IM Chapter 17

A multinational company with its headquarters in the U.S. wants to sell its new high-technology product in Germany. For the most effective selling, the sales force for this company would probably consist mostly of

American expatriates.

The team usually does not have any low performers as they either quit or are fired.

Companies motivate sales representatives through frequent interaction with supervisors.

What strategy should be practiced when determining compensation globally?

Consistent communication and training themes should be used worldwide.

What is most likely to be a reason that headquarters personnel tend to ignore the advice of local nationals?

Foreign nationals lack the understanding of how home-office politics work.

Countries such as Germany allow for greater use of expatriates in international sales forces. What is most likely the reason for this?

Germany has an information-oriented culture.

Horatio is a virtual expatriate based in the U.S., managing operations in France and Belgium for his company. What disadvantage of working as a virtual expatriate is Horatio likely to experience?

He may find it difficult to build close contact with subordinates and customers.

What is the main disadvantage of hiring local nationals in the sales force?

Headquarters personnel tend to ignore the advice of local nationals.

What is a strategy that international companies use to encourage sales personnel to accept foreign assignments?

International experience is considered important to join top management.

A survey showed that most companies establish sales compensation practices locally (either at the country or regional levels). The program element most often determined at the global level is

Program Design Principles.

From an international firm's perspective, what is an advantage associated with virtual assignments?

The extra expense involved in an actual executive move may be avoided.

Unlike the Japanese, the American sales managers have less need to worry about the problem of motivating poor performers. What is the reason for this?

The team usually does not have any low performers as they either quit or are fired.

What is an advantage of being a virtual expatriate?

Their families do not have to be uprooted from their home country.

What is true of local nationals who are hired to sell a company's products?

They are better able to lead a company through the maze of unfamiliar distribution systems

What is an advantage of hiring local nationals in the sales force?

They are more knowledgeable about a country's business structure and systems.

What is the most likely reason for Americans to seek third-country nationals for their international sales forces?

They are often able to speak several languages

What is a trait of people with good cultural skills?

They convey a sincere interest in people and their culture.

What is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates?

They cost the firm less to maintain

What best defines virtual expatriates?

They manage operations in foreign countries but do not move there

What is an advantage of a sales force consisting of expatriate sales representatives?

They possess greater technical training.

What is the most important quality of marketing personnel for a foreign assignment that a recruiter should consider?

They should possess a considerable breadth of knowledge of many subjects both on and off the job.

What is a characteristic of a professional expatriate?

They work abroad in country after country for the greater part of their careers.

Nontaxable perks such as a company vehicle given to an expatriate is an example of

a fringe benefit.

A foreign managerial posting is becoming increasingly viewed as

an important stepping stone to executive positions.

Most expatriate failures are caused by the lack of

an understanding of cultural differences.

Relationship marketing focuses o

building long-term alliances

An expatriate with excellent cultural skills does not tolerate ambiguity and upholds the superiority of his or her culture

false

An expatriate with excellent management and technical skills is sure to excel in any environment, even if he or she lacks an understanding of cultural differences.

false

An international salesperson can be hampered by flexibility when working in a foreign country or in the home country.

false

Expatriates working in high-tax countries prefer direct income instead of fringe benefits as part of their compensation package.

false

For selling in relationship-oriented countries, a sales force consisting of American expatriates proves to be most efficient.

false

In Europe, external labor unions are involved in setting compensation rules for sales people.

false

In eastern European countries, compensation packages typically involve a substantially greater emphasis on performance-based incentives than in the United States

false

In the U.S., poor performers typically stay with the company and are seldom fired

false

Most companies today limit their search for senior-level executive talent to their home countries.

false

Separation allowances are benefits paid when an expatriate manager leaves a company.

false

Since expatriates are not locals, they often have a negative effect on the prestige of the company and its product line in the eyes of foreign customers.

false

Social recognition is a more important motivating factor for an American sales representative compared to a Japanese salesperson.

false

The primary control tool used by American sales managers is the benefits system

false

The traits that make for successful sales representatives in the United States are the same as those that are important in other countries as well.

false

Though maturity and emotional stability are essential, the transnational manager is rarely expected to have knowledge of many subjects, either on or off the job.

false

Training for expatriates focuses on the company, its products, technical information, and selling methods, while that for local personnel focuses on customs and foreign sales problems.

false

With advances in communications technologies, virtual expatriates find it easy to maintain close contact with subordinates and customers.

false

Considering the specific characteristics of Japan's culture, what strategies would be most successful in motivating employees in Japanese organizations?

group bonus systems

A marketer who expects to be effective in the international marketplace should

have a positive outlook on an international assignment.

The primary control tool used by American sales managers with sales representatives is the

incentive system.

