International Business Chapter 17
Foreign service premiums typically range from ______ to ______ of base salary after tax.
10%; 30%
It has been evidenced that the presence of diversity in the workplace increases employee satisfaction. The text notes that in the case of minority workers, improved satisfaction occurs when representation exceeds at least _____ of the workforce.
15%
Expatriate failure can be reduced through training, but despite the known benefits of training, one study showed that only about ______ of managers sent on an expatriate assignment receive training prior to departure.
30%
What are three components of a typical expatriate compensation package? (Check all that apply.)
Benefits Foreign service premium Tax differentials
Which type of allowance ensures that an expatriate will enjoy the same standard of living in a foreign post as he or she would at home?
Cost-of-living
In her new position as global marketing manager, Shayla will be interacting with local managers to develop marketing campaigns. Shayla wants to be able to understand the viewpoints of each of these managers. Which type of training will best help Shayla be successful in her interactions with host-country nationals?
Cultural
______ is the lack of interest in learning about other cultures or recognizing what works in other cultures.
Cultural myopia
The threat to unions from an MNC keeping highly-skilled tasks in the home country and farming out the low-skilled tasks to foreign plants is that it is easy (easy or hard?) for the company to switch production facilities, reducing the bargaining power of organized labor.
Easy
What are two allowances that are typical in expatriate compensation? (Check all that apply.)
Education and Housing
_____ is considered the language of world business.
English
The chief operations officer at Bradley Motor Corp., based in Omaha, doesn't feel there are qualified individuals in Brazil to staff the senior management positions at the company's new manufacturing facility. Which type of staffing policy should Bradley Motor Corp. use based on this information?
Ethnocentric
Refer to Table 17.1 and match the staffing approach to its compatible strategy.
Ethnocentric -> International Polycentric -> Localization Geocentric -> Transnational
True or false: Most cases of expatriate failure in Japan are the result of poor working conditions.
False
True or false: Refer to Figure 17.1. Within the organizational architecture of a firm, human resources is responsible for both structure and processes.
False
True or false: Repatriated employees are guaranteed the same job with the same company when they return to the home country.
False. Not all companies would guarantee this. Studies have shown that many repatriates don't know what their employment position will be when they return home.
True or false: Hard data allows a manager to evaluate an expatriate based on things such as cultural awareness and the ability of the expatriate to work with local managers.
False. Reason: Hard data provides information such as profitability and market share.
Of the types of international staffing policies identified by research, which one tends to be the most attractive to companies?
Geocentric
In ______, most union leaders take a moderate political stance.
Germany, the Netherlands, and Scandinavia
According to the text, what three things help managers develop a global mindset? (Check all that apply.)
Grow up in a bicultural family Live in a foreign country Learn foreign languages as a part of family life
The ______ function of an international firm usually addresses international labor relations.
HRM
In many cases, which two groups are responsible for evaluating the performance of expatriate managers? (Check all that apply.)
Host-nation managers Home-office managers
Jensen works for Hudson Department Stores which has locations all over the world. It is her job to determine the staffing needs for the holiday season for retail stores in the European market. Which activity is Jensen involved with?
Human resource management
______ were established in the 1960s to allow unions to bargain transnationally with MNCs.
International trade secretariats
In ______, many unions are controlled by left-wing socialists who view collective bargaining as a form of class conflict.
Italy, Great Britain, and France
Which scenario is an example of expatriate failure?
Janis, a US citizen, has been sent to Saudi Arabia to manage an office for Verizon. She is very unhappy and wants to return home.
Which two types of training have been found to reduce expatriate failure? (Check all that apply.)
Language training Cultural training
How are medical and pension benefits typically treated for expatriates?
Many firms provide the same level of benefits they would receive at home.
What group benefited from the establishment of international trade secretariats in the 1960s?
Organized Labor
Based on Mendenhall and Oddou's dimension known as _____ the more effectively an expatriate can interact with host-country nationals, the more likely he or she is to succeed.
Others-orientation
Developing steadfast friendships with host-country nationals is an aspect of which dimension in Mendenhall and Oddou's model?
