . . . . . . . . . 51ANIMAL LAND PET MOVERS . . . . . . . . . . . . . 24APARTMENT SERVICE . . . . . . . . . . . . . . . . . . 44AWARD-SUPERSTARS . . . . . . . . . . . . . . . . . . . 35BARKER TEAM . . . . . . . . . . . . . . . . . . . . . . . 49BAR-PEREG GROUP . . . . . . . . . . . . . . . . . . . . 44BRS RELOCATION . . . . . . . . . . . . . . . . . . . . . 47BURGDORFF ERA . . . . . . . . . . . . . . . . . . . . . 52C3 INTELLIGENCE . . . . . . . . . . . . . . . . . . . . . 49CANADIAN INTERNATIONAL . . . . . . . . . . . . . 48CANINE CARRIERS . . . . . . . . . . . . . . . . . . . . 47CHESTNUT GLOBAL PARTNERS . . . . . . . . . . . 11CITIBANK . . . . . . . . . . . . . . . . . . . . . . . . . . . C2COLDWELL BANKER HUNT KENNEDY . . . . . . 45COLGATE-PALMOLIVE . . . . . . . . . . . . . . . . . . C4CORPORATE APARTMENT PARTNERS . . . . . . . 44CORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31DIANE TURTON REALTORS . . . . . . . . . . . . . . . 47DMS MOVING & STORAGE . . . . . . . . . . . . . . 39ENTERPRISES GROUP . . . . . . . . . . . . . . . . . . . 3EQUITY CORPORATE HOUSING . . . . . . . . . . . 21EXECUTIVE MOBILITY GROUP . . . . . . . . . . . . 49FINDLAY INTERNATIONAL . . . . . . . . . . . . . . . 48FRAGOMEN DEL REY BERNSEN & LOEWY, LLP . 1FULL CIRCLE INTERNATIONAL RELOCATION . . 32GROSPIRON INTERNATIONAL . . . . . . . . . . . . . 50IMPACT GROUP . . . . . . . . . . . . . . . . . . . . . . . 5INTER-RELOCATION . . . . . . . . . . . . . . . . . . . . 48JACKSON LEWIS, LLP . . . . . . . . . . . . . . . . . . . 7JAYS PARIS . . . . . . . . . . . . . . . . . . . . . . . . . . 42LIVING ABROAD, LLC . . . . . . . . . . . . . . . . . . 18LSS RELOCATION LTD . . . . . . . . . . . . . . . . . . 49MAP RELOCATIONS . . . . . . . . . . . . . . . . . . . 46MEREDITH MCKENZIE . . . . . . . . . . . . . . . . . . 47MOVE ONE RELOCATIONS . . . . . . . . . . . . . . . 34NATIONAL EAP . . . . . . . . . . . . . . . . . . . . . . . 46ONE WORLD RELOCATION . . . . . . . . . . . . . . 25ORION MOBILITY . . . . . . . . . . . . . . . . . . . . . 13PACIFIC PET TRANSPORT . . . . . . . . . . . . . . . . 45PASHA CORPORATE HOUSING . . . . . . . . . . . . 30PMI MAIL & PACKAGE SERVICES . . . . . . . 23, 48RELOCATIONS ESPAÑA . . . . . . . . . . . . . . . . . 46STEWART RELOCATION SERVICES . . . . . . . . . 29SULLIVAN MOVING & STORAGE . . . . . . . . . . 41TRIPLICADO PORTUGAL . . . . . . . . . . . . . . . . 46WEIDEL RELOCATION . . . . . . . . . . . . . . . . . . 50WILLIS RELOCATION RISK GROUP . . . . . . . . . 33

GlobalHRNews 7910 Ivanhoe Avenue, Suite 432, La Jolla, CA 92037PHONE 619.787.3100 EMAIL [email protected] WEB www.globalhrnews.com

EDITOR & PUBLISHER Ed Cohen DESIGN & PRODUCTION Jill St. Michael

©Copyright 2007, by Edwin B. Cohen. All Rights Reserved.

ConferencesLISBON 17 APRILDALLAS 15 MAY

NEW YORK 23 MAYLA-UNIVERSAL STUDIOS 18 SEPT

IRVINE 20 SEPTCHICAGO 3 OCTOBERLONDON 28 NOVEMBER

SILICON VALLEY 30 JANUARY ‘08RIO DE JANEIRO 20-21 FEBRUARY ‘08

PARIS 3-4 DECEMBER ‘08

MORE INFORMATION: www.globalhrnews.com


GlobalHRNews

GLOBAL HR NEWS is developing itsCorporate Citizenship Awards. These

Awards represent two concrete areas inwhat is often referred to as CSR.

Corporate Social Responsibility (CSR) …bywhatever name a company may give it …isnot any more just a nice gesture. And wearen’t talking about an updated equivalentof a company letting an internationalassignee come home for a vacation once ayear or a company supporting a LittleLeague team in some foreign outpost.Indeed, we are talking about internationalcompanies’ strategic thinking, planning,and acting regarding issues of employeepreparedness, community responsibility,sustainability, and social change.

Dramatic turn-arounds in CSR “thinking”have been well covered by the media withstories about companies such asStarbucks, Coca-Cola, and Nike. AsMartin Sorrell, Group Chief Executive ofWPP, has said, “Corporate responsibilityhas shifted from being a voluntary andoften reluctant add-on to a central pre-requisite for market success.

Perhaps for the first time, there is analmost complete coincidence of interestbetween producer and consumer: ethicalbehaviour is demanded by the consumerand must therefore be openly delivered bythe producer.”

JUST ASK COCA-COLA.September 2004: Amit Srivasta , whoruns the small non-profit “India ResourceCenter” in Southern California, posts a blogabout Coca-Cola’s plans to build a bottlingplant in India in an area that has consider-able water shortage. He begins a cam-paign against Coca-Cola’s practices in India.

December 2005: The University ofMichigan bans Coca-Cola products fromtheir campuses because of Coca-Cola’senvironmental policies in India and laborpolicies in Columbia. The boycott spreads

to other campuses and some Indian Statesclose Coca-Cola operations. By the endof January 2006 Coca-Cola enlists theInternational Labor Organization to do an“independent and impartial investigationand evaluation of labor relations and work-ers rights practices of Coca-Cola bottlers inColumbia.” In March 2006 Coca-Colaconfirms its support and agrees to take a“corporate leadership role in the focusareas of the UN Global Compact: humanrights, labor rights, protection of the envi-ronment, and anti-corruption.” Later in2006 Coca-Cola announces that theirFoundation has created a new initiativewith two Indian organization “to weavethe regions’ many patchwork soil andwater conservation projects into a compre-hensive, unified approach.” The U. ofMichigan reinstates Coca-Cola products ontheir campuses. In 2006 Coca-Cola waschosen as The Corporation of The Year bythe Latin American Association.

Having said all of the above, know that I amnot suggesting that all of the above weredue solely to the blogging of one man. E.Neville Isdell, Chairman and CEO of Coca-Cola, points out that Coca-Cola has beeninvolved in improving labor and environ-mental conditions before these boycotts.In a letter to Coca-Cola stakeholders henoted that among their initiatives in2005,Coca-Cola co-founded “the GlobalWater Challenge with private and publicsector partners to improve water access andsanitation in countries in critical need.”

Still, is there any question that the powerof the internet and consumer reactionsspurred the pace of Coca-Cola’s CSR think-ing and actions? Sales of products,investor interest, and future employeeswere all being impacted.

Before the stating of their first quarter earn-ings report for 2007, Coca-Cola announcedthat they had made a $7 million dollar jointventure with the U.S. Agency for

International Development (USAID) in ninenew water projects in Africa. CSR is anabsolutely crucial element in internationalcompanies strategic planning and not just incompanies selling drinks.

TAKE THE INVESTMENT BANKGOLDMAN SACHS.According to the blog of Marc Gunther,senior writer for FORTUNE Magazine ,“Beginning in Europe, Goldman asked itsresearch analysts to include environmental,social and governance factors (ESG) whenthey analyze companies or industries.Guess what? Clients liked the extra analy-sis. The ESG research is now beingextended to the US. Goldman, as part ofits environmental policy, has invested over$1.5 billion in alternative energy and cleantechnology. Meanwhile, Goldman’s newworld headquarters will be a green build-ing, certified by LEED.

The bank offers employees who work laterides home in hybrid-electric cars. Money’sno longer the only green on Wall Street.”

How does this all relate to the GLOBAL HRNEWS CORPORATE CITIZENSHIP AWARDS?

Unlike other Corporate Citizenship and CSRAwards, the GLOBAL HR NEWS Award-win-ners will be selected by The JudgesCommittee from the programs that compa-nies themselves are pleased with and nomi-nate. To recognize and honor all the goodprograms that are nominated, the GLOBALHR NEWS Judges Committee will selectfrom among them those programs that willbe specially honored. It is our goal to recog-nize and encourage good practice in CSR.

We expect this initiative will enable fur-ther development and growth of GLOBALHR NEWS and its international confer-ence series.

And that is an important part of CSR—“doing well by doing good.” We inviteyou to join us. ■

MANAGEMENT

Considering Corporate Social Responsibility (CSR)

by JUDSON SCRUTON, Director – New York & LondonGLOBAL HR NEWS


GlobalHRNews

GLOBAL HR NEWS: Could you pleasedescribe to our readers about GE opera-tions in Brazil?

DA: GE operations in Brazil includes all ofour businesses, and by this I mean the fol-lowing: Infrastructure, Industrial,Healthcare, GE Money, CommercialFinance and NBCU. In essence, GE is ahigh-tech, services, media and financialservices company. We employ around7,000 people and have presence all overthe country.

GLOBAL HR NEWS: What is your currentrole? What are your responsibilities?

DA: I'm responsible for HR Operations -Brazil, and International TransfersManagement - Latin America. InOperations, I lead Labor & Union Relations,Mergers and Acquisitions, BenefitsManagement and HR policies. In regards toInternational Transfers Management, I haveto ensure GE global policy deploymentthroughout the region and provide processconsistency in our operations.

GLOBAL HR NEWS: Please tell us aboutyour education and work experience.

DA: With regard to education and workexperience, I hold Master degree in BusinessManagement; have completed a HumanResources Specialization course; and hold aBusiness Administration Bachelor degree.Before joining GE, I worked 5 years for GMand 3 years for Fundação Unesp (recog-nized Brazilian public university).

GLOBAL HR NEWS: Looking back to thetime when you first became involved withInternational Assignment Management,what was the situation you encountered atthe time? And with that in mind, how didyou implement a plan to improve the situ-ation? What did you do?

DA: I joined GE in 2001 and right afterbecame responsible for internationalassignments in Brazil, due to my previousexperience in the area. At that time, Ifound great vendors in place that support-ed GE with expatriates processes and localguidance. However, I decided that itwould be better if I could have someonethat could coordinate the operationalactivities from start to end on my behalf.That decision would give me the chance tofocus more on the strategy and beinvolved in managerial decisions, not inroutine approvals. Therefore I invited ourrelocation partner to assume that role andhelp me coordinate the entire expatriateprocess with all of our stakeholders(employee, manager, payroll, immigrationadvisors, transportation companies, andtaxes consultants).

GLOBAL HR NEWS: How manyInternational Assignees are you currentlymanaging? Where are they? What kinds offunctions are they performing?

DA: Currently we have over 70 expatri-

ates in Latin America (Brazil, Mexico,Argentina and Chile) and over 70 employ-ees working outside Latin America (in theUS, in Europe and in Asia). We haveassignees in all job levels and functions –from trainees to Managers to Executives…From Services to technology to BusinessManagement.

GLOBAL HR NEWS: I understand that itcould be difficult to know, but, can you tellus approximately what percentage of thecurrent assignee population are "Short-Term"… or less than 1-year? What is yourthinking about Short-TermAssignments…are they correct?

DA: I can tell you that less than 5% of ourexpatriates are on short-term assignments.Normally those employees are part of aleadership development program and aninternational experience is excellent fortheir own development and representshuge contributions to the local operation.They come back to their countries withgreat insights on global mindset and gener-ally share international practices.

GLOBAL HR NEWS: Regarding CareerManagement, what is the actual role of anInternational Assignment? Please describethe Candidate Selection process.

DA: An international assignment can beconsidered an important step in careerdevelopment. Employees have the chanceto experience significant cultural and socialdifferences. They learn how to handle dif-ficult situations from a different perspec-tive. I believe that, in most of the cases,an overseas job opportunity will help theseassignees become more inclusive leadersand also help them establish a strongerconnection with our headquarters. In ourcompany, all postings are available world-wide. Every employee can have access toall open positions in any country. Providedthey meet the job requirements and haveapprovals from their direct manager andHRM, they can apply for a job whereverthey wish too. In addition to that, wehave the Session C, where we can alsoidentify potential expatriates. Session C isour annual organizational and individualreview and it is done on a global basis con-sistently. We can select potential candi-

MANAGEMENT

Douglas Almeida – GE BRAZIL

Responsible for HR Operations - Brazil;International Transfers Management - Latin America

9Volume 5 / Issue 2

GlobalHRNews

dates either as part as a developmentassignment or as an organizational need,which may include a succession plan.

GLOBAL HR NEWS: RegardingExpatriates Management, do you have abusiness model? Please describe. Does thisinclude ‘Performance Review’?

DA: We have a global structure thatcounts on experts in international transfersand expatriates management - the GlobalMobility Services (GMS). GMS leaders areresponsible for both expatriation policyand operations. HRMs count on this cen-ter of excellence for orientation, cost esti-mation and processing. GMS approvalsare required before an employees moves anew country and they ensure process andlegislation compliance throughout theglobe. Our operation in Brazil counts on alocal structure to constantly interface withGMS and assure the expected deliverables.Our expatriates are subjected to the GEregular performance review. We do nothave a specific process for this group.

GLOBAL HR NEWS: Please identify oneor two of the challenges you have beenfaced with when dealing with InternationalAssignments; and, from dealing with thesituations, what are some of the lessonslearned?

DA: First of all - the complexity involved inthis area... We need to deal with severaldifferent areas and legislation in interna-tional assignments: labor, legal, taxes,immigration, foreign relations, ministry ofjustice...And also with people's expecta-tions and anxiety...We have a lot of admin-istrative activities involved and pressurefrom the business side too. Our role is tocomply with all legal requirements andmanage our customers’ expectations,keeping always our focus on people…

Secondly – repatriation process. It is impor-tant to note that a successful home coun-try return depends on good planning andit does not start just a few days beforerepatriation real date decision takes place.Both the company and the employeeshould have constant discussions about theassignee’s next step, what has to beaccomplished to ensure real accomplish-

have to learn everything again in a newenvironment with no time. Some examples:social and cultural behaviors, local legisla-tion about driving, purchasing, rental...Wehave also to be sensitive to the fact thatthe employee's spouse will have to take adecision in regards to his/her career. Whatwill be the impact in the family? Also, con-sider the impacts on the children educa-tion: when will be the best time for thefamily to move, will the education systembe compatible to the home country one,how to deal with the fact that the employ-ee and the family will not live together fora certain period of time...

Final message is: be emphatic all the time...Put yourself in the shoes of the futureexpatriate and try to understand his/herexpectations, concerns, and attitude. Think:what if I were in his/her place?

