The significance of HR policies in an organization cannot be underestimated as it is the policies that operationalize the HR department. Policies are important as they are the ones that give a direction on how various aspects of HR in an organization will be carried out. Crafting a HR policy is an easy task for a HR manager whose company is not internationalized as it involves basic human resource management aspects. However, development of HR policies becomes complicated for international organizations as the HR manager must take into account various issues in the host country (Armstrong & Taylor, 2014). State policies as well as its practices have lots of influence on the type of HR policies and practices adopted by international organizations (Price, 2011). This report looks at how various state issues, aspects and practices affect the policies and practices of Human Resource department of an international organization.