 In this topic we are going to discuss one of the moderating variable that affects domestic and international human resource management, which is the industry type. There are two types of industry when we are talking about differences between domestic and international human resource management. There could be an MNE may be operating in a multi-domestic industry or it may be operating in a global industry. What is a multi-domestic industry? A multi-domestic industry is the one in which an international organization is operating in the form of small domestic organizations in various different countries. They do not need to have an overarching perspective. They don't need to have an integrated coordination between different units. For example, Coca-Cola. Coca-Cola is operating in Pakistan as in a domestic market. How many sales are there in Pakistan in Coca-Cola? How many consumers are there? That does not affect how Coca-Cola is being sold in France or in China or in Australia. So it becomes a small domestic market. And Coca-Cola selling all over the world is a collection of all those domestic markets put together. The second type of industries is a global industry. A global industry is the one which has an overarching framework, is the one which must integrate activities on a worldwide basis. You can get its example from an airline. An airline cannot operate in a domestic market. An airline has to operate in an international market. They cannot be domestic. They have to be global. So that is an example of a global industry. So if you are working in a global industry, you will have to be more conscious about integration between your human resource function. You will have to have more harmony. You will have to have more coherence between your human resource function because you need to have an overarching effect on your global businesses. Whereas in a multi-domestic market, what can be done is that each domestic market can be taken as a small subsidiary. And it does not affect that in that particular domestic market, the HR policies, they must be integrated with the international policies because they are operating in different units all over the world. Laurent has given five steps of making international human resource a global concept. What has been suggested? Number one is that the parent organization recognizes that its HRM reflects some assumptions and values of own home culture. Your own parent country cannot be detached from its own culture. So whenever you go to a new country and work, you should keep this assumption with you that some cultural variables and some cultural dimensions and dynamics will be with you. Then the parent organization recognizes that its own particular ways are neither universally better nor worse than others. The way you work in your country, it is not necessary that it is complete, it is absolute, it is universally applicable. There will be some strengths and some weaknesses in it. So if you accept it, then it is possible that you can do the HRM better. The third is that your parent organization recognizes that its foreign subsidiaries may prefer to manage people in their own way. So it is not necessary that they manage people in their own style, in the style of your parent country. You should give them leverage to manage people in their own way. Then the headquarter is willing to acknowledge cultural differences and take steps to make them discussable and therefore usable. So you have to acknowledge cultural differences. And finally, all parties believe that cross-cultural learning invites more creative and effective ways of managing people. So if you apply these steps to your international human resource management activities, it is more likely that you will be able to manage these activities more effectively.