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c17 Key
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, firms pursue a polycentric staffing policy because they see it as the best way to
maintain a unified corporate culture.
7. In international businesses, a disadvantage of an ethnocentric staffing policy is that it produces resentment in
host-country nationals.
8. An international firm that adopts a polycentric staffing policy is more likely to suffer from cultural myopia.
9. 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.
10. 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.
11. The fact that many countries want foreign subsidiaries to employ their citizens limits a firm's ability to
pursue a geocentric policy.
12. For international firms, an ethnocentric staffing approach is compatible with a localization strategy.
13. International firms that have a broad geographic scope are the most likely to have a geocentric mindset.
14. Citizens of a foreign country working in the home country of their multinational employer are known as
repatriates.
15. Expatriate failure represents the failure of a firm's selection policies to identify individuals who will not
thrive abroad.
16. According to a study by R. L. Tung, the most important reason for expatriate failure among U.S.
multinationals was difficulty coping with a new environment.
17. According to Mendenhall and Oddou, human resource managers must equate domestic performance with
overseas performance potential.
18. Expatriate managers who lack others-orientation tend to treat foreign nationals as if they were home-country
nationals.
19. According to Mendenhall and Oddou, expatriates with perceptual ability tend to be judgmental and
evaluative in interpreting the behavior of host-country nationals.
20. Historically, most international businesses have been more concerned with management development than
with training.
21. It is important that the spouse of an expatriate manager, and perhaps the whole family, be included in
cultural training programs.
22. Transnational firm managers need not be able to detect pressures for local responsiveness because it is not
part of their skill set.
23. Bringing managers together in one location for extended periods and rotating them through different jobs in
several countries help a firm build an informal management network.
24. Unintentional bias makes it easy to evaluate the performance of expatriate managers objectively.
25. From a strategic perspective, a compensation system must reward managers for taking actions that are
consistent with the strategy of the enterprise.
26. 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.
27. An expatriate's base salary is normally lower than the base salary for a similar position in the home country.
28. 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.
29. A concern of organized labor is that an international business keeps highly skilled tasks in its home country
and farms out low-skilled tasks to foreign plants.
30. An impediment to cooperation between national unions is the wide variation in union structure.
31. Historically, most international businesses have centralized international labor relations activities.
32. A(n) expatriate manager refers to:
33. Megan, a U.S. citizen, is the operations manager at the Middle East office of HS Constructions Inc., an
American firm. In this situation, she is an example of a(n):
34. Firms that emphasize global standardization try to create value by:
35. Which of the following strategies is concerned with the selection of employees for particular jobs?
36. The norms and value systems of an organization constitute its:
37. Which of the following staffing policies is concerned with filling all key management positions by
parent-country nationals?
38. In the Swiss firm Terabithia Systems AG, all the important positions in its international operations are held
by Swiss nationals. What is the staffing policy followed by Terabithia?
39. Which of the following is a characteristic feature of an ethnocentric staffing policy?
40. A firm pursues an ethnocentric staffing policy because it:
41. Which of the following is a disadvantage of an ethnocentric staffing policy?
42. A firm's failure to understand host-country cultural differences that require different approaches to
marketing and management is referred to as:
43. The staffing policy that requires host-country nationals to be recruited to manage subsidiaries, while
parent-country nationals occupy key positions at corporate headquarters, is called:
44. A firm that adopts a polycentric staffing policy is less likely to:
45. Which of the following is an advantage of adopting a polycentric staffing approach?
46. Which of the following is a drawback of adopting a polycentric staffing approach?
47. Which of the following staffing policies has the drawback of forming a gap between host-country managers
and parent-country managers?
48. Which of the following staffing approaches limits career mobility and isolates headquarters from foreign
subsidiaries?
49. Which of the following staffing policies seeks the best people for key jobs throughout the organization,
regardless of nationality?
50. How is a geocentric staffing policy beneficial to a firm?
