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As the world is evolving so are the people who are constantly changing their methods and

the standard of living. The world which we know is being smaller by the day as technological

advancement and overall globalization has made it possible for people to connect with one

another and utilize resources which were not available to them in the beginning. The global

market has a significant impact on many businesses and organizations in today's world, and these

institutions have responded by incorporating international elements in some form or another. The

internalization of firms has been driven by a variety of different pressures in recent years. If we

examine more closely, we can see that process of globalization is not a notion that has emerged

out of nowhere; rather, it emerges from the underlying instincts of human conduct, which include

collaboration, collaboration, competition, and the desire to expand and survive. As human

beings, we continuously strive for brilliance in our performances and improvement in our results,

both of which are contingent on a wide variety of sources and resources. These fundamental

occurrences have motivated us to act on a global scale by crossing geographical boundaries. The

progress of human cognition has been the driving force behind these developments.

Factors that have contributed to a growth in the globalization of business

If we want to talk about the reasons that contribute to the internationalization of business

on a more visible level than the ones that were discussed before, we might examine the progress

in information technology, youth development, global challenges, and the production of wealth.

According to (Briscoe, Schuler, & Tarique, 2012), major forces that contribute to

internationalization of business include trade agreements, opportunities for new markets and cost

savings, improvements in communication technology, advancements and transfers of technology,

improved education framework, enhanced travel and migration, information exchange, E-

commerce, and integration of cultures and consumer demands. According to the findings of
research conducted by (Pinho, Martins, & Soares, 2018), globalization of a small firm is more

likely to occur when its managers have a higher level of education. The emphasis placed on

education is warranted in this context since the growth of several other forces is either directly or

indirectly impacted by it.

These issues have been described by some researchers only from a commercial point of

view. They have cited factors such as a concentrated domestic market, product diversification of

market risks, effective utilization of production capability, enhance in return on investment,

modifications in consumption expenditure and currency fluctuations, and utilization of existing

know-how as major forces leading to the internationalization of business (Mura, Grublova,

Gecikova, & Kozelova, 2011). Nonetheless, these commercial objectives need to be supported

by advancements in other domains, including management and collaboration, information and

technology, social cohesion, free trade regulations, etc., in order to be effective. These

advancements should also help expedite their implementation.

The requirement to recognize emerging global issues like geopolitical tensions, economic

and environmental complexities, interruptive technological advances, social inequality, food and

nutrition security, and health issues, as well as for the general well-being of humankind, has been

revealed by a variety of discussions that have taken place in international forums. This has led to

the discovery that global cognition is being incorporated as a result. Thinking on a global scale

has ultimately led to action on a worldwide scale, which in turn has expanded the opportunities

for liberalization of international trade.

The Intersection of Technology and Communication Advancement

It is well acknowledged that one of the most important factors that drives worldwide

commerce is technology. The development of new technologies, in conjunction with the


availability of skilled labor, is a significant driving force for internationalization. Customers all

around the globe now have easier access to more advanced products and services because to the

development of technology. Additionally, since the costs of transmission are kept to a minimum,

information may be accessed much more rapidly. As a result, the fast development of

information technology and communication has quickly revolutionized many aspects of the

economy, including the business sector, which is not an exception. For instance, European and

American corporations are becoming more dependent on Nepali and Indian enterprises for the

software goods. This is mostly due to the cheap costs involved with Nepal and India.

Trade Agreements

Trade between states is constantly expanding on all levels, including the global, regional,

and regional levels as well as via bilateral trade agreements involving two nations. Exports may

go completely independent of tariffs thanks to the North American Free Trade Agreement

(NAFTA), which was negotiated by the United States, Canada, and Mexico. In addition to this,

the decrease in labor expenses is justifiable because of the reduction in the cost of transportation.

The industrialized nations of the world, such the United States of America, Europe, and Asia

Pacific, are losing their dominance in global commerce to developing nations like China, Latin

America, Africa, and the Middle East and Africa. This is because trade barriers have been

lowered, and the market has been opened up, as local and national governments continue to

support and promote expanding international commerce and investment (Perera, 2015).

