Question 1

An individual who is responsible for ensuring that a firm's business systems are in accord with those of the local culture is a(n)_____.

Accepted Answer

The simplest training, in terms of preparation time, is to place a cultural integrator in each foreign operation. This individual is responsible for ensuring that the operation's business systems are in accord with those of the local culture. The integrator advises, guides, and recommends actions needed to ensure this synchronization.

Question 2

The _____ approach to formulating compensation packages involves working out a special,ad hoc arrangement that is acceptable to both the company and an expat.

Accepted Answer

The negotiation approach to formulating compensation packages involves working out a special, ad hoc arrangement that is acceptable to both the company and an expat.

Question 3

A(n)_____ multinational corporation (MNC)puts home-office people in charge of key international management positions.

Accepted Answer

An ethnocentric multinational corporation (MNC) puts home-office people in charge of key international management positions.

Question 4

Which of the following approaches to formulating a compensation package is most commonly used with individuals early in their careers who are being given a long-term overseas assignment?

Accepted Answer

The localization approach to formulating a compensation package is most commonly used with individuals early in their careers who are being given a long-term overseas assignment. This approach involves paying the expat a salary that is comparable to the salaries of local nationals.

Question 5

Strategies used to help smooth the adjustment from an overseas to a stateside assignment are referred to as _____.

Accepted Answer

To help smooth the adjustment from an overseas to a stateside assignment, some multinational corporations (MNCs) have developed transition strategies, which can take a number of different forms. One is the use of repatriation agreements, whereby the firm tells an individual how long she or he will be posted overseas and promises to give the individual, on return, a job that is mutually acceptable.

Question 6

Which of the following statements is true about localization as an approach to formulating compensation packages?

Accepted Answer

The increasing trend toward localization reflects companies' efforts to either tap into the local talents or to offer less generous packages to locally hired foreign workers. This localization approach was quite consistent among regions and countries around the world, including for companies operating in emerging markets (such as China, India, and Vietnam), where the local compensation and benefits packages are less generous than home-country plans.

Question 7

The four basic philosophical positions that multinationals can assume and influence a company's training program are:

Accepted Answer

The four basic philosophical positions of multinational corporations that can influence the training program are ethnocentric, polycentric, regiocentric, and geocentric positions.

Question 8

_____ is defined as the process of altering employee behavior and attitudes in a way that increases the probability of goal attainment.

Accepted Answer

Training is defined as the process of altering employee behavior and attitudes in a way that increases the probability of goal attainment.

Question 9

A(n)_____ multinational corporation (MNC)relies on local managers from a particular geographic region to handle operations in and around that area.

Accepted Answer

A regiocentric multinational corporation (MNC) relies on local managers from a particular geographic region to handle operations in and around that area. For example, production facilities in France would be used to produce goods for all EU countries. Similarly, advertising managers from subsidiaries in Italy, Germany, France, and Spain would come together and formulate a "European" advertising campaign for the company's products. A regiocentric approach often relies on regional group cooperation of local managers. The Gillette MNC uses a regiocentric approach.

Question 10

Which of the following multinational corporations (MNCs)places local nationals in key positions and allows these managers to appoint and develop their own people?

Accepted Answer

A polycentric multinational corporation (MNC) places local nationals in key positions and allows these managers to appoint and develop their own people.

Question 11

The most common elements in the typical expatriate compensation package include:

Accepted Answer

There are five common elements in the typical expatriate compensation package: base salary, benefits, allowances, incentives, and taxes.

Question 12

Expatriate salaries typically are set according to the base pay of:

Accepted Answer

Expatriate salaries typically are set according to the base pay of the home countries.

Question 13

Traditionally,multinational corporations (MNCs)relied on only one important selection criterion for overseas assignments:

Accepted Answer

Traditionally, multinational corporations (MNCs) relied on only one important selection criterion for overseas assignments: technical competence.

Question 14

An approach to developing an expatriate compensation package that involves giving the expat a predetermined amount of money and letting the individual make his/her own decisions regarding how to spend it is referred to as the _____.

Accepted Answer

The lump-sum method of formulating a compensation package involves giving an expat a predetermined amount of money and letting the individual make his or her own decisions regarding how to spend it.

Question 15

An agreement whereby the firm tells the individual how long she or he will be posted overseas and promises to give the individual,on return,a job that is mutually acceptable is a _____.

Accepted Answer

A repatriation agreement tells an individual how long she or he will be posted overseas and promises to give the individual, on return, a job that is mutually acceptable. This agreement typically does not promise a specific position or salary, but the agreement may state that the person will be given a job that is equal to, if not better than, the one held before leaving.

Question 16

An allowance may cover a variety of expenses,including all of the following except _____.

Accepted Answer

An allowance is designed to provide an expat with the same standard of living that he or she enjoyed in the home country, and it may cover a variety of expenses, including relocation, housing, education, and hardship.

Question 17

_____ are an expensive feature of expatriate compensation packages.

Accepted Answer

Allowances are an expensive feature of expatriate compensation packages. One of the most common parts is a cost-of-living allowance-a payment for differences between the home country and the overseas assignment.

Question 18

A number of thorny issues surround compensation for expatriates,including all of the following except:

Accepted Answer

A number of thorny issues surround compensation for expatriates. These include:
A. whether third-country benefits programs should be available to local nationals.
B. whether the home or host country is responsible for the expatriates' social security benefits.
C. whether benefits should be subject to the requirements of the home or host country.
D. which country should pay for benefits?
Answer: A
Feedback: A number of thorny issues surround compensation for expatriates. These include:
1. Whether multinational corporations (MNCs) should maintain expatriates in home-country benefit programs, particularly if these programs are not tax-deductible.
2. Whether multinational corporations (MNCs) have the option of enrolling expatriates in host-country benefit programs or making up any difference in coverage.
3. Whether host-country legislation regarding termination of employment affects employee benefits entitlements.
4. Whether the home or host country is responsible for the expatriates' social security benefits.
5. Whether benefits should be subject to the requirements of the home or host country.
6. Which country should pay for the benefits?
7. Whether other benefits should be used to offset any shortfall in coverage.
8. Whether home-country benefits programs should be available to local nationals.

Question 19

The most common approach to formulating a compensation package of an expat is the _____,which involves ensuring that the expat is "made whole" and does not lose money by taking the assignment.

Accepted Answer

The most common approach to formulating a compensation package of an expat is the balance-sheet approach, which involves ensuring that the expat is "made whole" and does not lose money by taking the assignment. A second and often complementary approach is negotiation, which involves working out a special, ad hoc arrangement that is acceptable to both the company and the expat.

Question 20

A(n)_____ multinational corporation (MNC)seeks to integrate diverse regions of the world through a global approach to decision making.

Accepted Answer

A geocentric multinational corporation (MNC) seeks to integrate diverse regions of the world through a global approach to decision making. Assignments are based on qualifications, and all subsidiary managers throughout the structure are regarded as equal to those at headquarters. IBM is an excellent example of an MNC that attempts to use a geocentric approach.

Quiz 14: Human Resource Selection and Development Across Cultures

An individual who is responsible for ensuring that a firm's business systems are in accord with those of the local culture is a(n) _____.