69) Which of the following international assignment preparation methods involves a trainee
feeling the stresses inherent in living in the culture?
A) language training
B) field experience
C) sensitivity training
D) cultural orientation
70) The most common inducement that companies offer managers to accept international
postings is ________.
A) fringe benefits
B) a financial bonus
C) a vacation
D) free housing
71) Managers who are asked to go into a particularly unstable country or one with a very low
standard of living often receive a bonus called ________.
A) hardship pay
B) performance-related pay
C) stock options
D) fringe benefits
72) Which of the following is true of employee compensation in international companies?
A) The most common inducement that companies offer managers to accept international postings
is free accommodation.
B) Companies need not cover the costs incurred by expatriate managers if the cost of living
abroad is lower than that at home.
C) The greater mobility of labor affects the wages of nonmanagerial workers today.
D) Managers recruited from within the host country generally receive a much higher pay and
lower perks than managers who work for local companies.
73) The positive or negative condition of relations between employers and their workers is
referred to as ________.
A) international relations
B) labor-management relations
C) corporatism
D) organizational hierarchy
74) Large international companies tend to make high-level labor decisions at the home office
because ________.
A) it creates a sense of unity and solidarity between the labour unions and management members
B) managers in the home office are better equipped than managers in the host-country office, to
handle matters that affect workers personally
C) it places decisions that have a direct impact on host-country workers’ lives in the hands of the
home-country experts
D) it gives them greater control over their network of operations around the world
75) ________ allows labor representatives in Germany to participate in high-level company
meetings by actually voting on proposed actions.
A) Centralization
B) Codetermination
C) Individualism
D) Authoritarianism
Scenario: Swingset International
Jerome Johnston, the human resource manager at the U.S.-based Swingset International, is
developing an international staffing policy for the company. Jerome personally believes
Swingset should send managers from the United States to manage each subsidiary. But the CEO
of the company, Valerie Vermont, believes subsidiary operations ought to be managed by
individuals from the host country.
76) The approach recommended by Jerome is called ________.
A) vertical integration
B) ethnocentric staffing
C) horizontal integration
D) geocentric staffing
77) Which of the following is a drawback of Jerome’s staffing approach?
A) expense to relocate managers
B) potential for losing control of the host-country operations
C) potential for losing control of the home-country operations
D) inability to re-create local operations in the image of the home-country operations
78) The approach recommended by Valerie is called ________.
A) polycentric staffing
B) ethnocentric staffing
C) vertical integration
D) horizontal integration
79) An important advantage of the staffing policy recommended by Valerie is that it ________.
A) re-creates local operations in the image of home-country operations
B) eliminates the high cost of relocating expatriate managers and families
C) helps the company develop global managers who can adjust easily to any business
environment
D) sends managers from home to look out for the company’s interests
80) A major drawback of the staffing policy recommended by Valerie is ________.
A) the potential for losing control of the host-country operations
B) the necessity of depending on managers who don’t know the local culture
C) the potential for creating legal barriers to host-country operations
D) the high cost of training managers in the language of the host country
81) Which staffing policy should Swingset consider if it wants its foreign operations to be
managed by the best-qualified individuals regardless of nationality?
A) nepotism
B) ethnocentric staffing
C) geocentric staffing
D) employee referrals
Scenario: Gem Jewels
Gem Jewels recently established a number of subsidiaries in various foreign countries aiming to
build high levels of international business involvement in the coming years. Cultural training has
to be given by the company to home-country managers assigned to work in the new subsidiaries.
82) The most basic level of training that can be given to the managers is ________.
A) language training
B) field experience
C) sensitivity training
D) environmental briefings
83) If Gem Jewels wants its employees to get “under the skin” of the local people, it should
provide ________.
A) language training
B) sensitivity training
C) cultural orientations
D) field experience
84) If Gem Jewels wants its employees to get “into the minds” of the local people, it should
provide ________.
