Question 1

________ are employees who are not citizens of the firm's home country or of the host country.

Accepted Answer

Third country nationals are employees who are not citizens of the firm's home country or of the host country. They are from a third country.

Question 2

At which stage in the evolution of a firm's organizational structure are international staffing needs lowest?

Accepted Answer

In the export department stage, a firm's international activities are minimal and typically managed by a small team within the organization, leading to the lowest international staffing needs compared to more advanced stages of international expansion.

Question 3

Which type of manager would most likely be employed to promote a global outlook through the firm's operations?

Accepted Answer

A third country national (TCN) is typically employed to bring a global perspective to a firm's operations, as they are neither from the home country of the company nor the host country where the company operates. This allows them to offer a unique, international viewpoint that can help promote a global outlook within the firm.

Question 4

Companies that view themselves as multidomestic are more likely to ________.

Accepted Answer

Multidomestic companies adapt their strategies to the local markets they operate in, which often involves decentralizing decision making to allow local offices more control and flexibility to respond to local needs and conditions.

Question 5

Using ________ will most likely improve a subsidiary's ability to adjust to changes in local economic and political conditions.

Accepted Answer

Host country nationals, being locals of the subsidiary's country, are more familiar with the local economic and political environment. This familiarity enables them to adjust more effectively to changes in these conditions compared to individuals from the parent or a third country.

Question 6

PDF Enterprises, an MNE, uses a centralized approach to management, so its international managers will most likely be ________.

Accepted Answer

In a centralized approach to management, multinational enterprises (MNEs) typically prefer to appoint home country nationals to international management positions. This is because they believe these individuals will maintain corporate policies and practices more consistently across global operations.

Question 7

Pet Comfort Systems is a firm based in Chicago that has just started exporting a small number of pet beds to retail stores in London, Tokyo, and Paris. The export department manager at Pet Comfort Systems is most likely from which country?

Accepted Answer

Given that Pet Comfort Systems is based in Chicago, it is most likely that the export department manager is from the United States, as companies typically hire managers from their own country, especially when they are just beginning to expand internationally.

Question 8

TechWare, an MNE based in Canada, has foreign operations in Singapore and Tokyo. TechWare's foreign offices are managed by parent country nationals. What is the most likely advantage of this staffing policy?

Accepted Answer

This staffing policy, where parent country nationals manage foreign offices, facilitates communication with headquarters because these managers are likely to have a better understanding of the company's overall goals, culture, and practices, making it easier to maintain alignment and coherence across international operations.

Question 9

________ are residents of the international business's home country.

Accepted Answer

Parent country nationals are individuals who are residents of the international business's home country, often referred to when discussing the composition of a company's workforce in foreign operations.

Question 10

Michael is a United States citizen who was sent from the U.S. headquarters to Italy to oversee procedural changes in one of the corporation's manufacturing subsidiaries. Michael is a ________.

Accepted Answer

Michael is considered a parent country national because he is a citizen of the country where the headquarters of the corporation is located, and he has been sent to work in a subsidiary in another country (Italy).

Question 11

Samsung tends to follow an ethnocentric staffing model. From which group will it most likely hire for upper-level management positions?

Accepted Answer

An ethnocentric staffing model prioritizes hiring individuals from the parent country for upper-level management positions, which in Samsung's case would be South Korea.

Question 12

A firm's international division is usually located in ________.

Accepted Answer

The international division of a firm is typically based in the home country, where the firm's headquarters are located. This division oversees and manages the firm's operations in foreign markets.

Question 13

Firms using a(n) ________ primarily use parent country nationals to staff higher-level foreign positions.

Accepted Answer

In an ethnocentric staffing model, the parent country nationals are given preference in staffing higher-level foreign positions. This is because the headquarters of the company believes that employees from the parent country have superior skills and knowledge compared to those from the host country or other foreign locations. The model is commonly used by firms that have a centralized management style and believe in maintaining uniformity in their operations across different locations.

Question 14

What term refers to people working and residing in countries other than their native country?

Accepted Answer

Expatriate refers to individuals who live and work outside their native country, often for employment reasons or personal choice.

Question 15

What is most important in staffing managerial employees?

Accepted Answer

Strategic and development issues are most important in staffing managerial employees because they ensure that the right individuals are placed in positions where they can contribute to the organization's long-term goals and growth. This involves considering the skills, experience, and leadership qualities necessary for the organization's success.

Question 16

What is a disadvantage of using host country nationals to manage foreign operations?

Accepted Answer

Host country nationals may be unfamiliar with the firm's practices, which can pose a challenge in aligning the foreign operations with the company's overall strategies and procedures.

Question 17

ATX Electronics, an MNC, typically fills high-level foreign positions with host country nationals. Which staffing model is most likely used by ATX Electronics?

Accepted Answer

The polycentric staffing model is characterized by a multinational company hiring host country nationals to manage operations in their own country, while the parent company's nationals occupy key positions at the corporate headquarters. Since ATX Electronics fills high-level foreign positions with host country nationals, it aligns with the polycentric approach.

Question 18

Mick is a native of South Africa. He works for Octagon, a British MNC, at the firm's Tokyo branch. Mick is best described as a ________.

Accepted Answer

Mick is considered a third country national because he is from South Africa (his home country), working in Japan (the host country) for a British company (the company's home country), which makes him neither a host country national nor a parent/home country national of the company he works for.

Question 19

Mercedes hired managers from the local community as operations managers in its Kentucky plant. Mercedes used ________.

Accepted Answer

Host country nationals are individuals from the country where the subsidiary or company is operating. Since Mercedes hired managers from the local community in Kentucky for its plant there, these employees are considered host country nationals.

Question 20

Who typically heads up an international division?

Accepted Answer

Parent country nationals, often from the company's home country, are typically chosen to head up an international division to ensure alignment with the company's overall strategy and culture.

Quiz 19: International Human Resource Management and Labor Relations