Chapter 16: International Human Resource Management
TRUE/FALSE
1. EADS is organized in three distinct organizational units embedded in different national cultures that
reduce cultural conflicts by minimizing the interfaces between these minimizing the interfaces between
these units.
2. Staffing, training and development, compensation, and labor relations are main areas of HRM.
3. The term “HRM” indicates that people are key resources of the firm that must be actively managed and
developed.
4. MNEs only hire host country nationals to work at a local subsidiary.
5. Expatriates are individuals working in a foreign country.
6. The advantage of hiring employees who are parent country nationals is that they may bridge the gap
between headquarters and the subsidiary.
7. The advantage of hiring employees who are host country nationals is that it facilitates control by
headquarters.
8. An ethnocentric approach emphasizes the norms and practices of the parent company by relying on
PCNs.
9. Companies with a global standardization strategic orientation follow a geocentric staffing policy.
10. Localization strategy requires a polycentric approach in staffing.
11. Global standardization or transnational strategies often require a geocentric approach, resulting in the
mix of HCNs, PCNs, and TCNs.
12. A combination of work-related and family related problems usually does not lead to expatriate failures.
13. Expatriate stress is the result of imbalances between expectations and abilities.
14. A psychological contract is hard to violate.
15. Repatriation, if not managed well, can be traumatic for expatriates and their families, but not for the
firm.
16. Repatriation is the process of facilitating the expatriate’s return.
17. The best way to reduce expatriate turnover is a career development plan.
18. To reach the top at most MNEs today, international experience is optional.
19. An immersion approach to culture shock involves full engagement with the host culture.
20. Going rate in expatriate compensation varies between assignments in different locations for the same
employee.
21. The balance sheet approach in expatriate compensation pays expatriates the prevailing rate for
comparable positions in a host country.
22. HCNs in management and professional positions have increasing bargaining power.
23. MNEs typically are paying lower wages relative to similar positions in local firms in developing
countries.
24. Culture shock is a medical condition suggesting that inhibits individuals from living a as an expatriate
in another culture.
25. The initial compensation of an expatriate is determined by performance appraisal.
26. In developed economies, a firm’s key concern is to cut cost and enhance competitiveness to fight off
low-cost rivals from emerging economies, such as China and India.
27. Loss of status and pay is a common problem faced by repatriating expatriates.
28. Private life readjustments are quite easy for expatriates coming home after a stint as expatriate in a
distant country.
29. Reverse culture shock refers to the cultural differences experience by inpatriates, that is individuals
from another country working at the headquarters of an MNE.
30. HR managers must do more “homework” to better understand their HCNs.
31. Expatriation versus inpatriation practice argues that a firm needs to search for the best external and
internal fit.
32. Inpatriation refers to relocating employees of a foreign subsidiary to the MNE‘s headquarters.
33. Inpatriates may struggle with an ambiguous identity after returning to their home countries.
34. Recruitment of local staff in subsidiaries of an MNE is typically responsibility of TCN because they
have a better understanding of the labour market institutions in the host country.
35. Non-HR managers need to proactively manage their careers to develop a global mindset.
MULTIPLE CHOICE
1. Non-native employees who work and reside in a foreign country are known as:
a.
Host country nationals
c.
Multinationals
b.
Repatriates
d.
Expatriates
2. The majority of MNEs’ employees would be:
a.
Multinationals
c.
HCNs
b.
TCNs
d.
PCNs
3. 3. A(n) ________ emphasizes the norms and practices of the parent company relying on PCNs.
a.
Polycentric approach
c.
Ethnocentric approach
b.
Geocentric approach
d.
Regiocentric approach
4. The expatriates’ important roles are:
a.
Controller and ambassador
b.
Manager and trainer
c.
Manager, trainer, controller, and ambassador
d.
Controller, manager and trainer
5. MNE strategies are:
a.
Home replication, localization, global standardization, and transnational
b.
Transnational
c.
Localization and global standardization
d.
Home replication
6. “Expatriate failure” can be defined as:
a.
Premature (earlier than expected) return
b.
Unmet business objectives
c.
Unfulfilled career development objectives
d.
All of these answers
7. Which of the following is NOT an advantage of parent country nationals?
a.
Managers are given international experience.
b.
Control and coordination by HQ are facilitated.
c.
Language and cultural barriers are eliminated.
d.
PCNs may be the best people for the job because of special skills and experience.
8. Which of the following is NOT a disadvantage of host country nationals?
a.
Control and coordination by HQ may be impeded.
b.
Adaptation may take a long time.
c.
International experience for PCNs is limited.
d.
HCNs may have limited opportunities.
9. An ethnocentric staffing policy:
a.
Is required in order to prepare home country citizens for high-level managerial positions at
headquarters
b.
Assigns expatriates who have learned the language and culture of the country of their
assignment
c.
Utilizes host country nationals in key foreign management and technical positions
d.
None of these answers
10. Desirable attributes for cross-cultural adaptability include:
a.
Financial stability and education
b.
Education and an established career
c.
Education, positive attitude, emotional stability, and previous international experience
d.
Emotional stability and previous international experience
11. Factors in an expatriate selection decision are:
a.
Corporate headquarters preferences and host country/subsidiary preferences
b.
Host country/subsidiary preferences and language skills
c.
Corporate headquarters preferences, host country/subsidiary preferences, and language
skills
d.
