International Business CH 19
13) PDF Enterprises, an MNE, uses a centralized approach to management, so its international managers will most likely be ________. A) home country nationals B) host country nationals C) third country nationals D) primary country nationals
A
16) ________ are residents of the international business's home country. A) Parent country nationals B) Host country nationals C) Third country nationals D) Primary country nationals
A
20) Michael is a United States citizen who was sent from the U.S. headquarters to Italy to oversee procedural changes in one of the corporation's manufacturing subsidiaries. Michael is a(n) ________. A) parent country national B) host country national C) third country national D) primary country national
A
22) Firms using a(n) ________ primarily use parent country nationals to staff higher-level foreign positions. A) ethnocentric staffing model B) polycentric staffing model C) geocentric staffing model D) monocentric staffing model
A
23) Samsung tends to follow an ethnocentric staffing model. From which group will it most likely hire for upper-level management positions? A) parent country nationals B) host country nationals C) third country nationals D) primary country nationals
A
17) Mercedes hired managers from the local community as operations managers in its Kentucky plant. Mercedes used ________. A) parent country nationals B) host country nationals C) third country nationals D) primary country nationals
B
19) What term refers to people working and residing in countries other than their native country? A) host country national B) expatriate C) nonpatriot D) green card resident
B
1) ________ is the set of activities directed at attracting, developing, and maintaining the effective workforce necessary to achieve a firm's objectives. A) Labor selection B) Employee development C) Human resource management D) Strategic operations implementation
C
10) Who typically heads up an international division? A) third country nationals B) host country nationals C) parent country nationals D) primary country nationals
C
18) ________ are employees who are not citizens of the firm's home country or of the host country. A) Parent country nationals B) Locals C) Third country nationals D) Expatriates
C
2) Why do international HR managers most likely need to adjust hiring, firing, and training methods on a country-by-country basis? A) ensure compensation equity B) comply with international laws C) adjust for national and cultural differences D) meet requirements of joint venture contracts
C
24) Which type of manager would most likely be employed to promote a global outlook through the firm's operations? A) parent country national B) host country national C) third country national D) home country national
C
26) Firms using a geocentric staffing model are primarily concerned with ________. A) ensuring that home office views and policies are maintained B) gaining support and assistance from local communities C) hiring the best person available regardless of nationality D) employing local managers with technical expertise
C
29) Ballston Manufacturing, an MNC, adheres to an ethnocentric staffing approach when filling senior-level positions for its foreign locations. As a result, Ballston most likely devotes significant resources to ________. A) distributing products B) building effective supply chains C) selecting and training expatriate managers D) determining compensation for local employees
C
30) Which of the following is frequently asked by MNCs to fill short-term foreign assignments? A) interns B) headhunters C) retired executives D) new college graduates
C
32) ________ is the early return of an expatriate manager to the home country because of an inability to perform in the overseas assignment. A) Culture shock B) Expatriate return C) Expatriate failure D) Managerial incompetence
C
34) What is the primary reason for high expatriate turnover rates among U.S. firms? A) difficulty with communication B) lack of adequate compensation C) problems adjusting to the location D) inability to remain on a career track
C
36) ________ is a psychological phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation. A) Expatriate failure B) Repatriation C) Culture shock D) Depression
C
4) What is the first step in the international human resource management process? A) training and development B) performance appraisal C) define business skills necessary for the job D) compensation and benefits
C
42) The prominent cause of expatriate failure is ________. A) a lack of financial resources B) dietary problems in a new location C) failure of the family to adjust D) language barriers
C
43) According to the text, prohibitions against gender discrimination in US equal employment opportunity law conflict with ________ customs and laws regarding the roles, rights, and privileges of women. A) Mexican B) German C) Saudi Arabian D) Brazilian
C
47) Dawson Enterprises, an MNE, has experienced numerous expatriation and repatriation problems in recent years. Which of the following activities would most likely increase the success rate of overseas assignments at Dawson? A) providing expatriates with generous travel and housing stipends B) ensuring that only unmarried managers are sent overseas C) assigning mentors in the home office to expatriates D) assigning new college recruits to foreign positions
C
51) What is a benefit of using customized training programs? A) keep costs to a minimum B) enable retention assessment C) precise and essential information D) monitor cultural effectiveness
C
52) Which instructional method allows global employees to access training materials when convenient? A) classroom lectures B) assessment centers C) multimedia methods D) role-playing activities
C
50) According to research, what is the primary barrier to a firm's successful entry into a foreign market? A) lack of information B) lack of foreign partners C) lack of international talent D) lack of knowledge about foreign customers
D
28) Japanese firms have a tendency to ________. A) reserve top positions for Japanese managers B) fill foreign management positions too quickly C) ignore nationality when filling management positions D) employ only non-Japanese managers for foreign positions
A
