Question 1

During the _____ phase of culture shock, expatriates may be frustrated constantly with how different things are in the new country.

Accepted Answer

During the depression or hostility phase of culture shock, expatriates often feel frustrated and overwhelmed by the differences in the new culture, leading to negative emotions.

Question 2

Myra will be moving to London as part of an expatriate assignment.Rather than try to figure out how to add on to Myra's compensation, the organization decides to pay her as if she was a member of their London workforce.It appears Myra will be paid under the _________ approach to expatriate compensation.

Accepted Answer

Myra will be paid as if she was a member of the London workforce, indicating that she will be paid based on the same compensation structure and benefits as the local employees. This approach is known as the localization approach to expatriate compensation.

Question 3

During the _____ phase of culture shock, expatriates begin to ask "why can't they do things the same way as they are done at home?"

Accepted Answer

This phase is typically associated with culture shock, which is characterized by feelings of disorientation, confusion, frustration, and anxiety as individuals try to adapt to a new culture. During this phase, expatriates may struggle to understand and adjust to cultural differences and may find themselves questioning why people do things differently in their host country compared to their home country.

Question 4

Acme Global is sending Sofia on an expatriate assignment.Sofia will receive all of her pay in the host country currency.It appears Acme Global is using the _________ approach to expatriate compensation.

Accepted Answer

The localization approach is when an expatriate's pay is entirely in the host country's currency. Therefore, this is the best answer for the situation described in the question.

Question 5

__________is the process of shuttering operations in other countries and bringing work back to the home country.

Accepted Answer

Onshoring is the process of relocating business operations from a foreign country back to the home country. This may be due to various reasons such as cost savings, logistical issues, or quality concerns. It is the opposite of outsourcing, where business operations are relocated to a foreign country. Trade blocs are groups of countries that have formed an economic union to promote trade among themselves. Expatriate refers to a person living outside their native country. Parochialism refers to a narrow-minded approach to business, limited to one's own culture or country.

Question 6

Acme Global is sending Alysha on an expatriate assignment.Alysha will continue to receive the same amount of pay but will also receive an allowance in the host country currency to help her with expenses.It appears Acme Global is using the _________ approach to expatriate compensation.

Accepted Answer

The balance sheet approach is commonly used by companies where the expatriate employee is compensated in their home country currency and provided with an allowance in the host country currency to help cover expenses. This approach is designed to ensure that the employee is not financially disadvantaged while on an international assignment.

Question 7

__________is an employee who leaves their home country to go work in another country.

Accepted Answer

An expatriate is an employee who leaves their home country to work in another country. They may be sent by their company or choose to work abroad themselves. Host-country national refers to an employee who is a citizen of the country where the company is located, while trade national and onshorer/offshorer are not common terms used in international business.

Question 8

During the _____ phase of culture shock, expatriates may avoid doing anything that requires getting involved in the culture of the country.

Accepted Answer

During the depression or hostility phase, expatriates often feel overwhelmed and may avoid engaging with the local culture, leading to withdrawal and isolation.

Question 9

During the _____ phase of culture shock, expatriates start to feel "normal" in their everyday activities.

Accepted Answer

The adaptation phase is the phase when expatriates start to feel "normal" in their everyday activities. They have learned how to navigate the new culture and have adapted to their surroundings. The other phases are:
- Honeymoon phase: Initial excitement and fascination with the new culture
- Culture shock phase: Feelings of confusion, frustration, and homesickness as the individual experiences differences in the new culture
- Exploration phase: The individual starts to actively seek out and learn about the new culture
- Depression or hostility phase: The individual may feel overwhelmed and disillusioned, and may exhibit negative behaviors towards the new culture.

Question 10

Acme Global recognizes that different employees have different compensation needs when on expatriate assignments.Some may need compensation to pay for their children's education.Others may work in areas where they must pay high taxes.To avoid having to design an individualized pay package for every employee, Acme Global gives every expatriate employee a set amount for extra expenses.It appears Acme Global is using the _________ approach to expatriate compensation.

