Question 1

What is culture shock?

Accepted Answer

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Question 2

How can a firm increase the potential for managers to be successful at their foreign assignments?

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Question 3

What are the main causes of expatriate failure? How can training reduce the rate of expatriate failure?

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Question 4

The compensation package offered to a host country national is equivalent to that offered to an expatriate manager for a position of roughly equal responsibility and power.

Accepted Answer

Expatriate managers often receive more comprehensive compensation packages than host country nationals due to additional costs associated with international assignments, such as housing, education for children, and relocation expenses.

Question 5

After five years working as a manager at Water Sound Enterprises, Jeff has decided to quit. On his last day at work, Jeff is interviewed by the HR manager and asked his reasons for leaving Water Sound. Jeff is most likely participating in a(n) ________ interview.

Accepted Answer

Jeff is participating in an exit interview, which is conducted to understand an employee's reasons for leaving the organization.

Question 6

A tax equalization program is a means of ensuring the expatriate's after-tax income is similar to what it would be in the home country.

Accepted Answer

A tax equalization program is designed to ensure that an expatriate's net income, after taxes, remains approximately equal to what it would have been if they had stayed in their home country, thus neutralizing the tax differences between the two countries.

Question 7

A ________ is the process of determining how effectively people are performing their jobs.

Accepted Answer

A performance appraisal is the process used to evaluate how well employees are performing their jobs. This involves assessing their work performance against certain criteria, providing feedback, and setting goals for future performance.

Question 8

How does the scope of internationalization affect recruiting, training, and retaining managers?

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Question 9

How are experienced managers recruited by international businesses? What skills in younger managers are attractive to international firms seeking to fill future international assignments?

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Question 10

Define repatriation.

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Question 11

A(n) ________ is a means of ensuring that the expatriate's after-tax income in the host country is similar to what the person's after-tax income would be in the home country.

Accepted Answer

A tax equalization system is designed to ensure that an expatriate's after-tax income remains comparable to their home country after-tax income, regardless of the tax differences between the two countries.

Question 12

Typically, expatriates on short-term assignments receive a salary similar to their counterparts in the host country.

Accepted Answer

Expatriates on short-term assignments often receive their home country salary along with additional allowances for cost of living, housing, and other expenses to compensate for the inconvenience and costs of working abroad.

Question 13

Smith Enterprises seeks to entice one of its star managers to move to Iraq to oversee its negotiations for Iraqi oil. The firm will likely need to offer a ________ to a manager's base salary.

Accepted Answer

A hardship premium is often offered to employees as an incentive to relocate to a location that is considered less desirable or more challenging to live in, such as Iraq, due to various factors including safety, living conditions, and cultural differences. This premium compensates for the inconvenience or difficulties faced when moving to such locations.

Question 14

Explain expatriate failure.

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Question 15

The idea that a manager who accepts a foreign assignment is entitled to the same standard of living the manager enjoyed at home is the basis for ________.

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Question 16

Expatriate managers generally receive differential compensation to make up for dramatic differences in ________.

Accepted Answer

Expatriate managers often receive differential compensation to account for differences in standards of living between their home country and the country they are assigned to work in. This adjustment ensures that their quality of life is maintained despite the cost of living differences.

Question 17

A manager based in New York who is given a foreign assignment in Tokyo would most likely receive a significant cost-of-living allowance.

Accepted Answer

The cost of living in Tokyo is generally higher than in New York, especially considering housing, transportation, and general expenses. Therefore, to maintain a similar standard of living, a manager moving from New York to Tokyo would likely receive a significant cost-of-living allowance.

Question 18

What challenges face repatriated managers when they return from a foreign assignment? How do these problems affect employers?

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Question 19

According to surveys, which of the following is the most expensive city for expatriates?

Accepted Answer

Tokyo is often cited as one of the most expensive cities for expatriates due to its high cost of living, including housing, transportation, food, and entertainment expenses.

Question 20

What characteristics are present in the most promising candidates for international assignments? What tools are effective at identifying such candidates? Why is it also important to include family members when assessing candidates for international assignments?

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Quiz 19: International Human Resource Management and Labor Relations