Deck 20: International Human Resource Management

Question 1

Which of the following is a characteristic of India that discourages MNE investment?

A)slow market growth
B)restrictive labor laws
C)poor communication infrastructure
D)government controlled market

Answer 1

B

Question 2

Generally, HRM is more difficult for international companies for all of the following reasons EXCEPT which one?

A)Dual career and family obligations make it tough to convince executives to leave the home office to join a foreign subsidiary.
B)Leadership styles and management practices are so similar from country to country that it is difficult to create a culture of innovation.
C)Complications arise due to enduring political, cultural, legal, and economic differences between countries.
D)Labor markets are dramatically different in the mix of workers, costs, and productivity.

Answer 2

B

Question 3

Which of the following trends has LEAST likely led to the increased demand for expatriate talent?

A)market developments
B)technology changes
C)globalization
D)nationalism

Answer 3

D

Question 4

________ are expat lifers who work an ongoing series of international assignments and often plan never to return to headquarters or even to their original home.

A)Home-country nationals
B)Transpatriates
C)Inpatriates
D)Flexpatriates

Question 5

Growing demand for expatriates stems from which of the following trends?

A)the emergence of developing countries as high-growth markets
B)the resurgence of developed countries as high-growth markets
C)the reduced need for localized expatriate assignments
D)the longer-term assignments created in response to the global credit crisis

Question 6

Home-country nationals are ________.

A)used a great deal abroad by polycentric companies
B)citizens of the countries in which they are working
C)citizens of the country where the company is headquartered
D)noncitizens of the countries in which they are working

Question 7

Mona, a native of India, is employed by IBM in the firm's facility in New Delhi.Mona is best described as a(n)________.

A)expatriate
B)local
C)third-country national
D)home-country national

Question 8

Jeanette Thompson, a native Texan, is being sent by her company, Samsung of South Korea, to head up a new facility in Hong Kong.Jeanette would be considered a(n)________.

A)inpatriate
B)host-country citizen
C)third-country national
D)local executive

Question 9

Why is management of international human resources more difficult than directing human resources at the domestic level?

A)the challenge of adjusting for political, cultural, legal, and economic differences between countries
B)the challenge posed by managers in other countries that aim to achieve global objectives for the company no matter the costs imposed on national objectives
C)the greater similarity among foreign subsidiaries than among domestic subsidiaries in terms of dependence on headquarters for resources
D)the complications posed by dealing with competing agendas from different labor unions in different countries

Question 10

The various activities of HRM perform best when managers link them to the strategy of the firm.

Question 11

Fundamentally, the task of HRM is putting the right person into the right job in the right place at the right time for the right salary.

Question 12

HRM refers to the range of activities that a company, whether solely domestic or thoroughly global, undertakes to ________.

A)direct its strategy
B)staff its operations
C)improve its responsiveness
D)integrate business functions

Question 13

An example of a third-country national is a ________.

A)dual citizen (Canadian and U.S. citizenship)working for a Mexican company in Mexico
B)Canadian citizen working for a U.S. company in Canada
C)U)S. citizen working for a U.S. company in Canada
D)Canadian citizen working for a U.S. company in Mexico

Question 14

How do MNEs benefit from superior international HRM especially when filling expatriate positions? What costs do MNEs face when expatriate assignments are unsuccessful?

Question 15

Why is global HRM more difficult than domestic HRM? How can staffing a foreign facility with locals alleviate some of these HRM difficulties?

Question 16

There is growing consensus that human resource managers must hire, develop, reward, and retain people whose performance explicitly improves the ________.

A)productivity of the firm's core competencies
B)fit between the firm's practices and industry standards
C)firm's engagement of political authorities
D)firm's responsiveness to customer complaints

Question 17

Traditionally, expatriates were ________; today, HRM increasingly considers ________.

A)men; women
B)women; men
C)mid-level and mid-career executives; older employees and younger employees
D)older employees and younger employees; mid-level and mid-career executives

Question 18

A company that decides to "localize" expatriate assignments will offer an expatriate the option of ________.

