International Business Chapter 17 Multiple Choice

_____ refers to the extra pay an expatriate receives for working outside his or her country of origin. A. Parity adjustment B. Special bonus C. Foreign service premium D. Expat allowance E. Benefit

C. Foreign service premium

Geodyne follows a polycentric staffing approach in that key positions at the company's U.S. headquarters are staffed by U.S. nationals while foreign subsidiaries are managed by locals. In recent years, Geodyne's international business has grown substantially while its U.S. business has dwindled due to competition. Which of the following is a drawback of Geodyne adopting a polycentric staffing approach? A. It is expensive to implement. B. It leads host-country managers to make mistakes due to cultural misunderstandings. C. It limits advancement opportunities for host-country nationals. D. It invariably makes a firm suffer from cultural myopia. E. It bridges the gap between the headquarters of a firm and its foreign subsidiaries.

C. It limits advancement opportunities for host-country nationals

A principal concern of domestic unions about multinational firms is that a company can counter its bargaining power with A. work schedules tied to global rather than domestic standards. B. wage rates tied to global rather than domestic standards. C. the power to import labor from abroad. D. the power to move production to another country. E. the retention of low-skilled tasks in home country.

D. the power to move production to another country

In the context of expatriate compensation, what is the role of a balance sheet approach? A. It equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home. B. It helps expatriate managers and their families to adjust to the day-to-day life of the host country. C. It rewards expatriates on the basis of merit and performance. D. It helps expatriates to come to terms with the standard of living of the host country. E. It is offered as an inducement to accept foreign postings and live away from family.

A. It equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home

Geodyne, a United States-based player in the energy business is clear-cut in its human resources policy with regard to international expansion. While U.S. nationals staff key positions at its Orlando, Florida headquarters, it recruits locals to manage subsidiaries in each country that it goes into. Which of the following is an advantage of Geodyne's polycentric staffing approach? A. It is less expensive to implement as compared to other staffing approaches. B. It gives host-country nationals unlimited opportunities to gain experience outside their own country. C. It increases career mobility. D. It increases interaction between the headquarters of a firm and its foreign subsidiaries. E. It bridges the gap between host-country managers and parent-country managers.

A. It is less expensive to implement as compared to other staffing approaches

Which of the following is a disadvantage of an ethnocentric staffing policy? A. It leads to resentment in the host country. B. It isolates the headquarters from foreign subsidiaries. C. It does not allow transfer of core competencies. D. It leads to a dearth of qualified managers in the host nation. E. It diversifies corporate culture.

A. It leads to resentment in the host country

There are vast differences in local market needs in the consumer food business across the world. Yamaguchi Media, a Japanese multinational advertising agency, specializes in the food industry. Toward this, Yamaguchi Media uses a geocentric staffing approach. Which of the following is an advantage of adopting a geocentric staffing approach for Yamaguchi Media? A. It tends to reduce cultural myopia and enhance local responsiveness. B. It is inexpensive to implement. C. It reduces the costs of value creation. D. It allows all key management positions of a firm and its subsidiaries to be filled by parent-country nationals. E. It requires minimal documentation for hiring foreign nationals.

A. It tends to reduce cultural myopia and enhance local responsiveness

A(n) expatriate manager refers to A. a citizen of one country who is working abroad in one of the firm's subsidiaries. B. a parent-country national who works in the parent country. C. a host-country national who works in the host country. D. any person who lives in a foreign country. E. a person willing to work in different departments of a foreign firm.

A. a citizen of one country who is working abroad in one of the firm's subsidiaries

Kagemusha, Inc., is a Japanese multi-national with operations in 23 countries around the world. It is Kagemusha's policy to staff all the key positions in the company's foreign operations with Japanese managers. What is Kagemusha's staffing policy? A. ethnocentric B. global C. polycentric D. geocentric E. transnational

A. ethnocentric

Which of the following staffing approaches is compatible with an international strategy? A. ethnocentric B. geocentric C. polycentric D. transnational E. ethical

A. ethnocentric

Which of the following staffing policies is concerned with filling all key management positions by parent-country nationals? A. ethnocentric B. global C. polycentric D. geocentric E. transnational

