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Should companies avoid international business activities?

1. Allowances and reimbursements for international assignments are costly. Should companies avoid international business activities? Explain your reason.

2. Case Study; "Jenkins Goes Abroad." Answer the two questions at the end of the Case Study.

Reference:
- Martocchio, J. J. (2011). Strategic compensation: A human resource management approach (6th ed.). Upper Saddle River, NJ: Prentice Hall.

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1. Companies should not avoid international business to save on allowances and reimbursements for international assignments, as long as the profits earned via such international initiatives exceed the costs incurred on such initiatives. In other words, companies should conduct a cost benefit analysis for deciding on the pursuit of their international expansion initiatives. Further, even if the international initiatives appear costly in the short term, the longer term benefits of such initiatives may far outshine the costs and efforts incurred on such initiatives. First of all, such initiatives provide new avenues and opportunities for an organization to tap growth opportunities in several emerging markets across the globe. Secondly, it reduces the company's dependency on the domestic market by allowing it to diversify across several markets. Hence, the company is not only able to ...

Solution Summary

Discusses whether companies should avoid international business activities.

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