Question 1

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. There is no mention of Asian assignments having the lowest failure rate or that the failure rate is half of what it is for Asian companies. Therefore, the correct answer is D.

Question 2

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's subsidiaries are managed by U.S. citizens, indicating a preference for the ethnocentric approach where key management positions are filled by individuals from the parent country. The new expatriate assignment in Egypt also suggests a continuation of this approach.

Question 3

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

Local employees are often more familiar with the culture and customs of the area in which the subsidiary is located, allowing the company to better integrate with the local community. Additionally, local employees are likely to command lower salaries than expatriate or foreign employees, which contributes to cost savings. By hiring local employees, the company also demonstrates its commitment to investing in the local workforce, which may increase acceptance and support from the community.

Question 4

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 5

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

Accepted Answer

The answer of Which of the following statements about U.S....

Question 6

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 7

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 because being able to understand and communicate in the local language would facilitate their integration into the new culture and reduce misunderstandings. While interpersonal skills, advanced college degree, and sophisticated technical knowledge can be helpful in various aspects of living abroad, they may not directly address the challenges of culture shock.

Question 8

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 desire to exhibit trust in the local citizenry. This shows a commitment to building relationships and partnerships with local communities, as well as an understanding of the cultural and business norms in India. It also aligns with the trend towards localization and the use of local talent and expertise in global business operations. Additionally, using host-country nationals can provide cost savings and enhance the company's overall competitiveness in the Indian market.

Question 9

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

Accepted Answer

According to the article or context, premature returns from overseas assignments cost U.S. companies an estimated $6.1 billion a year in direct costs.

Question 10

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...

Question 11

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 host and home countries, with an emphasis on selecting the most qualified individuals regardless of their nationality.

Question 12

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...

Question 13

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

Accepted Answer

The answer of When a country's political situation is unstable,...

Question 14

The most common reason for expatriate failure is:

Accepted Answer

Family problems are the most common reason for expatriate failure, as family members may not adapt well to the new culture, experience homesickness or struggle with finding employment or social connections in the new location. Other factors such as inability to speak the language or cultural shock can also contribute to failure, but typically have lower incidences. Overemphasis on technical qualifications can be a factor, but it typically only affects a small percentage of expatriates.

Question 15

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 16

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 17

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

Accepted Answer

All of the given choices are primary reasons why international assignments fail, except for inadequate technical skills. Adequate technical skills are important for the success of international assignments, but they are not a primary reason for failure. The other choices, lack of cross-cultural training, culture shock, and family problems, are all primary reasons why international assignments fail as they can lead to communication barriers, low morale, and poor performance.

Question 18

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 19

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...

Question 20

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.

Quiz 17: International HRM Challenge

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

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.

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?

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

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

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

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

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

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

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

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

The most common reason for expatriate failure is:

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

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.

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

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?

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)________.

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.