When hiring new personnel for international marketing, what is considered to be the best way to assess the traits necessary for success?

interviews and role-playing exercise

The training of foreign employees is likely to be most effective when

it is tailored to the employees' ways of learning and communicating.

What is most likely the reason that continual training is more important in foreign markets than in domestic ones?

lack of routine contact with the parent company

What is a disadvantage associated with a sales force consisting of expatriate salespeople?

large cultural barriers

In countries like Japan, a sales force is likely to be most effective if it consists mostly of

local nationals

In the past, most chief executives came from one of three backgrounds. What is one of these?

marketing

Which factor significantly differentiates companies with the least amount of returnee attrition from those with the highest attrition?

personal career planning for expatriates

What is considered to be the most common job in the United States despite being viewed negatively?

personal selling

Helmut, a German national, works as a sales manager for Grey Oil Corporation in the Middle East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information, we can say that Helmut is a

professional expatriate.

What is likely to be the most effective method in making home-office personnel aware of the problems of foreign operations?

providing cross-cultural training

When Sandra was offered a transfer to the London office from New York, she worried that she would miss out on opportunities in the New York office when she returned because she hadn't been there. This is a common problem with

repatriation

Qualified and ambitious sales personnel refuse to take up foreign assignments for fear of hampering their career development. This "out of sight, out of mind" fear is most closely linked to the problems of

repatriation.

The largest personnel requirement in foreign countries for most companies is in the

sales team

Claudia is being transferred to a foreign assignment that will last 3 months. Her family is not accompanying her, so the company is paying her a premium, which is called a

separation allowance.

Japanese and American salespersons are surprisingly similar except for one difference that Japanese rate as more important than their American counterparts. Identify this difference.

social recognition

What is the main reason for the failure of individual incentives to motivate employees in Japan?

society's emphasis on paternalism and collectivism

In relationship-oriented cultures such as France, Mexico, and Japan, sales representatives

tend not to be highly respected.

An expatriate sales force is likely to be

the best choice when selling requires an extensive background of information.

What is the final link in a company's marketing and sales efforts?

the sales representative

What is a company's most direct tie to the customer?

the salesperson

One feature of third-country nationals is

their nationality has little to do with where they work or for whom.

Japanese sales representatives tend to be most satisfied with their jobs when

their values are consistent with those of their company.

Doreen is a French citizen who has been working for a U.S. company in Spain for twenty years. Doreen may be considered to be a

third-country national.

Expatriates from their own countries working for a foreign company in another country are called

third-country nationals.

When recruiting sales and marketing personnel for an international sales force, there is a preference in favor of the locals. The reason for this is most likely that local nationals

transcend both cultural and legal barriers

A chief disadvantage of an expatriate sales force is the high cost for a company.

true

Differences in languages and culture can make mutual understanding between foreign managers and sales representatives difficult.

true

Expatriate managers fear that they will lose opportunities for promotion because they will be forgotten by the home office while they are working in a foreign country

true

For an American company, one of the disadvantages of recruiting a U.S. home-country national for a foreign sales assignment is the cost of double taxation.

true

In relationship-oriented cultures, sales representatives tend to be on the bottom rung of the social ladder.

true

In the context of international sales management, managers' cultures affect their personnel decisions.

true

Jacob's wife never grew accustomed to his foreign assignment and was miserable, so Jacob requested a move back to the home country. This is a common reason for an expatriate's failure to function effectively in a foreign assignment.

true

Japanese sales representatives are motivated more by the social pressure of their peers than by the prospect of making more money individually.

true

Local salespeople are better able to lead a company through the maze of unfamiliar distribution systems and referral networks of a foreign country.

true

Marketing is a business function requiring high motivation regardless of the location of the practitioner.

true

Only a limited number of American high-caliber sales personnel are willing to live abroad for extended periods of time as expatriates.

true

Personal career planning for the expatriate is a significant strategy that helps companies prevent returnee attrition.

true

The first step in managing a sales force is making a decision regarding its design.

true

The main disadvantage of hiring local nationals for an international sales force is the tendency of headquarters personnel to ignore their advice.

true

Cultural empathy involves

understanding another culture and not being antagonistic.

What is likely the single most important reason for expatriate dissatisfaction?

unsuccessful family adjustment

Jorge, an American citizen, works as the sales manager at an office supply company. He is posted at the company headquarters in the U.S. and manages operations in China, making frequent and lengthy visits to conduct business meetings with his colleagues there. Jorge may be considered to be a

virtual expatriate.

The primary difference between professional expatriates and virtual expatriates is that A) professional expatriates can avoid misunderstandings that arise from cross-cultural communications.

virtual expatriates work from their home branch and do not relocate to the assignment country.

When is an expatriate sales force most likely to have an advantage over a native sales force?

when the product is highly technical in nature

What is actively involved in setting rules about compensation companywide in Europe?

work councils