GLOBAL HR NEWS: Now some questionsabout you: What book(s) are you currentlyreading? What book did you just recentlyfinish? In which sports are you active?Regarding away-from-office relaxationtechniques, what are your favorite stress-reduction activities?

DA: I have recently selected interestingreading options: first one, Atlantis, fromDavid Gibbins. It is an interesting story aboutan archeologist that organizes an expeditionin search of a buried treasure in theMediterranean. When he uncovered a gold-en disc that spoke of a lost civilization moreadvanced than any in the ancient world, hestarted to get excited. He guessed it couldbe the lost city of Atlantis… But when heand his crew finally got close to uncoveringthe secrets the sea had held for thousandsof years, they faced many unexpectedevents… One cannot miss it.

Right now, I'm reading Labyrinth, fromKate Mosse. It’s a novel that occurs simul-taneously in two different (and very distant)moments - years 1209 and 2005. Back intime, a young lady receives a mysteriousbook from her father and had to protect itwith faithful and sacrifice. Then, in 2005 ayoung lady goes into an archeology excava-tion, she finds out two skeletons and expe-riences a strange feeling in that place, and

CONTINUED — PAGE 33

"... An international assignmentcan be considered an important

step in career development.Employees have the chance

to experience significantcultural and social differences.

They learn how to handledifficult situations from a

different perspective."

GLOBAL HR NEWS: What about theemployees? Looking at it from their per-spective, can you please tell us about someof the concerns from the employee per-spective?

DA: I always mention to them about theexpatriate learning curve process: highlevel of energy and expectations early inthe process, then, a huge move on theopposite side when they've already movedand experienced a new culture and under-stood that things are different in my homecountry.... And then kind of stabilization inthe emotional side, things back to reality...Everyone is subjected to that experience...It may be earlier for some, later for oth-ers... Take into consideration that you havespent 30, maybe 40 yrs to learn everythingyou know, and, all of a sudden, you will

ments in the future. One great best prac-tice I can share with our readers is our con-cern in keeping Latin America employeesin international assignments up-to-datewith relevant information about ourregion. It’s an excellent opportunity forthem to remain connected with their homecountries and be well informed about eco-nomics, projects, trends, much before theycome back home…It facilitates a lot theirreturn to the original company after 3 oreven more years…

Manage International Assignments repre-sents a great challenge for those whowant to work with multiple environmentsand have a cross-functional experience. Itdoes broaden our business and culturalperspectives. You can never complainabout routine...One day is never equal tothe previous one... There's always toomuch to learn…

WORLD TRADE

The “Southern Cone”:An Uncommon Cultural Corner of Latin America

by DEAN FOSTER, President • DEAN FOSTER [email protected] • www.learnaboutcultures.com

If you’ve been doing business in Brazil,Mexico and some of the other important

cultures of the Andes, the Amazon, meso-and centro-America, but haven’t yet ven-tured south of the Iguassu Falls, then beprepared to adjust your cultural expecta-tions. At the very least, you will need tojettison any expectations about LatinAmerican behaviors that you might haveformed working north of the “southerncone”. As an Argentine (people are“Argentine”, things are “Argentinian”)once wryly commented, “Argentina is aEuropean country in the wrong continent”.

It would be very difficult to say the sameof most countries in Latin America outsideof the Southern Cone. In fact, for US-Americans (and that is probably the bestway to refer to yourself, if in fact, you hailfrom the United States: remember peoplein Latin America, being in the geographicAmericas, are also “Americans”…and willremind you of such if you insist on callingyourself “the American”!) working in thesouthern cone (Argentina, Chile, Uruguayand Paraguay) might seem pleasantlyfamiliar, and a relief from some of the curi-ous differences that a US-American might,in fact, face when working elsewhere inLatin America.

Nevertheless, be prepared for some impor-tant considerations while working in thismore-European feeling corner of LatinAmerica, and an appreciation for how thisall came to be in this Latin land down-under will go a long way to insuring yourbusiness success in Buenos Aires, Santiago,Montevideo or Asencion.

HISPANIC? SI! CONQUISTADORS? NO!For starters, keep in mind that whensouthern Europeans first came to whatthey in the 1500s then referred to as “theNew World”, they came primarily either as


GlobalHRNews

Spaniards (Conquistadors) or Portuguese(Descoboradores): Conquistadors went towhere the gold was (mainly Peru andGranColombiana in South America, and

Mexico in North America), while thePortuguese were given, through theirtreaty with Spain, the vast agricultural


SO

UR

CE

: CIA

-The

Wo

rld

Fac

t B

oo

k


GlobalHRNews

American corporations are increasinglycentralizing their human resource man-

agement function. Centralize humanresource management means taking strate-gic level human resource decisions at thecorporate office and managing employmentlaw and standards compliance at all opera-tions. As a result, human resource execu-tives not only have to understand Americanemployment law issues, but also shouldidentify the foreign hot button employmentlaw issues the company will encounterwhen managing its global workforce.

This article refers to the employment lawissues global human resource executiveswill frequently encounter in performingtheir functions. The human resource pro-fessional who assumes a global responsi-bility will invariably encounter one or moreof the following cross-border employmentlaw issues:

1. RECRUITING AND HIRING.As the economy has become global, sohas the talent pool. Recruiting the besttalent in the global employment marketrequires a careful review of at least the fol-lowing legal issues:

• Job advertisements. What may jobadvertisements state in the countrieswhere the company is focusing the tal-ent search? Most countries have anti-discrimination laws. In addition, domes-tic discrimination law may include addi-tional protected categories to the fewcovered by U.S. law. For example, jobapplicants may also be protectedagainst discrimination on the basis oftheir language, economic or social sta-tus, property status, color of their skin,and place of education. Domestic anti-discrimination law may limit the contentof the job advertisement.

• Interview questions. What ques-tions may the interviewer legally ask thejob applicant? Local anti-discriminationlaw may, as in the U.S., limit the scopeof questions. But, because local lawmay give job applicants expanded legalprotections, the U.S. interview listshould be revised to prevent violatingdomestic law. For example, Latvia’sLabour Law, expressly regulates what anemployer may ask job applicants. Inaddition to protections under anti-dis-crimination law, local personal data pri-vacy may also limit the informationsolicited from the job applicant and towhom that information is disclosed.

2. HIRING. The (final) hiring decision-maker, especiallyof management-level local hires, frequentlyis at corporate office. Ensuring aninformed hiring-decision is made may bemore challenging than initially realized.

The following issues should be considered:

• Transferring and sharing of the jobapplicant’s personal information.Local employment and data privacy lawmay regulate and restrict the personalinformation of the job applicant that issent to corporate office. Typically, localdata privacy law may require the writtenconsent of the job applicant to transferher personal data to the U.S. corporateoffice. Also, local employment law, suchas Latvia’s Labour Law, may require thatthe information be disclosed only to theperson(s) who make the hiring decision.

• Pre-employment testing. Local lawmay regulate and restrict pre-employ-ment testing.

• Written summary of terms of employ-ment and/or employment contract.Local employment law may require that

the company notify the newly-hiredemployee shortly after the starting date ofthe essential terms of her employment.Typically, local law will include a list oftopics that must be addressed in thenotice. In some countries, a writtenemployment contract is required, and itmay even have to be in the local lan-guage, with the English version being amere “copy of convenience”.

• Probationary period. Local law mayrequire the parties expressly and in writ-ing agree to a probationary period.Further, local law may limit the durationof the probationary period and limit orregulate any extension of the probation-ary period. For example, under a pro-posed Draft Labour Contract Law inChina, the maximum duration of the pro-bationary period depends on whether theemployee is hired in a non-technical,technical or high-technical position; thepermissible duration of the probation willrange from one to six months.

• Fixed-term employment contracts.The company may consider hiring theperson on a fixed-term employment tocontract to see if the relationship worksout. The flexible approach may not belegally available in all countries. Forexample, South Korean law lists the typeof jobs in which fixed-term employmentcontracts may be used. Further, foreigncountries increasingly limit the durationof fixed-term employment contracts tobetween two to three years, includingany extension or rollover of the contract.

3. TRAINING. As various countries promulgate lawswhich protect employees against work-place discrimination, training of employeesand supervisors (and with global virtual


LEGAL

Cross-border Employment Law –The Growing Requirement That Human Resource Professionals With International Responsibilities Understand the Cross-Border Employment Law Implications

by E. JOHAN LUBBE, Partner • [email protected] LEWIS LLP • Tel: 1.914.514.6114


GlobalHRNews

There's a largely untapped source oftalented Americans working over-

seas. Many of these expatriates arekeen to return home but find it diffi-cult to get a lucrative assignment with-in the same organization. That makesthem excellent targets for recruiterswho are willing to think creativelyabout sourcing overseas.

Non-national expatriates (non-U.S. citi-zens) can also be a superb source ofglobal talent to tap into because ofthe unique skills and experience theycan bring. It's worth exploring theirunique circumstances to determinewhether your firm can assist great can-didates in obtaining visas.

As Australia, Canada, the countries ofthe U.K., and some others have highlyeducated workforces with similarworking environments and a commonlanguage to the U.S., they provide fer-tile ground for recruiters seeking tobring the best people on board, if theycan't be found locally. Recruiters inthese countries should look to sourcecandidates from each other's regionsbecause of the similarities.

WHY GLOBAL CANDIDATESGlobal candidates and expatriates ingeneral are particularly valuablebecause of the experiences they havegained abroad, working in differentcultures and environments, and arenetworked in ways that many of yourlocal candidates aren't because of theirexposure to different markets.

Expats bring the best of everything tothe relationship, including knowledgeof your market, and that of one or sev-

eral others, depending on where theyhave worked and for how long. Theyalso have to demonstrate resilience,even in relatively similar working envi-ronments such as the U.K. andAustralia, where there are subtle dif-ferences in the way people work andhow they think about the role of workin their lives.

People who take on roles in differentcountries have to adapt to differentcultures and ways of working even ifthe language spoken is the same orcustoms are similar. Individuals whosuccessfully complete foreign assign-ments demonstrate flexibility and com-mitment to their organizations.They're keen to try new things and totake on challenges. Those are traitsthat can benefit any company andshould be pursued with vigor.

Expatriate assignments typically have alow rate of success, with most failedassignments ending within the first sixmonths. The reasons for this are var-ied, and in many cases, depend uponthe individual circumstances.

For those who do complete interna-tional assignments, many will find atthe end that there's no comparable jobwithin the organization to return toand then must scramble for employ-ment prior to leaving the overseaspost. This can be a great cause of frus-tration for people wanting to returnhome, and provides opportunities forrecruiters to engage with and bringsuch people onboard.

When working in Europe, Asia, or anycountry, expatriates often have trouble

getting employers' attention at homebecause of the distance between them,or assumptions made by recruiters thatthey do not have work eligibility.Resumes with foreign addresses canautomatically turn recruiters off, whenthey should instead be looking deeperto see what the candidate has done,and of course, if they might actually becitizens or permanent residents.Candidates, of course, have a responsi-bility to make their eligibility clear upfront, in as obvious a way as possible,if they want to be taken seriously forroles while overseas.

When assessing global expatriate can-didates, eligibility should be the firstscreen to apply but it's important toremember that most people sent over-seas are the top talent in an organiza-tion or at least high-potential employ-ees, and it may be worth investigatingthe ways of obtaining working visasfor such candidates should they requireit to work in your country.

GET CREATIVE ABOUT SOURCINGTo attract global candidates, there area number of things you can do:

1. Advertise locally. Consider advertisingroles in the country you are targeting,but do so in the most effective localmanner. In Australia, the Friday FinancialReview is the best place to advertise forsenior-level and C-level roles. Similarly,the front and business sections of theSaturday Sydney Morning Herald are agreat way to reach out to large numbersof candidates for mid- to senior-levelpositions and candidates know this, sothey check these papers weekly. Anotheroption in any country is to advertise onlocal job boards. Given the large volumeof applicants this method can produce,this approach requires that you pre-screen candidates for eligibility to workin your country as a starting point, but isa good way to reach a potentiallyuntapped pool of candidates.

2. Contact expatriate associations. Takethe opportunity to post jobs with localAmerican or other foreign associationsabroad. Such associations or clubs areoften a haven for U.S. citizens and others


MANAGEMENT

6 Things HR Can Do To Attractand Recruit Global CandidatesTap into the expat marketby LAURA RANDELL, Head of Organizational EffectivenessRABOBANK INTERNATIONAL


GlobalHRNews

a. almost one billion people, many ofwhom have been educated by westernstandards and who speak English

b. a democratic government and politicalsystem (in fact, the world’s largest!)

c. an economy based on capitalismd. a social system open to Western influ-

ences

Here’s the 64,000 dollar question: Giventhese factors, at the end of the 20th centu-ry, which country would you have predictedto have been the first to economically“take off”?

Wrong. And not because you interpretedthe data incorrectly. The logical answer iswrong because, despite the demographicclue (a), despite the political clue (b),despite the economic clue (c), and despitethe sociological clue (d), you didn’t have allthe CULTURAL clues. And, as we’ve beensaying, it is culture which most profoundlydetermines the destiny of nations.

Now, here’s the missing, critical culturalinformation for the “dragon” (and, yes,that’s CHINA): a Confucian-based culturalsystem, resulting in active consensus-drivencompliance with authority.

And here’s the missing, critical culturalinformation for the “tiger” (yup, it’s INDIA):a Hindu-based cultural system, resulting inpassive individual acceptance of unchange-able realities.

These two fundamentally different culturalorientations, at work for thousands ofyears in both countries, determine theanswer to the question of which country,China or India, would take off first in the1990’s, and the answer is of course (ah,


an unexpectedly very round and complexworld, and today we need a “CulturalCompass” © to help us navigate the verycomplex –and very unflat - cultural terrainwe encounter as we attempt to work andlive in the 21st century.

Let’s set our course, therefore, as so manyrecently have, toward China and India, per-haps the two most influential world cul-tures in the 21st century. If our “culturalcompass ©” can help us to understand theelements of Chinese and Indian culture, wewill see why and how it is that both ofthese countries are now dominant on theworld economic stage.

Let’s start with a quiz:

On the one hand, you have an Asian coun-try (clue: think “dragon”) with:

a. a billion plus people, mainly uneducated,who do not speak English

b. an authoritarian government and politi-cal system

c. a communist economic systemd. a social system that strongly rejects out-

side influences

On the other hand, you have an Asiancountry (clue: think “tiger”) with:

If you graduated Junior High School in theUS, you probably learned that Magellan

circumnavigated the world and establishedonce and for all that the earth was round,not flat.

However, if you read certain geopoliticalpundits today, you may be surprised tolearn that 21st century globalizationreverses the clock by about five hundredyears and creates a world, as it turns out,that is flat after all.

Now, revisionism is not a new phenome-non, but it certainly is not truth, and toclaim that globalization flattens the worldis to see the 21st century only through thenarrow lens of the economics-of-the-moment, a view which serves not truth,but the interests of those benefiting fromsuch limited perspective. While globalcapital may be flattening global economicplaying fields, the process is destined to beoverwhelmed by the highly textured,rugged and vastly complex cultural terrain– a landscape carved by eons of humanhistory - that is the essence of our any-thing-but-flat, very round world.