A. ethnocentric

Which of the following staffing policies limits a firm's ability to reduce its use of expatriates? A. geocentric B. polycentric C. transnational D. regiocentric E. neocentric

A. geocentric

Which of the following strategies is compatible with a geocentric staffing policy? A. global standardization strategy B. localization strategy C. international strategy D. ethical strategy E. global strategy

A. global standardization strategy

In the absence of a reciprocal tax treaty, an expatriate may A. have to pay income tax to both the home- and host-country governments. B. not have to pay any tax. C. not have to pay income tax only to the host-country government. D. not have to pay income tax to the home-country government. E. have to pay 50 percent less tax to the host-country government.

A. have to pay income tax to both the home- and host-country governments

According to R. L. Tung's study, which of the following is the most important reason for expatriate failures for U.S. multinationals? A. inability of spouse to adjust B. difficulties with new environment C. insufficient pay D. personal or emotional problems E. lack of technical competence

A. inability of spouse to adjust

International businesses differ in terms of their approaches to international labor relations, mainly in the degree to which A. labor relations activities are centralized or decentralized. B. labor relations are formal or informal. C. labor relations are given a high priority or a low priority. D. labor relations are internally or externally managed. E. firms follow a polycentric or geocentric staffing policy.

A. labor relations activities are centralized or decentralized

Which of the following staffing approaches limits career mobility and isolates headquarters from foreign subsidiaries? A. polycentric B. transnational C. geocentric D. ethnocentric E. global

A. polycentric

In the 1960s, organized labor believed that by coordinating union action across countries through an international trade secretariat, it could counter the power of a multinational corporation by A. threatening to disrupt production on an international scale. B. introducing a reciprocal tax treaty. C. trying to farm out highly skilled tasks back to the home country of the firm. D. increasing its bargaining power. E. lobbying for importing employment practices from the home country of the firm.

A. threatening to disrupt production on an international scale

In the context of international labor relations, which of the following is a concern of organized labor? A. An international business increases the bargaining power of organized labor. B. An international business keeps highly-skilled tasks in its home country and farms out only low-skilled tasks to foreign plants. C. An international business faces difficulty in switching production from one location to another. D. An international business does not import employment practices and contractual agreements from its home country. E. An international business signs a reciprocal tax treaty with the host country.

B. An international business keeps highly-skilled tasks in its home country and farms out only low-skilled tasks to foreign plants

_____ is/are an additional and difficult dimension to the long-standing problem of expatriate failure due to the inability of the spouse to adjust. A. Formal training B. Dual-career families C. Cultural diversity D. Single parenting E. Cultural toughness

B. Dual-career families

_____ refers to a subset of expatriates who are citizens of a foreign country working in the home country of their multinational employer. A. Virtual expatriates B. Inpatriates C. Third-country nationals D. Host-country nationals E. Parent-country nationals

B. Inpatriates

What is the advantage of a geocentric staffing policy? A. It requires firms to provide little or no documentation to hire a foreign national. B. It enables firms to build a cadre of international executives who feel at home working in a number of cultures. C. It is inexpensive to implement the policy in a firm. D. It allows all key management positions of the firms and their subsidiaries to be filled by parent-country nationals. E. It helps firms to follow a localization strategy.

B. It enables firms to build a cadre of international executives who feel at home working in a number of cultures

According to the survey undertaken by Towers Watson, which of the following countries provides the highest pay to CEOs? A. Switzerland B. The United States C. Japan D. Australia E. Argentina

B. The United States

Which of the following is a disadvantage of adopting a geocentric staffing approach? A. Cultural myopia negatively influences effective management control. B. Training and relocation costs increase when transferring managers from country to country. C. Host-country nationals cannot progress beyond senior positions in their own subsidiary. D. A gap forms between host-country managers and parent-country managers. E. The lack of management transfers leads to a lack of integration between corporate headquarters and foreign subsidiaries.

B. Training and relocation costs increase when transferring managers from country to country

One way organized labor responds to the increased bargaining power of multinational corporations is by trying to A. impose regulations on multinationals through organizations such as GATT. B. achieve international regulations on multinationals through the United Nations. C. establish regional boards. D. lobby multinational corporations to restrict their global reach to three or fewer foreign countries. E. develop a local trade forum.

