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52. ______ is the process of closing operations in other countries and bringing work
back to the home country.
A. Outshoring
B. Onshoring
C. Insourcing
D. Outsourcing
53. A(n) ______ is an employee who leaves their home country to go work in another
country.
A. parochial
B. ethnocentric
C. expatriate
D. BRIC
54. The problem of serious culture shock can be mitigated, though, through cross-
cultural training ______ the assignment begins.
A. 2 months after
B. 6 months after
C. once
D. before
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55. At about 4–6 months into an international assignment, many people actually
become ______ because they don’t understand the culture that they have been forced
to live in.
A. resentful
B. angry
C. depressed
D. amused
56. D’Shawn’s organization is transferring him to Beijing. He will be paid according to
the pay structure of the Chinese branch, but will receive an allowance to cover the
additional housing costs he will incur. D’Shawn’s company is most likely employing a
______ approach to pay.
A. localization
B. balance sheet
C. split-pay
D. local-plus
57. There is strong evidence that there are ______ levels of voluntary turnover of
repatriates once they complete their international assignments and return to the home
office.
A. low
B. high
C. moderate
D. very low
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58. Repatriating an individual after an international assignment should include reentry
training, job placement, a show of appreciation, and possibly ______.
A. mentoring assistance
B. a pay raise
C. a new international assignment
D. counseling
59. The process of bringing home an individual after they have been on international
assignment is called ______.
A. expatriation
B. adaptation
C. repatriation
D. onshoring
60. Facial expressions are a type of ______ communication.
A. assumed
B. symbolic
C. verbal
D. nonverbal
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61. ______ communication uses items that we surround ourselves with, such as
jewelry, clothing, or even the car we drive.
A. Verbal
B. Symbolic
C. Explicit
D. Implied
62. Culture shock can cause significant problems for the expatriate employee, and in
fact there is evidence that up to ______% of employees fail to complete their
international assignment.
A. 2
B. 80
C. 50
D. 25
63. ______ generally should include a series of steps that need to occur in order to get
the employee back into the home-country work routine.
A. Repatriation
B. Expatriation
C. Inshoring
D. Onshoring
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64. The most common method to manage expatriate compensation is called the ______
approach.
A. trade bloc
B. balance sheet
C. outsourcing
D. inshoring
65. Using the ______ approach to expatriate compensation, the organization continues
to pay the individual at a rate equivalent to their home-country salary, while providing
allowances to enable that employee to maintain their standard of living.
A. trade bloc
B. outsourcing
C. onshoring
D. balance sheet
66. ______ is a process where the organization pays the individual partly in home–
country currency and partly in the currency of their work location.
A. Singular pay
B. Trade bloc pay
C. Split pay
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D. Onshoring pay
67. In the ______ approach to expatriate compensation, the employee receives
compensation based on the host country’s ordinary pay structures and then receive
allowances to allow them to more closely match their living standard in their home
country.
A. local-minus
B. local-plus
C. national-plus
D. international-minus
68. In a ______ approach to expatriate compensation, the employer and employee
mutually agree on a compensation package.
A. local-minus
B. negotiation
C. national-plus
D. international-minus
69. In a ______ approach to expatriate compensation, the expatriate’s compensation is
based on local (host-country) norms.
A. local-minus
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B. negotiation
C. localization
D. international-minus
70. In a ______approach to expatriate compensation, the organization pays the
expatriate a set amount of money to use on items such as taxes, vehicles, housing, and
similar items during their assignment.
A. lump-sum
B. negotiation
C. pure localization
D. international-minus
71. When setting expatriate compensation policy, the function of “significance” in
______ theory must always be considered.
A. equity
B. expectancy
C. exclusion
D. exclusive
72. When Acme Global asked Tamera to relocate to the company’s newest foreign
plant, it paid her a salary equal to what she was making in the United States and gave
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her an allowance for extra expenses. It appears Acme Global is using the ______
approach to expatriate compensation.
