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Indicate whether the statement is true or false.
1. In multinational enterprises, host-country nationals (HCNs) are generally referred to as expats.
a.
True
b.
False
2. A perceived lack of talent among parent-country nationals (PCNs) often necessitates an ethnocentric approach.
a.
True
b.
False
3. Every country has formal rules that are embodied in cultures, norms, and values governing the do’s and don’ts of
human resource management.
a.
True
b.
False
4. The staffing choices of top positions abroad are of paramount importance and often a reflection of the strategic posture
of the MNE.
a.
True
b.
False
5. A good way to combat declining investment and loyalty from both employers and employees is by adopting a mutual
investment approach.
a.
True
b.
False
6. As HRM becomes increasingly more strategic, managers should use VRIO dimensions to assess its activities.
a.
True
b.
False
7. In the context of performance appraisals, evaluation of host-country nationals by expatriates is isolated from cultural
differences.
a.
True
b.
False
8. To be more effective and supportive of labor causes, labor unions should move operations around the world.
a.
True
b.
False
9. A repatriate is a manager who returns to his or her home country to stay after working abroad for a length of time.
a.
True
b.
False
10. Performance appraisal refers to salary and benefits.
a.
True
b.
False
11. The balance sheet approach refers to a compensation approach that balances the cost-of-living differences based on
parent-country levels and adds a financial inducement to make the package attractive.
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a.
True
b.
False
12. In China cheap labor is becoming more prevalent and it is becoming increasingly easy for MNEs to reduce costs by
operating there-all because unionization is decreasing.
a.
True
b.
False
13. ’Be curious’ is one of the four Cs developed by Susan Meisinger for savvy managers.
a.
True
b.
False
14. MNEs prefer to work with unionized workforces.
a.
True
b.
False
15. Nowadays, it has become necessary to pay extra compensation to attract higher-caliber and more senior expatriates.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
16. Expatriates acting as ambassadors:
a.
represent the interests of the subsidiaries when interacting with headquarters.
b.
train the local employees for their replacements.
c.
facilitate the socialization process to bring subsidiaries into a multinational enterprise’s global orbit.
d.
build local capabilities where local management talent is lacking.
17. Zipsoft Inc., a technological firm in Belwick, is planning to establish subsidiaries in Arcadia and Platinia. A major
problem is that Arcadia is a union stronghold. To tackle the union stronghold, which of the following would be in the best
interest of the company if it establishes a subsidiary in Arcadia?
a.
Relying on an experienced employee from the headquarters
b.
Relying on an experienced employee from Arcadia
c.
Relying on an experienced employee from Platinia
d.
Relying on an experienced expatriate of the company
18. In multinational enterprises (MNEs), third-country nationals:
a.
come from neither the parent country nor the host country.
b.
come from the parent country of the MNE and work at its local subsidiary.
c.
are individuals from the host country who work for the MNE.
d.
are individuals who work in the host country but come from parent country of the MNE.
19. Which of the following statements is true of the going rate approach of compensating expatriates?
a.
It induces inequality among employees.
b.
It is complex to administer due to involvement of intricate processes.
c.
It fosters disparities between expatriates and host-country nationals.
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d.
It differs for the same position around the world.
20. _____ is specific preparation to do a particular job.
a.
Training
b.
Staffing
c.
Compensation
d.
Performance appraisal
21. Training and development programs for expatriates who are assigned to work for a short period in a foreign country
should ideally:
a.
involve survival-level language training.
b.
be in-depth and rigorous.
c.
include sensitivity training conducted in a foreign language/culture environment.
d.
involve their spouses as well.
22. Widget Corp., a technological firm based in the U.S., mainly relies on staffing its employees from the U.S. for its
operations. It adopts the same approach in staffing the top positions of its foreign subsidiaries as they have perfect
understanding of the norms and cultures of the parent company. In this case, Widget Corp. follows a(n) _____ in staffing.
a.
ethnocentric approach
b.
polycentric approach
c.
geocentric approach
d.
acrocentric approach
23. Which of the following best illustrates the effect of formal institutions on human resource management?
a.
Red Inc., a company based in the country of Nebulia, faces legal hurdles when hiring part time workers for
one of its foreign subsidiaries.
b.
Xo Inc. hires only host-country nationals (HCNs) to head its overseas operations because the management
feels that host-country nationals have better understanding of the local culture.
c.