B. achieve international regulations on multinationals through the United Nations

Gunther Home Products, Gmbh, a German manufacturer did not succeed in its international ventures because it used its domestic marketing mix "as-is" in foreign markets in addition to using the same domestic-centric approach to managing its foreign operations. Gunther Home Products' failure to understand host-country cultural differences that require different approaches to marketing and management is referred to as A. cultural parity. B. cultural myopia. C. power distance. D. cultural toughness. E. cultural polarization.

B. cultural myopia

Rhone-Rohrer Chemicals, a French leader in specialty chemicals used an ethnocentric policy to approach international markets. It followed the same domestic marketing and management practices in foreign markets. Rhone-Rohrer Chemicals' international expansion failed miserably because Rhone-Rohrer Chemicals suffered from A. cultural parity. B. cultural myopia. C. power distance. D. cultural toughness. E. cultural polarization.

B. cultural myopia

Poor health care and housing standards and inhospitable climate make it difficult for expatriates to adjust to a particular posting. According to Mendenhall and Oddou's four dimensions that predict success in a foreign posting, which of the following is required in this situation? A. perceptual ability B. cultural toughness C. self-orientation D. Others-orientation E. Self-confidence

B. cultural toughness

Born and raised in Portland, Michigan, John had never traveled overseas. After finishing his engineering program, John went to work for Cymatics, a Lansing, Michigan-based construction firm. In his fifteen-year career at Cymatics, John's work did not require any travel at all. John has excelled at his work and his superiors have always rated him very highly. An important opening has come up in Cymatics' Dubai operations and the company is considering who to send. According to Mendenhall and Oddou, what is the major problem in the selection of appropriate candidates for overseas assignments in many firms? A. lack of technical abilities B. equating domestic performance with overseas performance potential C. lack of communication between line managers and HRM managers D. geocentric staffing policy E. polycentric staffing policy

B. equating domestic performance with overseas performance potential

Dalian Pharma, a Chinese company, has a core competence in expedited innovative drug discovery. It has used this core competence, which is based on the collective knowledge of hundreds of scientists and project managers, to grow and become a dominant player in the industry. What is the staffing policy likely to be followed by Dalian Pharma when it expands to India? A. eurocentric B. ethnocentric C. polycentric D. geocentric

B. ethnocentric

Dalian Pharma, a Chinese company, prides itself on its corporate culture that it has developed over a twenty-year period. Dalian believes that its corporate culture is a key to its competitive advantage. What is the staffing policy likely to be followed by Dalian Pharma if it expands to Germany? A. eurocentric B. ethnocentric C. polycentric D. geocentric E. transnational

B. ethnocentric

In the Swiss firm Terabithia Systems AG, all the important positions in its international operations are held by Swiss nationals. What is the staffing policy followed by Terabithia? A. eurocentric B. ethnocentric C. polycentric D. geocentric E. transnational

B. ethnocentric

When the Chinese company, Dalian Pharma set up operations in Cambodia, the top management team of Dalian determined that Cambodia lacked qualified individuals to fill senior management positions. What is the staffing policy likely to be followed by Dalian Pharma? A. eurocentric B. ethnocentric C. polycentric D. geocentric E. transnational

B. ethnocentric

Which of the following staffing policies is followed by firms that can reduce the issue of compensation to that of how much home-country expatriates should be paid? A. polycentric B. ethnocentric C. geocentric D. international E. global

B. ethnocentric

Which of the staffing policies requires all the expatriates to be home-country nationals who are transferred abroad? A. geocentric B. ethnocentric C. polycentric D. international E. domestic

B. ethnocentric

A(n) _____ staffing policy is pursued by a firm where considerable resentment is caused among foreign nationals who are members of the international cadre and work with U.S. nationals, if pay is not equalized. A. polycentric B. geocentric C. ethnocentric D. regiocentric E. localized

