Question-1
Most MNCs tend to start their operations in a particular region by selecting primarily from their own pool of managers. Over time, and with increasing internationalization, they tend to move to a predominantly polycentric or regiocentric policy because of the:
A. lack of governmental support for hiring locals.
B. inefficiencies of expatriate managers.
C. poor performance of subsidiaries.
D. greater costs of expatriate staffing.
Question-2
Relocation expense is an example of a(n):
A. salary.
B. tax.
C. allowance.
D. benefit.
Question-3
Which of the following factors will hinder the integration of expatriate staff with local staff?
A. Knowledge sharing
B. Headquarters mentality
C. Overseas experience
D. Cultural flexibility
Question-4
Which of the following can be termed as a benefit in the context of expatriate compensation?
A. Relocation expenses
B. Cost-of-living adjustments
C. Health insurance
D. Private education for children
Question-5
Felix Department Store has over 900 stores in the U.S. and over 300 stores in Mexico and Canada. Felix has been particularly successful in Mexico, and the firm's executives believe Felix should expand into other Latin American countries. As a result, plans are underway for the
construction of a new Felix store in Managua, Nicaragua. The
construction, once started, is expected to be completed within a year,
so staff selection needs to begin soon. Felix's executives are
considering the idea of using parent-country nationals to manage the new
store in Nicaragua.
Which of the following, if true, best supports the argument that parent-country nationals should manage the Felix store in
Managua, Nicaragua?
A. Felix encourages employees to participate in community outreach programs.
B. The top management of Felix is unlikely to endorse the recruitment of
cheap, incompetent workers.
C. Felix wants to maintain close control of the Nicaragua store for at
least three years.
D. Felix's managers in Nicaragua will choose what items to stock based on
local needs and customs.
Question-6
Which of the following most likely occurs when a manager is transferred to another part of the country where there are significant cultural differences?
A. Subculture shock
B. Culture shock
C. Expatriation
D. Repatriation
Question-7
Which of the following is true with regard to training and compensating host-country nationals?
A. HCNs are rarely offered training in global business and Internet technology within their home corporations.
B. The traditional lifetime employment and guaranteed tidy pension of the East are being increasingly adopted by the West.
C. Many multinationals wish to train their employees to bridge the divide between the firm's successful corporate culture and practices, and the local culture and work practices.
D. In contemporary times, MNCs rarely have a global pay strategy in place.
Question-8
Which of the following is an advantage of the polycentric staffing approach?
A. Home-country managers gain valuable overseas management experience.
B. Coordination between the subsidiary and the parent company is simplified.
C. Local managers tend to be instrumental in staving off or more effectively dealing with problems in sensitive political situations.
D. The local managers have no conflicting loyalties.
Question-9
The __________ is often used to equalize the standard of living between the host country and the home country, and to add some compensation for inconvenience or qualitative loss.
A. localization approach
B. balance sheet approach
C. relocation strategy
D. going-rate approach
Question-10
Which of the following methods is used by many firms to reduce the overall costs of expatriate assignments?
A. Extending the expatriate's tour
B. Encouraging expatriates to visit their home country frequently
C. Standardizing global compensation
D. Implementing global benefits policies
Question-11
Joan Kerry, an American national, worked as a senior manager in her firm's headquarters in New Jersey. When her firm opened a new office in San Francisco, she was transferred to California. Soon, she started feeling like an immigrant in her own country owing to the differences in attitudes and lifestyle between New Jersey and California. Joan is most likely experiencing:
A. segregation.
B. subculture shock.
C. social distance.
D. power distance.
Question-12
Which of the following terms is increasingly replacing the term "expatriate" due to the global staffing approach?
A. Repatriate
B. Global manager
C. Transpatriate
D. Line manager
Question-13
Local managers are hired to fill key positions in their own country under the __________ staffing approach.
A. global
B. polycentric
C. ethnocentric
D. xenocentric
Question-14
Which of the following is the final stage of the IHRM process that is used to maximize the effectiveness of expatriate assignments?
A. Selection of expatriate
B. Debriefing expatriate and family to improve IHRM process
C. Development of contract
D. Assessment of development and support needs
Question-15
Kelly Roberts, an American, is a senior manager at her firm's headquarters in New York. Kelly is a(n):
A. expatriate.
B. parent-country national.
C. host-country national.
D. third-country national.
Question-16
Who, among the following, when used to manage subsidiaries, usually brings more cultural flexibility and adaptability to a situation?
A. Parent-country nationals
B. Home-country nationals
C. Managers with minimal global exposure
D. Third-country nationals
Question-17
Fred Sanders, an American, works as a manager at his firm's headquarters in New York. He recently learned that he has been assigned to manage the firm's subsidiary office in Tokyo, and he will be relocating to Japan within the next six weeks. Which of the following staffing approaches is being employed in this scenario?
A. Polycentric
B. Regiocentric
C. Global
D. Ethnocentric
Question-18
Simon Parker, an American, works with a Houston-based MNC, Orpheus Inc. When he was sent to Africa to manage his company's newly-opened facility in Lagos, Nigeria, Simon was placed with Mr. Adeyami and his family as part of a familiarization program. Orpheus paid for this field experience known as:
A. repatriation.
B. language training.
C. host-family surrogate.
D. immersion group analytics.
Question-19
The concept of "keeping the expatriate whole" in terms of compensation most likely means ensuring that the expatriate's:
A. family is prepared for the overseas assignment.
B. health insurance coverage is globally accepted.
C. foreign and domestic taxes are paid in a timely manner.
D. standard of living is at par with that of colleagues at home.
Question-20
__________ is the first stage in a comprehensive plan for developing expatriates.
A. Assessing development and support needs
B. Integration of the value added to the firm
C. Development of a contract
D. Problem recognition