In fact, “flat-earth” rhetoric is a justifica-tion for a first-world economic adventurethat ignores the immensely complex cultur-al terrain it attempts to globalize. Thecharacteristics of any given culture consti-tute the hidden drivers that determine thepath and form of that culture’s participa-tion (or not) in the new global economy,and not the other way around. If there’sany flattening to be done, it is human cul-ture, the child of immutable history, whichwill flatten the economic adventures of anynation that ignores its power and authori-ty, for it is human culture which deter-mines the role that each nation plays onthe flattened global economic stage.

Five hundred years ago, Magellan’s com-pass helped him navigate the challenges of

WORLD TRADE

Finding Magellan’s Compass:How to Navigate a Globalized World that is Anything But Flat

by DEAN FOSTER, President • DEAN FOSTER [email protected] • www.learnaboutcultures.com

SOURCE: CIA-The World Fact Book


GlobalHRNews

• MAGELLAN – CONTINUED

the power of historical hindsight!): China.Economists, no doubt, will look at recenteconomic policies and find the reasons forChina’s growth there (however, economicpolicy, as we will see, is an outgrowth ofcultural orientations); political scientistsand social pundits will find their explana-tions for China’s sudden emergence byemphasizing the changes in politics thathave supposedly recently occurred (butwhich, upon closer examination appearnot that dissimilar to older political tradi-tions).

Despite the undeniably real contributionsthat particular recent economic and politi-cal policies may have made to the hasten-ing of China and India’s emergence, thereal engine behind this phenomenon is cul-ture, shaping those very same economicand political decisions, determining how itall happens for each country and why, andhow it will all unfold in the future.

CULTURE: THE CRITICAL DETERMINANTOF A NATION’S DESTINYIn this India and China example, despite the

Indian advantages of an educated, English-speaking workforce, a familiarity with west-ern practices and social systems, a demo-cratic government and a more capitalisteconomy, (or to put it in reverse, despite theChinese disadvantages of an uneducated,non-English-speaking workforce, a historicrejection of western ways, an authoritarianpolitical regime and an ideologically com-munist economic system), the factor thattipped the scales powerfully in favor ofChina and against India was culture.

And what aspect of Chinese culture,specifically? The answer lies in identifyingthe nature of China’s success, for what isthe defining aspect of that success if notthat of having become the “world’s facto-ry”, the place where the world comes torealize economies of scale through thereplication and reproduction of its goodsand services?

Of all the possibilities that a nation can pres-ent to the world, it is not accidental thatChina presents a culture with a historical ori-entation to repetition, reproduction andreplication, a tradition emerging from its

deep Confucian values of perfecting, repeat-ing, and reinforcing the obligatory relation-ships that immutably exist between people.

REPEAT AFTER MEChinese history, in many ways, is the storyof the static repetition of one dynasty afteranother, without the apparent developmentthat is often inherent in a nation’s history.

There is an old Chinese saying, “persever-ance can make an iron bar into a needle”:the end-product being the result of thesheer repetition of the same act beingrepeated over and over and over again.No teleological development here. Nocausal, progressive, incremental change.Just the same thing, again and again andagain, until the end-result is achieved.

The building of the Great Wall simplyrequires the lining up of a million peoplerepeating the same act of placing one brickon another until, voila, you have a GreatWall. One of the hallmarks of Chinesenegotiating style is the insistence of one’sposition again and again, despite logicalchallenges to that position by the other side,


EMPLOYEES get fast, easy and up-to-date online information, reducingfrantic calls requesting details about a host country.

YOU GET MORE than the best country information; 144 destinations cov-ered plus 72 Business Travel Cities, Interactive Help Desks, Security Links andAlerts, Move Planner, Spouse Career and School Advisor, Visa, Passport andHealth Database, Online Candidate Self-Assessment Tool, plus new WorldHousing Costs.

ATTENTION SERVICE-PROVIDERS: Licensing & DistributionPrograms available.

NEW FOR CHINA: new regional profiles: Beijing, Shanghai, Guangzhou andTianjin. Three additional regions, including Chengdu, available Spring '07.

Living Abroad Europe • Rue de l’Oiseleur, 2/14802 Heusy-Belgium • Tel: +32 (0) 87 77 69 55

[email protected] • www.livingabroad.com

THE MOST COMPREHENSIVEOnline Country Information & Tools for International Assignments

Living Abroad LLC • 501 Westport Ave. #255Norwalk, CT USA 06851 • Tel: [email protected] • www.livingabroad.com

LIVINGABROADTHE WORLD ONLINE


GlobalHRNews

1B petitions, petitions for extension of H-1B status, whether for an existing employeror for a new employer (the latter of whichwould include sequential employment situ-ations), and petitions filed for concurrentemployment with more than one employer.In addition, petitions for new employmentat an institution of higher learning or arelated or affiliated nonprofit entity, non-profit research organizations, and govern-mental research organizations are alsoexempt from the annual cap. Where an H-1B employee moves from a cap-exemptnonprofit organization to a cap-subject for-profit company, the case is considered newemployment and as such would be subjectto the cap. It should be noted, however,that an H-1B employee who works concur-rently at both a cap-exempt organizationand a cap-subject entity will not be subjectto the H-1B cap.

Petitions on behalf of individuals who havealready been counted against the cap dur-ing the previous six years are also cap-exempt, unless the beneficiary would beeligible for a full six years of authorizedadmission at the time the petition is filed.Finally, J-1 nonimmigrants who are chang-ing status to H-1B and who have obtainedwaivers of the home country residencyrequirement through the Conrad 30Program (which applies to certain foreignphysicians who agree to practice for threeyears in medically underserved areas of theUnited States) are exempt from the annualH-1B cap.

H-1B1 VISAS UNDER THE CHILE ANDSINGAPORE FREE TRADE AGREEMENTSProfessionals in specialty occupations whoare citizens or nationals of Chile orSingapore may be eligible for the H-1B1visa, created pursuant to free trade agree-ments (FTAs) concluded between thosecountries and the United States. The FTAscame into effect on January 1, 2004, mak-ing 1,400 H-1B1 visas available for citizensof Chile and 5,400 visas available to citi-zens of Singapore. Though the new H-1B1numbers count against the H?1B cap, theyare set aside from the overall 65,000 capand currently remain available. If they arenot used, they are made available betweenOctober 1 and November 15 of the follow-ing fiscal year.


nationals holding a U.S. bachelor’s degreeor equivalent in a field related to the job areeligible for an H-1B visa. By law, a maxi-mum of 65,000 new H-1B approvals can beissued each year. However, a special alloca-tion of 6,800 visas to citizens of Chile andSingapore pursuant to free trade agree-ments signed with those countries (dis-cussed further below) effectively limits theannual cap to 58,200 (although unusedChile-Singapore numbers are to be madeavailable during the subsequent fiscal year).

Employers of H-1B workers are required tofile a Labor Condition Application (LCA)with the U.S. Department of Labor (DOL)for each worker making attestations relat-ed to wages and working conditions.Employers must pay H-1B workers thehigher of either the prevailing wage (asdetermined by the DOL or another authori-tative source) or the actual wage for theposition in the geographic area where theworker is employed.

In 2004, legislation was enacted that pro-vided an additional 20,000 H-1B visas peryear to foreign nationals who have earneda Master’s or higher degree from a U.S.institution of higher education. For fiscalyear (FY) 2007, the advanced degree capwas met on July 26, 2006. At the time ofwriting, USCIS had not yet released thenumber of advanced degree H-1B petitionsreceived for FY 2008.

H-1B CASES NOT SUBJECT TO THE CAPH-1B cases that do not count against theannual cap may continue to be filed. USCIScounts against the cap only those petitionsregarded as “new” employment. Newemployment generally refers to H-1B peti-tions that are filed for foreign nationalswho are not currently in the United Statesin H-1B status, or who are in the UnitedStates in another nonimmigrant status (suchas F-1 student visa status) and for whom anemployer seeks a change of visa status.

Exempt from the H-1B cap are amended H-

On April 3, 2007, U.S. Citizenship andImmigration Services (USCIS)

announced that it received sufficient num-bers of H-1B petitions for temporary pro-fessional workers to far exceed the stan-dard H-1B cap for Fiscal Year (FY) 2008.The exhaustion of the H-1B cap on the firstday USCIS began accepting H-1B petitionsfor the following fiscal year is unprece-dented. To identify cases that will beawarded a FY 2008 cap number, theagency will use a computerized randomselection process that will include casesreceived on April 2 and 3, 2007, pursuantto USCIS regulations. At the time of writ-ing, USCIS had not yet released informa-tion concerning the 20,000 H-1B cap forforeign nationals with an advanced degreefrom a U.S. academic institution.

Because the number of H-1B petitionsreceived by the agency is far in excess ofavailable numbers, a significant percentageof filed cases will not be chosen in theselection process. As a result, employersface the challenge of finding alternativevisa options for highly skilled foreign work-ers. In some cases, there is no option butto wait until October 1, 2008 – the firstday of FY 2009 – to put a new hire on thepayroll. Since employers are not permittedto file an H-1B petition on behalf of aprospective foreign worker more than sixmonths in advance of the proposed startdate, the petition itself cannot even befiled with U.S. Citizenship and ImmigrationServices (USCIS) before April 1, 2008.

In many cases, however, there may be othervisa options available. The most viable ofthose options are discussed below.

BACKGROUNDThe H-1B visa category is designed to allowU.S. employers to hire foreign nationals tofill “specialty occupations,” which aredefined as positions for which the mini-mum educational requirement is a U.S.bachelor’s degree or equivalent. Foreign

LEGAL

H-1B Visa: Alternativesby AUSTIN T. FRAGOMEN and NADIA H. YAKOOB*


GlobalHRNews

These are the kinds of questions we faceevery day when working with relocating

families. It is natural for parents to be con-cerned about the welfare of their children,and, in fact, most view schooling as theparamount decision they will have to makein their move. The school will determinewhether the child is happy, makes friends,learns successfully and is prepared for thenext level of education, whether it be re-entry upon repatriation or university.Furthermore, schools often become the pri-mary source of social connections for thenon-working spouse, and therefore mustmatch the family’s values and be a comfort-able community for the entire family.

Despite the importance of educational con-cerns, these questions can be not only chal-lenging for HR professionals and relocationcompanies, but quite frustrating, especiallyduring a time of such high anxiety for thefamily. In most cases, simply trying to giveparents what they are asking for doesn’twork and in many cases simply isn’t possi-ble. Parents may be asking for inaccessibleinformation. For example, in the US, whereeducation is the prerogative of the states

rather than a national curriculum, rankingsonly can be compared within a state, notbetween states. Or data may be unavail-able because independent schools are notrequired to participate in any rankingschemes. Beyond providing information,HR may be expected to find and successfullyutilize connections that are unavailable, orthat only can be used on limited occasionswhen multiple employees are being trans-ferred and have the same school objectives.Housing also plays a role as it must comple-ment schooling, compounding the disap-pointment that parents experience and mayblame on HR when they cannot seem tomatch one to the other.

The most successful approach we havefound in working with our families is torefocus the attention of the parents, fromthe school to the child, in order to assesswhat they are really seeking. This worksfor a variety of reasons.

1) Most parents can be convinced to talkabout their children, even when undertime pressure and stress. Talking abouttheir offspring is calming, particularly

compared with thinking about a terrify-ing unknown like schools in a new area.

2) Finding out what is really important tothe family, from their values to thechild’s strengths, weaknesses, intellectualand extracurricular interests can ensurethat the conversation targets schoolsthat are likely to yield a good matchrather than those that do not haveplaces or may not be appropriate for aparticular child.

3) Entering into this dialogue helps parentsto be more open to options other thanthose they initially proposed, as the childis at the heart of the conversation. Thiscan be helpful when parents have expec-tations about specific schools to whichadmission is not going to be possible.

Although parents do not want to sacrificeeducational quality in the transition, mostcan be refocused by direct questions. Toparents seeking a top tier school, “Willyour child thrive in the top school?” willremind them that this is about their child,not about their colleague’s child. When afamily is fixated on facilities, just a simple,”How old is your child? Does he care asmuch about facilities as you do?” canremind them that they will not be attend-ing the school, and that parents tend tocare more than children do about build-ings, grounds and new equipment.

Once a family is ready to begin a schoolsearch, the process can be simplified intothe following steps. Based on the needsof the child, parents should be encouragedto use materials supplied by HR, the reloca-tion company or the educational consult-ant provided by the firm to assist with thefollowing process:


MANAGEMENT

Choosing a School When Relocating:Reframing the Problem for a More Successful Solution

by ELIZABETH PERELSTEIN, PresidentSCHOOL CHOICE INTERNATIONAL • [email protected]

• I want a school just like the one my children are leavingso they don’t have to go through a difficult transition

• Which is the “top” school?• What is the school with the “best” results?• My colleague’s children go to the X school? How can I

get my child in?• We want our child at a school where he will get into an

Ivy League university – do you have contacts that canhelp us with that?

• We want a school where the facilities are excellent, andthe materials are up to date


GlobalHRNews


until the other side eventually folds.

In ancient China, one of the most success-ful techniques of getting the prisoner toconfess was the endless and repetitivedrip, drip, dripping of water. Most impor-tantly, in China, there are over 20 distinctlydifferent spoken languages, making thelanguage spoken in Hong Kong(Cantonese) unintelligible to speakers inBeijing (who speak Mandarin).

However, the written form of Chinese(using symbols, or “kanji”, that representconcepts or words rather than alphabeticsounds) can be read by all, independent ofhow one speaks the words they read.Therefore, the very complicated writtenkanji-based Chinese script never advancedto a simpler alphabet (in fact, such“advancement”, had it occurred, wouldhave been a disincentive to communica-tion; therefore, it never happened).

As a consequence, today, the averageChinese child must learn approximately3,000-5,000 kanji in primary school, simplyto attain a basic level of functional literacy.In the world’s most populous nation, devel-oping literacy is, as one can see, at the veryleast, a cumbersome task, and yet thegreater need for maintaining comprehen-sion among many different language speak-ers is stronger than the need to simplify thewritten script into one of alphabetic sounds.

Now, in order to learn these thousands ofkanji, the nature of kanji themselves requiresthe unquestioning acceptance of fact, asopposed to rational analysis, from theauthority (teacher says: “this is the kanji for‘man’), and the repetition of writing it overand over again until one memorizes it. Inan educational system geared to the rotememorization of logically unrelated facts,provided by an authority that cannot bequestioned, students (the future population)learn more than just how to read: moredeeply, they learn the value of rote memo-rization, that mastery comes from repeatingthe same act over and over and over again;that facts flow from the powerful andresource-rich, that such people may not bequestioned, and that intellectual value ismeasured by the quantitative accumulationof data, and not the critical, analytical or cre-ative interpretation of perceived experience.

How can China’s great economic successtoday, emerging from this cultural tradi-tion, be anything BUT having become theworld’s factory, where the same item isproduced over and over again, millions oftimes upon millions of times; and wherethe proprietary ownership by individuals orcorporations of knowledge, informationand data that can be duplicated for allpresents the west with one of its knottiestproblems when working with China today(read, piracy of CDs, books, copyrights).

Should it be any surprise that doing busi-ness with China inevitably entails the trans-fer of expertise, knowledge and resourcesthat then get replicated, duplicated andmass-produced, seemingly overnight?

