What does TCN signify in the context of MNEs?

In the context of multinational enterprises (MNEs), TCN stands for Third Country National. This term is used to describe an employee who is a citizen of a country other than the country in which the MNE's headquarters is located and also the country in which the employee is assigned to work. For example, if a French multinational has an office in Brazil and hires an employee from India to work in that office, the Indian employee would be considered a Third Country National.

This designation is important for MNEs as it relates to complexities in human resource management, including issues such as employment laws, visa regulations, compensation packages, and cultural integration. Understanding the role of Third Country Nationals helps MNEs in effectively deploying their global workforce and managing diverse teams across different geographies.