Others-orientation
The HRM function has a critical impact on which three elements of a firm's organizational architecture? (Check all that apply.)
People Culture Incentive systems
Which dimension identified by Mendenhall and Oddou refers to understanding why people of other countries behave the way they do?
Perceptual ability
Human resource management includes which three activities? (Check all that apply.)
Performance evaluation Staffing Labor relations
Which staffing policy requires host-country nationals to be recruited to manage subsidiaries while parent-company nationals occupy key positions at corporate headquarters?
Polycentric
What two factors are particularly important in the others-orientation dimension identified by Mendenhall and Oddou? (Check all that apply.)
Relationship development Willingness to communicate
______ should be seen as the final link in the process of selection and training expatriate managers.
Repatriation
What two things may occur as a result of the limits an ethnocentric staffing policy puts on advancement opportunities for host country nationals? (Check all that apply.)
Resentment Lower productivity
______ policy is concerned with the selection and training of individuals for specific job functions.
Staffing
What are two tasks of the HRM function in a multinational company? (Check all that apply.)
Staffing policy Compensation policy
What are two ways unions disrupt production and derive their bargaining power? (Check all that apply.)
Strikes Refusing to work overtime
What are two advantages of a geocentric staffing policy? (Check all that apply.)
The firm makes best use of human resources. The executive team feels comfortable working in a variety of cultures.
True or false: Japanese firms have historically used an ethnocentric staffing policy.
True
True or false: Language training can help improve an employee's effectiveness in a foreign posting.
True
True or false: The HRM function plays a valuable role in helping a firm achieve its primary strategic goals.
True
True or false: Today, the level of centralized input into labor relations practices is increasing.
True. Reason: More and more international companies are trying to centralize this practice since labor costs account for a large percentage of total costs.
According to research, a primary reason managers now turn down international assignments is _____.
a spouse's career
The HRM function can help a firm achieve its primary strategic goals, including: (Check all that apply.)
adding value by better serving customers reducing the cost of value creation
According to the text, compared to domestic managers, expatriates tend to leave their company
at about twice the rate
Saturn Energy Corp. carefully examined the cost of living in the Netherlands before it determined compensation for the manager it was sending from the US. It wanted to be sure the manager would be able to enjoy the same standard of living in the Netherlands as at home. The company is using the _____ approach to determine compensation.
balance sheet
The ______ approach to expatriate compensation seeks a balance of purchasing power between the home and host countries.
balance sheet
The imbalance that is present between men and women in the workplace tends to get _____ within upper levels of an organization.
bigger
While profound differences between countries complicate the HRM function, the major tasks for HRM in an international business still include staffing policy, management training and development, performance appraisal, and
compensation policy
A firm's performance appraisal systems are a critical part of its _____ systems.
control
A performance appraisal would be part of an organization's ______ system.
control
Jeanne was hired in part because she was comfortable with the company's norms and value systems. In other words, she was a good fit for the company's ______.
corporate culture
When Trevor's company transferred him to Tokyo, it provided him with a compensation package that included a(n) ______ allowance to ensure that Trevor would live in the same manner as he did at home.
cost of living
Eleanor's company is providing her with training in the social and business practices of the country of Morocco. She will be working there for the next two years and it is important for her to understand these practices. This demonstrates expatriate ______ training.
cultural
A problem that arises when a home-office manager evaluates the performance of an expatriate is ______, which can be alleviated by receiving input from on-site managers.
cultural bias
A firm's failure to understand that host-countries require different approaches to marketing and management is known as ______.
cultural myopia
According to Mendenhall and Oddou, ______ refers to the relationship between the foreign country and how well an expatriate can deal with living there.
cultural toughness
Jacob's company assigned him to work in Indonesia for three years. He and his family moved from their home in Atlanta to Indonesia and quickly adapted to their new living arrangements. Mendenhall and Oddou would say that Jacob demonstrates ______.
cultural toughness
Historically, most international businesses ______ the labor relations duties to local managers because labor laws and union power varied so much between countries.
decentralized
The main way unions gain bargaining power is by ______ within a company.
disrupting production
What are two ways a diverse workforce will improve workplace performance?
