Chapter Nowadays in the global economy, it is

Chapter
1 provides an overview of cross-cultural training and expatriates turnover.
Problem statements based on the gap in the present literature are discussed.
Based on the problem statements, research objectives and research questions for
the proposed study are developed. A list of terms commonly used in this
research and their definitions are also included. This chapter closes with an
overview of the remaining chapters in this report.

1.    
BACKGROUND
OF STUDY

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Nowadays in the
global economy, it is very competitive and nearly 80% of large companies
currently send professionals abroad and 45% plan to increase the number they
have on assignment. An expatriate can be defined as an individual who is not a
citizen of the country or which he or she is assigned to work in. Richardson
and McKenna (2002) referred to expatriates as professionals who are living in
an overseas country on a temporary basis, but normally for more than one year.
In general, besides monitoring and controlling the financial distribution and
profit gain of the company, an expatriate is expected to extend their knowledge
and skills in technology transfer (Shephard, 1996). In the private sector, the
expatriate managers are mostly positioned in MNCs that run business operations.
Most Multinational Corporations (MNCs) are depending on the appointment of
expatriate managers to perform the headquarters’ policies in the host countries
in order to seek a competitive advantage in the market. But, many of the
appointments are failed. This type of ethnocentric management approach has its
advantages and is currently a common practice worldwide, constantly growing in
popularity – in 2013 the total number of expatriates worldwide was estimated to
be around 50.5 million (Finnaccord, 2014). If expatriates are expensive and
risky, but the organization is committed in having the managers in place at the
overseas location, what can be done to minimize the costs and risks associated
with such a placement? Many researchers have suggested that training is the
answer (Black and Mendenhall, 1990; Landis and Brislin, 1983; Kealey and
Protheroe, 1996). The gaps that are addressed in our research are: (1) effects
of language training towards expatriates, (2) efficacy of cultural awareness to
expatriates and (3) effectiveness of practical training on expatriates. Our
scope of study is limited to expatriates employed by MNCs in Malaysia.