“Today we do not live in a civilization, we live in a “globalization” – with a globalization of resources, a globalization of business activities and a globalization of humanity” (Schermerhorn et al., 2014, p. This large-scale societal shift in the global economy has recently resulted in the need for managers to possess a transnational perspective, to be competent in working with other cultures and to be better informed about international developments (Schermerhorn et al., 2014, p. 90, as well as to be able to successfully manage the expansion of their business in international territories while respecting the culture of the country). welcoming and using expatriates These are employees who live and work in foreign countries on short or long-term assignments and who, therefore, gain valuable international and corporate experience (Chew). & Debowski, 2008, p. 4). Globalization means “the interdependence of resource flows, product markets, and business competition” (Schermerhorn et al., 2014, p. 89) on a global scale. The expansion of international companies into unexplored competitive territories has caused the managers of these multinationals to face a large number of greater challenges than before, such as problems related to the management of expatriates and repatriates, the management between cultures, the management of cultural diversity, the transfer of knowledge between countries. cultures and the need to modify existing management practices. This essay will further examine the aforementioned challenges that managers must overcome to succeed in today's global economy. A company's global success is often attributed to its expatriates (Schermerhorn et al., 2014, p. 111), but existing policies are ineffective in providing support and...... middle of paper. .....2008). Developing an effective repatriation strategy for multinationals: a model and tools for international human resources management. Journal of Comparative International Management, 11(2), 3-21. Combs, G. M., Nadkarni, S., & Combs, M. W. (2002). Implementation of affirmative action plans in multinational companies. Organizational Dynamics, 34(4), 346-360. McPhail, R., Fisher, R., Harvey, M. and Moeller, M. (2012). World Organization Staffing: “Cultural Nomads”. Human Resource Development Quarterly, 23(2), 259-276. de Pablos, P. (2004). Knowledge flow transfers in multinational corporations: knowledge properties and implications for management. Journal of Knowledge Management, 8(6), 105-116Schermerhorn, R., Davidson, P., Poole, D., Woods, P., Simon, A., and McBarron, E. (2014). Management (5th Asia-Pacific edition). Australia: John Wiley & Sons Australia, Ltd