diversity can increase employee satisfaction about the workplace a diverse customer set may appreciate interacting with similarly diverse employees
The four types of allowances that are often included in an expatriate's compensation are hardship, housing, cost of living, and ______.
education
As defined in the text, perceptual ability is synonymous with the ability to ______.
empathize
Host-country nationals would encounter the greatest limits on advancement opportunities when faced with a(n) ______ staffing policy.
ethnocentric
If a firm was concerned with transferring its core competencies to a foreign operation, it might elect to transfer parent-company nationals who have knowledge of that competency to the foreign operation. This would be an example of the ______ staffing strategy.
ethnocentric
Since it may keep a firm from developing cultural myopia, the polycentric approach is a response to the shortcomings of the ______ approach.
ethnocentric
Trisha's firm has filled all of its key management positions with parent-country nationals. What kind of staffing policy is this company using?
ethnocentric
A(n) ______ manager is a citizen of one country who works abroad in a company's subsidiary.
expatriate
Aiko is from Japan and recently moved from Japan to work at the US headquarters of Toyota in Texas. In her US job, Aiko is considered to be a(n)
expatriate
Tom's company hired three individuals from the US to work in its plant based in Japan. Unfortunately, at the end of six months, all three of the employees ended up quitting because they did not like adhering to the Japanese principles in place at the plant. This demonstrates ______.
expatriate failure
John Smith is a Seattle, Washington native who works for Microsoft. The company sent him to manage a branch of the company in China, but he was homesick and returned home in six months. This is an example of
expatriate failure.
As compared to other staffing policies, a geocentric staffing policy is ______ to implement.
expensive
The two advantages of using a polycentric approach to staffing are: (Check all that apply.)
fewer cultural misunderstandings. less expensive to implement.
When focusing on the strategic perspective, no matter what compensation system is used, international managers should be rewarded for
following the corporate strategy
Refer to Table 17.1 Which staffing approach is notable because it uses human resources efficiently?
geocentric
The newly-hired human resource manager was told that it is company policy to find the best person for all management positions, regardless if that person is from the home country or is located in one of the company's international locations. Which staffing policy does this represent?
geocentric
The strengths of the ______ staffing policy are that it makes the best use of a company's human resources and it results in executives who are comfortable in a number of cultures.
geocentric
Which international staffing policy seeks the best people for key jobs regardless of nationality?
geocentric
According to some researchers, a manager who demonstrates cognitive complexity and a cosmopolitan outlook has a(n)
global mindset
Kevin's evaluation of the performance of his international manager based in Belgium was based solely on the profitability and market share established by the office. Kevin used ______ data in his evaluation.
hard
A(n) ______ allowance is typically provided to an expatriate who is sent to a location that is deemed difficult because of a lack of basic services or amenities.
hardship
When an expatriate is sent to a country where basic amenities such as health care, schools, and retail stores are minimal compared to the employee's home country, a company will often provide the expatriate with a(n) ______ allowance
hardship
When an expatriate is sent to a country where basic amenities such as health care, schools, and retail stores are minimal compared to the employee's home country, a company will often provide the expatriate with a(n) ______ allowance.
hardship
Organized labor _____ had much success in responding to the bargaining power of MNCs.
has not
After she accepted the foreign posting for her company, Alysha realized that there wasn't a reciprocal tax treaty with the host government. This means that Alysha will
have to pay income tax in both nations
One drawback to a polycentric staffing policy is that ________.
host-country nationals have less chance to gain international experience.
The two issues that impact compensation practices in an international business are _____ and _____.
how compensation should be adjusted to reflect economic circumstances. how expatriate managers should be paid.
Firms may be prevented from using a geocentric staffing policy because of ______ in the host country.
immigration laws
The most indicated reason for expatriate failure with US multinationals is the
inability of the spouse to adjust
According to research done by R. L. Tung, three common reasons US multinationals experience expatriate failure include: (Check all that apply.)
inability to cope with larger overseas responsibilities, inability of spouse to adjust, manager's personal or emotional maturity
A(n) ______ is an employee of a multinational company who is from a foreign country, but is transferred from a foreign subsidiary to the corporation's headquarters.
inpatriate
Renee is a citizen of France who has moved to the US to work at Intel. Renee is an example of a(n)
inpatriate
What three things are mentioned in the text as reasons spouses fail to adjust to international postings? Choose all that apply.
language differences loss of network of friends unable to work
According to a study on repatriated employees, 40% of them
leave their firms within 3 years of arriving home.