3) Which of the following most likely constrains the hiring practices and compensation systems of international firms operating in foreign locations? A) local laws B) capital budgeting C) benefits availability D) practices of competing firms
A
35) Maria, an HR manager at PolyTech, an MNE based in Canada, has been given the task of determining the best candidates for a managerial position at the firm's Tokyo facility. Which tool would help Maria the most in this task? A) self-assessment checklist B) performance appraisal C) subordinate evaluation D) risk assessment
A
38) Which of the following is a phase in the process of acculturation? A) honeymoon B) acceptance C) acquiescence D) anti-culturalism
A
40) Which method can reduce the level of culture shock an expatriate is likely to experience? A) predeparture language training B) increased foreign compensation C) initial long-term assignments D) personality testing
A
45) ________ workers are office staff. A) White collar B) Red shirt C) Blue collar D) Green
A
48) Which term refers to instruction directed at enhancing specific job-related skills and abilities? A) training B) development C) screening D) selection
A
53) A ________ is the process of determining how effectively people are performing their jobs. A) performance appraisal B) job review C) job audit D) developmental audit
A
60) ________ is the rate at which people leave a firm. A) Turnover B) Retention C) Repatriation D) Transition
A
63) Barton Manufacturing is considering the idea of capitalizing on inexpensive labor in Mexico by moving the firm's production facilities from Detroit to Mexico City. The firm manufactures complex circuit boards. To ensure high productivity, Barton will most likely need to invest heavily in which of the following? A) workforce training B) healthcare benefits C) vertical integration D) diversification
A
66) ________ refers to the requirement in Germany that unions have input into how firms are run. A) Codetermination B) Collective bargaining C) Workers' rights D) Union power
A
7) At which stage in the evolution of a firm's organizational structure are international staffing needs lowest? A) export department B) international division C) global organization D) matrix organization
A
9) A firm's international division is usually located in ________. A) the home country B) the importing country C) a centrally located country D) the country with the highest foreign sales
A
15) Companies that view themselves as multidomestic are more likely to ________. A) provide visas to third country nationals B) decentralize decision making C) employ parent country nationals D) centralize decision making
B
12) Using ________ will most likely improve a subsidiary's ability to adjust to changes in local economic and political conditions. A) parent country nationals B) host country nationals C) third country nationals D) home country nationals
B
14) What is a disadvantage of using host country nationals to manage foreign operations? A) high relocation costs to firm B) unfamiliarity with firm's practices C) loss of key talent from headquarters D) inability to understand local customs
B
25) ATX Electronics, an MNC, typically fills high-level foreign positions with host country nationals. Which staffing model is most likely used by ATX Electronics? A) ethnocentric staffing model B) polycentric staffing model C) geocentric staffing model D) monocentric staffing model
B
27) Why is the geocentric staffing approach encouraged by the European Union? A) protect currency rates B) promote worker mobility C) ensure consensus building D) maintain reasonable wage rates
B
31) Tanya's job requires her to actively seek qualified managers to fill positions in other organizations. Tanya is most likely a(n) ________. A) expatriate B) headhunter C) foreign marketer D) manufacturers' agent
B
33) Which country has the highest expatriate failure rates? A) South Korea B) the United States C) Germany D) Japan
B
39) The average US expatriate costs the employer about ________ per year. A) $3,000 B) $30,000 C) $100,000 D) $300,000
B
46) ________ refers to bringing a manager back home after a foreign assignment has been completed. A) Expatriation B) Repatriation C) Expatriate failure D) Acculturation
B
49) ________ is general education concerned with preparing managers for new assignments and/or higher-level positions. A) Training B) Development C) Screening D) Practicing
B
5) After training and development takes place, what comes next in the international human resource management process? A) contribution to organizational effectiveness B) performance appraisal C) compensation and benefits D) labor relations
B
54) Expatriate managers generally receive differential compensation to make up for dramatic differences in ________. A) technical responsibilities B) standards of living C) travel demands D) healthcare
B
55) The idea that a manager who accepts a foreign assignment is entitled to the same standard of living the manager enjoyed at home is the basis for ________. A) premium expatriate salaries B) cost-of-living allowances C) hardship premiums D) tax equalization
B
57) A(n) ________ is a means of ensuring that the expatriate's after-tax income in the host country is similar to what the person's after-tax income would be in the home country. A) tax assessment system B) tax equalization system C) hardship premium D) foreign-service premium
B
59) ________ is the extent to which a firm is able to keep valued employees. A) Turnover B) Retention C) Repatriation D) Compensation
B
62) In most international firms' foreign operations, nonmanagerial employees are ________. A) home country nationals B) host country nationals C) third country nationals D) parent country nationals
B
65) Which term refers to the process used to make agreements between management and labor unions? A) labor management B) collective bargaining C) negotiations D) labor allowances
B
68) Which of the following is a EU policy that promotes common job-related benefits and working conditions throughout the EU? A) fixed alliance B) social charter C) statutory law D) codetermination
B
56) Smith Enterprises seeks to entice one of its star managers to move to Iraq to oversee its negotiations for Iraqi oil. The firm will likely need to offer a ________ to a manager's base salary. A) cost-of-living allowance B) bonus C) hardship premium D) tax equalization adjustment
C
58) According to surveys, which of the following is the most expensive city for expatriates? A) New York B) Barcelona C) Tokyo D) London
