70) Training can help a manager and spouse cope with issues of adjusting to the foreign
environment. ________ is aimed at helping the expatriate manager and family ease themselves
into day–to-day life in the host country.
A) Language training
B) Practical training
C) Others-orientation training
D) Cultural training
71) Firms pursuing ________ strategy increasingly are using management development as a
strategic tool.
A) a localization
B) a global standardization
C) a transnational
D) an international
72) Bringing managers together in one location for extended periods and rotating them through
different jobs in several countries helps the firm build
A) an expatriate community.
B) a formal management network.
C) an inpatriate community.
D) an informal management network.
73) Which of the following statements is true regarding management development?
A) Historically, most international businesses have been more concerned with management
development than with training.
B) Management development facilitates the creation of an informal network for sharing
knowledge within the multinational enterprise.
C) Management development refers to specific training efforts to prepare home–country nationals
for foreign postings.
D) Typically, management development programs use standard psychological tests to select
managers for specific foreign postings.
74) Practical training is
A) provided to foster an appreciation for the host country’s culture.
B) aimed at helping expatriates improve their communication skills.
C) aimed at helping expatriate managers to build relationships in the host country.
D) aimed at helping the expatriate manager and family ease themselves into day-to-day life in the
host country.
75) Management development programs aim to
A) facilitate an ethnocentric approach to staffing.
B) reduce job rotations of managers.
C) build a formal management network.
D) build a unifying corporate culture.
76) Bringing managers together in one location for extended periods and rotating them through
different jobs in several countries is a part of
A) the ethnocentric approach.
B) the global standardization strategy.
C) cultural toughness programs.
D) management development programs.
77) ________ makes it difficult to evaluate the performance of expatriate managers objectively.
A) Unintentional bias
B) Lack of proximity
C) Intentional bias
D) Inadequate hard data
78) When evaluating expatriates, home-country managers usually rely on
A) the manager‘s ability to develop cross-cultural awareness.
B) hard data such as market share.
C) the ability of the expatriate to work with local managers.
D) a set of subjective criteria such as interpersonal skills.
79) Which among the following should be done in order to reduce bias in the performance
appraisal process for expatriates?
A) More weight should be given to an off–site manager’s appraisal than to an on-site manager’s
appraisal.
B) The on-site manager should be of a different nationality than the expatriate manager.
C) Home-office managers should be consulted before an on-site manager completes a formal
termination evaluation.
D) A former expatriate who served in the same location as a current expatriate should not be
allowed to participate in the appraisal.
80) ________ makes it difficult to evaluate the performance of expatriate managers objectively.
A) Cultural relativism
B) Internal documentation
C) Unintentional bias
D) Others-orientation
81) If a firm is serious about building an ________, it may have to pay its international executives
the same basic salary irrespective of their country of origin or assignment.
A) expatriate community
B) international cadre
C) inpatriate community
D) international corps
82) An expatriate’s base salary typically
A) varies from the base salary for a similar position in the home country.
B) is paid half in the home-country currency and half in the local currency.
C) is in the same range as the base salary for a similar position in the home country.
D) is paid in Eurocurrency.
83) When a reciprocal tax treaty is not in force, the firm typically
A) pays the difference the higher income tax rate makes on the expatriates’ take-home pay into a
401k plan.
B) pays the expatriate’s income tax in the home country.
C) reduces the expatriate’s take-home pay to cover the difference in tax rates.
D) pays the expatriate’s income tax in the host country.
84) What is the most common approach to expatriate pay?
A) balance sheet approach
B) net-to–net approach
C) host-country approach
D) cost-based approach
85) A foreign service premium is
A) paid when the expatriate is being sent to a difficult location.
B) the extra pay that an expatriate receives for working outside his or her country of origin.
C) normally given to ensure that the expatriate can afford the same quality of housing in the
foreign country as at home.
D) paid to ensure that the expatriate enjoys the same standard of living in the foreign posting as at
home.
86) A hardship allowance is paid
A) when the expatriate is being sent to a location where basic amenities are grossly deficient by the
standards of the expatriate’s home country.
B) to ensure that an expatriate’s children receive adequate schooling (by home-country standards).
C) to ensure that the expatriate will enjoy the same standard of living in the foreign posting as at
home.
D) to ensure that the expatriate can afford the same quality of housing in the foreign country as at
home.
87) A ________ may be paid to ensure that the expatriate enjoys the same standard of living in the
foreign location as at home.
A) housing allowance
B) hardship allowance
C) cost–of-living allowance
D) differential allowance
88) A ________ may be paid to ensure that the expatriate can afford the same quality of housing in
the foreign country as in the home country.
A) cost-of–living allowance
B) hardship allowance
C) housing allowance
D) differential allowance
89) Which of the following is a concern of organized labor regarding multinational firms?
A) A company can counter a union’s bargaining power with the power to move production to
another country.
B) An international business will keep low-skilled tasks in its home country and farm out only
highly skilled tasks to foreign plants.
C) An international business can attempt to import employment practices and contractual
agreements from its host country.
D) A multinational company is more likely to receive government support in the case of hostile
labor relations.