Question 1

Strategies used to help smooth the adjustment from an overseas to a stateside assignment are:

Accepted Answer

Transition strategies are specifically designed to help individuals smoothly adjust from one environment to another. In the case of an overseas to stateside assignment, this may include providing support for cultural readjustment, assistance with finding housing and employment, and support in reconnecting with friends and family. This type of strategy is focused on helping individuals successfully navigate the challenges of transition, and can be an effective way to ensure a successful adjustment to the new environment.

Question 2

This approach to developing an expatriate compensation package entails giving the individual a series of options and letting the person decide how to spend the available funds.

Accepted Answer

The description matches the cafeteria approach, where expatriates are given a range of options to choose from based on their personal preference and needs. This approach allows flexibility and personalization in the compensation package, which may result in increased job satisfaction and retention of the expatriate.

Question 3

This type of MNC relies on local managers from a particular geographic region to handle operations in and around that area.

Accepted Answer

A regiocentric approach involves hiring and promoting employees based on the specific region where the subsidiary operates, relying on local managers to handle operations in that area.

Question 4

Which of the following approaches is used to develop an expatriate compensation package that involves setting a compensation system for all expats who are assigned to a particular region and paying everyone in accord with that system?

Accepted Answer

The regional system is used to develop an expatriate compensation package that involves setting a compensation system for all expats who are assigned to a particular region and paying everyone in accord with that system. This approach is most appropriate for organizations that want to have consistent and equitable compensation practices for their expat employees in a particular region. The balance-sheet approach, on the other hand, involves calculating an expat's compensation package based on a comparison of his or her purchasing power in the host country versus the home country, while the cafeteria approach involves letting expats choose from a menu of compensation options. The lump-sum method involves offering a one-time payment to cover all expenses associated with the expat assignment.

Question 5

This type of MNC seeks to integrate diverse regions of the world through a global approach to decision making.

Accepted Answer

Geocentric MNCs have a global approach to decision-making, seeking to integrate diverse regions of the world. This is different from polycentric and ethnocentric MNCs, which focus more on local or national decision making. Regiocentric MNCs have a regional focus, but still may not have a global approach to decision making like a geocentric MNC.

Question 6

These are an expensive feature of expatriate compensation packages.

Accepted Answer

Allowances are often a costly component of expatriate compensation packages as they cover expenses such as housing, transportation, education, and cost of living adjustments. Base salaries and incentives are important but typically do not incur additional expenses like allowances do. Taxes may be a consideration for the employer, but are not a feature of the expatriate compensation package for the employee. Therefore, Option B, Allowances, is the best choice.

Question 7

Expatriate salaries typically are set according to the base pay of:

Accepted Answer

Expatriate salaries are typically based on the home country's base pay to maintain consistency with the employee's original salary and living standards.

Question 8

The most common elements in the typical expatriate compensation package include:

Accepted Answer

The most common elements in the typical expatriate compensation package include base salary, benefits, allowances, incentives and taxes. This provides a comprehensive package including basic salary, benefits such as health insurance, allowances for housing, education, and other expenses, incentives to motivate the employee, and handling of taxes to ensure compliance with local regulations.

Question 9

An agreement whereby the firm tells the individual how long she/he will be posted overseas and promises to give the individual, on return, a job that is mutually acceptable is a:

Accepted Answer

This is a repatriation agreement, as it outlines the terms of an individual's return from an overseas posting and promises a job upon return. The other options do not fit this specific scenario.

Question 10

An approach to developing an expatriate compensation package that involves paying the expat a salary comparable to that of local nationals is referred to as:

Accepted Answer

Localization involves paying expats a salary comparable to that of local nationals in the host country. This approach can help avoid the high cost of expatriate packages while also providing a sense of fairness and equity among employees in the same location.

Question 11

This is the process of altering employee behavior and attitudes in a way that increases the probability of goal attainment.

Accepted Answer

Training is the process of teaching and instructing employees on behaviors and attitudes that will help them achieve goals. This can involve skill-building, as well as education on the company's values and mission. Organizing involves structuring resources and tasks for efficient execution, planning involves setting goals and determining how to achieve them, and controlling involves monitoring performance and making adjustments as needed. While all of these functions can support employee behavior and attitude change, training is the most directly focused on this goal.

Question 12

The four basic philosophical positions that multinationals can assume and influence a company's training program are:

Accepted Answer

The four basic philosophical positions that multinationals can assume and influence a company's training program are ethnocentric, polycentric, regiocentric, and geocentric. Ethnocentric companies tend to use training programs that are designed to replicate the home-country management style and practices, while polycentric companies tailor the training programs to the local culture and practices. Regiocentric companies take a regional approach to training, while geocentric companies adopt a global approach that integrates various cultures and practices.

Question 13

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

Accepted Answer

The balance-sheet approach is designed to ensure that an expatriate does not financially lose out by taking an assignment abroad. This approach calculates the difference between the cost of living in the home country and the host country, including items such as housing, taxes, and schooling. The employer can then provide a compensation package that makes up for the difference, including things like housing allowances, tax equalization, and education expenses. This approach is the most comprehensive and ensures that the expatriate is "made whole."

Question 14

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 the:

Accepted Answer

The lump-sum method involves giving a predetermined amount of money to the expat, which allows them to have flexibility in making their own decisions about how to use the money. This can be beneficial for both the company and the expat as it can simplify the compensation process and also give the expat more control over their finances. The localization approach involves adjusting the expat's compensation to be in line with the local cost-of-living and may not provide as much flexibility. The cafeteria approach involves offering a menu of compensation options for the expat to choose from, which may not always fit their individual needs. The balance-sheet approach involves calculating the difference in the cost-of-living between the expat's home country and their host country and adjusting their compensation accordingly.

Question 15

Traditionally, what was the only selection criterion MNCs relied on for overseas assignments?

Accepted Answer

The answer of Traditionally, what was the only selection criterion...

Question 16

The benefits of a lump-sum incentive system would include all of the following except:

Accepted Answer

A lump-sum incentive system may not consistently encourage employees to be motivated by financial incentives, as it is a one-time payment and may not have a lasting motivational impact.

Question 17

The return to one's home country from an overseas management assignment is referred to as:

Accepted Answer

Repatriation specifically refers to the process of returning to one's home country after an overseas management assignment. Reintroduction, recruiting, and reentry are not as specific to this context.

Question 18

A(n) _____ MNC puts home-office people in charge of key international management positions.

Accepted Answer

An ethnocentric MNC places home-office people in key international management positions, prioritizing the practices and perspectives of the home country.

Question 19

An individual who is responsible for ensuring that a firm's business systems are in accord with those of the local culture is a(n):

Accepted Answer

A cultural integrator is responsible for ensuring that a firm's business systems are in accord with those of the local culture. They typically have strong cultural knowledge and experience and help bridge the gaps between the home-country culture and the host-country culture. Global facilitators, international transition specialists, and global socialization specialists do not necessarily focus specifically on adapting business systems to local cultures.

Question 20

Which of the following MNCs places local nationals in key positions and allows these managers to appoint and develop their own people?

Accepted Answer

Polycentric MNCs allow local nationals to fill key positions and give them the freedom to appoint and develop their own people. They adopt a decentralized management approach where decision-making power is given to the regional or national offices.

Quiz 14: Human Resource Selection and Development Across Cultures