Question 1

In January 2009,Wal-Mart acquired a controlling interest in Chile's leading food retailer.Since then,Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Wal-Mart is planning to open additional stores in Chile over the next five years.Wal-Mart'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 Wal-Mart stores in Chile?
A)Adaptability screening tests indicate that three potential candidates are bilingual and travel overseas frequently.
B)Wal-Mart offers overseas candidates extensive training on cultural differences and adaptation skills.
C)The most qualified Wal-Mart managers have no foreign travel experience and do not speak Spanish.
D)A balance sheet approach is used by Wal-Mart , but workers do not receive hardship allowances for moving to 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 2

Which of the following terms refers to a lump-sum payment given to employees as a reward for moving from one assignment to another?
A)hardship allowance
B)foreign service premium
C)cost-of-living allowance
D)mobility premium

Accepted Answer

D) Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another.Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations.

Question 3

All of the following are the primary benefits of providing ongoing training to employees on overseas assignments EXCEPT ________.
A)offering educational opportunities
B)developing relationships with co-workers
C)cultivating corporate values and standards
D)providing spousal networking opportunities

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 4

Which of the following is most likely NOT covered by kidnapping and ransom insurance policies?
A)abductions
B)ransoms
C)crisis teams
D)weapons

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 5

All of the following characterize European labor relations EXCEPT ________.
A)limited number of bargaining units
B)informal recognition of labor unions
C)bargaining through employer associations
D)industry-wide collective bargaining

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 6

________ refers to bringing a manager back home after a foreign assignment has been completed.
A)expatriation
B)repatriation
C)mediation
D)job rotation

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 7

Most North American companies use the ________ approach to formulating expatriate pay.
A)equitable wage rate
B)balance sheet
C)performance
D)total package

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 8

________ are financial payments over and above regular base pay.
A)Foreign service premiums
B)Hardship allowances
C)Balance sheet payments
D)Mobility premiums

Accepted Answer

A) Foreign service premiums are financial payments over and above regular base pay,typically ranging between 10% and 30% of base pay.Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations.Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another.

Question 9

Before departing for an overseas assignment,an employee would most likely benefit from ________ training.
A)technical
B)interpersonal
C)cross-cultural
D)career development

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 10

A formal repatriation program should do all of the following EXCEPT ________.
A)assist employees with relocation logistics
B)seek compensation and benefits on behalf of employees
C)help employees update their resumes and make career plans
D)reassure employees of the company's concern for their welfare

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 11

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?
A)balance sheet approach
B)split pay approach
C)hardship premium
D)foreign-service premium

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 12

Which approach to formulating expatriate pay involves estimating the employee's expenses in the home country and the host country?
A)balance sheet
B)mobility allowance
C)performance pay
D)hardship method

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.

Question 13

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.
A)cost-of-living allowance
B)performance bonus
C)hardship allowance
D)mobility premium

Accepted Answer

C) Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations.Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another.

Question 14

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?
A)take the same route to and from work
B)arrive at the airport close to departure time
C)wait at the airport in a main traffic area
D)leave work at the same time each day

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 15

Which of the following qualities is most closely linked to an employee's success on an international work assignment?
A)technical skills
B)responsibility
C)intelligence
D)flexibility

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 16

According to research,all of the following will most likely help spouses of expatriates adjust to living in foreign countries EXCEPT ________.
A)close family relationships
B)pre-school age children
C)scheduled vacations
D)language training

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 17

The most common reason that an expatriate fails at an international assignment is ________.
A)incompetence
B)technical demands
C)family pressures
D)language difficulties

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 18

Which of the following terms refers to the process of assessing an employee's probable success in handling a foreign transfer?
A)skills placement testing
B)adaptability screening
C)management assessment
D)performance appraisal

Accepted Answer

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

Question 19

Which of the following is NOT one of the primary expense groups used in the balance sheet approach to formulating expatriate pay?
A)taxes
B)housing
C)disposable income
D)discretionary expenses

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

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.
A)hardship allowance
B)foreign service premium
C)cost-of-living increase
D)mobility premium

Accepted Answer

D) Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another.Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations.

Quiz 17: Managing Global Human Resources

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

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

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

All of the following characterize European labor relations EXCEPT ________.

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

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

________ are financial payments over and above regular base pay.

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

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

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?

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

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.

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?

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

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

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

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

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

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.