Today’s organizations are more involved in international commerce than ever before, and the trend will continue. Recent historic events such as the development of the EEC, NAFTA, the growth of Asia, and GATT have accelerated the movement toward a global market. Companies competing in the global marketplace require top-quality people to compete successfully. This requires that managers be aware of the many factors that significantly affect HRM in a global environment, such as culture, human capital, and the political–legal and economic systems, and that they understand how these factors come into play in the various levels of global participation. Finally, it requires that they be adept at developing HRM systems that maximize the effectiveness of all human resources, particularly with regard to expatriate managers. Managers cannot overestimate the importance of effectively managing human resources to gain competitive advantage in today’s global marketplace.