B. geocentric

Countries such as the United States and China require extensive documentation if companies wish to hire a foreign national instead of a local national. This is an important consideration for Santa Ana Wines, a Brazilian wine maker, as it decides on its staffing policy for international expansion. Which of the following staffing approaches is most likely to be affected by this? A. polycentric B. geocentric C. transnational D. ethnocentric E. local

B. geocentric

Which of the following staffing policies is concerned with the need for a cadre of international managers that may include many different nationalities? A. polycentric B. geocentric C. ethnocentric D. regiocentric E. localized

B. geocentric

International businesses differ markedly in their approaches to international labor relations. Which of the following current trends reflects international firms' attempts to rationalize their global operations? A. decentralized labor activities B. greater centralized control C. autonomy D. lateral relationships E. national legislation

B. greater centralized control

Which of the following functions of an international business is typically responsible for international labor relations? A. public relations B. human resource management C. finance and accounting D. legal E. logistics

B. human resource management

Yuriko, a citizen of Japan, was working as a manager in the Japanese branch of an American firm. Due to her efficiency, she was assigned a temporary posting at the headquarters of the firm in America. In this situation, she is known as a(n) A. repatriate. B. inpatriate. C. third-country national. D. beneficiary. E. parent-country national.

B. inpatriate

Which of the following was established by organized labor in 1960s to provide worldwide links for national unions in particular industries? A. HR watchdog groups B. international trade secretariats C. unorganized labor organizations D. international orientation resources E. reciprocal tax treaties

B. international trade secretariats

According to Mendenhall and Oddou, _____ provides an expatriate the ability to understand why people of other countries behave the way they do. A. cultural toughness B. perceptual ability C. self-orientation D. others-orientation E. willingness to communicate

B. perceptual ability

Geodyne, a United States-based player in the energy business is clear-cut in its human resources policy with regard to international expansion. While U.S. nationals staff key positions at its Orlando, Florida headquarters, it recruits locals to manage subsidiaries in each country that it goes into. Geodyne's staffing policy is called A. geocentric. B. polycentric. C. ethnocentric. D. global. E. transnational.

B. polycentric

In terms of training and management development, _____ training is aimed at helping the expatriate manager and family ease themselves into day-to-day life in the host country. A. cognitive B. practical C. house D. cultural E. perceptual ability

B. practical

OptiCare is a firm that specializes in eye care products such as contact lenses and sun glasses. OptiCare believes that market needs for eye care products are the same worldwide. In keeping with this perspective, OptiCare emphasizes global standardization. Firms such as OptiCare that emphasize global standardization try to create value by A. retaining products and competencies within the parent country. B. realizing experience curve and location economies. C. focusing on local responsiveness. D. emphasizing localization. E. adopting an ethnocentric staffing approach.

B. realizing experience curve and location economies

According to Mendenhall and Oddou, _____ is a dimension that predicts success and allows expatriates to adapt their interests in food, sport, and music. A. perceptual ability B. self-orientation C. others-orientation D. cultural toughness E. empathy

B. self-orientation

Which of the following strategies is pursued by international businesses that use management development for a strong unifying corporate culture and informal management networks to assist in coordination and control? A. localization B. international C. transnational D. global standardization E. ethnocentric

C. transnational

Imogene Davis of Benedict Pharmaceuticals' Human Resources department is responsible for developing the criteria for selecting people for particular jobs. Which of the following strategies is Imogene Davis involved in? A. compensation policy B. staffing policy C. performance appraisal policy D. training policy E. management development policy

B. staffing policy

From a strategic perspective, the key issue in international labor relations is A. dealing with multiple business units. B. the degree to which organized labor can limit the choices of an international business. C. whether to hire parent-country nationals, host-country nationals, or third-country nationals. D. helping expatriates cope with new role demands. E. the extent to which a reciprocal tax treaty can be brought into effect.

B. the degree to which organized labor can limit the choices of an international business

During performance appraisals, two groups evaluate the performance of expatriate managers—host-nation managers and home-office managers. This is aimed at avoiding the problem of A. cultural conflict. B. unintentional bias. C. operational errors. D. central tendency. E. culture shock.

