Question 1

In the geocentric approach,international subsidiaries are managed and staffed by personnel from the host country.

Accepted Answer

In the geocentric approach, international subsidiaries are managed and staffed by personnel from both the parent company and the host country, regardless of their nationality. This approach emphasizes a global integration of personnel and resources to achieve organizational goals.

Question 2

The ________ is an approach to managing international operations in which nationality is downplayed and the firm actively searches on a worldwide or regional basis for the best people to fill key positions.

Accepted Answer

The answer of The ________ is an approach to managing...

Question 3

The most common reason for expatriate failure is:

Accepted Answer

Family problems are the most common reason for expatriate failure, according to research. This can include difficulties adjusting to a new environment, schools, and social life for children, and spousal support. Technical qualifications and language skills are important, but they are not as significant as family adjustment for success in an overseas assignment. Culture shock can be a factor in failure, but it is less common than family-related issues.

Question 4

Sun Electronics is a South Korean firm.The HR director,VP of operations,and production staff at the firm's U.S.facility are South Koreans.Sun Electronics is most likely using a polycentric approach to managing its U.S.facility.

Accepted Answer

Sun Electronics is likely using an ethnocentric approach since key positions at its U.S. facility are filled by individuals from its home country (South Korea), rather than hiring locals or adapting management practices to the local culture.

Question 5

Which of the following qualifications would most likely minimize culture shock for an expatriate?

Accepted Answer

Bilingual capabilities would most likely minimize culture shock for an expatriate as they would be better equipped to communicate with the locals and understand their customs and culture. Interpersonal skills can help in adapting to a new environment, but may not necessarily minimize culture shock. Advanced college degree and sophisticated technical knowledge may not directly contribute to minimizing culture shock.

Question 6

All of the following are primary reasons that international assignments fail EXCEPT:

Accepted Answer

Inadequate technical skills is a valid reason for an international assignment failure, while the other options (B, C, and D) are considered primary reasons for such failures.

Question 7

In international business,a foreign branch owned partly by the home office and partly by an entity in the host country is called a(n)________.

Accepted Answer

The answer of In international business,a foreign branch owned partly...

Question 8

The failure rate for American expatriates in their overseas assignments is:

Accepted Answer

The passage states that the failure rate for American expatriates in their overseas assignments is three to four times higher than for European companies. Therefore, option D is the correct choice.

Question 9

Some of the advantages of using local employees to staff international subsidiaries are lower labor costs,the demonstration of trust in the local citizenry,and the increased acceptance of the company by the local community.

Accepted Answer

Using local employees can often result in lower labor costs due to lower wage expectations in some countries. Hiring local employees also demonstrates trust in the local citizenry and can increase acceptance of the company by the local community, which can lead to better relationships and stronger business partnerships.

Question 10

The ________ is an approach to managing international operations in which top management and other key positions are filled by people from the home country.

Accepted Answer

The answer of The ________ is an approach to managing...

Question 11

Which of the following statements about U.S.expatriate assignments is most likely true?

Accepted Answer

Many multinational corporations do not provide adequate cross-cultural training to expatriates, with only about 30% offering such training.

Question 12

Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.
-Refer to Additional Case 17.1.Which of the following best supports the decision to fill management positions in India with host-country nationals?

Accepted Answer

The decision to fill management positions in India with host-country nationals is best supported by the fact that Hollar wants to exhibit trust in the local citizenry. This approach is consistent with the trend towards localization in global business, which emphasizes the importance of adapting to local culture and relying on local knowledge and expertise. Additionally, using local nationals may also help to avoid potential cultural misunderstandings and facilitate communication with local stakeholders.

Question 13

According to recent surveys,what is the highest-rated selection criterion for an international assignment at most firms?

Accepted Answer

Technical qualifications are often the highest-rated selection criterion for an international assignment at most firms because they directly relate to the individual's ability to perform the specific job tasks required overseas.

Question 14

Additional Case 17.2
Golden Rod is an electronics firm based in Detroit with subsidiaries in several countries including Indonesia, Egypt, Argentina, and Thailand. The top management positions in these subsidiaries are filled by U.S. citizens. Golden Rod is planning on creating a new expatriate assignment in Egypt. The firm has created a selection board of expatriates to choose the best person for the job. In the past, Golden Rod has experienced a high turnover rate among repatriated managers, so executives hope to solve this problem.
-Refer to Additional Case 17.2.Golden Rod seems to use which of the following approaches to manage international subsidiaries?

Accepted Answer

Golden Rod is a U.S.-based company with U.S. citizens serving as top management in their international subsidiaries. This suggests an ethnocentric approach where the parent company relies on personnel from the home country to fill key positions in foreign subsidiaries.

Question 15

In international business,a foreign branch owned fully by the home office is referred to as a(n)________.

Accepted Answer

The answer of In international business,a foreign branch owned fully...

Question 16

When a country's political situation is unstable,it is best to use expatriates in top management positions.

Accepted Answer

When a country's political situation is unstable, it is best to use expatriates in top management positions because they are less likely to be affected by the political instability and can provide a more objective perspective.

Question 17

What is the difference between a polycentric and a geocentric approach to international management? How can managers ensure that HRM practices match a culture's value system when an employer uses one of these staffing approaches?

Accepted Answer

The answer of What is the difference between a polycentric...

Question 18

Premature returns from overseas assignments cost U.S.companies an estimated ________ a year in direct costs.

Accepted Answer

Premature returns from overseas assignments cost U.S. companies an estimated $6.1 billion a year in direct costs, according to a study by Brookfield Global Relocation Services.

Question 19

When is it more appropriate for a global firm to use expatriate management rather than local national management? How can a firm's screening process ensure that the best employee is chosen for an expatriate management position?

Accepted Answer

The answer of When is it more appropriate for a...

Question 20

An approach to managing international operations in which subsidiaries are managed and staffed by personnel from the host country is the ________.

Accepted Answer

The answer of An approach to managing international operations in...

Quiz 17: International HRM Challenge