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77) What is actively involved in setting rules about compensation companywide in Europe?
A) pension committees
B) work councils
C) external labor unions
D) the European Union
E) the World Trade Organization
78) 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
A) Program Design Principles.
B) Pay Mix.
C) Job Grades.
D) Formula Mechanics.
E) Performance Measures.
79) What strategy should be practiced when determining compensation globally?
A) A similar framework should be created for jobs with different responsibilities.
B) The support of senior sales executives should not be sought before taking action.
C) Local managers should not decide the mix between base and incentive pay.
D) Consistent communication and training themes should be used worldwide.
E) The incentive plan should be designed centrally and dictated to local offices.
80) 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?
A) The group incentive system balances pay differences and thus is motivating enough.
B) Companies are more focused on long-term loyalty and are willing to compromise on
performance initially.
C) Sales personnel are shifted to areas where their performance levels can meet expectations.
D) The base pay that is higher than their performance based incentive motivates them.
E) The team usually does not have any low performers as they either quit or are fired.
81) What practice, with respect to motivating sales personnel, is most common in relationship-
oriented countries like Japan?
A) Companies lay greater emphasis on incentives that are based on individual performance.
B) Companies do not allow local managers to decide the mix between base and incentive pay.
C) Commissions are measured by sales revenues generated by each employee.
D) Companies are not very tolerant of poor performers and fire them immediately.
E) Companies motivate sales representatives through frequent interaction with supervisors.
82) The primary control tool used by American sales managers with sales representatives is the
A) encumbrance system.
B) quota system.
C) incentive system.
D) attraction of a foreign assignment.
E) threat of foreign postings.
83) 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
A) conflict of interests.
B) acculturation.
C) skill redundancy.
D) naturalization.
E) repatriation.
84) 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
A) conflict of interests.
B) acculturation.
C) skill redundancy.
D) repatriation.
E) assimilation.
85) What is likely the single most important reason for expatriate dissatisfaction?
A) unsuccessful family adjustment
B) cultural conflict in the foreign country
C) noncooperation of foreign colleagues
D) communication issues with home-country headquarters
E) redundant skills in a foreign country
86) Which factor significantly differentiates companies with the least amount of returnee attrition
from those with the highest attrition?
A) specialized expatriate department
B) personal career planning for expatriates
C) continued cultural training
D) protection from work councils
E) family migration planning
87) Most expatriate failures are caused by the lack of
A) management skills.
B) technical skills.
C) an understanding of cultural differences.
D) knowledge of the product line.
E) knowledge of the company.
88) What is a trait of people with good cultural skills?
A) They have a clear set of principles and do not tolerate ambiguity.
B) They take pride in their culture and practice cultural ethnocentrism.
C) They monitor the behavior of their employees and judge them accordingly.
D) They convey a sincere interest in people and their culture.
E) They try to propagate their culture and insist that others follow them.
89) In the past, most chief executives came from one of three backgrounds. What is one of these?
A) accounting
B) information technology
C) law
D) marketing
E) public relations
90) A foreign managerial posting is becoming increasingly viewed as
A) a negative for advancement.
B) a necessary evil that can't be avoided.
C) an important stepping stone to executive positions.
D) a cherished experience.
E) an experience to be avoided at all costs.
91) What decisions must be made in designing an international sales force, and what are the
complications that tend to arise?
92) Describe the advantages and disadvantages of using an expatriate sales force.
93) What are virtual expatriates, and what are the disadvantages associated with using these sales
managers?
94) What are third-country nationals (TCNs)? Why do American companies favor third-country
nationals over expatriates from other English-speaking countries for overseas assignments?
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95) What are the eight specific characteristics and skills a company should look for when
selecting sales and marketing personnel for international marketing positions?
96) What should be the nature of a training program for international marketing personnel?
Answer: Before any training can be effective, open-minded attitudes must be established. The
nature of a training program depends largely on both the home culture of the salesperson and the
culture of the business system in the foreign market. Also important is whether expatriate or
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97) What is the reason for the failure of individual incentives to motivate employees in Japan?
Answer: Japan's emphasis on paternalism and collectivism and its system of lifetime
employment and seniority are the main reasons why motivation through individual incentives
98) Discuss how compensation plans of American companies vary substantially around the
world.
Answer: Compensation plans of American companies vary substantially around the world,
reflecting the economic, legal, and cultural differences in the diverse markets served. Asia and
99) Describe three reasons for the low morale and growing amount of attrition among returning
expatriates.
Answer: Low morale and a growing amount of attrition among returning expatriates have many
causes. Some complaints and problems are family related, whereas others are career related. The
100) How does the family impact the success of an expatriate manager?
101) In the context of international marketing, how important is a second language for a
manager?
