It identifies and describes the key decision variables involved when employing human resources and when acquiring financial and physical resources. Environmental forces that play a role in international human resource management are culture, politics, law, and economic systems. Recruiting and selecting practices must often be adapted to the host country's labor laws. Training and development programs must be tailored to the host country's practices as well. Compensation practices also differ in the international arena-many companies go abroad to take advantage of lower pay scales elsewhere.
Expatriates are citizens of one country that work in another.
Companies must determine how to address their needs and how to compensate these employees. There are pros and cons to each of the three main international staffing policies-ethnocentric, polycentric, and geocentric staffing. Training and development is extremely important for international managers. This training should be directed towards preparing the employees to deal with the cultural challenges they will face once they start working in another country. Essential to HRM at the international level is an equitable and effective compensation system.