PHR®/SPHR® Professional in Human Resources Certification Study Guide, Third Edition

3.7. Global Considerations

Deciding to open a facility in a new country requires that thought be given to a variety of issues, including the employment laws unique to each country, the business culture in the region, the legal form of the entity, and others that may be unique to specific countries or regions of the world. Some of the more common issues include the following:

• The rate of pay for the new hire

• Offer letters or employment contracts that comply with foreign and U.S. laws

• The impact of foreign tax structures on the corporate income statement

• Details of starting operations in a new country for the first time, such as complying with payroll processing regulations, understanding foreign stock option rules, and creating intercompany agreements ...