 In this topic, we are going to introduce a model that defines the variables moderating differences in domestic and international human resource management. As you are MS level students, you would know what is a moderating variable. A moderating variable, when comes into action, it increases or decreases the relationship between an independent and a dependent variable. Over here, the independent variable is domestic HRM and international HRM and the dependent variable is your human resource practices. So the variables that affect domestic and international human resource management in terms of the HR issues faced in both these domains that is comprising this model. There are five moderating variables that affect human resource issues comparing between domestic and international HRM. Number one is complexity of human resource management functions because of internationalization. This is something which we have discussed in the previous topic. The second variable is the cultural environment. The third variable is the industry in which the multinational corporation is primarily involved. Is it involved in retail? Is it involved in FMCGs? Is it involved in airline business? What type of business is conducted by the multinational organization? The fourth variable is extent of reliance of the multinational corporation on its home country domestic market, which means a multinational organization. In the domestic market, how much of its sales utilization is in its domestic market? If its domestic market is very big, what will be its effect? And if the domestic market does not exist, if you generate profits from international operations, then it will be having a different type of effect. And finally, the fifth variable is attitude of the senior management. How do they take international human resource management? Or in that matter, how do they take international functions? What is their mindset? So these are the five moderating variables which create the difference between domestic and international human resource management. If you look at that in the form of a diagram over here, you can see that these five moderating variables, they are affecting the domestic and international activities of human resource management. Where there will be more complexity, the difference between domestic and international human resource management will be more. Where the industry will vary, in some industries, the difference between domestic and international human resource management will not be as much as it is in any other type of industries. We will see that in the next topics. Apart from that, how different is the cultural environment? If there is more gap, there is more difference, then you will see more variation in international and domestic HRM. Apart from that, if your reliance is very much in your domestic market, then your home country will have more influence on your international operations and if your domestic market reliance is not that way, then you will have a different type of approach towards international human resource management. And finally, it is the attitudes of the senior management, the people in your headquarters who are sitting, the top management, the board of directors, how do they take your international operations, if their attitudes are of international orientation, then they will have a different attitude towards HRM and if not, then they will try to mix it with domestic human resource management. So this model defines those moderating variables that creates a large difference between the domestic and international human resource management.