B. unintentional bias

According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, which of the following is a result of the attribute of others-orientation? A. The expatriate has high self-esteem. B. The expatriate empathizes with the host-country nationals. C. The expatriate speaks to the host-country nationals in the local language. D. The expatriate adjusts to the inhospitable climate of the host country. E. The expatriate is comfortable working in a male-dominated environment.

C. The expatriate speaks to the host-country nationals in the local language

In terms of expatriate pay, what does a firm typically do when a reciprocal tax treaty is not in force? A. The firm requires the expatriate to pay one-third of the income tax to the host-country government. B. The firm requires the expatriate to pay 50 percent of the income tax to the host-country government. C. The firm pays the expatriate's income tax to the host-country government. D. The firm requires the expatriate to pay the income tax to both the host-country and home-country governments. E. The firm pays the expatriate's income tax to the home-country government.

C. The firm pays the expatriate's income tax to the host-country government

According to Mendenhall and Oddou, perceptual ability refers to A. an expatriate's willingness to use the host-country language. B. an expatriate's ability to strengthen his or her self-esteem. C. an expatriate's ability to empathize. D. the relationship between the country of assignment and how well an expatriate adjusts to a particular posting. E. the ability to develop long-lasting friendships with host-country nationals.

C. an expatriate's ability to empathize

The _____ approach is the most common approach to expatriate pay, which equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home. A. merit B. correspondence C. balance sheet D. parity E. perceptual

C. balance sheet

Taviscon International, a Singapore-based agricultural commodities player continuously expands into various African countries to source and process commodities. Taviscon finds that many of these countries lack good higher education institutions and also a lack of major companies that operate there. Taviscon International is likely to pursue an ethnocentric staffing policy in Africa because it A. believes in providing growth opportunities to host-country nationals. B. wants to avoid cultural myopia. C. believes the host country lacks qualified individuals for senior management positions. D. wants to keep all core competencies within the home country. E. wants to build strong cultural and informal management networks in all its subsidiaries.

C. believes the host country lacks qualified individuals for senior management positions

Amanda, an American manager, is successfully adjusting in a country where the culture is extremely male-dominated. According to Mendenhall and Oddou, which of the following dimensions that predict success in foreign postings is involved in this situation? A. perceptual ability B. others-orientation C. cultural toughness D. self-orientation E. empathy

C. cultural toughness

Soo Park, a Korean expatriate did very well in managing the local staff when sent to work in Daigoo's China operations. This came as a welcome relief to the company, because Soo Park's predecessor, Billy Bob Johnson, an American, had failed miserably in the same assignment. According to Mendenhall and Oddou, which of the following dimensions refers to the relationship between the country of assignment and how well an expatriate such as Soo Park adjusts to a particular posting? A. self-orientation B. perceptual ability C. cultural toughness D. others-orientation E. willingness to communicate

C. cultural toughness

Yamaguchi Media, a Japanese advertising agency, has a policy in its global business of appointing what it believes is the best person for the job in its various locations regardless of the candidate's nationality. Which of the following staffing policies best describes Yamaguchi Media's approach? A. global B. ethnocentric C. geocentric D. polycentric E. transnational

C. geocentric

Which of the following allowances is paid when an expatriate is being sent to a difficult location? A. education B. housing C. hardship D. cost of living E. reciprocal

C. hardship

In the context of international labor relations, one of the reasons for a decline in union influence is the A. introduction of a reciprocal tax treaty. B. retention of low-skilled tasks in an international firm's home country. C. importing of employment practices and contractual agreements that are alien to the host country. D. increased bargaining power of organized labor. E. increased ability to threaten to disrupt production, either by a strike or some other form of work protest.

C. importing of employment practices and contractual agreements that are alien to the host country

Geodyne, a United States-based player in the energy business is clear-cut in its human resources policy with regard to international expansion. While U.S. nationals staff key positions at its Orlando, Florida headquarters, it recruits locals to manage subsidiaries in each country that it goes into. As a result of this, in 2016, Geodyne found that of the company's total staff of 1240, nearly 72% were newly-hired managers to work in the company's foreign subsidiaries, forming a gap between host-country managers and parent-country managers. What is Geodyne's staffing policy? A. global B. geocentric C. polycentric D. ethnocentric E. transnational

C. polycentric

Repatriation refers to A. sending expatriate managers to a new host country. B. training expatriate managers to adjust to the new environment of the host country. C. reentry of expatriate managers into their home-country organization. D. helping expatriate managers build rapport with local employees. E. increasing expatriate managers' effectiveness in dealing with host-country nationals.