Should it be any surprise, therefore, thatChina’s history has been one of repetitivedynastic cycles for almost 5000 years (thedynastic system only ended less than onehundred years ago, a blip in the geologictime of Chinese history), of authority dic-tating from above through a complex civilhierarchy (whether that authority was theEmperor or the current Communist party

nomenclatura), of the imposition of top-down social and economic policy onto apopulation pre-disposed to carrying outsuch policy, and of the economic advan-tage taking form in the replication andduplication of goods and services previous-ly created elsewhere?

Economics, politics and social systems donot determine the culture of nations; infact, it is precisely the opposite: if we readour “Culture Compass”© for China, wesee a profound example of how culturedetermines the economic, political andsocial systems and paths that a nationchooses, and that globalization merelygives nations the opportunity to revealtheir cultural identities on the world stage.

THE TIGER STIRSBut not the only example. If China’s havingbecome the world’s factory is a direct resultof its historical cultural traditions, can our“Culture Compass”© reveal the samedynamic at work with India? Althougheconomically coming into its own well overten years later than the China explosion,India’s boom, in its nature and even its tim-

25Volume 5 / Issue 2

GlobalHRNews

ing, is a reflection of unique aspects ofIndian culture. For if China has becomethe world’s factory, what is India if not theworld’s “back-office”?

Call most any help line, and a consumerreaches a customer service rep inBangaloru; most US-based and manyEuropean-based companies have out-sourced or are in the process of outsourc-ing their internal processing and transac-tional systems to India; India now process-es everything from orders to invoices totaxes to records and archives of every ilkand description, for businesses, govern-ments and individuals the world over.

Modern technology certainly has madethis possible, but modern technologydoes not just exist within the borders ofIndia, and yet it is India where it has beenapplied in its current shape and form.And that current shape and form, uniqueto India and emerging out of deep Indiancultural traditions, is “Service”. Notmanufacturing, as is the case in the facto-ry of China, but serving, from the world’sback-office of India.

THE FATE IS CASTEFor almost three thousand years, India wasa culture shackled by a unique caste sys-tem, a rigid social hierarchy that organizedpeople according to rank and role, mirror-ing the ordering and ranking of the tens ofthousands of different manifestations ofthe eternal spirit in the Hindu pantheon ofgods, each god slotted into their own indi-vidual position in the Hindu hierarchy.

The unique nature of this ranking, whethercosmological (for gods) or social (for people)was to define clearly and with no ambiva-lence, the obligations to serve betweengods and between people. In the secularworld of the here and now, this meant thatthose below served those above, and thoseabove expected to be served by thosebelow, in specific ways. Serving is preciselywhat this tradition is all about. In 1947,when India became an independent nation,the caste system was made illegal.

Nevertheless, the legacy of approximatelythree thousand years of rigid hierarchicalorganization remains entrenched in theway society works. Mix this three thou-

sand year old cultural tradition with theadded dash of modern IT technology, andserving converts to service, as in service-ori-ented, service-focused, and service-driven.Of course, economists might point out thefinancial advantages of shipping service-ori-ented activities to low wage and low costcountries, but there are many such coun-tries available, and India and its well-edu-cated English-speaking workforce wasalways available for this work before itexploded when it did.

Political scientists might explain India’s riseby citing the deliberate creation of recentgovernment policies that systematicallyleveraged the advantage of a technologi-cally educated and English-speaking work-force, but why a workforce specificallyengaged in the servicing of the world’swork? Social scientists might even explainIndia’s delay in taking off as the result ofbeing the world’s largest democracy, thatdemocracy is a messy and unwieldy thing,and that it doesn’t allow for lining peopleup and getting them all to do the samething that needs to be done at the same



GlobalHRNews

embarrassing press coverage that thecompany supports sweat shops ordenies employees their basic rights.

• Ethic standards. Monitoring compli-ance with ethic standards presents vari-ous challenges for the American basedhuman resource executive. From ade-quate training of employees, implement-ing appropriate accounting standards andmonitoring compliance with the ForeignCorrupt Practices Act to the data privacyissues of global ethic hotlines under localdata privacy laws. In some countries,such as France, the company may notrequire or “encourage” employees tomake anonymous reports of ethic viola-tions. Accordingly, the protocols whichthe company settles with the call centerpersonnel who take the hotline calls mustbe carefully reviewed for compliance withthe data privacy laws of the countries inwhich the company has employees.

5. PERFORMANCE MANAGEMENT ANDSUCCESSION PLANNING.If foreign-based employees’ performancereviews are sent to the American corporateoffice and final decisions about successionplanning are made at corporate office,local personal data privacy laws mayrequire express employee consent to thetransfer of their personal data and mayrequire an inter-company agreement toensure the data is process at the corporateoffice with adequate levels of protections.

6. TERMINATING EMPLOYEES.The employment at-will doctrine appliesonly in the U.S.. In most foreign countries,employees are protected against unfair orunjust termination, except during theirprobationary period. As a result, the com-pany must have a legitimate and good rea-son to terminate the employee; what is asufficient reason, even based on the sameset of facts, and may differ substantiallybetween countries. In addition, local lawmay require minimum notice and entitlethe employee to minimum severance payand other termination payments (some-times called “indemnities”). Further, locallaw may have specific procedural require-ments to effect a termination, which couldinclude an internal hearing and very specif-ic procedures to give notice of terminationof employment. For example, in Germanythe notice must be in writing and signed

• X-BORDER EMPLOYMENT– CONTINUED

teams, regardless of whether the supervi-sor is in the same country as the employ-ees), becomes important to prevent orreduce liability risks. Foreign anti-discrimi-nation laws typically has an express provi-sion requiring employers to take “reason-able practicable steps to prevent” discrimi-nation and harassment. Training andappropriate workplace policies are, there-fore, important risk management tools inensuring the company retains legal defens-es against discrimination claims in the localcountry. Furthermore, local law may haveadditional requirements which should beaddressed in the training. For example, inBelgium, the company must appoint a pre-vention advisor who is qualified in the psy-chosocial aspects of work. Additionally, ifthe company’s workforce at a foreignlocale includes American-citizen expatriateemployees, those employees will remaincovered by three U.S. federal discrimina-tion laws, Tile VII, the Age Discriminationin Employment Act and the AmericansWith Disabilities Act. The training thenshould address local and U.S. legal issues.

4. COMPLIANCE.The scope of compliance can be wide.Compliance monitoring should include thefollowing:

• Local wage-hour-laws (frequentlycalled “working time regulations”)which are more detailed in their regula-tion than the American Fair LaborStandards Act. Local law typically willset maximum daily, weekly and/ormonthly regular working hours and evenovertime hours. Additionally, severalcategories of paid time off may be avail-able and employers may be barred formrequiring employee to work on publicholidays except in exceptional circum-stances. Additionally, the “exempt”and “non-exempt” regime of theAmerican Fair Labor Standards Act typi-cally does not apply; local law frequentlycovers all employees except the mostsenior manager.

• Supplier conduct and compliance.If the company uses subcontractors,monitoring whether the company’s sup-pliers comply with local laws to avoid

by a company representative (a mere e-mail to the employee notifying him of histermination will not suffice) and sent byregistered mail or hand delivered to theemployee. As a result, terminatingemployees may require more proceduralsteps and take more time than in the U.S.

7. CLOSING AN OFFICE.Local law may require the company to firstprovide the employee representatives withspecific information and then consult withthe employee representatives with the goalof finalizing a “social plan” which addressissues such severance pay, retraining andoutplacement of the employees. As aresult, any closure of a foreign-based officeor plant requires careful planning.Further, if the company considers closingoffices in multiple countries, theannouncement of the closure must becarefully planned. What is announced inone country may impact the company inthe other jurisdiction.

In most foreign countries, the local legisla-tures frequently amend their employmentand labor laws. The active foreignemployment legislative agenda presentschallenges for American human resourceexecutives to remain informed of the newhot button legal issues. The Americanhuman resource executive should, there-fore, assume significant different require-ments may exist under local law andensure the management team is informedof local employment law requirementsbefore making strategic decisions that mayimpact employees at the company’s for-eign operations.

In a series of forthcoming articles in GLOB-AL HR NEWS, we will keep you well-informed on new developments and trendsin cross-border employment issues. ■

come to

LONDONNovember 28, ‘07

10th Anniversary

International Conferencewww.globalhrnews.com


GlobalHRNews

OVERVIEWThe E in EMEA represents a continentmade up of 47 countries and assorteddependencies and territories. GeographicalEurope, which extends over a surface areaof more than 10 million sq kilometers hasa population that is estimated to be cur-rently around 710 million. The geographi-cal characteristics of the continent varyfrom spectacular mountain ranges such asthe Alps to the flat plains of CentralEurope in The Netherlands; and the climateof the most northern Scandinavian coun-tries contrasts with that of the southernMediterranean area.

Whilst it may seem to an outsider thatrelocation into one European country can-not be very different than that into anoth-er, there is nothing further from the truth.Although countries with similar cultures,religions and political backgrounds do bearsimilarities to each other, every countrywithin Europe has its own unique history,its own established culture, its own immi-gration requirements, and its own mainlanguage, often with a second languagethat is not necessarily English. Take forexample the 3 countries that make up theBaltic States; Estonia, Latvia and Lithuania– whilst they share similar political history,having previously been a part of the SovietUnion, each State has its own languagewith Russian often as the second languagefor the older generation, each has differentimmigration requirements and its ownspecifics when it comes to relocation offoreign workers.

27 countries of the 47 in GeographicalEurope form the European Union , mem-bers of which have had to qualify in manyareas, including GDP, quality of infrastruc-

ture and compliance in the area of humanrights as outlined by the CopenhagenConvention. As the European Unionexpands, Europe is becoming the world’slargest economy and presently has an esti-mated GDP of 13.4 trillion USD.

The union was originally founded in 1957by six states; France, West Germany, Italy,Belgium, Luxembourg and The Netherlands.

Since the time of its inception, it hasbeen enlarged 5 times, initially toinclude; Austria, United Kingdom,Ireland, Spain, Italy, Portugal, Germany,France, The Netherlands, Brussels,Austria, Sweden, Switzerland,Luxemburg, Finland and Denmark.

Thereafter, May 2004 saw the addition ofthe most new members at any one time as10 other states qualified to join: Malta,Slovakia, Slovenia, The Baltic States(Estonia, Lithuania, Latvia), Hungary,Poland, Cyprus, and the Czech Republic.

January of this year, 2007, saw the adhe-sion of the latest 2 members; Romania andBulgaria. The current population of the EUis approx 500 million.

The governments of EU countries grantcertain rights and freedom of movementto citizens of fellow member States, eas-ing immigration requirements for incomingworkers, although freedom to the labourmarket within the EU is non-absolute forcitizens of countries referred to as ‘NewEurope’ i.e. those that have joined the EUfrom 2004 on.

Whilst every European country has its ownspecifics and presents unique challenges inthe process of corporate relocation, the

continent can basically be divided not justinto EU and non EU but into 4 main sec-tions: North Western/Central Europe,South Western/Central Europe, ‘NewEurope’ and Eastern Europe .

THE CULTURAL DIVIDEThe divide between the north and south ofWestern/Central Europe, most countries ofwhich are EU members, (excluding Norwayand Lichtenstein), is surprisingly great andis very much due to the contrasting cul-tures of the countries within each area;Countries such as UK, Ireland, Germany,The Netherlands, Belgium and Scandinaviahave a culture that leans toward theAnglo-Saxon, with emphasis on efficiencyin business dealings, time keeping and log-ical, linear thinking.

The population of Southern Europeancountries though, such as Italy, Spain andPortugal are very different as they have aLatin culture, which has a strong sense offamily and is based on personal relation-ships and contacts, where time-keeping isless important and where business meet-ings most certainly do not follow the struc-tured pattern of those in the more north-ern European countries!

The eastern European countries have a total-ly different culture all together, many wereunder the regime of the Nazis and thereaftercommunism for almost half a century andthis has left a legacy and has had an impactupon their populations that will take time toshake; eastern Europeans tend not to beentrepreneurs but prefer regular employ-ment, they are used to a linear hierarchy sys-tem rather than one which allows individualinitiative. Several ex ‘Eastern European’countries are New EU members.

The aspect that has a great impact on cul-ture and lifestyle of a people is Religion.As one travels eastwards within Europe,the number of the population that adhereto the Muslim religion increases. The popu-lation of many non EU countries in EasternEurope such as Moldavia, Albania, andMacedonia are predominantly Muslimwhereas Western and Southern Europe ispredominantly Christian.

IMMIGRATION SPECIFICSImmigration requirements for non -EUworkers and procedures to obtain regular


WORLD TRADE

DestinationEurope

by SARAH LANGMEAD, Co-founder and COOENTERPRISES [email protected]


GlobalHRNews

• SOUTHERN CONE – CONTINUED

potential of what was to become Brasil.

Following the booty essentially forced theConquistadors to setup shop as Viceroys(substitutes for the King) who conquered,destroyed and exploited the gold and silverof the highly advanced Aztecs (in Mexico)and Inka (in Peru); equally, the vast agricul-tural potential of Brasil required thePortuguese to obtain labor in the form ofslaves from Africa and to develop enor-mous agricultural estates.

In both cases, there was little reason orincentive to expand and settle in the for-bidding, and essentially empty quartersouth of Brasil and GranColombiana: nogreat civilizations to plunder, no gold or sil-ver of note, no agricultural potentialgreater than what was already waiting tobe developed in Brazil.

In fact, the southern cone, a land, for themost part, of dry pampas and desolate,high mountains, was essentially ignoredfor over two hundred years by theSpaniards and Portuguese, while they

focused their efforts on shipping thewealth of GranColombiana and Mexicoback to Madrid and Lisboa.

And while the countries that were todevelop in the southern cone were techni-cally under Spanish rule, it wasn’t until the19th century that Europeans began to seethe potential that Argentina, Chile,Uruguay and Paraguay offered. By then,Spain and Portugal had moved on withtheir own cultures, and Europe had beguna serious transformation, through revolu-tion and war, from societies based onmedieval feudal aristocracies into modernnation-states based on the principles of lib-eral Republican democracy. In short, theculture of the conquistadors, so forcefullyand ruthlessly exported to the New Worldto places like Mexico and the Andean cul-tures of Peru, Colombia and Ecuador,never became part of the legacy of thesouthern cone; instead, the Europeanswho settled most of Argentina, Chile,Uruguay and Paraguay were “modern”Europeans, and they weren’t just fromSpain or Portugal. In fact, most of thesouthern cone settlers, while emigrating

into a land formerly established by Spain(and hence Hispanic in language and cul-tural traditions) were themselves frommany different parts of Europe, andbeyond: Italians, Germans, Swiss, French,British, Eastern Europeans (Russians, Jews,Hungarians, Poles).

Today, there are more Argentines whotrace their roots to Italy than to Spain; inChile, there are more Chileans who tracetheir roots to Germany and Switzerlandthan to Madrid. The conquistador legacyso prominent in much of the rest of LatinAmerica (and most powerful where theViceroys were: the Andean cultures andMexico) is not a significant influence onsouthern cone culture or behavior.