An increase in migration and travel across international borders

Traveling across international borders is becoming more convenient, quicker, and more

affordable. As a result of this, hundreds of millions of individuals cross international boundaries

every year for the sake of commerce and recreation. They get the opportunity to see how other
people live and how they make use of the many products and services that are available, all of

which may be of higher quality than what they are used to back home. In addition to this,

millions of individuals leave their home countries in search of employment in other nations. In

addition, they often do so for a short length of time in order to fill roles for which there are

inadequate local employees. This is done for the purpose of economic necessity.

Engagement of a Human Resources Manager in Certain Aspects of Internationalization

Human resource managers are often tasked with ensuring harmonious working

relationships amongst members of diverse teams as part of their support for global corporate

operations. It is obvious that companies are going to be more varied in terms of the individuals

engaged, in considerations of the collection of talents that individuals possess, and also in

regards of how each person prefers to engage and interact with one another as

internationalization continues to rise. In circumstances such as these, HR Managers should make

it their priority to ensure that their staff are able to work well in teams and communicate

effectively with one another. It is the responsibility of HR managers to play a significant part in

ensuring that the culture of the business encourages an atmosphere that is respectful, trustworthy,

and open-minded so that every group may experience a sense of value. In addition to this,

successful human resource management in international organizations requires cultural

awareness as well as the ability to respond quickly in a variety of different situations (Schuler,

2000). Additionally, managers are responsible for establishing rules and norms for the purpose of

ensuring that the workplace is equitable, safe, and productive. It is essential to inspire and

encourage employees to work together when you are in charge of people management in an

international setting. The overall organizational institutional ownership is a critically important

factor in determining the degree to which the HR manager is involved in internationalization.


According to (Briscoe, Schuler, & Tarique, 2012), there are three major organizational situations

that require a global perspective in human resource management. These situations are the base of

operations of multinational organizations (MNEs), overseas subsidiaries, and foreign citizens

working in domestic organizations. In every one of these scenarios, the HR manager is required

to cope with multicultural values, several languages, distinct societal beliefs, and individuals

who were raised in various educational systems. HR managers in the headquarters of

multinational corporations and domestic organizations deal with foreign nationals, whilst HR

managers at the subsidiaries of foreign entities are required to merge the culture of the parent

firm with the culture of the local entity.

When it comes to international mergers, acquisitions, and alliances, the job of HR

management is absolutely essential. During the merger & acquisition (M&A) processes, one of

the most common challenges is the incorporation of human resources. From a strategic

perspective, it is of the utmost importance to observe and conduct an in-depth examination of

how HR managers communicate and react in foreign M&A transactions (Antila & Kakkonen,

2008). Their contribution is required without question. Therefore, international mergers and

acquisitions provide the conditions for human resources managers to participate in the

internationalization of businesses.

Global Collaborative effort

As a person who has worked under human resources department, you need to be able to

wear many hats since globalization is changing the nature of organization. Just because of that,

HR professionals need to have their sights set on the organization's competitiveness as well as

keeping its current staff. In addition to this, HR professionals need to be able to organize

strategies for economic continued existence in the event of a variety of unforeseen and
unplanned situations. Furthermore, HR professionals need to be able to somehow get engrossed

in collaborative efforts with the community, as one of their primary responsibilities is to appoint

staff members who will be responsible for a variety of disciplinary actions.

Team Structure and Development

Due to their important position within the organization, HR professionals are also

involved in the process of creating teams and managing the activities of those teams. The most

difficult task for HR professionals is to manage teams comprised of a diverse group of

individuals, as this often presents challenges in terms of communication and cultural norms.

Internalization of the organization might result in variations in culture and variances in rules;

thus, HR must be able to handle these defects and issues in order to ensure that work is carried

out efficiently within a team setting.