Arch Corp., once having the most unique employee training program, is forced to modify the program because
it is not rare anymore.
d.
Spade and Archer, a recruiting firm, is forced to modify its recruitment processes because companies prefer to
have a diverse work force.
24. Which of the following is true of expatriate failure?
a.
The European and U.S. multinational enterprises have a negligible expatriate failure rate.
b.
Unmet business objectives are the easiest way to observe the expatriate failure rate.
c.
A combination of work-related and family-related problems leads to expatriate failure.
d.
The rate of expatriate failure cannot be effectively measured by any means.
25. In the context of repatriation, which of the following is true of a psychological contract?
a.
It is an informal understanding and can be easily violated.
b.
It is legally binding and has severe consequences when violated.
c.
It is a codified employment contract co-signed by an employer and an employee.
d.
It is an employment contract signed by an employee in return for the benefits offered by a company.
26. A(n) _____ emphasizes the norms and practices of the parent company (and the parent country of the MNE) by
relying on parent-country nationals (PCNs).
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a.
polycentric approach
b.
ethnocentric approach
c.
regiocentric approach
d.
acrocentric approach
27. Sara is an American national working as an expatriate for a MNE in Turkey. Her contact was for two years, but she
decided to repatriate after only six months. Which of the following is a likely reason for her early repatriation?
a.
Inadequate compensation
b.
Family related problems
c.
Poor training
d.
Was not good at his job in the first place
28. A HRM team that wants to retain expatriates and foster strong identification with the host country should use which of
the following compensation approaches?
a.
Performance appraisal
b.
Going rate approach
c.
Base salary plus cost of living (COL)
d.
Balance sheet approach
29. Austin is an employee of Zade Corp. in Ethiona. He worked in Zade’s subsidiary in Lumeria for over four years and
returned to Ethiona. Upon his return, he assumed a new position as a project manager at Zade. In this scenario, Austin is
a(n) _____.
a.
expatriate
b.
repatriate
c.
emigrant
d.
inpatriate
30. To avoid expatriate failure, which of the following is true of the firms that use situation dimensions to select
expatriates?
a.
They give preference to employees with cross-cultural adaptability.
b.
They give preference to employees whose spouse and family are comfortable with expatriation.
c.
They prefer employees with some command of the local language.
d.
They prefer employees with strong technical abilities and expertise.
31. Which of the following statements is true of multinational enterprises’ (MNEs’) strategic postures and staffing
approaches?
a.
MNEs pursuing a home replication strategy disregard the nationality of employees.
b.
MNEs pursuing a transnational strategy staff their subsidiaries with parent-country nationals (PCNs).
c.
MNEs pursuing a global standardization strategy often require a geocentric approach.
d.
MNEs interested in a localization strategy hire parent-country nationals (PCNs) to head subsidiaries.
32. _____ refers to longer-term, broader preparation to improve managerial skills for a better career.
a.
Development
b.
Staffing
c.
Compensation
d.
Performance appraisal
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33. Allied Food Inc. is a food and beverage manufacturing company in Bordania. While staffing its top positions in its
headquarters and in its foreign subsidiaries, it focuses only on finding suitable people to fill the positions. The nationality
of the applicants is not considered important. In this case, which of the following staffing approaches has Allied Food Inc.
adopted?
a.
An ethnocentric approach
b.
A polycentric approach
c.
A geocentric approach
d.
An acrocentric approach
34. _____ are nonnative employees who work and reside in a foreign country.
a.
Host-country nationals
b.
Multinationals
c.
Expatriates
d.
Repatriates
35. In the context of staffing approaches, a multinational enterprise (MNE) pursuing a localization strategy:
a.
follows an ethnocentric approach.
b.
hires host-country nationals to head subsidiaries.
c.
appoints parent-country nationals as top managers at its subsidiaries.
d.
undergoes a complex staffing process than geocentric approach.
36. John lives in the country of Lucitonia. He has been employed with Rues and West Inc., a capital goods manufacturing
company based in Lucitonia, for more than 15 years. He is currently on an assignment to his company’s subsidiary at
Aquardica. He is representing the interests of Rue and West’s headquarters to suggest changes in the management of the
subsidiary at Aquardica. Given this information, John is an expatriate acting as a _____.
a.
visitor
b.
strategist
c.
trainer
d.
daily manager
37. _____ is leaving one’s home country to work in another country.
a.