A)serving a shorter assignment in the host country
B)becoming a naturalized citizen of the host country
C)moving to an emerging market closer to the home country
D)retaining a foreign assignment provided he or she accepts the status of a local hire

Question 19

Ongoing research confirms that MNEs with superior ________ practices correlate to high productivity, value creation, and a competitive advantage.

A)human resource
B)human capital
C)expatriate
D)parent-country

Question 20

________ refers to the activities that an organization carries out to put the right person into the right job in the right place at the right time for the right salary.

A)Work force analysis
B)Staff development
C)Human resource management
D)Leadership planning

Question 21

A(n)________ staffing policy framework assumes that the practices and procedures that work at headquarters will work in foreign operations; as such, executive slots are filled by home-country nationals.

A)polycentric
B)intercentric
C)ethnocentric
D)geocentric

Question 22

Monica, a Brazilian citizen, earned an MBA from Stanford University and has been working at the New York branch of Goldman Sachs for one year.Monica is being transferred to Goldman Sachs' office in Brazil where she will best be characterized as a(n)________.

A)local
B)expatriate
C)reverse expatriate
D)third-country national

Question 23

A(n)________ manager champions the ways of foreign markets as comparable, if not more enlightened, than the practices of his or her parent company and home nation.

A)ethnocentric
B)geocentric
C)monocentric
D)polycentric

Question 24

Watson Electronics, an MNE based in Canada, tends to follow an ethnocentric staffing model.From which group will it most likely hire for upper-level management positions in its new facility in Germany?

A)home-country nationals
B)third-country nationals
C)host-country nationals
D)local citizens

Question 25

Which of the following most accurately describes the current state of HRM efforts to staff international operations?

A)Fewer women are accepting international assignments.
B)The length of permanent assignments is rising among middle managers.
C)There are historic shortages of executive talent for international assignments.
D)Third-country nationals are quickly being replaced by localized expatriates.

Question 26

Which of the following interpretative frameworks does NOT automatically presume that a particular nation provides a solution to every problem or an explanation for every action?

A)ethnocentric
B)geocentric
C)polycentric
D)intercentric

Question 27

Advantages of adopting a polycentric approach include which of the following?

A)capitalizing on the availability of qualified local managers
B)helping transfer core competencies from the home nation to local subsidiaries
C)increasing the international career mobility for local managers
D)offsetting tendencies for the company to adapt excessively to the local market

Question 28

The three types of interpretative frameworks in international businesses are ________.

A)ethnocentric, polycentric, and geocentric
B)ethnocentric, intercentric, and monocentric
C)monocentric, neocentric, and polycentric
D)intracentric, geocentric, and neocentric

Question 29

Why are third-country nationals increasingly being used to fill expatriate assignments? How do third-country nationals fit into the concept of geocentrism?

Question 30

Dixon Manufacturing, a British MNE, believes that its business practices are superior, so it does not make any policy changes in foreign markets.Dixon Manufacturing most likely takes a(n)________ approach to staffing.

A)ethnocentric
B)polycentric
C)geocentric
D)monocentric

Question 31

What is the primary advantage of an MNE using an ethnocentric framework?

A)minimizing relocation costs
B)developing community support
C)transferring core competencies abroad
D)encouraging innovative business practices

Question 32

Ferguson Manufacturing, an American MNE, has facilities in India and Mexico.Ferguson fills management positions at the facility in India with Indians and management positions in Mexico with Mexicans.Ferguson most likely follows a(n)________ approach to staffing.

A)ethnocentric
B)geocentric
C)polycentric
D)intercentric

Question 33

An advantage of the geocentric outlook to staffing is ________.

A)encouraging workers to appreciate the unique virtues of a particular country
B)giving people a flexible perspective for fitting operations to different countries
C)removing most behavioral barriers to fully adapting to the chosen local market
D)tapping learning opportunities around the world to generate ideas that enhance core competencies

Question 34

Which of the following is a drawback of the polycentric approach?