A) language training
B) sensitivity training
C) cultural orientations
D) environmental briefings
85) To teach its employees the values, attitudes, manners, and customs of the host-country
culture, Gem Jewels should offer ________.
A) language training
B) environmental briefings
C) cultural assimilation
D) field experience
Scenario: Mr. Yoshimura goes to Tennessee
Mr. Yoshimura, vice president of quality control at Oshimura Yarn, has recently been assigned
to a three-year project at the company’s Tennessee plant. Mr. Yoshimura has brought his wife
and his three daughters with him from Yokohama to Tennessee.
86) Mr. Yoshimura and his family were initially very excited to see Tennessee but soon started
missing their home, relatives and friends in Japan. They are facing ________.
A) culture shock
B) reverse culture shock
C) expatriate failure
D) cultural cringe
87) Mr. Yoshimura’s daughters are extremely unhappy and have been complaining every night
about their lifestyle in the United States. They insist on returning to Japan. If Mr. Yoshimura
gives in to his family members’ pleas and decides to return home, which of the following will
most likely be true about his experience?
A) He and his family will experience reverse culture shock.
B) He will leave his company within one year of returning home.
C) His case will represent an instance of expatriate failure.
D) He will be terminated from employment for failing to complete his assignment.
88) If the family finds it difficult to adjust on returning to Japan after three years, they will
experience ________.
A) social loafing
B) reverse culture shock
C) expatriate failure
D) halo effect
Scenario: You’re Hired!
Erica Els has just been promoted as vice president of human resources for Hudson Foods, a U.S.-
based international frozen food corporation. Erica’s first task is to staff the company’s European
subsidiary.
89) One lower-level position Erica must fill requires the employee to be familiar with the new
market and its customs, traditions, and language. Also, the new hire must be comfortable with
Hudson Food’s organizational culture and business traditions. Who among the following will
Erica most likely recruit for this position?
A) a local fresher with strong government contacts
B) an existing Hudson Foods employee from the United States
C) a native of the target market who has completed a one-year internship at Hudson Foods
D) an individual from the U.S. who has experience in the frozen food industry
90) One challenge facing Hudson Foods as it expands into Europe is getting through all the
bureaucratic and legal regulations surrounding the food industry. Erica plans to hire a manager to
ensure that this challenge is overcome. Who among the following will Erica most likely recruit
for this position?
A) a local manager with strong government contacts
B) an experienced manager from the Hudson Foods U.S. headquarters
C) a native of the target market who is a recent U.S. college graduate
D) a candidate from the U.S. with extensive management experience in the frozen food industry
91) The new subsidiary’s production facilities will employ approximately 100 full-time
nonmanagerial workers. Who among the following will Erica most likely recruit to fill these
positions?
A) highly productive workers relocated from developing nations
B) bilingual U.S. citizens who speak the language of the host country
C) qualified workers from the local market
D) workers from the American headquarters who are interested in gaining international
experience
92) Differentiate between the three types of staffing policies used by international companies.
What are the advantages of each?
93) Describe the differences between human resource management in a domestic setting and an
international setting, and explain the three phases of human resources planning.
94) Explain the advantages and disadvantages of a geocentric staffing policy, and discuss the
effects of culture shock when assigning an employee to work in another country.
95) Differentiate between culture shock and reverse culture shock. How can companies help
employees deal with such issues?
96) Compare and contrast the methods of cultural training. Is any single method better than all
the others?
97) Explain why a person’s ability to bridge cultural differences must be considered during
“selection” for international assignments. How can eTraining help in bridging cultural
differences?
98) Briefly explain how companies compensate managers in international markets.
99) Discuss the disadvantages of an ethnocentric staffing policy. How do bonuses, tax incentives,
and employee expectations contribute to high personnel costs?
100) What factors influence the wages of nonmanagerial workers?
101) What challenges do international labor unions face as they try to accomplish their
objectives?