A. balance sheet
B. split-pay
C. negotiation
D. localization
73. Laura accepted a temporary expatriate assignment. Since she will be keeping her
apartment in her home country and getting a temporary apartment in her host country,
she asked to be paid partly in her home-country currency and partly in her host-country
currency. Laura is requesting the ______ approach to expatriate compensation.
A. balance sheet
B. split-pay
C. lump-sum
D. localization
74. Myra will be moving to London as part of an expatriate assignment. Rather than try
to figure out how to add-on to Myra’s compensation, the organization decides to pay her
as if she was a member of their London workforce. It appears Myra will be paid under
the ______ approach to expatriate compensation.
A. balance sheet
B. split-pay
C. negotiation
D. localization
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75. Acme Global recognizes that different employees have different compensation
needs when on expatriate assignments. Some may need compensation to pay for their
children’s education. Others may work in areas where they must pay high taxes. To
avoid having to design an individualized pay package for every employee, Acme Global
gives every expatriate employee a set amount for extra expenses. It appears Acme
Global is using the ______ approach to expatriate compensation.
A. balance sheet
B. split-pay
C. lump-sum
D. localization
76. Acme Global recognizes that different employees have different compensation
needs when on expatriate assignments. Therefore it has a compensation specialist sit
down with each employee before the assignment to work out how the employee will be
compensated. It appears Acme Global is using the ______ approach to expatriate
compensation.
A. lump-sum
B. split-pay
C. negotiation
D. localization
77. When Reagan begins her expatriate assignment in Florence, Acme Global will pay
her half in U.S. dollars and half in euros. It appears Acme Global took the ______
approach to Reagan’s compensation.
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A. split-pay
B. local-plus
C. national-plus
D. international-minus
78. Before going on her expatriate assignment to Lisbon for Acme Global, Amy had a
meeting with a human resources manager to decide her compensation. It appears
Acme Global took the ______ approach to Amy’s compensation.
A. local-minus
B. negotiation
C. national-plus
D. international-minus
79. Zachariah just accepted an expatriate assignment in Berlin with Acme Global. He
will be paid based on German norms and be paid in euros. It appears Acme Global took
the ______ approach to Zachariah’s compensation.
A. local-minus
B. negotiation
C. localization
D. international-minus
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80. Allison just accepted an expatriate assignment with Acme Global in Estonia. To
cover her expenses, Acme Global paid her a set amount of money to use on items such
as taxes, vehicles, housing, and similar items. It appears Acme Global took the ______
approach to Allison’s compensation.
A. lump-sum
B. negotiation
C. pure localization
D. international-minus
True/False
1. Natural capital refers to trust, norms, and networks that people can draw upon to
solve common problems and create social cohesion.
2. Ethnocentrism refers to regarding one’s own ethnic group or culture as superior to
that of others.
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3. Hofstede’s dimensions of culture tells us how significant the differences are between
two countries’ cultures.
4. Project GLOBE refuted Hofstede’s findings and came up with its own set of nine
dimensions of culture.
5. Polycentric organizations emphasize adapting to local culture and will generally
choose to hire host-country employees.
6. Geocentric organizations typically choose to mix in third-country nationals along with
parent- and host-country employees.
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7. Onshoring is the process of closing operations in other countries and bringing work
back to the home country.
8. Culture shock is only experienced by workers moving to foreign countries, never by
those returning home.
9. The most common method to manage expatriate compensation is called the balance
sheet approach.
10. In the national-plus approach to expatriate compensation, the employee receives
compensation based on the host country’s ordinary pay structures and then receive
allowances to allow them to more closely match their living standard in their home
country.
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Essay
1. Describe the reasons for increasing business globalization.
2. Describe the four types of capital that flow between countries.
3. Discuss the ways the major functions in HRM must be reconsidered in an
international operation.
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4. Describe Hofstede’s model of culture and explain its value.
5. Describe the big five personality traits and how they relate to expatriate assignments.
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6. Discuss the advantages and disadvantages, along with the ethical implications, of
outsourcing.
7. Describe the three issues involved in negotiating an expatriate assignment.
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8. Describe the process of repatriating an expatriate employee.
9. Describe the options for compensation of expatriate workers.
10. Discuss the issue of business globalization and why it is so important.
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