What three actions has organized labor attempted in order to deal with the increased bargaining power of MNCs? (Check all that apply.)
lobby for national legislation to restrict MNCs achieve international regulations on MNCs establish international labor organizations
Three major reasons for expatriate failure in Japan include: Check all that apply.
may be dropping.
The HRM function tries to ______ between the firm and organized labor.
minimize conflict
It typically costs a firm _____ to post someone to a foreign country than what it costs to keep that person in the home office.
more
Providing medical and pension benefits for expatriates may be ______ costly for the firm because benefits are not tax deductible out of the country.
more
According to most expatriates, more weight should be given to the ______ manager's evaluation than to the ______ manager's assessment during a performance evaluation.
on-site; off-site
What is considered to be the linchpin that holds a firm's organizational architecture together?
people
One of the four dimensions that Mendenhall and Oddou identified as predicting success in a foreign posting is
perceptual ability
What are the four dimensions identified by Mendenhall and Oddou that predict success in a foreign posting?
perceptual ability self-orientation others-orientation cultural toughness
A system that is used to evaluate the performance of managers against stated criteria a firm considers necessary to attain a competitive advantage is called a(n) ______ system.
performance appraisal
At Darla's company, the executives at headquarters are all parent-company nationals, but the foreign subsidiaries all have host-country presidents. This demonstrates the ______ staffing policy.
polycentric
The lack of a manager's mobility among national operations in ______ firms implies that pay can and should be kept country-specific.
polycentric
The major drawback to a(n) ______ staffing policy is the separation that might develop between host-country managers and parent-country managers.
polycentric
The three types of staffing policies in international business are: (Check all that apply.)
polycentric. ethnocentric. geocentric
A company that helps the expatriate manager and family ease into day-to-day life in the host country by ensuring access to a support network of friends is providing ______ training.
practical
When the Petersons were posted to Thailand for a management opportunity, they quickly joined the expatriate community to learn the ins and outs of living in the Thai culture. Their actions represent a form of ______ training.
practical
Often an expatriate will receive extra compensation for working outside his or her country of origin. This is referred to as a foreign service
premium
Double taxation can be an issue for an expatriate when a(n) ______ tax treaty is not in place.
reciprocal
The process that involves preparing expatriate managers to return to their home-country organization is called ______.
repatriation
Expatriates with high self-esteem, self-confidence, and mental well-being are more likely to succeed in a foreign posting. Which of Mendenhall and Oddou's dimensions does this represent?
self-orientation
Mendenhall and Oddou's dimension known as ______ fosters how an expatriate feels about himself or herself and indicates their confidence level.
self-orientation
Which company function involves selecting individuals to do certain jobs, as well as, promoting the desired culture of the firm?
staffing policy
During the interview, the personnel manager told Celine that the company hires individuals who display qualities of honesty, fairness, and open-mindedness -- values which are also considered the mainstay of the company. The personnel manager is describing _____.
the corporate culture
According to the text, the costs of expatriate failure for the parent company might be as much as ______ times the expatriate's annual domestic salary plus the cost of relocation.
three
Once an expatriate manager has been selected, what is the next step in the management development process?
training
Companies using a _____ strategy are more likely to foster management development as these managers must be able to detect pressures for local responsiveness.
transnational
More and more international businesses are incorporating management development techniques. This is especially evident in companies using a(n) _____ strategy.
transnational
Recent survey results suggest that US CEOs earn roughly ______ -times the pay of non-US CEOs.
two (double the amount)
Based on the findings of the Mercer study discussed in the text, it appears that today, women are _____ at all levels in the labor force around the world.
underrepresented
Host-nation managers may exhibit a form of ______ bias as a result of their own cultural frame of reference when giving a performance appraisal to an expatriate.
unintentional