A)Host-country nationals become more committed to company headquarters than to their local colleagues.
B)Successful local units may increasingly function independently and pay less attention to headquarters.
C)Local units depend too much on headquarters for resources and innovations, with little incentive to develop their own.
D)Local managers study international business and cultural practices in other markets in preparation for international assignments at the expense of not fully investing in understanding the host country.

Question 35

Apex Enterprises, an MNE based in the United States, is spending too much money on expatriate assignments.Which of the following methods would LEAST likely help Apex reduce expatriate costs?

A)offering cross-border commuter assignments
B)designing more short-term projects
C)establishing a localization policy
D)expanding core competencies

Question 36

An example of an expatriate would be a Canadian manager working for a Canadian firm in China.

Question 37

The staffing policy at Hanover International is to seek the best people for key jobs throughout the organization, regardless of nationality.Hanover most likely follows a(n)________ staffing approach.

A)geocentric
B)intercentric
C)polycentric
D)ethnocentric

Question 38

Companies around the world typically find it easy to locate a number of executives able and willing to run foreign operations.

Question 39

Expatriates are locals from the country of the foreign subsidiary.

Question 40

The past few years have seen fewer females sent on international assignments.

Question 41

An executive with a polycentric staffing policy presumes that successful business practices at home need not change when transferred to foreign markets.

Question 42

The MNE that aims to control the transfer of its unique core competencies overseas usually prefers an ethnocentric staffing policy.

Question 43

Which of the following best explains why MNEs often employ more locals than expatriate managers in foreign facilities?

A)lower compensation expense
B)better support from unions
C)improved economies of scale
D)better grasp of core competencies

Question 44

Historically, companies searching their ranks for potential expatriates looked first for individuals with the necessary language proficiency and then evaluated their technical competence.

Question 45

Which of the following accurately describes a difference between jobs in the home office versus those in a foreign subsidiary?

A)Cultural empathy is essential for employees in the home office, but is not necessary for employees in a foreign subsidiary.
B)Employees in the home office do not need to be familiar with a second language, but employees in a foreign subsidiary must be proficient in the language of the subsidiary's host country.
C)Expatriate executives in foreign subsidiaries are less expensive for a company to employ than executives in the home office.
D)Employees in foreign subsidiaries typically have broader job responsibilities than employees in the home office.

Question 46

Companies find it challenging to judge a potential expatriate's adaptability to foreign places, people, and processes.

Question 47

Historically, the most important criterion in selecting individuals for posting to an expatriate slot has been ________.

A)foreign language abilities
B)technical competence
C)leadership skills
D)flexibility

Question 48

According to the text, which of the following is the most important competency in the expatriate selection process?

A)flexibility
B)business acumen
C)global mindset
D)geographic knowledge

Question 49

Microsoft has a tendency to hire home-country nationals for jobs outside the United States.Microsoft's leadership supports a(n)________ approach to staffing.

A)geocentric
B)ethnocentric
C)adaptive
D)polycentric

Question 50

The HRM requirements of a(n)________ strategy are well matched with an ethnocentric staffing policy.

A)multidomestic
B)transnational
C)international
D)global

Question 51

What types of employees are increasingly being chosen for expatriate assignments? What characteristics are firms seeking when selecting expatriates?

Question 52

What are the differences between ethnocentric, polycentric, and geocentric frameworks?

Question 53

Unlike the geocentric and polycentric mindsets, the ethnocentric mindset is not tied to a particular home or host nation.

Question 54

List and compare the three common methods of implementing a balanced compensation plan.

Question 55

A geocentric staffing policy seeks the best qualified people for key jobs throughout the organization, irrespective of their nationality.

Question 56

The ethnocentric and polycentric staffing policies, unlike the geocentric staffing policy, rely on extensive use of expatriate managers.

Question 57

What individual characteristics and qualifications should a company consider when choosing managerial candidates for foreign assignments? Which one do you think is most important? Why?

Question 58

Generally, HRM does NOT emphasize which of the following characteristics when evaluating the adaptability of an expatriate candidate?

