Question 1

An ethnocentric MNC puts host-office people in charge of key international management positions.

Accepted Answer

An ethnocentric MNC puts home-office people in charge of key international management positions.

Question 2

Base salary is the amount of money that an expatriate normally receives in the home country plus a cost-of-living adjustment.

Accepted Answer

Base salary is the amount of money that an expatriate normally receives in the home country.

Question 3

Home-country nationals are managers who are citizens of the country where the MNC is headquartered.

Accepted Answer

Home-country nationals are managers who are citizens of the country where the MNC is headquartered. In fact, sometimes the term headquarters nationals are used.

Question 4

One of the reasons why there has been a decline in the number of expats in recent years is that MNCs have found that the expense can be prohibitive.

Accepted Answer

One of the reasons there has been a decline in the number of expats in recent years is that MNCs have found that the expense can be prohibitive. Reynolds estimated that, on average, "expats cost employers two to five times as much as home-country counterparts and frequently ten or more times as much as local nationals in the country to which they are assigned."

Question 5

Many countries exert real and subtle pressures to staff the upper-management ranks with expatriates.

Accepted Answer

In addition, many countries exert real and subtle pressures to staff the upper-management ranks with nationals.

Question 6

There are three major types of adjustments that an expatriate must make when going on an overseas assignment: anticipatory adjustment, in-country adjustment, and new-job-skill adjustment.

Accepted Answer

There are two major types of adjustments that an expatriate must make when going on an overseas assignment: anticipatory and in-country adjustment.

Question 7

An approach to developing an expatriate compensation package that is based on ensuring the expat is "made whole" and does not lose money by taking the assignment is referred to as the balance-sheet approach.

Accepted Answer

In formulating the compensation package, a number of approaches can be used. The most common is the balance-sheet approach, which involves ensuring that the expat is "made whole" and does not lose money by taking the assignment.

Question 8

The primary reason for training overseas managers is to improve their ability to interact effectively with local people in general and their personnel in particular.

Accepted Answer

The primary reason for training overseas managers is to improve their ability to interact effectively with local people in general and with their personnel in particular.

Question 9

In the new millennium, MNCs' learning focus applied to human resource development may go beyond learning organizations to "teaching organizations."

Accepted Answer

In the new millennium, this learning focus applied to human resource development may go beyond learning organizations to "teaching organizations."

Question 10

Repatriation agreements typically promise an expatriate a specific position and salary when he/she returns to the home office.

Accepted Answer

Repatriation agreements tell an individual how long she or he will be posted overseas and promises to give the individual, on return, a job that is mutually acceptable. This agreement typically does not promise a specific position or salary, but the agreement may state that the person will be given a job that is equal to, if not better than, the one held before leaving.

Question 11

Managers who live and work outside their home country are called expatriates.

Accepted Answer

These managers commonly are called expatriates, or simply "expats," which refers to those who live and work outside their home country.

Question 12

Historically, MNCs have staffed key positions in their foreign affiliates with host-country nationals.

Accepted Answer

Historically, MNCs have staffed key positions in their foreign affiliates with home-country nationals or expatriates.

Question 13

For expatriates, a cost-of-living allowance is a payment for differences between the home country and the overseas assignment.

Accepted Answer

One of the most common parts is a cost-of-living allowance-a payment for differences between the home country and the overseas assignment. This allowance is designed to provide the expat with the same standard of living that he or she enjoyed in the home country, and it may cover a variety of expenses, including relocation, housing, education, and hardship.

Question 14

Anticipatory and in-country factors will influence the expatriate's mode and degree of adjustment to an overseas assignment.

Accepted Answer

These anticipatory and in-country factors will influence the expatriate's mode and degree of adjustment to an overseas assignment. They can help to explain why effective selection of expatriates is multifaceted and can be very difficult and challenging.

Question 15

Home-country nationals are local managers who are hired by the MNC.

Accepted Answer

Host-country nationals are local managers who are hired by the MNC.

Question 16

An approach to developing an expatriate compensation package that involves giving the expat a predetermined amount of money and letting the individual make his/her own decisions regarding how to spend it is referred to as localization.

Accepted Answer

A fourth approach is the lump-sum method, which involves giving the expat a predetermined amount of money and letting the individual make his or her own decisions regarding how to spend it.

Question 17

The hardest training, in terms of preparation time is to place a cultural integrator in each foreign operation.

Accepted Answer

The simplest training, in terms of preparation time, is to place a cultural integrator in each foreign operation.

Question 18

Though politically controversial, outsourcing can save companies significant costs and is very profitable for firms that specialize in providing these services on a contract basis.

Accepted Answer

Though politically controversial, outsourcing can save companies significant costs and is very profitable for firms that specialize in providing these services on a contract basis.

Question 19

For most overseas managers, repatriation occurs within five years of the time they leave.

Accepted Answer

For most overseas managers, repatriation, the return to one's home country, occurs within five years of the time they leave.

Question 20

Most MNCs strive for a balance between age and experience in their expatriate employees.

Accepted Answer

Most MNCs strive for a balance between age and experience.

Quiz 14: Human Resource Selection and Development Across Cultures

An ethnocentric MNC puts host-office people in charge of key international management positions.

Base salary is the amount of money that an expatriate normally receives in the home country plus a cost-of-living adjustment.

Home-country nationals are managers who are citizens of the country where the MNC is headquartered.

One of the reasons why there has been a decline in the number of expats in recent years is that MNCs have found that the expense can be prohibitive.

Many countries exert real and subtle pressures to staff the upper-management ranks with expatriates.

There are three major types of adjustments that an expatriate must make when going on an overseas assignment: anticipatory adjustment, in-country adjustment, and new-job-skill adjustment.

An approach to developing an expatriate compensation package that is based on ensuring the expat is "made whole" and does not lose money by taking the assignment is referred to as the balance-sheet approach.

The primary reason for training overseas managers is to improve their ability to interact effectively with local people in general and their personnel in particular.

In the new millennium, MNCs' learning focus applied to human resource development may go beyond learning organizations to "teaching organizations."

Repatriation agreements typically promise an expatriate a specific position and salary when he/she returns to the home office.

Managers who live and work outside their home country are called expatriates.

Historically, MNCs have staffed key positions in their foreign affiliates with host-country nationals.

For expatriates, a cost-of-living allowance is a payment for differences between the home country and the overseas assignment.

Anticipatory and in-country factors will influence the expatriate's mode and degree of adjustment to an overseas assignment.

Home-country nationals are local managers who are hired by the MNC.

An approach to developing an expatriate compensation package that involves giving the expat a predetermined amount of money and letting the individual make his/her own decisions regarding how to spend it is referred to as localization.

The hardest training, in terms of preparation time is to place a cultural integrator in each foreign operation.

Though politically controversial, outsourcing can save companies significant costs and is very profitable for firms that specialize in providing these services on a contract basis.

For most overseas managers, repatriation occurs within five years of the time they leave.

Most MNCs strive for a balance between age and experience in their expatriate employees.