Training that is made accessible

Employees may find it more challenging to collaborate in an internationalized company

or organization because they are required to adapt to the discrepancies between the cultural

dimensions and personality characteristics of every individual. As a result, one of the primary

responsibilities of the HR department is to organize ongoing professional development to teach

workers how to collaborate effectively with one another (Scullion, Collings, & Gunnigle, 2007).

Differences between local and multinational human resource practices

Only the human capital that exists inside the borders of the country in which the firm is

based is handled by a domestic HRM. In the context of international human resource

management, a large number of other countries are engaged in the management of human

capital. This is due to the fact that the business has prospered in many countries in addition to the

country in which it was founded. In a similar vein, there are only workers from one nation
working on this project. The same organization is home to workers from a variety of countries,

each of whom brings their own unique cultural history and set of experiences to the table. It is

sufficient to just notice cultural differences and conflicts. Conflicts arising from variations in

culture as well as those arising from differences in other aspects of life are fairly prevalent. As a

result, the function of HRM is rather straightforward since its practitioners are required to

manage only businesses located inside a single country and whose employees have a set of

common traits. When doing business on a global scale, human resource management becomes

more challenging as a direct result of the disparities in the characteristics of personnel.

Regarding the international aspect of a company in which I was associated

I am currently associated within the airline industry and work under commercial

department of Himalaya Airlines. The amount of influence of internalization is deeply rooted

within our organization as we have people from Mexico, India and China to name few working

under the same banner. Although our head-office is in our country Nepal we have many foreign

expats who have come from various places to take training courses, engage with the various

departments of our office and work with people from various culture and background. Our

organization has been able to integrate major technological advancements, communication

networks and legal processes within the organization. The globalization has led for the

advancement in terms of my understanding and internalization has been made easier. As despite

the fact that it is an international organization, the major emphasis of the plans and activities of

the organization is on the policies of the host country in which it is functioning. For instance, one

of the foundations of the Nepalese Labor Law is used to reach conclusions about the legality of

organizations. For instance, it is necessary to get a work visa from the Department of Labor in
order to employ a foreign expatriate within the country. Nevertheless, some of the leaves are

integrated based on the parent nation, while the majority of the parts are based on the host nation.

All of the evidence and arguments point to the fact that internationalization of business is

rapidly expanding. This expansion is driven primarily by a desire to enter new markets and

amass greater wealth. This trend is supported by improvements in education and information

technology as well as the implementation of liberal economic policies. In this day and age of

globalization, businesses and people alike are choosing to operate in a global setting. Somehow,

this choice can be traced back to Charles Darwin's notion of the "fight for survival," which states

that only the strongest and most adaptable will survive.

References
Antila, E. M., & Kakkonen, A. (2008). Factors affecting the role of HR managers in international

mergers and acquisitions: A multiple case study. Personnel Review, 37(3), 280-299.

doi:10.1108/00483480810862279

Briscoe, D., Schuler, R., & Tarique, I. (2012). International Human Resource Management:

Policies and Practices for Multinational Enterprises (4th Edition ed.). New York:

Routledge.

Mura, L., Grublova, E., Gecikova, I., & Kozelova, D. (2011). An Analysis of Business

Internationalization Models. Studia Universitatis Babes-Bolyai, 56(2), 16-28. Retrieved

from https://search.proquest.com/scholarly-journals/analysis-business-

internationalization-models/docview/882854866/se-2?accountid=158986

Perera, P. (2015). Influence of International Trade Agreements on International Nusiness: A

Conceptual Model. Journal of East-West Business, 21(3), 205-233.

Pinho, J. M., Martins, L., & Soares, A. M. (2018). Small businesses’ internationalization. Asia -

Pacific Journal of Business Administration, 10(1), 50-63. doi:10.1108/APJBA-05-2017-


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Schuler, R. S. (2000). The Internationalization of Human Resource Management. Journal of

International Management, 6(3), 239-277.

Scullion, H., Collings, D. G., & Gunnigle, P. (2007). International human resource management

in the 21st century: emerging themes and contemporary debates. Human Resource

Management Journal, 17(4), 308-320. Retrieved from https://doi.org/10.1111/j.1748-

8583.2007.00047

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