C. reentry to expatriate managers into their home-country organization

Which of the following is an impediment to cooperation between national unions? A. retention of highly skilled tasks in the host country B. reciprocal tax treaty C. wide variation in the structure and ideology of unions D. common perception unions have about multinational companies E. decreasing bargaining power of multinational companies

C. wide variation in the structure and ideology of unions

Which of the following steps is true of bias in performance evaluations? A. More weight should be given to an off-site manager's appraisal than an on-site manager's appraisal. B. Cultural bias increases when the on-site manager is of the same nationality as the expatriate. C. Home-office managers should write performance evaluations without consulting on-site managers to avoid bias. D. Due to proximity, an on-site manager is more likely to evaluate the soft variables that are important aspects of an expatriate's performance. E. A performance appraisal is invalid when the on-site manager is of the same nationality as the expatriate manager.

D. Due to proximity, an on-site manager is more likely to evaluate the soft variables that are important aspects of an expatriate's performance

In terms of expatriate pay, which of the following is true of a foreign service premium? A. It ensures that expatriates' children receive adequate schooling. B. It helps to evaluate expatriates' performance without any unintentional bias. C. It ensures that expatriates are prepared for reentry into their home-country organization. D. It is paid as a percentage of base salary, with 16 percent being the average premium. E. It allows a firm to pay expatriates' income tax in the host country.

D. It is paid as a percentage of base salary, with 16 percent being the average premium

In the context of international labor relations, which of the following is true of organized labor? A. It supports the pursuit of a transnational standardization strategy. B. It supports the pursuit of a global standardization strategy. C. It increases unintentional bias in evaluating the performance of expatriate managers. D. It limits a firm's ability to integrate and consolidate its global operations. E. It reduces a firm's ability to understand host-country cultural differences that require different approaches to marketing.

D. It limits a firm's ability to integrate and consolidate its global operations

International trade secretariats have been minimally successful because of the A. similarity in the structure of unions on a global level. B. common perception unions have about multinational companies. C. reciprocal tax treaty. D. competition between national unions to attract investment from international businesses. E. retention of highly skilled tasks in the host country.

D. competition between national unions to attract investment from international businesses

Occidental Pharmaceuticals believes in risk taking and encourages its employees to do so. The company also holds its employees accountable for results. The norms and value systems of Occidental Pharmaceuticals constitute its A. corporate social responsibility. B. cultural toughness. C. cultural sensitivity. D. corporate culture. E. perceptual ability.

D. corporate culture

Over 90 percent of Damian Auto Products', a U.S.-based tier 1 auto supplier that has operations in 26 countries, senior managers are U.S. nationals. Which of the following staffing policies relies extensively on the use of expatriate managers? A. global B. polycentric C. transnational D. ethnocentric E. localized

D. ethnocentric

Ichiro Kawasaki, a Japanese citizen, is sent by his company, Kagemusha Corporation, a Japanese company, to head the company's sales office in the United States. In this situation, Ichiro is an example of a(n) A. immigrant manager. B. host-country manager. C. inpatriate manager. D. expatriate manager. E. virtual manager.

D. expatriate manager

Megan, a U.S. citizen, is the operations manager at the Middle East office of HS Constructions Inc., an American firm. In this situation, she is an example of a(n) A. immigrant manager. B. host-country manager. C. inpatriate manager. D. expatriate manager. E. virtual manager.

