1. The human resource management function can help a firm achieve its primary strategic
goals of reducing the costs of value creation and adding value by better serving customer needs.
2. An expatriate manager is a citizen of one country who is working abroad in one of the
firm’s subsidiaries.
3. For a firm to outperform its rivals in the global marketplace, the performance appraisal
systems it uses must measure the perceptions that it wants to encourage.
4. Organizational architecture refers to an organization‘s norms and value systems.
5. It is believed that a firm attains higher performance when its employees are predisposed
toward its value systems by their personality type.
6. In international businesses, a geocentric staffing policy is one in which all key
management positions are filled by parent–country nationals.
7. In international businesses, firms pursue a polycentric staffing policy because they see it
as the best way to maintain a unified corporate culture.
8. In international businesses, a disadvantage of an ethnocentric staffing policy is that it
produces resentment in host-country nationals.
9. An international firm that adopts a polycentric staffing policy is more likely to suffer
from cultural myopia.
10. In international businesses, a polycentric staffing policy increases the costs of value
creation.
11. International firms pursuing an ethnocentric staffing policy may be better able to create
value from the pursuit of experience curve and location economies than firms pursuing other
staffing policies.
12. The major drawback with a polycentric staffing policy is the gap that can form between
host-country managers and parent-country managers due to language barriers.
13. A polycentric staffing approach is effective only for international firms pursuing a
transnational strategy and inappropriate for other strategies.
14. The fact that many countries want foreign subsidiaries to employ their citizens limits a
firm’s ability to pursue a geocentric policy.
15. For international firms, an ethnocentric staffing approach is compatible with a localization
strategy.
16. International firms that have a broad geographic scope are the most likely to have a
geocentric mind-set.
17. Citizens of a foreign country working in the home country of their multinational employer
are known as repatriates.
18. Expatriate failure represents the failure of a firm’s selection policies to identify individuals
who will not thrive abroad.
19. According to a study by R.L. Tung, the most important reason for expatriate failure among
U.S. multinationals is difficulty coping with a new environment.
20. According to Mendenhall and Oddou, human resource managers must equate domestic
performance with overseas performance potential.
21. Expatriate managers who lack others-orientation tend to treat foreign nationals as if they
were home-country nationals.
22. According to Mendenhall and Oddou, expatriates with perceptual ability tend to be
judgmental and evaluative in interpreting the behavior of host-country nationals.
23. Historically, most international businesses have been more concerned with management
development than with training.
24. It is important that the spouse of an expatriate manager, and perhaps the whole family,
be included in cultural training programs.
25. Transnational firm managers need not be able to detect pressures for local
responsiveness because it is not part of their skill set.
26. Bringing managers together in one location for extended periods and rotating them
through different jobs in several countries help the firm build an informal management network.
27. Unintentional bias makes it easy to evaluate the performance of expatriate managers
objectively.
28. Home-office managers are unbiased while evaluating the performance of expatriate
managers.
29. From a strategic perspective, a compensation system must reward managers for taking
actions that are consistent with the strategy of the enterprise.
30. In terms of expatriate pay, the income statement approach equalizes purchasing power
across countries so employees can enjoy the same living standard in their foreign posting that
they enjoyed at home.
31. An expatriate’s base salary is normally lower than the base salary for a similar position in
the home country.
32. Unless a host country has a reciprocal tax treaty with the expatriate’s home country, an
expatriate must pay income tax to both the home– and host-country governments.
33. A concern of organized labor is that an international business keeps highly skilled tasks
in its home country and farm out low-skilled tasks to foreign plants.
34. An impediment to cooperation between national unions is the wide variation in union
structure.
35. Historically, most international businesses have centralized international labor relations
activities.
36. A(n) expatriate manager refers to: