Question 1

The employment of guest workers may result in indirect costs that may be substantial.

Accepted Answer

Indirect costs associated with guest worker employment may include increased demand for social services, strain on infrastructure, and potential cultural clashes. These costs can add up and have a significant impact on the host country's economy and society.

Question 2

One of the biggest causes of expatriate failure is a spouse's inability to adjust to his or her new surroundings.

Accepted Answer

This statement is true. According to various studies, the spouse's inability to adapt to a new environment is one of the biggest factors that result in the failure of an expatriate assignment. The lack of social support, language barriers, and difficulty in finding meaningful employment can all contribute to the spouse's inability to acclimate to their new environment.

Question 3

Subsidiaries of multinational corporations are usually run as independent companies.

Accepted Answer

Subsidiaries of multinational corporations are typically structured as separate legal entities able to operate independently from their parent company. This allows them to make decisions and manage operations based on local and regional conditions, while still benefiting from the resources and support of the larger corporate network. However, the degree of independence granted to subsidiaries can vary depending on factors such as industry, market conditions, and strategic priorities.

Question 4

The source of overseas employees that provides the advantages of less cost and greater facility in the language is host-country nationals.

Accepted Answer

Host-country nationals are individuals who are citizens of the country where the multinational corporation operates. They can provide the advantage of lower cost due to their familiarity with the local culture and language, as well as lower relocation expenses.

Question 5

At early stages of international expansion, many organizations prefer to use host-country nationals.

Accepted Answer

The answer of At early stages of international expansion, many...

Question 6

In general, it is typically better to hire host-country nationals when operating abroad because it is less expensive, it pleases the local government, and it eliminates the problem of employees adjusting to the culture.

Accepted Answer

Hiring host-country nationals is typically less expensive since they do not require relocation and usually have lower salary expectations. It also helps to build relationships with the local government and community. Additionally, they are already familiar with the language and culture, reducing the need for cultural orientation and adjustments.

Question 7

International HRM is virtually identical to domestic HRM.

Accepted Answer

While some of the functions of HRM are similar in both domestic and international contexts, there are significant differences in terms of managing a diverse workforce, dealing with cultural differences, complying with different laws and regulations, and ensuring effective communication across different languages and time zones. These differences require a different approach to HRM in the international context.

Question 8

The failure of expatriate assignments is usually due to technical or managerial concerns.

Accepted Answer

The failure of expatriate assignments can be due to a variety of factors, including personal and cultural issues, family concerns, and adjustment difficulties, in addition to technical or managerial problems.

Question 9

Transnational teams are composed of members from multiple nationalities working on projects that span multiple countries.

Accepted Answer

Transnational teams are indeed composed of members from different nationalities working on projects that might require working in multiple countries.

Question 10

An advantage of home country nationals is that they have intimate knowledge of the environment and culture.

Accepted Answer

Home country nationals are employees from the headquarters or home country of the multinational company who are sent to work in foreign operations. They might not have an intimate knowledge of the local environment and culture of the host country.

Question 11

Multinational corporations tend to use different kinds of external recruitment sources than are used in their home countries.

Accepted Answer

The answer of Multinational corporations tend to use different kinds...

Question 12

If an organization wanted to decrease the failure rate of its expatriates, one good strategy would be to give more women international assignments.

Accepted Answer

Research has shown that women often possess strong interpersonal skills and adaptability, which are critical for success in international assignments. These qualities can contribute to lower failure rates for expatriates.

Question 13

One reason to employ host-country nationals is that local governments want good jobs for their citizens.

Accepted Answer

Employing host-country nationals contributes to the local economy, provides job opportunities and helps to avoid tensions, which can arise if foreign workers are preferred or brought in instead of hiring local labor. Therefore, local governments often advocate for companies to employ citizens from the host-country.

Question 14

The first step in selecting expatriates should be self-selection, where employees who volunteer to go abroad are given the chance to do so.

Accepted Answer

Self-selection allows employees who are truly passionate and committed to the expatriate opportunity to come forward, leading to a higher likelihood of success in the long-run.

Question 15

Some of the advantages of using home-country nationals for overseas managerial assignments are that the talent is already available within the organization and that the organization can have greater control.

Accepted Answer

Using home-country nationals for overseas managerial assignments means that the organization does not have to search externally for talent, which can save time and resources. Additionally, the organization can have more control over the selection and training of these managers, as they are already part of the company's culture and values.

Question 16

A work permit or work certificate allows a foreign individual to seek employment in another country.

Accepted Answer

A work permit or work certificate is a legal document that authorizes a foreign individual to work in a specific country legally. It is issued by the government of that country and is generally specific to the duration of the job or contract.

Question 17

A Canadian firm with fully autonomous operating units in Korea, Spain, and Sweden would be classified as a multinational corporation.

Accepted Answer

A multinational corporation is a company that operates in multiple countries and has fully autonomous operating units in those countries, which is the case for the Canadian firm in this scenario.

Question 18

Women expatriates are thought to succeed in part because they are visible and distinctive.

Accepted Answer

Research has shown that female expatriates often stand out in male-dominated industries and cultures, which can work to their advantage by making them more memorable and aiding in networking and career advancement opportunities.

Question 19

Global managers must be capable of managing highly decentralized organizations.

Accepted Answer

Global organizations often have decentralized structures due to the need to cater to local markets and regional differences. Therefore, global managers must be capable of managing highly decentralized organizations.

Question 20

A global corporation has fully autonomous units operating in multiple countries.

Accepted Answer

The answer of A global corporation has fully autonomous units...

Quiz 15: International Human Resources Management