Expatriation
b.
Repatriation
c.
Deportation
d.
Inpatriation
38. _____ is the process of returning to expatriate’s home country after an extended period overseas.
a.
Repatriation
b.
Expatriation
c.
Emigration
d.
Appellation
39. Which of the following is a reason that conflict exists between labor unions and firm managers?
a.
Unionized employees can earn 30% more than nonunionized employees.
b.
Firms constantly work to cut costs and enhance competitiveness.
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c.
Labor unions helping workers earn higher wages and obtain more benefits
d.
All of the above
40. Jane is an experienced analyst at a data analytics company based in Athenia. She is traveling to their subsidiary unit at
Sparanthea to explain the use of the latest data analytics tools to the newly recruited data analysts. In this scenario, Jane is
an expatriate acting as a(n) _____.
a.
ambassador
b.
strategist
c.
trainer
d.
daily manager
41. To avoid expatriate failure, which of the following is true of the firms using only individual dimensions to select
expatriates?
a.
They give preference to employees who prefer working at the headquarters.
b.
They give preference to employees who prefer working in foreign subsidiaries.
c.
They prefer employees with some command over the local language.
d.
They prefer employees with strong technical abilities and cross-cultural adaptability.
42. Why did MNEs operating in China accept a 30% to 40% pay increase for laborers in 2010?
a.
Media put pressures on the MNE executives.
b.
The government chose not to suppress labor strikes which were ultimately successful.
c.
Labor unions working through the court system changed labor laws.
d.
All of the above
43. Which of the following is the fifth C that implicates actions for non–HR (human resource) managers?
a.
Courageous
b.
Caring
c.
Career
d.
Competent
44. Which of the following statements is true of a polycentric approach in staffing?
a.
This approach is often necessitated by a perceived lack of talent and skills among host-country nationals
(HCNs).
b.
Multinational enterprises (MNEs) that use this approach pursue a home replication strategy.
c.
Host-country nationals (HCNs) provide continuity of management as they stay in their positions for a long
period of time.
d.
Third-country nationals (TCNs) are better equipped to lead a company’s subsidiaries when compared to host-
country nationals (HCNs).
45. When a geocentric approach in staffing is adopted, _____.
a.
the us-versus-them feeling in firms is significantly increased.
b.
the nationality of the employees is disregarded.
c.
only third-country nationals (TCNs) are appointed in top positions.
d.
a localization strategy is used.
46. According to a polycentric approach in staffing, host-country nationals (HCNs):
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a.
do not stay in their position for a long time.
b.
who are in top positions send morale-boosting signals to others.
c.
gain international experience by working in different countries.
d.
reduce the gap between headquarters and the subsidiary.
47. What is the difference between training and development for expatriates?
a.
Training is specific preparation for a job.
b.
Development is specific to a particular job.
c.
Development happens once expatriates are already in the host country.
d.
Training is more long term.
48. Ziff Corp, a publishing firm based in the U.S., has its subsidiary in Italy. The company focuses on the norms and
practices of Italy. It even hires Italian nationals for managerial positions. In this case, Ziff Corp is following a(n) _____ in
staffing.
a.
ethnocentric approach
b.
polycentric approach
c.
geocentric approach
d.
acrocentric approach
49. Which of the following is true of performance appraisal meetings conducted by western multinational enterprises
(MNEs) in high power distance countries?
a.
These meetings are worthy of conducting as employees feel they are being fairly evaluated.
b.
Western expatriates to high power distance countries are not evaluated on the basis of productivity and market
growth.
c.
These meetings are not of much help as employees themselves do not place a lot of importance on self-
expression.
d.
Western expatriates who ask host-country nationals to express themselves are viewed as decisive people.
50. _____ refers to human resource management (HRM) activities associated with hiring employees and filling positions.
a.
Training
b.
Staffing
c.
Compensation
d.
Performance appraisal
51. Describe various problems experienced by repatriates.
52. How do institutions and resources affect human resource management (HRM)?
53. Compare the approaches to expatriate compensation.
54. Discuss the implications for action which determine the success and failure of firms around the world.
55. Describe the different roles performed by expatriates of multinational enterprises (MNEs) during their tenure in
foreign countries.
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