Expatriates are managers who live and work in a country that is not their own. They are often referred to as home-country nationals: that is, individuals who belong to the country in which the company has its headquarters. Not all expatriates are necessarily home-country nationals. There are many reasons why a global company may choose to deploy expatriates rather than employ host-country nationals. These reasons include:
Expatriates are well-thought-of managers with a successful track record. The company therefore trusts them to advance its interests in a new locale.
The expatriates possess the necessary mind and skills-sets to make a significant professional contribution. Their skill-sets include their technical background and expertise. Their mind-sets reflect their personal orientation that is in synchrony with the company's core values and culture.
The company is interested in developing a pool of global managers with intercultural competencies. Expatriates from this pool can be rotated constantly among its various international operations.
The company may espouse the notion that it uses the best talent in the world and is therefore not limited by ethnicity or any other cultural determinant.