41) The most common reason that an expatriate fails at an international assignment is ________.
A) incompetence
B) technical demands
C) family pressures
D) language difficulties
42) Which of the following qualities is most closely linked to an employee’s success on an
international work assignment?
A) technical skills
B) responsibility
C) intelligence
D) flexibility
43) Which of the following terms refers to the process of assessing an employee’s probable
success in handling a foreign transfer?
A) skills placement testing
B) adaptability screening
C) management assessment
D) performance appraisal
44) In January 2009, Walmart acquired a controlling interest in Chile’s leading food retailer.
Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses
energy efficient technology throughout the store. Walmart is planning to open additional stores
in Chile over the next five years. Walmart’s top executives are considering the idea of
transferring U.S. managers to Chile to oversee the construction and establishment of the new
stores.
Which of the following, if true, undermines the argument of using expatriates to establish the
new Walmart stores in Chile?
A) Adaptability screening tests indicate that three potential candidates are bilingual and travel
overseas frequently.
B) Walmart offers overseas candidates extensive training on cultural differences and adaptation
skills.
C) The most qualified Walmart managers have no foreign travel experience and do not speak
Spanish.
D) A balance sheet approach is used by Walmart, but workers do not receive hardship
allowances for moving to Chile.
45) According to research, all of the following will most likely help spouses of expatriates adjust
to living in foreign countries EXCEPT ________.
A) close family relationships
B) pre-school age children
C) scheduled vacations
D) language training
46) Before departing for an overseas assignment, an employee would most likely benefit from
________ training.
A) technical
B) interpersonal
C) cross-cultural
D) career development
47) All of the following are the primary benefits of providing ongoing training to employees on
overseas assignments EXCEPT ________.
A) offering educational opportunities
B) developing relationships with co-workers
C) cultivating corporate values and standards
D) providing spousal networking opportunities
48) Most North American companies use the ________ approach to formulating expatriate pay.
A) equitable wage rate
B) balance sheet
C) performance
D) total package
49) Which approach to formulating expatriate pay involves estimating the employee’s expenses
in the home country and the host country?
A) balance sheet
B) mobility allowance
C) performance pay
D) hardship method
50) Which of the following terms refers to paying a portion of an expatriate’s salary in home-
country currency and a portion in local currency?
A) balance sheet approach
B) split pay approach
C) hardship premium
D) foreign-service premium
51) Which of the following is NOT one of the primary expense groups used in the balance sheet
approach to formulating expatriate pay?
A) taxes
B) housing
C) disposable income
D) discretionary expenses
52) ________ are financial payments over and above regular base pay.
A) Foreign service premiums
B) Hardship allowances
C) Balance sheet payments
D) Mobility premiums
53) JJP Enterprises seeks to entice one of its star managers to move to Iraq to oversee a
construction project. The firm will most likely offer a ________ because of the difficult living
and working conditions in Iraq.
A) cost-of-living allowance
B) performance bonus
C) hardship allowance
D) mobility premium
54) Which of the following terms refers to a lump-sum payment given to employees as a reward
for moving from one assignment to another?
A) hardship allowance
B) foreign service premium
C) cost-of-living allowance
D) mobility premium
55) Jim Simmons, an American, has worked for a U.S. firm’s Italian operations for two years
with great success. Now, the company wants Jim to relocate to France to establish a new
division. The company will most likely offer Jim a ________ to reward him for moving from
one assignment to another.
A) hardship allowance
B) foreign service premium
C) cost-of-living increase
D) mobility premium
56) All of the following characterize European labor relations EXCEPT ________.
A) limited number of bargaining units
B) informal recognition of labor unions
C) bargaining through employer associations
D) industry-wide collective bargaining
57) Which of the following is most likely NOT covered by kidnapping and ransom insurance
policies?
A) abductions
B) ransoms
C) crisis teams
D) weapons
58) Frank Williams is being sent to Saudi Arabia for two years to work for his company’s Saudi
affiliate. Which of the following suggestions should Frank follow to minimize his chances of
being the victim of a kidnapping?
A) take the same route to and from work
B) arrive at the airport close to departure time
C) wait at the airport in a main traffic area
D) leave work at the same time each day
59) ________ refers to bringing a manager back home after a foreign assignment has been
completed.
A) Expatriation
B) Repatriation
C) Mediation
D) Job rotation
60) A formal repatriation program should do all of the following EXCEPT ________.
A) assist employees with relocation logistics
B) seek compensation and benefits on behalf of employees
C) help employees update their resumes and make career plans
D) reassure employees of the company’s concern for their welfare
61) Which of the following is a true statement regarding expatriates?
A) Most expatriates require at least one year of psychological help after returning home.
B) Most expatriates avoid traveling abroad after returning to their home country.
C) Most expatriates and their families prefer open-ended work assignments.
D) Most expatriates quit within three years of returning home.
62) Which of the following was determined by a study of six international firms that have
successfully established global HR systems?
A) Firms should focus on expatriation and repatriation programs to ease the transition period for
employees working abroad.
B) Firms should develop HR systems that are universally acceptable and that can be effectively
implemented in any location.
C) Firms rely more heavily on expatriates than locals in foreign subsidiaries, so it is unnecessary
to make changes to existing HR policies.
D) Firms with foreign subsidiaries should adhere to local customs regarding screening, hiring,
and training applicants.
63) Which of the following is a best practice used by firms that develop effective global HR
systems?
A) creating a global network of specialists to help create a new HR system
B) standardizing the specific methods used to screen and evaluate applicants
C) allowing HR managers to devise locally appropriate recruiting policies
D) establishing HR policies at the firm’s headquarters to avoid conflict
64) Which of the following is recommended to firms to ensure that local managers find a global
HR system acceptable?
A) ignore cultural differences
B) establish a chain of command
C) develop a strong corporate culture
D) understand the laws of the home country
65) Which term refers to a group of geographically dispersed co-workers that uses a desktop
videoconferencing system to communicate and accomplish tasks for the firm?
A) virtual team
B) telecommuter group
C) permanent transferee
D) short-term international team
66) What is the primary problem associated with virtual teams at international firms?
A) scheduling meetings
B) agreeing on important issues
C) facilitating group communication
D) building trust among team members
67) U.S. employers have most likely experienced an increase in successful expatriate
assignments in the last two decades because they have ________.
A) focused on job performance as the main selection criteria
B) increased the number of selection criteria for global assignees
C) provided global assignees with local managers to serve as mentors
D) allowed HR managers to have more control of the global hiring process
68) Which of the following is NOT one of the main components of a global mind-set?
A) psychological capital
B) intellectual capital
C) language capital
D) social capital
69) An expatriate manager working in ________ would have the highest amount of disposable
income.
A) Brazil
B) France
C) Indonesia
D) Saudi Arabia
70) What is the first step in establishing a global pay system?
A) adapting pay policies
B) developing strategic goals
C) identifying crucial executive behaviors
D) establishing a global philosophy framework
71) A major challenge for international businesses is the need to adapt personnel policies and
procedures to the differences among countries.
72) The most significant HR challenge faced by international firms is the language barrier.
73) Legally mandated holidays range from five weeks each year in Luxembourg to none in Great
Britain.