A)self maintenance
B)technology skills
C)cultural empathy
D)sensitivity to host environments

Question 59

The HRM requirements of a(n)________ strategy are well matched with a geocentric staffing policy.

A)multidomestic
B)transnational
C)domestic
D)international

Question 60

The HRM requirements of a(n)________ strategy are well matched with a polycentric staffing policy.

A)transnational
B)international
C)multidomestic
D)global

Question 61

Upon selection of an executive for an expatriate posting, the most common predeparture training involves a range of instructive profiles of major aspects of the host country.

Question 62

The ________ of compensation determines an expatriate's compensation on the prevailing pay scales in the locale of the foreign assignment.

A)headquarters-based method
B)home-based method
C)culturally based method
D)host-based method

Question 63

List and discuss the main components of an expatriate's compensation package.

Question 64

Johnson Construction is an MNE that designs and builds commercial buildings around the world.Johnson has a new contract to construct a building in Pakistan.Tom, a construction manager, will be relocating to Pakistan with his wife, and he will receive additional pay to compensate for the dangerous environment.Which of the following has Johnson Construction most likely offered Tom?

A)repatriation allowance
B)hardship allowance
C)housing allowance
D)spouse allowance

Question 65

The ________ sets the expatriate's salary in terms of the salary of a comparable job in the city where the MNE has its headquarters.

A)host-based method
B)home-based method
C)headquarters-based method
D)culturally based method

Question 66

According to the text, what is the most common concern that expatriates have before they move overseas?

A)reestablishing a social life
B)missing friends and family
C)learning a foreign language
D)adapting to the culture

Question 67

Shelly, a sales manager at Best Computers, has recently moved from Dallas to Hong Kong for an expatriate assignment.Shelly is feeling disoriented, irritable, and stressed about her new job and living arrangements in Hong Kong, which means that she is most likely experiencing ________.

A)uncertainty dislocation
B)melancholy
C)culture shock
D)cultural transition

Question 68

According to research, expatriates posted to ________ encounter the greatest difficulty in finding accommodations, locating health care, and setting up finances.

A)Australia
B)Saudi Arabia
C)Thailand
D)South Africa

Question 69

Kevin, a marketing executive with Ace Electronics, has relocated to India for an expatriate assignment.Kevin's wife, Julia, and three children have joined him.Ace Electronics provides the family with money intended to help Julia find a job and develop cross-cultural skills.Which of the following is Ace providing the family?

A)repatriation allowance
B)hardship allowance
C)housing allowance
D)spouse support

Question 70

What are the current trends in expatriate allowances? What are the reasons for these changes?

Question 71

Cost-of-living allowances given to an expatriate during his or her foreign assignment ________.

A)usually involve a compensation reduction because of lower costs abroad
B)are due to the difficulty of duplicating a particular way of living abroad
C)are usually eliminated over time
D)increase the longer the individual is overseas

Question 72

The ________ approach to expatriate compensation equalizes purchasing power across countries; this helps employees enjoy the same living standard in their foreign posting that they enjoyed at home.

A)balance sheet
B)equalization
C)merit
D)differential

Question 73

The headquarters-based compensation method bases the expatriate's compensation on the salary of a comparable job in the city where the MNE has its headquarters.

Question 74

The most common predeparture training for an expatriate is ________.

A)an informational briefing
B)role playing
C)in-depth cultural seminars
D)language training

Question 75

A hardship allowance nullifies the risk that an expatriate will suffer a decline in his or her standard of living due to the exorbitant expense of a particular city.

Question 76

Culture shock is the anxiety and disorientation experienced when one moves into an unfamiliar culture.

Question 77

A growing number of MNEs in Asia and Latin America are using performance-based pay to link compensation with business results.

Question 78

Executives from the home office typically demand richer compensation packages and impose higher relocation costs than third-country nationals do.

Question 79

A growing number of MNEs are increasing expatriate allowances to entice employees to move overseas.

Question 80

Practical predeparture training for the expatriate is often geared toward developing his or her sensitivities to overcome culture fright.