C
6) What is most important in staffing managerial employees? A) differences in cultural conditions B) legal differences C) strategic and development issues D) political differences
C
67) Which of the following is a characteristic of labor unions in Europe? A) avoiding hostile actions towards employers B) relying on regulations to protect wage rates C) using work stoppages to gain public support D) involving third-party mediators to settle grievances
C
11) TechWare, an MNE based in Canada, has foreign operations in Singapore and Tokyo. TechWare's foreign offices are managed by parent country nationals. What is the most likely advantage of this staffing policy? A) develops community ties B) generates innovative ideas C) minimizes costs of relocating managers D) facilitates communication with headquarters
D
21) Mick is a native of South Africa. He works for Octagon, a British MNC, at the firm's Tokyo branch. Mick is best described as a(n) ________. A) parent country national B) host country national C) home country national D) third country national
D
37) John has been transferred to an office in Japan for a year. In his first few weeks, he began to feel confused and rejected as well as a sort of mourning for home. John is experiencing ________. A) expatriate failure B) repatriation C) acculturation D) culture shock
D
41) For years, some foreign firms hesitated to send women managers on foreign assignments to countries, such as ________, because the firms assumed the women would not be accepted in the culture that frowned on women working outside the home. A) Canada B) England C) France D) Japan
D
44) ________ workers are production workers. A) White collar B) White hat C) Red shirt D) Blue collar
D
61) After five years working as a manager at Water Sound Enterprises, Jeff has decided to quit. On his last day at work, Jeff is interviewed by the HR manager and asked his reasons for leaving Water Sound. Jeff is most likely participating in a(n) ________ interview. A) outsourcing B) selection C) screening D) exit
D
64) What factor is most important when determining compensation for nonmanagerial employees in a firm's foreign facility? A) home country standards B) international averages C) appraisal systems D) local norms
D
8) Pet Comfort Systems is a firm based in Chicago that has just started exporting a small number of pet beds to retail stores in London, Tokyo, and Paris. The export department manager at Pet Comfort Systems is most likely from which country? A) England B) Japan C) France D) U.S.
D
69) Labor complaints heard by arbitration committees in China have declined significantly since 2000 because of increased wages and improved working conditions
FALSE
70) The initial step in the international human resource management process is identifying training and development needs.
FALSE
71) If a firm is at the export department stage of internationalization, its manager is likely to be a host country national.
FALSE
72) Decentralized firms tend to prefer home country nationals in international assignments.
FALSE
73) Parent country nationals (PCNs) are commonly used to fill lower-level jobs abroad.
FALSE
75) In a geocentric staffing model, the firm will prefer host country nationals to either parent country nationals or third country nationals.
FALSE
76) European MNCs are more likely to follow an ethnocentric approach to staffing than either Japanese or U.S. firms.
FALSE
77) It is common for large MNCs to hire new college graduates for immediate foreign assignments.
FALSE
78) The ability of the family to adapt plays a relatively minor role in expatriate failure.
FALSE
82) Culture shock affects an expatriate's job satisfaction level but does not tend to affect his or her effectiveness and productivity at work.
FALSE
86) According to research, host country citizens react negatively towards female executives on foreign assignments because of cultural attitudes about women working outside of the home.
FALSE
88) Typically, expatriates on short-term assignments receive a salary similar to their counterparts in the host country.
FALSE
91) The compensation package offered a host country national is equivalent to that offered to an expatriate manager for a position of roughly equal responsibility and power.
FALSE
92) Turnover refers to the extent to which a firm is able to retain valued employees.
FALSE
94) Training for manufacturing positions abroad is not necessary because the employees are host country nationals.
FALSE
74) The primary advantage of using a host country national is that the manager already understands the local laws, culture, and economic conditions.
TRUE
79) The most promising candidates for a foreign assignment have managerial competence, appropriate training, and are able to adapt to new situations.
TRUE
80) Repatriated managers experience change and uncertainty as they adjust to returning home after a foreign assignment.
TRUE
81) Until recently, headhunting in Europe was considered unethical.
TRUE
83) Approximately 25% of all repatriated employees leave their employer within one year of returning home.
TRUE
84) Having the freedom to choose whether to accept or reject an expatriate assignment increases the likelihood a manager will be successful at the assignment.
TRUE
85) Standardized basic training methods tend to be less expensive than customized ones.
TRUE
87) Most companies wait for a manager to gain 7-10 years of experience with the firm prior to getting a foreign assignment.
TRUE
89) A tax equalization program is a means of ensuring the expatriate's after-tax income is similar to what it would be in the home country.
TRUE
90) A manager based in New York who is given a foreign assignment in Tokyo would most likely receive a significant cost-of-living allowance.
TRUE
93) Exit interviews provide firms with useful information about why employees are quitting and may lead to a reduction in turnover rates.
TRUE
95) Group-oriented cultures emphasize training and motivating the group and place less emphasis on individual efforts.
TRUE
96) In Japan, labor relations tend to be cordial, and labor unions are created and run by the companies themselves.
TRUE
97) In many European nations, labor unions are aligned with political parties.
TRUE
98) Codetermination encourages cooperation between management and labor in running a business.
TRUE
