If global assignments become expensive and are limited, how might a company respond?

If global assignments become expensive and are limited, how might a company respond?

• A. Limit the number of expatriate assignments
• B. Increase the number of expatriate assignments
• C. Abolish all local hires
• D. Freeze wages worldwide

Answer: (A)

When global assignments are expensive and limited, the practical move is to reduce how often and how many expatriates are sent abroad. Limiting expatriate assignments helps control the biggest cost drivers—international salaries, relocation, housing and allowances, tax complexity, and visa/compliance expenses—while still enabling the company to maintain a global presence. To keep operations running and knowledge flowing, the firm can instead rely more on local hires in the host market or short-term, project-based postings for specific needs. This approach preserves local capability and faster onboarding, minimizes cost and risk, and aligns mobility with actual business priorities. Increasing expatriate assignments would worsen costs and strain, abolishing all local hires would undermine local market effectiveness, and freezing wages doesn’t directly address the mobility costs and could harm morale or competitiveness.

When global assignments are expensive and limited, the practical move is to reduce how often and how many expatriates are sent abroad. Limiting expatriate assignments helps control the biggest cost drivers—international salaries, relocation, housing and allowances, tax complexity, and visa/compliance expenses—while still enabling the company to maintain a global presence. To keep operations running and knowledge flowing, the firm can instead rely more on local hires in the host market or short-term, project-based postings for specific needs. This approach preserves local capability and faster onboarding, minimizes cost and risk, and aligns mobility with actual business priorities. Increasing expatriate assignments would worsen costs and strain, abolishing all local hires would undermine local market effectiveness, and freezing wages doesn’t directly address the mobility costs and could harm morale or competitiveness.