SOUTHERN CONE CONSIDERATIONSSo how does this different history result inbehaviors different from the rest of LatinAmerica?

For one thing, most US-Americans will findArgentines and Chileans, for example,refreshingly “on-time” for most businessappointments. And, while the hierarchy



GlobalHRNews

• EUROPE – CONTINUED

immigration standing vary greatly from onecountry to another within Europe; a WorkPermit is required, usually with an entryvisa being obtained in the destinationcountry’s consulate in the present countryof residence or home country. Upon entryinto the host country, local registration and/or residency status must be obtained .Some countries have quota restrictions onthe number of foreign workers

(non-EU) present in the country at any onetime, others have quotas which allow onlyworkers of specific categories to enterwithin a specific time period, althoughthere are many exceptions for workers thatare seconded from a foreign mother com-pany or for those who fall into the catego-ry of skilled workers or managers.

As for EU countries, pre 2004 EU membersallow freedom of movement and equalopportunities on the labour marketbetween each other; however, restrictionswere raised by the majority of existingmembers for the New EU countries, due

largely to the threat of an influx of qualifiedworkers that would be prepared to work forlower than the local minimum wage, thusforcing locals out of the labour market.

When the 10 new member states joined in2004, all existing members apart from UKand Ireland placed transitory restrictions onworkers from new member countries.Whilst many of these restrictions havesince been lifted totally or in part, never-theless, EU legalisation dictates that restric-tions can be imposed on new members fora maximum of 7 years. For the latest tojoin, Bulgaria and Romania, of the pre-2004 members, all have imposed restric-tions apart from Finland and Sweden andout of the New EU countries, Hungary hasfollowed suit, with the other 9 New EUmembers allowing Bulgarian andRomanian citizens unrestricted access totheir labor markets .

A peculiarity about some countries, such asItaly, is that although Immigration law isnational, application of it is local, meaningthat specific documents requested at vari-ous aspects of the immigration process and

the exact procedure vary from city to city.

THE LANGUAGE BARRIEREvery European country has its own mainlanguage, although these can be dividedinto 8 main groups (for an in-depth con-sideration of the Challenge of Languageswithin Europe note previous edition GLOB-AL HR NEWS) .

English is surprisingly little spoken in manySouthern European countries like as thosein the Mediterranean area such as Italy,Portugal, France, Greece and Spain; it isnot uncommon for officials in governmentand public offices to speak no Englishwhatsoever. Countries that were part ofthe ex-Soviet Union have Russian as theirsecond language rather than English,although in many Eastern and New EUcountries, English and/or German isbecoming far more widely spoken amongthe younger generation.

RELOCATION INTO EUROPEAll the above factors can only lead to theconclusion that that qualified local expert-ise is essential when relocating workforcewithin or into Europe. It is necessary to


GlobalHRNews

source a local DSP that is well versed in allspecifics of the country in question, thatcan supply cross cultural input for corpo-rate and employees, that can advise onlocal specifics that could influence corpo-rate relocation policy such as budgetrequirements for housing, local COLA,legal aspects of property lease contracts aswell as possible security risks and precau-tions that should be taken.

An Immigration provider that can demon-strate they are up to date with the recentand ongoing changes in Immigration Lawand its application locally is the first andmost essential step. Some countries donot allow the individual worker for whomthe application has been made to be onnational territory during the processing ofthe application, or they do not allow travelout of a specific area, such as theSchenghen area, whilst documents arebeing renewed. Having a Work Permit inone Schenghen state or in an EU countrydoes not allow one to work in anotherEU/Schenghen country. It is essential thatthe Immigration Provider brief both corpo-rate and the individual worker thoroughly

about any restrictions on movement thatapply to workers.

Effective language training is also extreme-ly important both for the worker and anyaccompanying family who have to settleinto the host country. This should bearranged and started as soon as possibleafter arrival if not before.

Relocating your work force within or intoEurope can indeed present many chal-lenges, but with qualified assistance atevery stage, before, during and after therelocation of the individual staff member,the challenges can be met and the out-come successful.

Sarah Langmead is co-founder and COO ofEnterprisesGroup, a company that providesrelocation, immigration and language trainingthroughout Eastern Europe and Africa.Enterprises Group is a Service Center forOutsourcing, the company does not outsourceto third parties but has trained staff in all desti-nations, it is the choice of many MoveManagement Companies and International Lawand Immigration firms. ■

• DOUGLAS ALMEIDA – CONTINUED

then, seems to understand the meaningsof the mysterious words found in there.Then several unexpected things start tohappen and her destiny becomes somehowconnected to 800 years ago.

I love to practice nature related-sports, Imean, rafting, trekking, scuba diving... Itmakes me feel really good to have thechance to be in contact with the natureand have the chance to dedicate andspend part of my free time on completedifferent environments. That makes mereduce the stress. Other options: have timeto be with my family and my friends. Takethe time just to talk, have meals together,go to the movies. Those activities allowsme to have some level of quality of live.And all with pleasure. ■

globalhrnews.com


GlobalHRNews


still plays a powerful role in Latin Americanbusiness, individual accountability and per-sonal initiative is valued and rewarded inthe southern cone, and taking responsibili-ty for making things happen is somethingthat often distinguishes Argentine andChilean business behavior from the rest ofLatin America.

Businesswomen are typically more common,and can hold positions of higher authority,than in many other parts of Latin America,and US businesswomen will find a workenvironment that, for the most part, is farless imbued with the older legacies ofmachismo male behavior that can some-times be evident elsewhere in Latin America(the current leader of Chile is a woman).

And while the need for personal relation-ships and trust is always essential in LatinAmerica, the rule of law, the role of con-tracts, and the valuing of objectivity, clari-ty and precision is perhaps more reliablein the southern cone than in the rest ofLatin America (this is particularly the

case in Uruguay).

THE MORE THINGS CHANGE,THE MORE THEY REMAIN THE SAME…Nevertheless, this is still Latin America, andwhile we can see significant differencesbetween the southern cone and the rest ofthe region, there are still aspects of LatinAmerican business culture throughout thesouthern cone that in many ways chal-lenge North American business values.

The need, for example, as referred toabove, for personal, trusting relationships,is still an essential requirement to doingbusiness in the southern cone, as it isthroughout the region. Therefore, youwill need to have a third-party introductionin order to get started in the region: it isdifficult to simply make the essential con-tacts you will need in order to do businesson your own. Someone needs to be ableto vouch for you, and you will need totake some time up front to establish yourcredibility and trustworthiness before sub-stantive deal-related discussions can beginwith your southern cone counterparts. Beready for delays and frustrating bureaucra-cy: while the cultures do not carry the

legacy of 15th century conquistadors,southern cone cultures still struggle withthe larger issues that have plagued LatinAmerican cultures in general: unequalwealth distribution and the social, politicaland economic dislocation that results fromsuch.

Certainly, these dislocations are often lesssevere in the southern cone than in otherparts of Latin America, but the southerncone has still experienced its share of polit-ical coups, raging inflation and collapsingeconomies. Relative to the northAmerican environment, working in LatinAmerica – including the southern cone –requires a great deal of flexibility, patience,and perhaps most important, a trusted col-league on the ground who can tell youwhat is really going on.

NOSOTROS SOMOS TODOSAMERICANOS, PERO…Southern cone communication styles canbe a bit more direct and factual than thecommunication style of other parts of theregion: Chileans and Uruguayans can tellyou about difficult or problematic issuesfairly directly.


GlobalHRNews

There is less resistance to avoiding con-frontation, if in fact, confronting is neces-sary to solution. Most importantly,Chileans and Uruguayans will tell you whatis going on on-the-ground, an essentialingredient to long-distance business suc-cess with any country, but especially so influid, unstable Latin America.

Yet, some of the essentials of LatinAmerican communication style remains:

• Until you are invited to do so (althoughit might happen more quickly in thesouthern cone than in other parts of theregion), when first introduced, refer toindividuals with their title (Senor, Senora,Senorita, Licensiado, Doctor, Ingeniero)and their family name, not their givenfirst name.

• Lic. (licensiado, typically referring to some-one with a university degree); Ing(Ingeniero, referring to someone with atechnical degree); Dr (Doctor, referringtypically to anyone with an advanceddegree) are sometimes used without refer-ring to a name, but with Senor or Senora.

• If you do not know her marital status, itis always safer in Latin America to refer toa woman as “senorita” than “senora”.

• Most individuals of Spanish ancestryhave dual last names (e.g.: Sr JorgeGonzalez-Marquez): use the first of thetwo last names with the honorific, asthe first of the two last names is themore important name, referring to thefather’s family name (the second of thetwo is the mother’s maiden name).

• Many individuals also have two firstnames, mainly hyphenated. In thiscase, never shorten the first name: thefirst, or given name, is always bothnames (e.g., Maria-Elena is never short-ened to just “Maria”).

WATCH THOSESOUTHERN CONE NON-VERBALS!The distinctions between southern conehistory and the rest of the region, and theunique mix of cultures that makes up thesouthern cone results in traditions andnon-verbal communication styles that are,in some cases, exactly opposite in meaningthan the same behaviors next door.

For example, that universal symbol of goodluck in Brazil, the “figa” (thumb stuck inbetween first and second finger) is not

appreciated when you cross the border intoArgentina. Firm handshakes are appreciat-ed in the southern cone, and while theubiquitous Latin American “abrazo” greet-ing (for men) exists in the southern cone, itis not as de rigeur as it is in other parts ofthe Latin America (although the “air kiss”greeting between women is very commonthroughout the southern cone).

If you are a vegetarian, you might have avery difficult time in Uruguay and

Argentina (Argentine’s have the world’shighest consumption of beef per capita);but in Chile, the emphasis is on fish andseafood. Dine European-style (keepingthe knife and fork in the same handthroughout the meal), drink the fine winesof the region (Chilean and Argentine winesare definitely making their marks through-out the oenophilic world),and enjoy someof the specialty drinks of the region (try the“mate”: a tea-like infusion made from


Kathy Paddock, CRPVice President - Relocation Services

E-MAIL: [email protected]

1-800-821-1411MEMBERS:

WORLDWIDE ERC • INRELCO • RDC

Online Homesearch-Assistancehttp://www.c21superstars.com

• ACCREDITED WITH MAJOR RELOCATION COMPANIES

• CERTIFIED RELOCATION AGENTS; ON-GOING EDUCATION COURSES

• FULL-SERVICE RELOCATION DEPARTMENT

– Rentals – Area Tours and Maps – Expert Community and School Guidance – Personalized Info-Kits and

Cost of Living Comparisons – Spouse Employment Guidance – Mortgage Services – Group Move Expertise

• FINE HOMES & ESTATES DIVISION

• CENTURY 21 SUPERSTARS #7 IN U.S.

• CENTURY 21 AWARD #1 FRANCHISE IN U.S.

Largest Century21 in the USACovering Southern California’s

Orange County • San Diego County • Riverside County


GlobalHRNews

With expatriate attrition rates surpass-ing double that of domestic employ-

ees1, more and more companies find them-selves struggling to solve the “dual-careerissue.”

In 2005, a record 60% of spouses wereemployed prior to their partner’s accept-ance of an assignment oversees, yet only 1in 3 of these were able to remainemployed during the assignment. Clearly,such a sizeable disparity suggests thatmany trailing spouses either find it too dif-ficult to continue their careers in the newcountry, or they simply don’t receive valu-able enough guidance on how to securetheir eligibility overseas.

But what does a seemingly peripheral issuelike spousal employment have to do withthe overall success of an expatriate assign-ment? Well, upon considering that 67%of expat employees report family concernsas the dominant cause of early returnsfrom an assignment, and spouse / partnerdissatisfaction is cited as the top reason forassignment failure2, it follows logically thata discontented spouse unable to sustainhis / her own career throughout an assign-ment will indirectly have a negative impacton the assignee.

Unfortunately for employers, such addedstress at home often accompanies theemployee into the workplace. Currentstudies show that work disruptions due todependent responsibilities result in averageproductivity losses of $6,825 USD peremployee per year3, not to mention anaverage $789 USD productivity loss foreach unscheduled absence. If these num-bers weren’t costly enough on their own,consider multiplying them several timesover when trying to figure the expenseinvolved in establishing a successful

replacement capable of finishing theassignment on time.

Accordingly, a strong case exists for aspousal support system that will preparespouses / partners to obtain meaningfulemployment abroad and – therefore –increase the chances of the assignee suc-cessfully completing his / her assignment.Visa constraints, work permits, the lengthof time abroad, and certification issues, forexample, can all hinder the job searchprocess. “More often than not,” saysChris Buckley, (International ConsultantManager for IMPACT Group - a prominentdual career and global transition firmbased out of St. Louis) such issues can beeffectively addressed if foreseen longenough in advance to align expectations ormake proper accommodations.”

This, of course, is where a Certified CareerCoach can often make all the difference inensuring the spouse has access to theinformation they need for continuing theircareer in the host country (wherever thatmay be). Especially through the use oftoday’s increasingly more common virtualservice models, coaches and spouse / part-ners can connect telephonically and/orover the web for on-call assistance when-ever (or wherever) the spouse may need it.

Most of the time, spouses are surprised tofind out that, by conducting informedpreparations, they really can resume workin their current career – or at least a relat-ed field. In the case of IMPACT Group, thetraditional roadblocks, such as “What arethe cultural norms for a résumé inGermany?” or “How do I get licensed inAustralia?”, can be addressed head onthrough the coach’s collaboration with anin-house Certified Professional RésuméWriter and Professional Researcher. While

many firms only provide templates andadvice in helping the spouse write theirown résumé – IMPACT Group’s writers willactually work one-on-one with the coachto develop a custom-tailored résumé thatputs the spouse’s best foot forward inapplying for a new job. In addition, theyalso employ a team of expert researchersto take care of the arduous leg workinvolved in locating major employers andrecruiters in the region so that the spouseisn’t left out in the cold with résumé inhand and no place to go.

For the occasional case where license, cer-tification, and/or work visa stipulationssimply make it impossible for the spouse /partner to continue practicing their profes-sion in the new location, career coachescan still help by suggesting several careercontinuation options to prevent any dread-ed résumé “gapping” that often occurswhen having to take significant time awayfrom one’s career. Several options, includ-ing internet-based continuing educationcourses, volunteering, and local expatorganizations, can all help the spouse stayin touch with their trade while out of thecountry on their partner’s assignment.

Many spouses are both surprised anddelighted to learn that such opportunitiesexist for them abroad and – given theopportunity – often jump at the chance totake full advantage of dual career assis-tance services. Again, it’s no secret that ahappy spouse will inevitably translate intoa happy employee who can remainfocused on his / her assignment and beless likely to suffer costly workplace dis-tractions. It is critical for the assignment’soverall success, however, that familiesbecome aware (in advance) of the optionsdiscussed above so that working spousescan the share the excitement of careertransition with their partner – instead ofjust tagging along behind them.