Corporate headquarters preferences and language skills
12. Which of the following is NOT a factor in expatriate individual selection decision?
a.
Cross-cultural adaptability
b.
Technical ability and expertise
c.
Spouse and family preferences
d.
Host country/subsidiary preferences and language skills
13. Problems associated with repatriation include:
a.
Loss of status and pay
b.
Difficult for the spouse and children to adjust
c.
Career anxiety and work adjustment
d.
All of these answers
14. Which of the following capabilities are essential in the process of selecting managers for an expatriate
assignment?
a.
Social capabilities, such as the ability to influence business partners
b.
Psychological capabilities, such as openness to other capabilities
c.
Intellectual capabilities, such as capacity to learn
d.
All of these capabilities
e.
None of these capabilities
15. Why do some MNEs appoint relatively junior people to leadership roles in overseas operations?
a.
Junior people cost less and may have better language skills.
b.
Junior people are better placed to engage with local government authorities.
c.
Junior people are perceived as less patronizing by local employees.
d.
All of these capabilities
e.
None of these capabilities
16. The psychological reaction of an individual living in a new, unpredictable and therefore uncertain
environment is known as:
a.
Absorptive capacity
c.
Culture shock
b.
Immersion approach
d.
Expatriation struggle
17. Expatriate stress is cause by expatriates concern not being able to meet the expectations from whom?
a.
Their bosses at headquarters
b.
Themselves
c.
Their spouse and other family members
d.
All of these answers
e.
None of these answers
18. Culture shock affects individuals sense of well-being, which is typically most negative at what stage of
an expatriates life abroad?
a.
When arriving at the airport for the first time
b.
A few weeks or months after arrival when the initial excitement fades
c.
Shortly before the departure to be repatriated back to their home country
d.
When meeting new colleagues for the first time
19. Which country is now Manpower’s largest market ahead of the United States?
a.
India
c.
France
b.
Germany
d.
China
20. As HRM becomes more strategic, the resource-based view focuses on:
a.
Organization and value
b.
Value and rarity
c.
Imitability
d.
Value, rarity, imitability, and organization
21. IT inpatriates from India go to work for IBM in the United States and the telecom inpatriates from
China to work at Alcatel in France. These are examples of:
a.
Inpatriation versus expatriation
b.
Across-the-board pay versus reduction in force
c.
Emphasizing teamwork
d.
Best fit versus best practice
22. Success and failure of HRM is determined by:
a.
Compensation and labor relations
c.
Training and development
b.
Staffing
d.
All of these answers
23. Human resource management is indeed:
a.
Strategic
c.
One-dimensional
b.
Cost prohibitive
d.
Simplistic
24. What is a challenge typically faced by repatriates?
a.
Loss of status
c.
Career anxiety
b.
Work adjustment
d.
All of these answers
25. HR managers need to:
a.
Develop organizational capabilities that drive business success
b.
Know the formal and informal rules of the game governing HRM in all regions of
operations
c.
Nurture and develop people
d.
All of these answers
26. MNEs with a ________ strategic orientation follow a polycentric staffing approach.
a.
Home replication
c.
Localization
b.
Global standardization
d.
Transnational
27. MNEs with a ________ strategic orientation follow a ethnocentric staffing approach.
a.
Localization
c.
Home replication
b.
Transnational
d.
Global standardization
28. An MNE practicing a(n) ________ staffing approach hires host country nationals as typical top
managers at local subsidiaries.
a.
Ethnocentric approach
c.
Regiocentric approach
b.
Geocentric approach
d.
Polycentric approach
29. The advantage of hiring third country nationals at a subsidiary is:
a.
Control by headquarters is facilitated
b.
It is usually cheaper
c.
The gap between headquarters and the subsidiary is bridged
d.
Language and cultural barriers are eliminated
30. Individuals who return to their home countries after working abroad for a length of time are:
a.
Copatriates
c.
Expatriates
b.
Repatriates
d.
Inpatraiates
31. An assignment that involves regular stays abroad but with the main base remaining at home is also
known as:
a.
Commuter assignment
c.
Global virtual team
b.
Traditional expatriate assignment
d.
Contract work
32. Inpatriation refers to MNEs relocating employees of ________ to ________ for the purposes of
developing a global mindset for such inpatriates.
a.
Foreign subsidiaries…..headquarters
b.
One foreign subsidiary…..another foreign subsidiary
c.
One domestic subsidiary…..another domestic subsidiary
d.
Headquarters…..foreign subsidiaries
33. Which of the following is the disadvantage related to inpatriation?
a.
Intpatriates refuse to go back to their home countries.
b.
Inpatriates struggle with an ambiguous identity.
c.
Inpatriates go to work for rival MNEs.
d.
All of these answers
34. Performance appraisal focuses on decision making regarding:
a.
Documentation
c.
Subordinate expression
b.
Development
d.
All of these answers
ESSAY
1. Describe the role of expatriates in multinational enterprises.
2. How do institutions and resources affect human resource management?
3. Identify the typical staffing approaches.
4. Describe several problems associated with repatriation.
5. Why do expatriates, like exchange students, experience culture shock, and what are good ways to
handle it?
6. What sort of training should be given to individuals ahead of an expatriate assignment.
7. Why is local labour law relevant for HR managers of MNEs?
8. What are the problems related with inpatriation?
