Question 1

Which of the following terms refers to the process of assessing an employee's probable success in handling a foreign transfer?

Accepted Answer

B)Adaptability screening attempts to assess the assignee's and his or her spouse's probable success in handling a foreign transfer.

Question 2

According to research,all of the following will most likely help spouses of expatriates adjust to living in foreign countries EXCEPT ________.

Accepted Answer

C)Language fluency helps spouses adjust as do preschool-age children.A strong bond of closeness between the spouse and the expat partner is also helpful.Scheduled vacations are less likely to improve the adjustment to life overseas.

Question 3

JJP Enterprises seeks to entice one of its star managers to move to Iraq to oversee a construction project.The firm will most likely offer a ________ because of the difficult living and working conditions in Iraq.

Accepted Answer

C)Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations.

Question 4

In January 2009,Walmart acquired a controlling interest in Chile's leading food retailer.Since then,Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Walmart is planning to open additional stores in Chile over the next five years.Walmart's top executives are considering the idea of transferring U.S.managers to Chile to oversee the construction and establishment of the new stores. Which of the following,if true,undermines the argument of using expatriates to establish the new Walmart stores in Chile?

Accepted Answer

C)Foreign travel experience and language skills demonstrate an ability to live and work with other cultures.If the most qualified candidates lack that experience,then using expatriates is probably a bad idea.

Question 5

The most common reason that an expatriate fails at an international assignment is ________.

Accepted Answer

C)Family support is the most significant factor in the success or failure of an expatriate.If the family of the executive cannot adapt or is negative about the international assignment,then the employee will most likely have difficulties.Incompetence,technical demands,and language difficulties are less significant issues.

Question 6

A formal repatriation program should do all of the following EXCEPT ________.

Accepted Answer

B)Repatriation programs are supported by an employee's firm,so seeking compensation and benefits is not part of the activities.However,repatriation programs should help employees with the logistics of moving back,help them with career planning,and reassure them that the firm cares.

Question 7

Which of the following terms refers to a lump-sum payment given to employees as a reward for moving from one assignment to another?

Accepted Answer

D)Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another.

Question 8

Jim Simmons,an American,has worked for a U.S.firm's Italian operations for two years with great success.Now,the company wants Jim to relocate to France to establish a new division.The company will most likely offer Jim a ________ to reward him for moving from one assignment to another.

Accepted Answer

D)Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another.

Question 9

________ refers to bringing a manager back home after a foreign assignment has been completed.

Accepted Answer

B)Expatriation refers to sending a worker to work overseas,while repatriation is the process of bringing the employee back to his or her home country.Repatriation programs help employees and their families make smooth adjustments.

Question 10

All of the following characterize European labor relations EXCEPT ________.

Accepted Answer

A)Unions in Europe are influential and labor-management bargaining and relations reflect this fact.Collective bargaining in Western Europe tends to be industry-wide,which leads to bargaining through employer associations.Union recognition is less formal than in the United States.

Question 11

Which of the following qualities is most closely linked to an employee's success on an international work assignment?

Accepted Answer

D)Employees need to be intelligent,responsible,alert,and technically skilled for all jobs,but being flexible is key to success on foreign assignments.Some people adapt anywhere; others fail to adapt anywhere.

Question 12

All of the following are the primary benefits of providing ongoing training to employees on overseas assignments EXCEPT ________.

Accepted Answer

D)Managers abroad continue to need traditional skills-oriented development to help them grow professionally,hone their skills,and have the same educational opportunities that stateside co-workers have.In addition,seminars help managers form bonds with colleagues around the world and cultivate corporate values.Providing spouses the chance to network is not a primary benefit.

Question 13

Most North American companies use the ________ approach to formulating expatriate pay.

Accepted Answer

B)The most common approach to formulating expatriate pay is to equalize purchasing power across countries,a technique known as the balance sheet approach.More than 85% of North American companies reportedly use this approach.

Question 14

________ are financial payments over and above regular base pay.

Accepted Answer

A)Foreign service premiums are financial payments over and above regular base pay,typically ranging between 10% and 30% of base pay.

Question 15

Before departing for an overseas assignment,an employee would most likely benefit from ________ training.

Accepted Answer

C)Assignees benefit from training on the culture and language of the country in which they will be living.Such training helps them adapt and to work more effectively with locals.

Question 16

Frank Williams is being sent to Saudi Arabia for two years to work for his company's Saudi affiliate.Which of the following suggestions should Frank follow to minimize his chances of being the victim of a kidnapping?

Accepted Answer

B)Security experts suggest that business travelers arrive at airports as close to departure time as possible and wait in areas away from the main flow of traffic where they're not as noticeable.Employees should also vary their departure and arrival times and take different routes to and from work.

Question 17

Which of the following is most likely NOT covered by kidnapping and ransom insurance policies?

Accepted Answer

D)K&R insurance typically covers several costs associated with kidnappings,abductions,or extortion attempts.These costs might include,for instance,hiring a crisis team,the actual cost of the ransom payment to the kidnappers or extortionists,insuring the ransom money in transit,legal expenses,and employee death or dismemberment.

Question 18

Which of the following terms refers to paying a portion of an expatriate's salary in home-country currency and a portion in local currency?

Accepted Answer

B)When using the balance sheet approach,firms often help the expatriate manage his or her home and foreign financial obligations with the split pay approach.The employer pays part of a person's actual pay in home-country currency and part in the local currency.

Question 19

Which of the following is NOT one of the primary expense groups used in the balance sheet approach to formulating expatriate pay?

Accepted Answer

C)The balance sheet approach focuses on four groups of expenses-income taxes,housing,goods and services,and discretionary expenses.Disposable income is not a category.

Question 20

Which approach to formulating expatriate pay involves estimating the employee's expenses in the home country and the host country?

Accepted Answer

A)The balance sheet approach focuses on four groups of expenses-income taxes,housing,goods and services,and discretionary expenses.The employer estimates what each of these four expenses is in the expatriate's home country,and what each will be in the host country.The employer then pays any differences.

Quiz 17: Managing Global Human Resources