Reduction of trade restrictions across the world has been able to weaken the barrier to entry for companies to operate at a global scale. Due to this, companies with a diverse human resource will have to go through global human resource management to sustain its work environment.
Internal challenges has to do with dealing with cultural differences. The way each individual value things such as money, working-hours, and recognition of work could be heavily influenced by his/her background. In addition to this, the HR department is responsible for selecting and sending employees to different countries for global training which has to be accompanied with supporting their family's well-being abroad. Finally, the HR department has to be aware of the employee's intellectual capital and make sure that this is available to everyone working for the company.
External challenges are political, economical, social, technological, legal, and ecological factors that may regulate activities in foreign countries, if not adjusted. Some examples are labor laws, taxation, and working hours.