ency of foreign operations because of their better understanding of local laws and regulations, lobbying systems and societal norms.Placing a local manager in head of foreign operations can also lead to insecurities about loyalty. It becomes easier for subsidiaries to be overtaken and spun off if the local management has little ties to the central organization. Training and placing loyal domestic managers in foreign operations can be on way of countering this potential problem. Some companies have successfully employed this type of global strategy with success but training mangers in local customs and laws can be timely and costly.Although in the future the world may merge customs, languages and currencies, in todays world there is a vast difference between national cultures. An effective way to operate a foreign organization is to have a manager that has previously lived, been educated and has operated in that particular nation. Loyalty to any one organization is based on other things besides just nationality. So training and placing a domestic manager in a foreign division may not be the best choice for the organization. By placing the most trained and qualified people, regardless of race, religion, sex, or nationality, to do the best job in each part of an organization is the most effective way to do business. And who more qualified than those who know first hand what the national culture is....