Accepted Answer

Acme Global is using the lump sum approach to expatriate compensation, which involves giving every expatriate employee a set amount for extra expenses, rather than individualizing pay packages for each employee's specific needs.

Question 11

Which of the following is an advantage of parent-country nationals?

Accepted Answer

Parent-country nationals gain international experience by working in a foreign subsidiary, which can be beneficial for their career development and the company's global operations.

Question 12

Acme Global is sending Benjamin on an expatriate assignment.Benjamin will receive 60% of his pay in the host country currency and 40% of his pay in his home country currency.It appears Acme Global is using the _________ approach to expatriate compensation.

Accepted Answer

The split-pay approach refers to providing a portion of the expatriate's pay in the host country currency and a portion in the home country currency. This approach is commonly used by companies to balance the need to provide a competitive salary package for the expatriate while also minimizing the risks associated with currency fluctuations. The balance sheet approach involves reimbursing the expatriate for the cost of living differences and tax liabilities, while the lump sum approach involves providing a one-time payment to cover various expenses. The localization approach involves paying the expatriate the same salary as local employees, and the equalization approach involves providing a salary package that equals the expatriate's salary and benefits in the home country.

Question 13

Which of the following is an advantage of third-country nationals?

Accepted Answer

Third-country nationals can be less expensive than parent- or host-country managers because they may accept lower compensation packages, especially if they come from countries with lower salary expectations.

Question 14

When Acme Global asked Tamera to relocate to the company's newest foreign plant, it paid her a salary equal to what she was making in the United States and gave her an allowance for extra expenses.It appears Acme Global is using the _________ approach to expatriate compensation.

Accepted Answer

The balance sheet approach ensures that expatriates maintain their standard of living by covering additional expenses incurred due to relocation, such as cost-of-living adjustments and allowances.

Question 15

Acme Global recognizes that different employees have different compensation needs when on expatriate assignments.Therefore, it has a compensation specialist sit down with each employee before the assignment to work out how the employee will be compensated.It appears Acme Global is using the _________ approach to expatriate compensation.

Accepted Answer

Acme Global is using the negotiation approach to expatriate compensation by sitting down with each employee before the assignment to work out how the employee will be compensated based on their individual needs. The lump sum approach involves one fixed payment for the entire assignment, split-pay involves dividing the compensation between home and host country, localization involves paying the employee according to the host country's standards, and equalization involves compensating the employee as if they were still in their home country. None of these approaches involve individual negotiation with each employee.

Question 16

During the _____ phase of culture shock, everything is interesting and new.Expatriates feel like they are on an adventure.

Accepted Answer

The honeymoon phase is characterized by excitement and curiosity about the new culture. Expatriates are enthusiastic and open-minded during this phase.

Question 17

Laura accepted a temporary expatriate assignment.Since she will be keeping her apartment in her home country and getting a temporary apartment in her host country, she asked to be paid partly in her home-country currency and partly in her host-country currency.Laura is requesting the ________ approach to expatriate compensation.

Accepted Answer

Laura's request for partial payment in her home-country currency and partial payment in her host-country currency is an example of the split-pay approach, where expatriates receive payment in multiple currencies.

Question 18

Jordan is tasked with developing a repatriation program.She should include which activity as part of the repatriation?

Accepted Answer

The repatriation program should include all of the options listed, including re-entry training, job placement, showing appreciation for the employee's international service, and facilitating knowledge transfer. This comprehensive approach will ensure a smooth transition for the employee back to their home country and help maximize the value of their international experience for both the employee and the organization.

Question 19

What percentage of international assignments fail mainly due to the inability to adapt to cultural differences?

Accepted Answer

The answer of What percentage of international assignments fail mainly...

Question 20

__________is the process of hiring another organization to do work that was previously done within the host organization.

Accepted Answer

Outsourcing is the process of hiring another organization to do work that was previously done within the host organization.

Quiz 14: Global Issues for Human Resource Managers