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59) Which of the following statements is true regarding management development?
A) Historically, most international businesses have been more concerned with
management development than with training.
B) Management development facilitates the creation of an informal network for sharing
knowledge within the multinational enterprise.
C) Management development refers to specific training efforts to prepare home-country
nationals for foreign postings.
D) Typically, management development programs use standard psychological tests to
select managers for specific foreign postings.
60) Practical training is
A) provided to foster an appreciation for the host country’s culture.
B) aimed at helping expatriates improve their communication skills.
C) aimed at helping expatriate managers to build relationships in the host country.
D) aimed at helping the expatriate manager and family ease themselves into day-to-day
life in the host country.
61) Management development programs aim to
A) facilitate an ethnocentric approach to staffing.
B) reduce job rotations of managers.
C) build a formal management network.
D) build a unifying corporate culture.
62) Bringing managers together in one location for extended periods and rotating them
through different jobs in several countries is a part of
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A) the ethnocentric approach.
B) the global standardization strategy.
C) cultural toughness programs.
D) management development programs.
63) _____ makes it difficult to evaluate the performance of expatriate managers objectively.
A) Unintentional bias
B) Lack of proximity
C) Intentional bias
D) Inadequate hard data
64) When evaluating expatriates, home-country managers usually rely on
A) the manager’s ability to develop cross-cultural awareness.
B) hard data such as market share.
C) the ability of the expatriate to work with local managers.
D) a set of subjective criteria such as interpersonal skills.
65) Which among the following should be done in order to reduce bias in the performance
appraisal process for expatriates?
A) More weight should be given to an off-site manager’s appraisal than to an on-site
manager’s appraisal.
B) The on-site manager should be of a different nationality than the expatriate manager.
C) Home-office managers should be consulted before an on-site manager completes a
formal termination evaluation.
D) A former expatriate who served in the same location as a current expatriate should
not be allowed to participate in the appraisal.
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66) _____ makes it difficult to evaluate the performance of expatriate managers objectively.
A) Cultural relativism
B) Internal documentation
C) Unintentional bias
D) Others-orientation
67) If a firm is serious about building an _____, it may have to pay its international
executives the same basic salary irrespective of their country of origin or assignment.
A) expatriate community
B) international cadre
C) inpatriate community
D) international corps
68) An expatriate’s base salary typically
A) varies from the base salary for a similar position in the home country.
B) is paid half in the home-country currency and half in the local currency.
C) is in the same range as the base salary for a similar position in the home country.
D) is paid in Eurocurrency.
69) When a reciprocal tax treaty is not in force, the firm typically
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A) pays the difference the higher income tax rate makes on the expatriates’ take-home
pay into a 401k plan.
B) pays the expatriate’s income tax in the home country.
C) reduces the expatriate’s take-home pay to cover the difference in tax rates.
D) pays the expatriate’s income tax in the host country.
70) What is the most common approach to expatriate pay?
A) balance sheet approach
B) net-to-net approach
C) host-country approach
D) cost-based approach
71) A foreign service premium is
A) paid when the expatriate is being sent to a difficult location.
B) the extra pay that an expatriate receives for working outside his or her country of
origin.
C) normally given to ensure that the expatriate can afford the same quality of housing in
the foreign country as at home.
D) paid to ensure that the expatriate enjoys the same standard of living in the foreign
posting as at home.
72) A hardship allowance is paid
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A) when the expatriate is being sent to a location where basic amenities are grossly
deficient by the standards of the expatriate’s home country.
B) to ensure that an expatriate’s children receive adequate schooling (by home-country
standards).
C) to ensure that the expatriate will enjoy the same standard of living in the foreign
posting as at home.
D) to ensure that the expatriate can afford the same quality of housing in the foreign
country as at home.
73) A _____ may be paid to ensure that the expatriate enjoys the same standard of living in
the foreign location as at home.
A) housing allowance
B) hardship allowance
C) cost-of-living allowance
D) differential allowance
74) A _____ may be paid to ensure that the expatriate can afford the same quality of housing
in the foreign country as in the home country.
A) cost-of-living allowance
B) hardship allowance
C) housing allowance
D) differential allowance
75) Which of the following is a concern of organized labor regarding multinational firms?
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A) A company can counter a union’s bargaining power with the power to move
production to another country.
B) An international business will keep low-skilled tasks in its home country and farm
out only highly skilled tasks to foreign plants.
C) An international business can attempt to import employment practices and
contractual agreements from its host country.
D) A multinational company is more likely to receive government support in the case of
hostile labor relations.
76) Which of the following is an action taken by organized labor to respond to the increased
bargaining power of multinational corporations?
A) trying to establish international labor organizations
B) increasing competition between national unions
C) lobbying the European Union for legislation to restrict multinationals
D) trying to achieve international regulations on multinationals through such
organizations as the United Nations
77) What was the long-term goal of international trade secretariats (ITSs)?
A) to increase the competition between national unions
B) to be able to bargain transnationally with multinational firms
C) to accommodate wide variation in union structure
D) to be able to regulate multinationals with regard to labor policies
78) The international trade secretariats (ITS) have had virtually no real success. Which of the
following is a cause of the ITSs’ ineffectiveness?