D. expatriate manager

According to the results of a seminal study by R. L. Tung, what was the major reason for expatriate failure among European expatriates? A. personal or emotional problems B. inability to cope with overseas responsibilities C. poor pay D. inability of spouse to adjust to a new environment E. lack of technical competence

D. inability of spouse to adjust to a new environment

Which of the following is intended to build a manager's skills over his or her career with a firm? A. ethnocentrism B. cultural toughness C. total quality management D. management development E. learning effects

D. management development

When John, an expatriate manager for Kinetics USA went to work in the company's Thailand operations, he was often frustrated when his staff showed up thirty minutes late for meetings and did not have an explanation for their tardiness. He remarked to Lisa, his wife, "back home in the Canton, Ohio office, meetings started on the dot and everyone better be there. Why can't my Thai staff do the same?" According to Mendenhall and Oddou, an expatriate manager like John who tends to treat Thai nationals as if they were home-country nationals lacks the dimension of A. cultural toughness. B. self-orientation. C. power distance. D. perceptual ability. E. willingness to communicate.

D. perceptual ability

A(n) _____ staffing policy is pursued by firms where the lack of managers' mobility among national operations implies that the pay for expatriates should be kept country-specific. A. regiocentric B. ethnocentric C. geocentric D. polycentric E. international

D. polycentric

According to Mendenhall and Oddou, which of the following dimensions that predicts success in a foreign posting strengthens an expatriate's self-esteem, self-confidence, and mental well-being? A. cultural toughness B. others-orientation C. perceptual ability D. self-orientation E. empathy

D. self-orientation

A firm that adopts a polycentric staffing policy is less likely to A. isolate foreign subsidiaries from corporate headquarters. B. implement an expensive staffing policy. C. be controlled by corporate headquarters. D. suffer from cultural myopia. E. provide growth opportunities.

D. suffer from cultural myopia

According to the results of a seminal study by R. L. Tung, the top reason why Japanese expatriate managers fail is A. the inability of their spouses to adjust. B. the lack of technical competence. C. their personal or emotional problems. D. the inability to cope with larger overseas responsibilities. E. their inability to deal with difficulties in the new environment.

D. the inability to cope with larger overseas responsibilities

In terms of expatriate pay, which of the following is a characteristic of a foreign service premium? A. It allows a firm to pay expatriates' income tax in the host country. B. It ensures that expatriates' children receive adequate schooling. C. It helps to evaluate expatriates' performance without any unintentional bias. D. It ensures that expatriates are prepared for reentry into their home-country organization. E. It compensates expatriates for having to live in an unfamiliar country.

E. It compensates expatriates for having to live in an unfamiliar country

How is a geocentric staffing policy beneficial to a firm? A. It requires the firm to provide little or no documentation to hire a foreign national. B. It is inexpensive to implement. C. It helps the firm follow a localization strategy. D. It allows all key management positions to be filled by parent-country nationals. E. It enables the firm to make the best use of its human resources.

E. It enables the firm to make the best use of its human resources

Which of the following is a characteristic of an ethnocentric staffing policy? A. It requires host-country nationals to be recruited to manage subsidiaries. B. It is used when a firm places a low value on its corporate culture. C. It increases advancement opportunities for host-country nationals. D. It seeks the best people for key jobs throughout the organization, regardless of nationality. E. It places parent-country nationals in key management positions.

E. It places parent-country nationals in key management positions

In the context of international labor relations, a labor union concern arises when an international business A. keeps low-skilled tasks in its home country. B. signs a reciprocal tax treaty with the host country. C. increases the bargaining power of organized labor. D. faces difficulty in switching production from one location to another. E. attempts to import employment practices and contractual agreements from its home country.

E. attempts to import employment practices and contractual agreements from its home country

The long-term goal for organized labor to establish international trade secretariats was to A. import employment practices and contractual agreements from the home country of the multinational firm. B. retain low-skilled tasks in the host country. C. prevent multinational firms from switching production from one location to another as economic conditions warrant. D. introduce a reciprocal tax treaty. E. be able to bargain transnationally with multinational firms.

E. be able to bragain transnationally with multinational firms

According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, relationship development refers to A. an expatriate's willingness to use the host-country language. B. the ability to understand why people of other countries behave the way they do. C. the ability to empathize with foreign nationals. D. the relationship between the country of assignment and how well an expatriate adjusts to a particular posting. E. the ability to develop long-lasting friendships with host-country nationals.

E. the ability to develop long-lasting friendships with host-country nationals