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Expatriates: A research on what affects the number of Expatriates used (Management Project)

With an ever-increasing rate of globalization many firms today find it highly important to internationalize in order to survive and prosper. Swedish companies have also followed this trend of internationalization, among them Swedish banks.

This research will investigate if the number of expatriates used is affected by subsidiary age, level of development in the host country and/or the cultural distance between the host market and Sweden.

A case study was conducted on Handelsbanken, one of the four major banks in Sweden. Interviews and a questioner were used to gather information about what affects the number of expatriates used. The results indicate that the use of expatriates differs for different periods of the subsidiaries establishment.

The study shows that cultural distance affects the use of expatriates in a later stage in the development phase. In the early stages expatriates are used to establish the corporate philosophy. As the philosophy has been well established it is evident that the use of expatriates declines because the use of host country nationals is more advantageous as they know their own culture and business environment better.
Source: Uppsala University
Authors: Baghdasarian, Shara | Abrami, Sarine

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