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A) National unions compete with each other to attract investment from international
businesses.
B) The structure and ideology of unions tend to be very similar from country to country.
C) Organized labor has had overwhelming success in its efforts to get national and
international bodies to regulate multinationals.
D) The codes of conduct developed by International Labor Organization and the
Organization for Economic Cooperation and Development prevented the ITSs from exercising
absolute power.
79) Which of the following is true regarding approaches to labor relations?
A) International businesses use mostly similar approaches to international labor
relations.
B) The trend is toward greater decentralized control of international labor relations.
C) Historically, most international businesses have centralized the labor relations
function.
D) Many firms are now using the threat to move production to another country in their
negotiations with unions.
80) Unions’ bargaining power is
A) largely derived from their ability to threaten to disrupt production.
B) rooted in their government backing.
C) largely derived from their ability to control corporate managers.
D) rooted in their financial resources.
81) Trade unions around the world
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A) developed simultaneously and in coordination with each other.
B) are widely varied in their structure.
C) have virtually the same ideology.
D) employ the same union structure.
82) From a strategic perspective, the key issue in international labor relations is the degree to
which organized labor can
A) improve the profitability of the company.
B) enhance the choices of an international business.
C) increase the integration and consolidation of global operations.
D) limit the choices of an international business.
83) An expatriate manager is a citizen of one country who is working abroad in one of the
firm’s subsidiaries.
⊚ true
⊚ false
84) HRM professionals have a critically important strategic role.
⊚ true
⊚ false
85) The most popular staffing policy is the ethnocentric approach.
⊚ true
⊚ false
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86) Cultural myopia refers to a firm’s failure to understand host-country cultural differences
that require different approaches to marketing and management.
⊚ true
⊚ false
87) In the case of an ethnocentric approach, it is possible that managers may make decisions
that are ethically suspect because they do not understand the culture in which they are managing.
⊚ true
⊚ false
88) A firm that adopts a polycentric approach to staffing is likely to suffer from cultural
myopia.
⊚ true
⊚ false
89) Firms may choose an ethnocentric approach to staffing as opposed to a polycentric
approach because of the cost savings it promotes.
⊚ true
⊚ false
90) A geocentric approach tends to weaken local responsiveness.
⊚ true
⊚ false
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91) The geocentric approach is the most popular because it is the least expensive to
implement.
⊚ true
⊚ false
92) A citizen of Japan who moves to the United States to work at Microsoft would be
classified as an inpatriate.
⊚ true
⊚ false
93) Expatriate failure refers to a manager’s failure to understand host-country cultural norms
and values, leading to ineffective work.
⊚ true
⊚ false
94) In a seminal study, R.L. Tung revealed that for European firms, the top reason for
expatriate failure was the inability of the manager to cope with larger overseas responsibilities.
⊚ true
⊚ false
95) An executive who performs well in a domestic setting may not be able to adapt to
managing in a different cultural setting.
⊚ true
⊚ false
96) An expatriate needs to have language fluency to show willingness to communicate.
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⊚ true
⊚ false
97) According to Mendenhall and Oddou, poorly adjusted expatriates tend to be
nonjudgmental and nonevaluative in interpreting the behavior of host-country nationals.
⊚ true
⊚ false
98) Cultural toughness refers to the relationship between the country of assignment and how
well an expatriate adjusts to a particular posting.
⊚ true
⊚ false
99) A manager might be sent on several foreign postings over a number of years to build his
or her cross-cultural sensitivity and experience as part of a management development program.
⊚ true
⊚ false
100) Selection is the first step in matching a manager with a job.
⊚ true
⊚ false
101) Historically, most international businesses have been more concerned with training than
with management development, focusing on preparing home-country nationals for foreign
postings.
⊚ true
⊚ false
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102) Most managers believe that knowledge of a foreign language is necessary to succeed in
an international posting.
⊚ true
⊚ false
103) Where an expatriate community exists, firms often devote less effort to ensuring that the
new expatriate family is quickly integrated into that group.
⊚ true
⊚ false
104) A firm’s performance appraisal systems are an important element of its control systems.
⊚ true
⊚ false
105) Most expatriates believe that more weight should be given to an on-site manager’s
appraisal than to an off-site manager’s appraisal.
⊚ true
⊚ false
106) In polycentric firms, the lack of managers’ mobility among national operations implies
that pay can and should be kept country-specific.
⊚ true
⊚ false
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107) Base pay in most firms is set with regard to global market conditions.
⊚ true
⊚ false
108) From a strategic perspective, the key issue in international labor relations is the degree to
which organized labor can limit the choices of an international business.
⊚ true
⊚ false
109) Labor unions generally prefer it if an international business keeps highly skilled tasks in
its home country and farms out only low-skilled tasks to foreign plants.
⊚ true
⊚ false
110) Union influence in the auto industry is increasing in part due to Japanese carmakers
building autos in the United States.
⊚ true
⊚ false
111) The international trade secretariats have had tremendous success.
⊚ true
⊚ false
Answer Key
Test name: chapter 19
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