Question

13-4. Allowances and reimbursements for international assignments are costly. Should companies avoid international business activities? Explain your answer. If you answer no, what can companies do to minimize costs?

(please do not answer if a copied and pasted from someone else)

Answer 1

Answer: Despite the fact that the allowances and reimbursements for the international assignments are costly the companies should not avoid international business activities. The internal business opportunities offer a great change to the companies to grow and the revenues generated from such operates are enough for taking care of the expenses that are incurred in terms of high allowances and reimbursements for the international assignments. The brand value and brand identity that is created by the international operations also help the companies to adjust the costs that is incurred in providing the high allowances and reimbursements for the international assignments. In fact the companies incur these high costs because the returns on these costs are also high particularly in the long term.The companies can minimize their costs by hiring local employees and offering more non financial rewards to the employees that they send on the international assignments.