1 Global Relocation Trends: 2005 SurveyReport. Performed by GMAC GlobalRelocation Services.

2 Value of Services Survey. Performed byIMPACT Group.

3 Assuming a $100,000 salary (plus bene-fits) employee loses at least an hour a dayof productivity for the six-month periodsurrounding the move. ■

MANAGEMENT

The Key to Expatriate AssignmentSuccess? A Happy Spouse.

by LAUREN HERRING, CRP, GMS; President, Global ServicesIMPACT GROUP

RIO DE JANEIRO

SOUTH AMERICAN CONFERENCEWorld Trade & International

Assignment Management

http://www.globalhrnews.com/b4/b4conf.asp?cid=57

20 & 21 FEBRUARY 2007Produced in association with PricewaterhouseCoopers, Chestnut Global Partners,

Fragomen Del Rey Bernsen & Loewy, AIRINC, Living Abroad, Dean Foster Associates,GLOBOND...(to date)

HOTEL SOFITEL, COPACABANA BEACH

LONDON

EURO - ATLANTIC CONFERENCEWorld Trade & International

Assignment Managementhttp://www.globalhrnews.com/b4/b4conf.asp?cid=46

28 NOVEMBER 2007Produced in association with CITIBANK, Chestnut Global Partners, ACS InternationalSchools Ltd, Fragomen Del Rey Bernsen & Loewy, Primacy Relocation, AIRINC, ORC,

Living Abroad, Full Circle International Relocations, Willis Relocation Risk Group, EquityCorporate Housing, Dean Foster Associates, InterCultural Management Associates,

Orion Mobility, The Apartment Service, GLOBOND...(to date)

THE MAYFAIR HOTEL, STRATTON STREET

and

Cordially Invites You to

For more information, please contact [email protected]


GlobalHRNews

With a population of over 36 million,Argentina is the second largest

nation in South America. Nearly 18 mil-lion people live in Greater Buenos Airesalone, making it one of the most denselypopulated areas in the world. BuenosAires, the capital of Argentina, is thecountry's social, cultural, financial, eco-nomic and political hub.

During the nineteenth century, Italians,Spanish, French, Welsh, English, Ukrainiansand people of other nationalities immigratedto Buenos Aires, making it one of the mostculturally diverse cities in the Americas.

Although Spanish is the official language ofArgentina, Italian, English and other foreignlanguages can be heard within immigrantcommunities. However, most Argentineswho speak a native tongue are also fluent inSpanish. As a result, it may be a good ideafor anyone moving to Argentina to gain atleast a fundamental grasp of Spanish.

Argentina's national currency is theArgentine Peso, which is directly tied tothe rate of the US dollar. Thus, Argentinais a dual-currency country where eithermonetary system can be used.

Due to the fact that Argentina lies belowthe equator, the seasons are oppositethose in Asia, Europe, and North America.

CULTUREAlthough Argentina can be cosmopolitanand progressive, when relocating here it isbetter to err on the conservative side. Inmost aspects of Argentine culture, dress,lifestyle and business, being conscious ofthe country's traditional cultural aspectswill be beneficial. However, with such ayoung core population, a youthful, moreaccepting, and casual atmosphere is begin-

ning to arise; this is particularly true of lifetoday in the suburbs.

In Argentina, people are more open andaffectionate publicly and are not afraid to getcloser to others--a cultural practice whichmay not be considered the norm in othersocieties. Argentines tend to stand very closeand touch each other while talking.

DOING BUSINESSArgentines tend to start a little later in themorning than the time to which foreignnationals may be accustomed. As a result,it may be very difficult to make a meetingbefore 9:30 a.m. Once the meeting hasbeen scheduled, it is wise to rememberthat while an Argentine may be late to ameeting, they often expect foreign nation-als to be on time.

If planning a meeting during a meal, thereare several things to keep in mind. It is not

customary to have meetings during break-fast. Argentines tend to work late into thenight rather than start early in the morn-ing. The best time to have a business mealis during lunch. Do not try to talk aboutbusiness solely, however. Argentines tendto believe that meal times are a socialtime, and not a time to talk business. Thecommon dinner hour is around 10:00 p.m.

Although organizational structures aresophisticated and business dealings formal,Argentines do business in a relaxed, friend-ly fashion. They tend to create alliances,work well in teams, and share credit foraccomplishments. Although they are veryargumentative, they avoid open conflictand direct opposition to viewpoints, espe-cially those of their superiors.

When socializing with Argentines, try toavoid the topics of politics and religion. AsArgentines tend to feel passionately aboutboth, they may not be immediately recep-tive to a foreigner's perspective. Still, it is agood idea for all foreign nationals to haveat least a general knowledge of both.Several safer topics of conversation includemusic and sports. Argentines are quiteoften passionate fans of football (soccer),so this is always a good topic.

In general, conservative business dress isthe rule, but this may vary depending onthe region. While Argentines in general areinformal in the way they dress, men andwomen should make a point of dressingformally when doing business. This doesnot necessarily mean wearing a suit;rather, business casual attire is more appro-priate. It is only necessary to wear a tiewhen dining in very exclusive places orattending a formal social event.

SOCIAL CUSTOMSWhen arriving at a meeting or small party,you should make a point of greeting every-one in the room. (Likewise, it is customaryto say goodbye to everyone before depart-ing.) It is very important to address peopleusing formal titles. Men may be referred toas "Señor" or, if they are a doctor,“Doctor.” Likewise, women are referred toas “Señora” or “Doctora.” Among friends,"Don" (man) or "Doña" (woman) is anappropriate title. ■

WORLD TRADE

Argentinaby ANNE DEAN, Editorial DirectorLIVING ABROAD LLC

SO

UR

CE

: CIA

-The

Wo

rld

Fac

t B

oo

k


GlobalHRNews

• 6 THINGS – CONTINUED

living away from home and are used as amain way of networking and keepingabreast of things in the home nation.Contact these groups and ask them tocirculate your open roles to their mem-bers by email, in newsletters, or via theirwebsite. Take a long-term view of suchstrategies. While they may not garner theperfect candidate for a particular search,they are invaluable for putting you intouch with great people in other markets,who may be able to recommend candi-dates at home, or could even help youwith business contacts in other countries.

3. Use your local office. Take advantageof your foreign office contacts to helpyou find candidates. Tap into theresources and employee pool of peoplein other markets within your firm. Theyare bound to know great individuals whoeither work within the organization local-ly, or who have approached them forroles overseas. For multinational organi-zations, this is a simple way to reachglobal candidates in which you have adistinct advantage over other smaller ornational organizations, so use it. Havelocal recruitment teams advertise on yourbehalf and work together to short-listcandidates. Where possible, do videoconferences with those on the short list.It's a small investment for the right can-didate. If your firm is quite sophisticated,you may have mechanisms that allowpeople to move between global branchesand where possible, use those too. If youdon't have formalized processes to makethis happen, then use your networks, orbuild networks with your global col-leagues informally. Limit your communi-cations to HR or recruitment teams onlyif you fear that open advertising will pro-duce too many applications from staffwho want international assignments andyour firm cannot or is not equipped tomanage this. Networking with otherrecruiters within your own organizationto share candidates and contacts is agreat way to build your profile as well asto source new employees.

4. Work with local search firms. InSydney, and across Australia, a greatdeal of recruitment is still done by agen-

Partnering with one or two agenciesthat specialize in your industry or withina functional area is a great way to locatetalent. To find out which agencies to usein a given market, ask the local recruit-ment team of your firm to make recom-mendations, which might enable you toget the same preferred rates they enjoy.

5. Share candidates. Consider sharing can-didates with other recruiters through vari-ous forums and channels. Use things likethe split boards on ERE or other recruiters


cies and search firms. Corporate recruit-ment teams exist in many organizations,particularly large or global ones withU.S. parents, and they often also useWeb-based recruitment systems, but tiesto the agency world are still prevalent inAustralia's largest businesses. Somecompanies are using the increasinglypopular recruitment process outsourcingarrangements, but many in Australia stillhave preferred supplier agreements witha number of agencies at reasonablerates that do all their sourcing for them.


GlobalHRNews

The U.S. real estate market has arguablygained in investment appeal in the last

twelve months or so due to the downturnin the market. Indeed, its lustre shinesever brightly for some foreign investorsdue to exchange rate considerations andthe relatively low long-term federal capitalgains rate at 15%. Even on a revenuebasis, the deductibility of mortgage inter-est and real estate taxes (subject toAlternative Minimum Tax restrictions) is acompelling reason to buy for some foreignnationals living in the U.S. for a period ofeven just a few years.

Do the foreign national investors know,however, that the full value of their U.S.home could be exposed to U.S. federalestate tax rates of up to 45%!

Are they aware that certain states alsoimpose “death” taxes on assets situatedwithin their state?

DOMICILE REIGNSUpon the death of one who is not “domi-ciled” in the U.S. (broadly defined to besomeone whose permanent home is outsidethe U.S.) estate tax is imposed on all assets“situated” in the U.S. including but not lim-ited to a principal residence or other realestate here. U.S. stock holdings and, ifapplicable, any U.S. pension or 401(k)investments may also be subject to estatetax. Estate tax definitions should not beconfused with income tax treatment. It isperfectly possible – indeed common - for anindividual regarded as resident for incometax purposes to be considered non-domi-ciled (sometimes similarly referred to as“nonresident”) for estate tax purposes.

SO WHAT’S THE ISSUE? What about the $2,000,000 individualestate tax exemption available to U.S. citi-zens and other U.S. estate tax residents(including most green-card holders), andwhich will increase to $3,500,000 in2009? Regrettably, foreign nationals not

domiciled here do not qualify for anyincrease in exemption. Instead, theexemption available remains at a mere$60,000 with no legislative plans toincrease the amount. Any applicableestate tax treaty between one’s homecountry and the U.S. may help, but thereare special conditions to the application ofall such treaties. Moreover, notwithstand-ing such treaties (of which there are lessthan twenty, unlike the plethora of incometax treaties) in-country real estate invest-ments often remain exposed to U.S. estatetax liability.

Ah, but what if that $1,000,000 home isfully leveraged by a full recourse mortgage(i.e. one for which you are personally liablewhen in default) - won’t that eliminate thetaxable estate? Unfortunately, no it willnot. Estates of non-domiciliaries areallowed a deduction for recourse debtsonly to the extent of the ratio of U.S. assetsto worldwide assets. So, if in addition tothe U.S. home, the decedent held propertyand other estate taxable assets outside ofthe U.S. worth $2,000,000 (including lifeinsurance proceeds), only 33% [1/(1+2)] ofthe mortgage would be deductible in com-puting the U.S. estate tax. Worse still, inorder to obtain any deduction at all, theestate’s executor must disclose to theInternal Revenue Service the fair marketvalue of the decedent’s worldwide assets.Such disclosure is often impractical andalmost universally undesirable.

But for married persons, presumably theseissues only come into play on the death ofboth spouses in a tragic common acci-dent? Surely a spouse can bequeathassets to his/her spouse on a tax-free basisand avoid these problems? Once again,the ‘normal’ rules do not apply if the recip-ient spouse is a non-U.S. citizen. There istypically no escape from estate taxation viaa transfer between spouses as there is nomarital deduction for transfers to a non-

U.S. citizen spouse. In fact, these rulesapply whether the decedent spousebequeathing the assets is a foreign nationalor a U.S. citizen. The rationale for the taxauthorities is that, absent these rules, theestate tax deferred assets transferred to anon-U.S. citizen will leave the U.S. tax net,never to be recaptured.

THE CORPORATE DIMENSIONIn the international assignment context,such estate tax exposure faced by a foreignnational assignee may not be his or hersalone. Many employers have internationalassignment tax policies in place that seekto apportion tax liabilities between theemployer and the assignee. The method-ologies run from laissez-faire to tax “pro-tection” to tax “equalization” and varia-tions thereon. The critical point here,however, is that the vast majority of suchtax policies address the treatment ofincome, social security and other periodi-cally imposed taxes. Generally, they do noteven acknowledge transfer taxation issues,including the impact of estate and gifttaxes. As remote as the possibility is, whathappens if the unthinkable happens and anassignee dies while on assignment holdingassets that create additional – and possiblysignificant - estate tax liabilities?

WHO IS LIABLE?True, many employers’ international assign-ment tax policies discourage the purchaseof a principal residence in the assignmenthost location. However, it is unlikely thatsuch a policy is an effective legal shieldagainst some level of potential employerliability absent specific reference in a letterof assignment as to how such potential lia-bilities should be treated. An employercould very well be exposed to additionaltax liabilities simply by omission. The valueof coordination between employmentcounsel and tax counsel coupled with aneffective communication strategy withassignees speaks for itself.

GOING LOCALOnce again, in the same manner that taxand compensation policies may focus onallowance phase-outs and the weaning offany income tax reconciliation program inplace, localization also raises the specter ofa fundamental shift in the estate planningissues facing foreign national assignees,particularly in the context of application for


LEGAL

Foreign Nationals in the U.S.– Invest AND Protect Your Assets

by R. SCOTT JONES, Esq*. • GOLDSTEIN JONES LLP


GlobalHRNews

• EDUCATION – CONTINUED

• Generate a list of criteria based on thechild’s needs, strength’s, weaknesses,family values (religious, non-denomina-tional, single-sexed, coed, progressive,traditional, large, small, early childhoodvs. ongoing) and geographical logistics;

• Identify a manageable list of schools toconsider based on the criteria above,generally a list that can be viewed dur-ing the look-see visit;

• Research these schools through theschool’s own website, any local refer-ence books, or the internet to determinethe ethos as well as basic facts abouteach school;

• Include a range of schools on the list,such as public, independent, large andsmall, reach schools as well as safetyschools, essentially all that might meetthe needs and interests of the child;families can learn as much about whatthey are seeking from consideringschools that do not suit their child asones that are a perfect fit.

• Call or email the school to find out

about availability, deadlines, requiredtesting and the application process;

• Schedule visits for the week of the look-see trip as there is no substitute for see-ing with one’s own eyes;

• Ensure that applications and supportingmaterials are submitted prior to the visit,and that appointments are secured fortours, interviews and other desiredappointments;

• Use the interview to find out about theschool. No question is a bad questionand this process is not just about gettingin, but about finding a good match.

After acceptances are in hand, a thought-ful process should be undertaken before achoice of schools is made. The purpose ofthis is to ensure that the family under-stands the culture of the school they arechoosing, how newcomers are welcomed,how curricula between old and new schoolcompare, and how the school assists chil-dren who may be behind in some areas orahead in others. If possible, familiesshould visit at invited times (open houses,tours, interviews) as well as impromptu

times such as drop off, pick up, sportingevents, fairs, PTA meetings, plays, concertsor any other times when it is possible toget a real flavor for the school in action.Families need to know that getting into aschool is only half of the process. It is intheir interest to do their homework before-hand to be sure that their children will besuccessful and that their family will fit in.

Parents are often overcome by guilt aboutmoving their children, and may not becomfortable moving unless they can feelsecure about the school decision.However, a mid-course move actually canbe an unparalleled opportunity for familiesto re-evaluate their children, to assesswhether or not the current school is thebest learning and social environment forthe child at present, and to make an evenbetter choice for the future.

When HR can assist parents to reframe theinevitable into an opportunity for growth,the school search process can go muchmore smoothly and can actually become apositive aspect of the relocation. ■


GlobalHRNews

• H-1B VISA – CONTINUED

TN VISAS FOR CANADIAN ANDMEXICAN PROFESSIONALSCreated pursuant to the North AmericanFree Trade Agreement (NAFTA), the TN visais available to certain professionals who arecitizens of Canada or Mexico. To qualifyfor TN status, the foreign national must beoffered a temporary position in one of theprofessions specified in Schedule 2 ofNAFTA and must possess the degree orcredential required for the position. The TNvisa is granted in one-year increments,with no statutory limit on the period ofstay in TN status.

