In the new world of a global workforce and firms’ foci on global talent management, multinational
firms are tapping more “third country nationals” for overseas posts. The increase in operations in
emerging markets, the high cost of traditional international assignments and shortages of needed
skills in many markets has led to the search of employees from countries other than the parent country
of headquarters or host country of subsidiaries, employees who are referred to as “third country”
nationals (TCNs). These TCNs often win jobs because they speak several languages (particularly English
and the host-country language) and know an industry and or foreign country well. The average
number of third country nationals continues to rise from year to year, according to consultants such
as Organisation Resources Counselors.
Pioneer Hi-Bred International employs 29 TCNs in key jobs abroad, triple the number five years earlier,
partly because they accept difficult living conditions in Africa and the Middle East. Raychem has a
dozen such foreigners in top European posts, up from eight a few years ago. “The numbers are going
to increase” as Europe’s falling trade barriers ease relocation, suggests Edward Keible, a senior vicepresident. A Frenchman runs the company’s Italian subsidiary; a Belgian is a sales manager in France,
while a Cuban heads the unit in Spain.
Scott Paper, whose ranks of TCN managers has grown from two to thirteen within a couple of years,
says it will step up its recruitment of young foreigners “willing to move around Europe or around the
Pacific,” says Barbara Rice, their HR chief.
(a) In 400 words, distinguish between “third country nationals (TCNs)” and other types of assigned
expatriates. Refer to attached SU1. Please define, compare and elaborate.
Others types of assigned expatriates include:
• Parent Country Nationals (PCNs)
• Inpatriates
• Expatriates of Host-Country Origin (EHCOs)
(b) In 425 words, examine and elaborate any two socio-cultural problems/issues in using TCNs.
Sample Solution