Question 1

In regard to expatriate pay, the _______________ equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home.

Accepted Answer

The balance sheet approach is used to equalize purchasing power across countries for expatriates, ensuring they maintain the same standard of living abroad as they would at home.

Question 2

A(n) _____ program is intended to develop a manager's skills over his or her career with a firm.

Accepted Answer

Management development programs are designed to improve a manager's skills and abilities throughout their career with an organization. Personnel development programs focus on developing the skills of employees, while technical development programs focus on improving technical skills specific to a particular role. Organizational development programs aim to enhance the overall effectiveness of an organization. Career development programs are broader in scope, focusing on assisting individuals in advancing their careers within or outside of a particular organization.

Question 3

The type of training that seeks to foster an appreciation for the host country's culture is called

Accepted Answer

Cultural training aims to help individuals understand and appreciate the host country's culture, traditions, values, and norms. This type of training helps individuals to adjust and communicate effectively with locals, making their experience more pleasant and successful. Technical training is focused on developing specific skills relevant to the job. Language training focuses on improving language proficiency while practical training is hands-on experience in a specific field. Cultural literacy refers to knowledge and understanding of different cultures.

Question 4

A(n) ____________ is extra pay the expatriate receives for working outside his or her country of origin.

Accepted Answer

A foreign service premium is extra pay that an expatriate receives for working outside his or her country of origin. This premium is intended to compensate expatriates for the challenges and risks associated with living and working in a foreign country. Other answer options such as parity adjustment, expatriate special circumstance, allowance, and foreign service allowance are either incorrect or do not specifically refer to extra pay received by an expatriate for working abroad.

Question 5

In most cases, which two groups evaluate the performance of expatriate managers?

Accepted Answer

Home country managers and host country managers typically evaluate the performance of expatriate managers.

Question 6

In regard to expatriate pay, the balance sheet approach accomplishes two objectives.These are

Accepted Answer

The balance sheet approach aims to equalize purchasing power across countries, ensuring that expatriates maintain their home-country living standards, and provides financial incentives to address qualitative differences between assignment locations.

Question 7

What is the most common approach to expatriate pay?

Accepted Answer

The most common approach to expatriate pay is the balance sheet approach, which ensures that the expatriate's purchasing power and standard of living are maintained while they are on assignment. This approach involves calculating the difference between the cost of living in the home country and the host country, and providing the expatriate with additional compensation, such as a cost of living allowance, to cover these additional expenses. It also takes into account taxes, housing costs, and other factors, and adjusts the expatriate's pay accordingly.

Question 8

_____________ programs are designed to increase the overall skill levels of managers through a mix on ongoing management education and rotations of managers through a number of jobs within the firm to give them varied experiences.

Accepted Answer

Management development programs are specifically designed to enhance the skills and knowledge of managers. These programs often involve a combination of ongoing education and training, as well as job rotations and other experiences to give managers a diverse range of skills and perspectives. The other options are not as specific to developing management skills.

Question 9

A housing allowance is normally given to ensure that the expatriate can afford the same quality of housing in the foreign country as at home.In locations where housing is very expensive, this allowance can be substantial as much as ______ percent.

Accepted Answer

In locations where housing is very expensive, the housing allowance can be as much as 30 percent to ensure that the expatriate can afford the same quality of housing in the foreign country as they had at home. Therefore, option E is the correct answer.

Question 10

Guardian Smitz is an expatriate working in the Philippines.As an expatriate, Guardian incurs an extra pay incentive for working outside his country.This extra pay incentive is called a(n)

Accepted Answer

The extra pay incentive that Guardian incurs for working outside his country is called a foreign service premium. This is also known as a Foreign Service Allowance (FSA), which is a form of compensation offered to expatriates in recognition of the hardship and additional expenses incurred for working overseas.

Question 11

One of tasks of the _____________ function is to foster harmony and minimize conflict between the firm and organized labour.

Accepted Answer

The human resource function is responsible for managing the relationship between the firm and organized labour. This includes negotiating and managing collective bargaining agreements, handling grievances and disputes, and fostering positive relationships between management and labour. The other functions listed do not typically have a direct role in managing labour relations.

Question 12

Which compensation approach attempts to provide expatriates with the same standard of living in their host countries as they enjoy at home plus a financial inducement for accepting an overseas assignment?

Accepted Answer

The balance sheet approach attempts to provide expatriates with the same standard of living in their host countries as they enjoy at home plus a financial inducement for accepting an overseas assignment. The balance sheet approach includes various components, such as cost-of-living allowances, housing allowances, tax equalization, and home country benefits, to ensure expatriates are neither advantaged nor disadvantaged by the assignment.

Question 13

In regard to the types of allowances often included in an expatriate's compensation package, a(n) ____________ allowance is paid when the expatriate is being sent to a difficult location.

Accepted Answer

A hardship allowance is specifically designed to compensate an expatriate for extra challenges and difficulties that they might face when relocated to a particularly challenging location, such as a warzone, a remote or isolated location, or a country where there is significant political instability. This allowance may also cover the cost of extra security measures that the expatriate and their family may require to stay safe.

Question 14

According to one study, what percent of repatriated employees didn't know what their position would be when they returned home?

Accepted Answer

According to the study, 50-60% of repatriated employees did not know what their position would be when they returned home.

Question 15

Some of the reasons that may bias the home country managers' appraisals of expatriate managers are:

Accepted Answer

The answer of Some of the reasons that may bias...

Question 16

The form of compensation that compensates an expatriate for having to live in an unfamiliar country isolated from family and friends is referred to as a(n)

Accepted Answer

Foreign service premium is specifically designed to compensate expatriates for the hardships of living away from their home country, including isolation from family and friends.

Question 17

An important goal in management development programs is to:

Accepted Answer

The answer of An important goal in management development programs...

Question 18

The type of training that is aimed at helping an expatriate managers and his or her family ease themselves into day-to-day life in the host country is called

Accepted Answer

The answer of The type of training that is aimed...

Question 19

What are the four types of allowances that are often included in an expatriate's compensation package?

Accepted Answer

Hardship allowances are provided to compensate expatriates for difficult living conditions, housing allowances cover the cost of housing in the host country, cost-of-living allowances cover the difference in the cost of living between the home and host countries, and education allowances cover the cost of education for the expatriate's dependents. These are the most common types of allowances provided in an expatriate's compensation package.

Question 20

When evaluating the performance of an expatriate manager, home-country managers tend to rely on what?

Accepted Answer

The answer of When evaluating the performance of an expatriate...

Quiz 16: Global Human Resource Management