L-1 VISAS FORINTRACOMPANY TRANSFEREESThe L-1 visa is available to certain employ-ees who have worked for a parent branch,subsidiary, or affiliate of the employer out-side the United States for at least one con-secutive year. In order to qualify for the Lclassification, the employee must haveworked for at least one consecutive yearduring the last three years in an executive,managerial or specialized knowledgecapacity. In addition, the employer mustseek to transfer the employee to the UnitedStates to assume an executive, managerialor specialized knowledge position.

L petitions are approved for an initial peri-od of three years. Executives and manage-rial level employees are granted L-1A sta-tus and are permitted a maximum stay ofseven years in the U.S. Non-managerial,specialized knowledge employees aregranted L-1B status and are permitted amaximum stay of five years. Note that timespent in the U.S. in H-1B status countsagainst the L-1 stay, and time spent in L-1status will count against the six-year limiton H-1B time.

J-1 CLASSIFICATION FORBUSINESS TRAINEES, EXPERTS,SCHOLARS AND OTHERSThe J-1 visa category may be used by for-eign nationals to enter the United States asexchange visitors to participate in U.S.-gov-ernment-approved exchange programs, forthe purpose of gaining experience, study-ing, or doing research in their respectivefields. Note, however, that in some cases,exchange visitors may be required to com-ply with strict home-country residencerequirements immediately following the

completion of U.S. training.

Employers seeking to sponsor exchangevisitors must either establish an approvedexchange visitor program or utilize theservices of a recognized independent pro-gram. Such programs may be sponsoredby businesses, government agencies, edu-cational institutions, hospitals, and non-profit associations. A wide variety of quali-fied visitors may be sponsored for J-1 clas-sification, including business trainees, col-lege and university professors, research

scholars, and foreign medical graduatesparticipating in U.S. internships and resi-dencies. The period of admission for J-1visitors varies according to the type ofexchange program, but generally rangesfrom 18 months for most trainees to fiveyears for professors and research scholars.

H-3 TRAINEE VISASForeign nationals who will receive trainingfrom a U.S. employer that is not availablein the person’s home country may qualify


Luxury Accommodation in Paris • Apart-hotel, Business and Conference Facilities

6, rue Copernic 75116 Paris FranceWEB: www.jays-paris.com EMAIL: [email protected]

T: +33 1 47 04 16 16 F: +33 1 47 04 16 17


GlobalHRNews

Repatriates encounter problems return-ing home that are as daunting as those

faced when they become expatriates.There is widespread agreement about thenature, cause and solution to these prob-lems. Our focus here will be on the solu-tions and what inhibits their implementa-tion on the part of many multi-nationalcompanies. First, a quick review.

Concern with repatriation is not new, hav-ing been articulated a quarter century agoby business commentator M.C. Harvey(Harvey. M. 1983. '"The Return Side ofForeign Assignments: Dealing with theRepatriation Dilemma." Columbia Journalof World Business.) Ten years later tworesearchers, J.S. Black and H.B. Gregersen,sought to explain the high repatriate drop-out rate by actually interviewing repatriates(Black. J.S. and Gregersen. H,B, 1991."When Yankee Comes Home: FactorsRelated to Expatriate and SpouseRepatriation Adjustment.'" Journal ofInternational Business Studies.) Whileissues of repatriate adjustment have formany years played second fiddle to thechallenges of expatriates, the factorsuncovered by Black and Gregerson are bynow familiar to nearly all who are involvedin global mobility.

The key to understanding the strain ofrepatriation is in the gap between expec-tation and actuality. This gap appears inboth the personal life of the repatriateand his family and in the work reintegra-tion of the employee.

The very term “returning home” resonateswith feelings of familiarity, coming back toone’s comfort zone and a sense of belong-ing. These expectations are often dashedby the reality. The repatriates, bothemployee and family, come home aschanged people and many of the friendsand family members they return to have

also changed. The repatriates can’t just slipback in where they left off before theirrelocation. Repats find that their globalexploits and new perspectives are of littleinterest to others. This chilly homecomingstands in stark contrast to the close knitexpatriate community they recently left.

When the employee returns to work he isdisconcerted to find how much it, too, haschanged. Departments and divisions havebeen merged, dissolved or reconstituted.Former colleagues have been promoted,reorganized, replaced or downsized away.Those left are immersed in their own livesand find little relevant in the repat’s experi-ences abroad. They may even regard theexpatriate with hostility, as a threat to theirown position and power. These attitudeson the part of colleagues and the companyas a whole, leave the repatriate feelingdeflated and discounted.

Even worse, the employee returns to cor-porate home base, often after a profes-sionally challenging and exciting severalyears, to find that nobody is sure what todo with him. There may be no job waitingfor him, much less one that capitalizes onthe skills and competencies he developedwhile away.

The collusion of personal and professionaldisappointment hits the expatriate hard.Anger and bitterness settle in and set thestage for defection to another company.

How do repatriates defect? Figures vary.A recent study put the one-year drop outrate at around 25% total and the three-year rate at 40%. Other figures are bothlower and higher. There is little dispute,however, that the repatriate rate ofturnover is higher than average.

This flight of repatriates is costly to compa-nies. As is often the case with human capi-tal calculations, it is hard to pinpoint an

exact figure. Turnover per se is expensiveand companies support expatriates to a tuneof several hundred thousand dollars a year.These expats are often among the more tal-ented and able employees and they returnto the home country with expertise and abil-ity that adds to their value, especially in anincreasingly global economy.

In a recent conversation, Lisa Johnson,Director of Cartus Consulting, pointed outthat the significance of these losses doesn’teven depend on whether repatriates leave ata faster rate than other employees. Even iftheir rate of attrition is average, this ”is anexample of poor mobility program ROI sinceyou have just invested so much money intothis population; you would want your attri-tion rate of repats to be at 0%.”

This being the case, why aren’t all multina-tional companies taking more vigorous stepsto address the problems of repatriates?Whatever the reason, it is not that they areat a loss for effective action. Companies thathave tackled the problem, like AT&T, havemodeled successful initiatives.

When the two aforementioned researchersstudied repat turnover, they found thechief causative factor to be the gulfbetween expectation and actuality. Thisincongruence often sets up families andemployees for severe disappointment anddisillusionment. This makes it critical thatfuture repatriates begin to hear about thepersonal and career realities of repatriationeven before their expatriation.

The employee needs his career expecta-tions brought into line with reality. Butcompanies also need to work the otherend by helping the reality to more closelyapproximate expectations.

This can be done by wrapping the expatria-tion-repatriation event into an overall


MANAGEMENT

Repatriation: Can Companies Do More?by GALEN TINDER, ManagerRICKLIN-ECHIKSON ASSOCIATES (REA)


GlobalHRNews

WorldwideNetworking

WORLD TRADE UniGroup Worldwidepurchases InterdeanGroup Asian subsidiary

ST. LOUIS — UniGroup Worldwide, Inc., haspurchased the Asian subsidiary operations ofLondon-based Interdean Group Ltd. .Interdean Asia facilities located in Singapore,Hong Kong, China, Malaysia, Thailand,Vietnam, and the Philippines are included inthe transaction. “This acquisition closely fitsour company’s strategic interests as we growin that increasingly important economicregion,” said Michael Kranisky, president ofUniGroup Worldwide. “The addition ofthese operations to our current UTS alliancestrengthens our service delivery capability inthe Pacific Rim and ensures that we willkeep pace with the requirements of anexpanding customer base.” UniGroupWorldwide is the international arm ofUniGroup, Inc., one of the nation’s largestprivately held companies. Together with itsstrategic alliance partner UTS, it providesinternational household goods moving, air-freight forwarding and logistics manage-ment services throughout the world. Basedin suburban St. Louis, UniGroup, Inc. is theparent company to United Van Lines,Mayflower Transit and other transportationrelated subsidiaries that generate total rev-enues exceeding $2.2 billion. ■

Proud to be a WBE Certified Company

LOUISE F. FITLEYPresident

Licensed Real Estate Agent

1727 Timber Ct.Twinsburg, OH 44087EMAIL: [email protected]

Corporate ApartmentPartners of America

OFFICE: 330.963.2772TOLL FREE: 866.385.2272

FAX: 330.963.2775CELL: 330.412.3382

Bar-Pereg GroupM.Bar-Pereg BVStadionweg 1901077TC AmsterdamThe [email protected]

Michele Bar-Peregmanaging directorM +31 6 212 878 [email protected]

Bar

-Per

eg G

rou

p,

glo

bal

mo

bili

ty t

rain

ing

and

co

nsul

tanc

y


GlobalHRNews

• 6 THINGS – CONTINUED

in your network to help the candidateand yourself. Ensure that when youattend conferences, you seek out vendorsand suppliers from other countries includ-ing Canada, and try to meet as many for-eign recruiters as possible.

6. Go out of your way for the best candi-dates. Talented people always have optionsand are in demand. They don't have to workfor your company but they might want to. Ifyou do talk to expatriate candidates, ask ifthey will require re-location instead of assum-ing they will. Be honest if you can't provideit, but don't rule them out immediately justbecause they are overseas today. In mostcases, costs for returning the employee andhis or her family from an assignment will bemet by the employer either through contractor local legal obligations. In addition, theexpat could be planning a return or hometrip very soon, forgoing the need for anyinvestment in long-distance communicationsthrough the recruitment process.

View global experience positively rather than astime spent out of the loop. Just because theexperience has been gained in a local companyor subsidiary office, rather than in corporateheadquarters, does not make it any less rele-vant. In fact, it may make it more so.

Markets abroad are vibrant and challenging,and global work environments often present sit-uations to foreign employees that would neverhave been faced at home, making for a trulywell rounded employee.

Some people go abroad to turn an operationaround, or to open a new arm of the businesselsewhere. Others go to explore and developrelationships or businesses in the emerging mar-kets of Asia and India. These skills could be justwhat you are looking for. The value such candi-dates can bring from time spent overseas isworth the investment of a phone call at least.

Laura Randell was most recently Head oforganizational effectiveness for RabobankAustralia and New Zealand where she setand led the strategic people attraction anddevelopment plan for the organization.Prior to this, she worked with Woolworths,Australia’s largest employer, developing theemployer branding strategy for all 14 retailbrands. Laura has also worked with majorCanadian financial institutions such as RBCRoyal Bank and CIBC.

Reprinted with permission from ERE Media(www.ere.net). ■

JOSHUA B. WEINMANDirector of Relocation

(800) 997-7356 Toll Free(212) 326-0351 Business(212) 326-0262 Fax(917) 721-8483 [email protected]

555 Madison Ave., 12th FloorNew York, NY 10022

www.cbhk.com

Each Office Is Independently Owned And Operated

HUNT KENNEDY

www.globalhrnews.com

B r u s s e l s e s t e e n w e g 410 D • B - 3 0 9 0 O v e r i j s e B E L G I U MT +32 (0)2 658 8085F +32 (0)2 657 5033

M +32 (0)476 471 [email protected]

Eileen MoneyGeneral Manager

CERP Level 2


GlobalHRNews


time (as China’s autocracy was able to do).

But the source of India’s boom lies deep in itscultural heart, for IT opportunity and technologi-cal advantage and even politics can all convergeto produce a great many things, but in India theyconverge to produce the world’s “back office”,and the reason for that is the Indian cultural con-text of “service” in which all this occurs.

CULTURE AS PROPHETAs we have seen, politics and economics, fromboth within and without, impact a nation’scourse, but how a nation responds to theseforces and circumstances, and how it is impactedby them, is a reflection of its culture. In today’sglobalized world, how nations respond to globaleconomic and political forces becomes a pro-found reflection of its culture, and the conver-gence of culture and globalization providesnations with advantages and disadvantages.

If the advantages that globalization present out-weigh the disadvantages, the result can be aChina and India phenomenon. If the disadvan-tages outweigh the advantages, or if a nationcannot or will not find a way to connect itsunique cultural legacies with the economicopportunities that globalization presents, theresults can be some of the awful political andsocial dislocations that all too often make thedaily headlines.

Some of India’s cultural traditions held Indiaback economically at first, giving the initialeconomic advantage to China; but these samecultural traditions also allowed India to eventu-ally emerge, through globalization, as theworld’s service-office. For centuries, some ofChina’s cultural traditions prevented China fromeconomically developing until these cultural tra-ditions converged, through globalization, withthe world’s need for inexpensive manufacturedgoods in quantity.

Change is always the one certainty, and whileculture is the force that can propel a nationunder the right circumstances from one condi-tion to another, those same cultural factors caneasily hold the nation back from moving on toyet a greater stage. Today, for both China andIndia, it is a case of being the right culture atthe right time, and for both of these giants,their continued success will depend upon theirability, not only to continue to provide whattheir cultures already predispose them to do sowell (that’s the easy part), but rather, to growbeyond what these traditions offer, as the tigerand the dragon assume a leadership role in thenew, post-global world of the 21st century. ■

RELOCATIONS ESPAÑAAXEL ZORN

MANAGING DIRECTOR

ARTURO SORIA, 263B – 28033 MADRID, SPAINTEL +34 913 843 900 – FAX +34 913 843 901

EMAIL [email protected] – WEB www.relocationspain.com

. . . PORTUGAL? Call US!

TRIPLICADO PORTUGAL RELOCATIONAv 25 Abril 83 VilaFria2740-176 Porto Salvo

Portugal

[email protected] TEL: 351 - [email protected] TEL2: 351 - [email protected] FAX: 351 - 214210933http://www.triplicado.com MOBILE: 351 - 966013689

Isabel Reis, Senior Partner


GlobalHRNews

• FOREIGN NATIONALS – CONTINUED

permanent resident status. The treatmentof foreign pension arrangements, for exam-ple, has attracted increasing attention in thelast couple of years due to detrimentalchanges in the cost basis treatment of suchplans for income tax purposes upon distri-bution. This is but part of the picture,however. With permanent residence sta-tus, very often also comes the inclusion offoreign assets into the U.S. estate tax as adomiciliary for U.S. estate tax purposes.While the exemption amounts are consider-ably higher, the assets within the tax hori-zon very often broaden equally, if not dis-proportionately. To be informed, such deci-sions should be met by careful pre-planningat the departure gate. Indeed, there may besome very effective tax strategies availableto such individuals, the timeliness of whichis of the absolute essence.

PROTECTING THOSE ASSETS –YOURS AND THEIRSThe tax rules outlined – and the risks theypose - all seem very unfair, if not scary intheir application. But what are some ofthe key procedural and tax technical solu-tions available?

Policy review and comprehensive letters ofassignment would seem essential from theperspective of clarifying who is liable forany additional estate liability arising froman assignment. Other practical measurestaken by some employers are to engagethe services of tax advisors and estateplanners with respect to these specificissues at the option of at least certain (per-haps more senior) groups of assignees. Atminimum, a simple recommendation toassignees that are intending to purchaseU.S. real estate, or otherwise are localizing,that they should seek comprehensiveincome and estate tax planning advice is avaluable - and perhaps critical - first step.

