Which organizations are promoting the harmonization of national accounting standards? One of the most important of these efforts was the creation of the International Accounting Standards Committee (IASC) in 1973. The costs of harmonization are significant. Accountants, firms, and government officials must incur retooling costs if they abandon existing national accounting standards.Questions for Discussion 1. The Big Six have globalized primarily through mergers. What advantages does this growth strategy offer these firms? What are the disadvantages of using mergers to globalize?2. What impact would harmonization of national accounting standards have on international businesses?Chapter 20 Review Questions 2. Along what dimensions does domestic HRM differ from international HRM? International HR managers face challenges beyond those confronting their counterpartsin purely domestic companies. Specifically, differences in cultures, levels of economicdevelopment, and legal systems among the countries in which a firm operates may force it to customize its hiring, firing, training, and compensation programs on a country-by-country basis.4. What are the basic issues involved in recruiting and selecting managers for foreign assignments? The firm first must define the actual business skills necessary to do the job. The firm next must determine the skills and abilities a manager must have to workand function effectively in the foreign location. These include the manager's ability to adapt to cultural change, ability to speak the local language, overall physical and emotional health, levels of independence and self-reliance, and appropriate levelsof experience and education. 5. What issues are at the core of expatriation and repatriation problems? Working in and coping with a foreign culture can lead to culture shock, a psychological phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation. New expatri...
