Home country nationals

Low training costs ；Potential senior management

Familiar home office operations ；Same language and culture (Home) Different local
Compensation and recruiting costs positions ；Company foreign image emphasise
Communication with host country ；language and culture
Host country nationals
Low recruiting/compensation costs ；Enhance company local image
Same communications (Host)
High training costs ；Limited understanding (Home)
Different culture and language (Home)
Third country nationals
Best person from global search ；True international image
High recruiting/training/compensation cost ；Limited understanding(Home)
Company foreign image emphasise ；Communication with host country
Different culture and language (Home) ；Different local language and culture

Local residents of USA and Sweden：

Direct/open；communication；Involve in decision making；Success-oriented；
Accomplishment over
personal relationship；Low recruitment cost
Enhanced company's local image
Ease of communication
Problem:High training cost , Different culture/language

Expatriate employees from Hong Kong:

Required:Global leadership competencies ; Adaptability to new culture Language
capabilityBenefits:Familiar with company's culture ; Ease of communication with
headquarter ;Bring back new (good) changes to
headquarterProblem:Expensive ;Different culture/working style

The greater the cultural distance, the greater the

difficulties experienced by expatriates (Hofstede, 2001).
Interpersonal friction due to poor intercultural
communication（Arman & Aycan,2013)

Collectivism,
long-term oriented,
loyal to pragmatism and compliance with norms, restraint
of self-expression and are accustomed to social
constraints,

Most Chinese companies follow paternalistic

management(Amel Zabihi,2013)
n the choice of nationality, the nationality of the senior managers of new york subsidiary
is American natives. Hofstede pointed out that the greater the cultural distance, the
greater the influence on expatriates. Hong Kong is far away from North America, and
cultural conflicts are far more difficult than work. We can see that the six dimensions in
the figure clearly show the great differences between the two regions' cultures. Hong
Kong is collectivist, long-term-oriented, loyal to pragmatism and abiding by norms. Higher
authorities are not good at communicating with subordinates, self-expression is poor, and
they are used to social constraints. On the contrary, Americans pursue equal rights and
freedom, and extreme individualism makes Americans dare to take risks and make
enterprises innovate and progress continuously. Armand Aycan also pointed out that poor
cross-cultural communication will lead to interpersonal friction, which will reduce work
efficiency and be detrimental to company management. Therefore, it is a good choice to
let Americans manage Americans. At the same time, in the Swedish office, we still
choose to let the local Swedish people manage the subsidiary. Through Hofstede's
dimensional analysis, Sweden is a female society that advocates freedom, individualism,
equal rights and can balance work and rest time. Don't blindly pursue money and
success, what matters is spiritual enjoyment. Tixier also suggested that Swedes should
encourage innovation and new ideas. However, most Chinese companies are
paternalistic, and their employees' autonomy is low. Therefore, it is more appropriate to
let the local Swedish people manage the subsidiaries. Although recruiting host nationals
will have difficulties in communicating with the headquarters, as well as different cultures.
However, it has many advantages, such as having the same culture as local employees,
being able to communicate directly, reducing salary costs, and enhancing the company's
local image and innovation ability.