The foreign national should also give seri-ous consideration to exploring whether aU.S. Will is advisable in circumstanceswhere he/she purchases US estate taxableassets (even if additional to – and coordi-nated with - a Will in his/her country ofdomicile). Indeed, in any event, if he/shehas accompanying children while onassignment here, a U.S. Will may be criticalto avoiding potential guardianship issues in


Beatriz Carro de PradaDirectora

BRS Relocation Services, S.L.Ganduxer 14, Entl. 4a & 5a

08021 Barcelona - Spaintel.: +34 93 203 4935fax: +34 93 240 1577

móv.: +34 659 680 [email protected]

511 Forman Avenue • Point Pleasant Beach NJ 08742

Dawn Fetherston, CRP, GMSBroker /Sales Associate • Director of Global Relocation Services

Bus: 877.887.8660 Fax: 732-920-5107 Cell: 732-616-7153E-mail: [email protected]

www.dianeturton.com

P.O. Box 3115 Cold Hill Road South, Suite 28Mendham, New Jersey 07945-0311www.pmipmi.com

Peter A. FehnelPresident

(973) 543-6001Fax (973) 543-7911

[email protected]

Personal Mail International, Inc.PMI Expatriate Mail Services

Stuart McAlister GMS Mobile: +36 70 334-3434

Chief Executive Officer Email: [email protected]

INTER RELOCATION GROUP 1068 Budapest, Benczúr utca 42. Hungary

Tel: + 36 1 278-5680 • Fax: +36 1 278-5688 www.interrelo.com

Welcome to our world


GlobalHRNews

• FOREIGN NATIONALS – CONTINUED

the event of a fatal accident common toboth spouses. The kids come first! Inaddition, if an individual transfers assets tohis/her non-U.S. citizen spouse, the estatetax due may at least be deferred via aproperly drafted Will incorporating what isknown as a Qualified Domestic Trust(QDOT). Such a trust may be created in lifeor shortly after the death of the firstspouse.

Estate tax risks facing non-domiciliariesmay also be hedged very effectively withlife insurance proceeds. Indeed, life insur-ance vehicles are extremely versatile toolsfor the protection against both income andestate tax liabilities in a number of situa-tions. They also carry the advantage forestate tax non-domiciliaries that they areper se not estate taxable on death benefitspaid (whether obtained through a U.S.insurance carrier or not).

Lastly, a foreign national could try negoti-ating a “non-recourse” debt with his orher mortgage lender. A non-recoursedebt is one with respect to which a lenderhas a lien only on the asset securing theloan, without recourse to the borrower’sother assets. The advantage of this mech-anism is that it permits a full deduction forthe value of the debt against the estatetaxable real property asset. Compare thisto a recourse loan situation noted above ofrequiring worldwide disclosure of assets inorder to qualify merely to prorate the off-set of mortgage debt on the ratio of U.S.to worldwide assets.

In summary, understanding how the estatetax rules apply to a foreign national’s cir-cumstances is the first notch in an actionplan to mitigate any potential adverseestate tax consequences.

THE MORAL OF THE STORY? While that new dream home looks attrac-tive, the foreign national should avoid cre-ating a potential estate tax and administra-tion nightmare for those left behind!

*R. Scott Jones, Esq. is a partner with New Yorklaw firm Goldstein Jones LLP. For more informa-tion, contact Scott at (914) 214 5579 and visitwww.goldsteinjones.com

Copyright ©, GOLDSTEIN JONES LLP - March,2007. ■

c i r nCanadian InternationalRelocation Network

429-5014 New St.Burlington, ON L7L 6E8

Patricia Harrington, President“A Canada wide network of relocation professionals”

Tel: 905-634-0166Fax: 905-634-6877

Toll Free: 1-866-466-2476Email: [email protected]

www.cirn.ca

Leaders in global moving since 1957

www.Findlaymoving.com

E-mail: [email protected]

326 South Fulton Ave. - Mount Vernon, NY 10553

Mark Reda, CMCDirector of Sales

Phone: (800) 431-1527(914) 699-1100

Fax: (914) 699-1166Cell: (914) 772-0397


GlobalHRNews

Donald Stephenson 699 Hampshire Rd, Suite 207President and CEO WestlakeVillage CA 91361

866.9.INTEL.9 Toll Freewww.C3Intel.com [email protected] 805.494.0702 Fax


for the H-3 visa. They must demonstratethat the training will benefit them in theircareer abroad, and that they will notengage in productive employment thatwould displace any U.S. workers or that isbeing used to recruit personnel for theU.S. employer. The U.S. employer mustprovide USCIS with evidence of a fixedschedule, objectives and means of evalua-tion of the foreign national’s activities. H-3trainee visas are valid for a maximum oftwo years.

O-1 VISAS FOR INDIVIDUALS OFEXTRAORDINARY ABILITYThe O-1 visa classification is available toindividuals who can demonstrate extraordi-nary ability in the sciences, education, busi-ness, athletics, the arts or the motion pic-ture or television industry. Three types ofO-1 visa are available, each with differentstandards of extraordinary ability. Foreignnationals who seek O-1 classification inbusiness, the sciences, education or athlet-ics are subject to the most rigorous stan-dard, and must show that they are amongthe small percentage of people who haverisen to the very top of their field ofendeavor, as demonstrated by sustainedinternational or national recognition fortheir achievements in the field. Foreignnationals seeking O-1 classification in thearts are held to a somewhat lesser stan-dard, and must demonstrate prominenceand a record of extraordinary achievementin the field of endeavor. Finally, those seek-ing O-1 classification for extraordinaryachievement in the motion picture or tele-vision industry must fulfill the least restric-tive standard, demonstrating a very highlevel of accomplishment, above that ordi-narily encountered in the field. An O-1petition may be approved for an initialperiod of three years, and O-1 status maybe extended in one-year increments, withno statutory limit on the number of exten-sions available.

E-1 OR E-2 VISAS FOR TREATY TRADERSAND INVESTORSE visa classification is available to principalsand employees of companies whose coun-try of majority ownership has concluded acommerce or investment treaty with theUnited States. E-1 treaty trader status is



available to businesspeople who seek toengage in substantial trade in goods orservices between the United States and thecountry of majority ownership of the busi-ness. The E-1 visa applicant must beemployed in a supervisory or executivecapacity and must possess highly special-ized skills essential to the efficient opera-tion of the firm. E-2 treaty investor status isavailable to individuals who seek to developand direct the operations of an enterprisein which the visa holder or his or heremployer has invested or in the process ofinvesting a substantial amount of capital.Treaty investors must be employed in asupervisory or executive capacity, or mustpossess highly specialized skills.

E nonimmigrant status is granted for aninitial period of two years and may beextended indefinitely, as long as the for-eign national intends to leave the UnitedStates when his or her period of author-ized stay ends.

E-3 VISAS FOR AUSTRALIANSProfessionals in specialty occupations who

are citizens or nationals of Australia maybe eligible for the E-3 visa, created by spe-cial legislation that went into effect in2005. The criteria are nearly identical tothe H-1B visa, and there is an annual allo-cation of 10,500 which is not expected tobe reached. E-3 nonimmigrants are admit-ted for an initial period of two years. E-3status may be extended indefinitely, aslong as the foreign national intends toleave the United States when his or herperiod of authorized stay ends.

B-1 IN LIEU OF H-1BIn certain circumstances, a U.S. consulateor embassy abroad will issue a B-1 (busi-ness visitor) visa to person who would oth-erwise qualify for H-1B status. The personmust remain on a foreign payroll, must notreceive any remuneration from a U.S.source other than reimbursement for inci-dental expenses, and the benefit of theperson’s activities in the United States mustultimately accrue to the foreign employer.

Typically, the B-1 visa is issued for employ-ees seeking to enter the U.S. for training orto participate in collaborative deals or proj-


GlobalHRNews

ects with a U.S. parent, subsidiary, affiliateor branch of the employer abroad(although there is no requirement thatthere be a specific corporate relationshipbetween the foreign and U.S. employers,as there is under the L-1 visa category), orwith a customer or prospective customer inthe United States. The B-1 in lieu of H-1B isgenerally only issued for short-term stays,i.e., of less than one year. Persons whoqualify to enter the United States without avisa under the Visa Waiver Program mayenter in B-1 status for up to 90 days, butare not eligible for an extension of stay ora change of visa status.

CONCLUSIONThe insufficient number of H-1B visas forhighly skilled temporary professional work-ers has created serious challenges foremployers that rely on foreign workers,particularly in the high technology andhealth care industries. A related problem,beyond the scope of this article, is a short-age of immigrant visas (“green cards”) forworkers seeking to fill similar positions on apermanent basis.

The only real solution is a legislative fix byCongress that would raise the H-1B capand increase the number of immigrantvisas available to employment-based appli-cants for permanent residence. Whilenational security and border control areimportant governmental prerogatives, theglobal competition for talent virtually man-dates that the United States open its bor-ders to a larger number of highly skilledworkers.

Copyright © 2007 by Fragomen, Del Rey,Bernsen & Loewy, LLP

* Austin Fragomen is a Partner and Chairman ofthe Executive Committee of Fragomen, Del Rey,Bernsen & Loewy, LLP, the world’s leading sup-plier of global corporate immigration solutions.Nadia H. Yakoob is an Attorney based in thefirm’s San Francisco office. ■

Philippe ROLLANDResponsable RelocationRelocation Manager

YOUR RELOCATION SOLUTIONS

A.I. du Coudray - 30/32, av. Albert Einstein93155 LE BLANC-MESNILCEDEX - FRANCE

Switchboard : +33 (0) 1 48 14 42 42Direct Line : +33 (0) 1 48 14 41 72

Mobile : +33 (0) 6 17 19 25 18Fax : +33 (0) 1 48 14 42 40

E-mail : [email protected]

GREGORY E. KIRKWOOD, SCRP, GMSVice-president of Corporate Relocation

OFFICE: (609) 737-1551 Ext. 219(800) 228-SOLD (7653)

FAX: (609) 737-3807E-MAIL: [email protected]

WEIDEL REALTORS RELOCATION DIVISION190 NASSAU STREET, PRINCETON, NJ 08542

Offices Serving NJ & PA • Worldwide at Weidel.com

PARIS3-4 DECEMBER 2008


GlobalHRNews

• REPATRIATION – CONTINUED

career plan that maintains a close relation-ship between the expat throughout theassignment. Tata Consultancy ServicesLimited (TCS), a global information technol-ogy company headquartered in India, hasput together a best practices model. TCAdoes not differentiate between expatriateswhose assignment is to accomplish adefined goal and the smaller number sentabroad for the experience necessary to theircareer trajectory. All TCA employees whodepart for distant shores participate in acomprehensive career management pro-gram. While on assignment, expatriatesmaintain a close relationship with the homelocation and are involved in an ongoing per-formance management system that alignsthem with post-repatriation opportunities.

TCS’s system is highly developed, giving itthe lowest repatriate turnover of any com-pany in its industry. Other companies havebrought career management concepts intothe expat-repat cycle through frequenthome visits and the use of mentors whokeep in close contact with the employeethroughout expatriation. . Some compa-nies, like AT&T, make psychologists avail-able to expat-repats to help them with thepsychological challenges of transition.

To sum up, the solutions to high repatria-tion turnover are neither mysterious nor dif-ficult to implement. Why, then, do so manycompanies still allow the repatriation experi-ence to spin out of control? The repatriation

literature suggests several reasons:

• It is counter-intuitive that employees andtheir families should experience seriousacclimation problems when returninghome.

• It is difficult to measure the ROI lost torepatriate turnover.

• Returning employees have not foundways to band together and advocate forthemselves.

• Companies send employees on globalassignments to accomplish tasks in thehost country, not to develop them asassets in a global economy.

• Repatriates do not have well-placedadvocates in Human Resource depart-ments or among line managers.

Several repatriates interviewed for this articlesaid that companies neglect them becausethey don’t care about their post assignmentusefulness. This grim assessment may havesome truth to it. But this may also be thefeeling that is engendered by inadequatestructures and operational ineptitude.

Lisa Johnson of Cartus remarks, “In myexperience, the primary reason why compa-nies do little to have a formal retentionstrategy for repatriated assignees is becauseonce the assignee returns from the assign-ment, they are no longer under the mobilitydepartment’s realm of responsibility.”

This disconnect can be remedied whencompanies “position repatriation as a criticalbusiness issue for the organization.” (The

Challenges of Repatriation by Lisa Johnson).TCS’s executive vice president and globalhead of HR, S. Padmanabahn believes thereis no set formula for a successful repatria-tion policy but that fundamental is “a rein-tegration facilitation involving HR and linemanagement; relocation and cultural assis-tance; collection of expatriate feedback;maintenance of skills; mentoring; andreview meeting(s).” (International AssigneeCareer Cycle and Repatriation, by ChristineWilson, Expatica).

This integration of Human Resources intocorporate business structures where its pres-ence is seldom felt would enable companiesto address key repatriation concerns:

1. The need for a more formalized programand process around repatriation

2. Better career planning, tracking, andretention of talent

3. More effective communication andexpectation management

4. Improved reintegration strategies and,subsequently, improved ROI (Return onInvestment)

(Johnson, Cartus Reference Library, CartusWeb Site www.cartus.com

Without an integrating function such asHuman Resources, such changes are noteasily won. And there is the key word-change. Organizational change usuallymeans that some people gain power andothers lose it. Thus successful organization-al change needs strong incentives and



GlobalHRNews

• REPATRIATION – CONTINUED

must be championed by those in the com-pany with the most power—its senior man-agement.

Future repatriates have time on their side. Inthe long run it won’t be enough for multi-national companies to merely have employ-ees in different parts of the world. Truly glob-al companies will be imbued with a globalconsciousness. They will need expatriateswho go out and learn first-hand how tofunction and thrive in a global economy andwho return as repatriates, embodying a glob-al perspective, to serve as teachers andexemplars of a new age.

REA is an internationally recognized leader inproviding global transition assistance andcareer management services to corporationsand individuals. REA’s services, which are cus-tomized for both our client companies andour individual clients, include Spouse/PartnerCareer Relocation Assistance, FamilyAcclimation and Settling In Assistance,Outplacement Services, and Career TransitionCoaching. REA's unique business model(localized delivery with centralized support)allows us to deliver quality service worldwide,price competitively, and expand on demandto meet your needs. ■

Who is yourfavorite

service-provider?email [email protected]


herba mate, a local plant, and generallyserved in a gourd with a straw; you take asip and pass the gourd to the next person atthe table; in some circles, you sip through asilver straw! The mate is usually drunkunsweetened, and at the end of a meal, oras a social drink at an evening gathering).

The recent pop division of the world betweenthe developed world of the “north” and the“developing” and “under-developed” worldof the south is a problematic metaphor whendescribing the distinctions between the USand the southern cone. While there are cer-tainly distinctions between North Americanand South American cultures and their result-ing business behaviors, the surprising similari-ties based on a shared historical legacy ofmodern European thought and culture makesit difficult to place the southern cone in thisunder-developed “south”.

Indeed, European countries on the wrongcontinent. ■

Documents

Douglas Almeida - Global Business News€¦ · Destination Europe, 28 Argentina, 38 UniGroup purchases Interdean Asian subsidiary, 44 LEGAL Cross-border Employment Law, 12 Immigration: