Topic: International Labor Relations
39.
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.
FALSE
A concern of organized labor is that an international business will keep
highly skilled tasks in its home country and farm out only low-skilled tasks
to foreign plants. Such a practice makes it relatively easy for an
international business to switch production from one location to another as
economic conditions warrant.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-07 Understand how organized labor can influence strategic choices in international business firms.
Topic: International Labor Relations
40.
The international trade secretariats have had tremendous success.
FALSE
In the 1960s, organized labor began to establish international trade
secretariats (ITSs) to provide worldwide links for national unions in
particular industries. However, the ITSs have had virtually no real success.
Learning Objective: 19-07 Understand how organized labor can influence strategic choices in international business firms.
Topic: International Labor Relations
Multiple Choice Questions
41.
Which of the following is mainly concerned with the selection of employees
for particular jobs?
A.
Retention policy
B.
Staffing policy
C.
Incentive policy
D.
Staffing policy is concerned with the selection of employees for particular
jobs. At one level, this involves selecting individuals who have the skills
required to do particular jobs.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
42.
A Japanese firm prefers expatriate Japanese managers to head its foreign
operations because these managers have been socialized into the firm
while employed in Japan. This indicates that the firm:
A.
believes that such managers cannot progress beyond middle-manager
positions in their parent company.
B.
follows an ethnocentric staffing policy to maintain a unified corporate
culture.
C.
is trying to create value by transferring core competencies to a foreign
operation.
D.
requires host-country nationals to be recruited to manage subsidiaries.
An ethnocentric staffing policy is one in which all key management
positions are filled by parent-country nationals.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
43.
An ethnocentric staffing policy is one in which:
A.
all key management positions are filled by host-country nationals.
B.
host-country nationals are recruited to manage subsidiaries.
C.
all key management positions are filled by parent-country nationals.
D.
the best people are recruited for key jobs throughout the organization,
regardless of nationality.
An ethnocentric staffing policy is one in which all key management
positions are filled by parent-country nationals.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
44.
Cultural myopia refers to a firm’s failure to:
A.
adapt to certain ethnocentric cultures.
B.
act confidently in host-countries.
C.
understand host-country cultural differences.
D.
prevent gender discrimination within the firm
an ethnocentric policy can lead to cultural myopia, the firm’s failure to
understand host-country cultural differences that require different
approaches to marketing and management.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
45.
What is the difference between an ethnocentric and a polycentric staffing
approach?
A.
An ethnocentric staffing approach alleviates cultural myopia, while a
polycentric staffing approach can lead to cultural myopia.
B.
An ethnocentric staffing approach is more expensive compared to a
polycentric staffing approach.
C.
An ethnocentric staffing approach seeks host-country nationals for all
key positions, while a polycentric staffing approach seeks the best
people for key jobs regardless of nationality.
D.
An ethnocentric staffing approach is now used in most international
businesses, while the polycentric staffing approach is on the wane.
A polycentric approach may be less expensive to implement, reducing the
costs of value creation. Expatriate managers can be expensive to maintain.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
46.
If a company recruits host-country nationals to manage subsidiaries while
parent-country nationals occupy key positions at corporate headquarters,
the firm is following a(n):
A.
polycentric staffing policy
B.
ethnocentric staffing policy
C.
geocentric staffing policy
D.
internal staffing policy
A polycentric staffing policy requires host-country nationals to be recruited
to manage subsidiaries, while parent-country nationals occupy key
positions at corporate headquarters.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
47.
Which of the following is a drawback of the polycentric approach to
staffing?
A.
Firms are likely to suffer from cultural myopia.
B.
Host-country nationals are vulnerable to cultural misunderstandings.
C.
This approach increases the cost of value creation.
D.
Host-country nationals have limited opportunities for advancement
beyond senior positions in their subsidiary.
A polycentric approach also has its drawbacks. Host-country nationals have
limited opportunities to gain experience outside their own country and thus
cannot progress beyond senior positions in their own subsidiary.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
48.
A(n) _____ seeks the best people for key jobs throughout the organization,
regardless of nationality.
A.
polycentric staffing policy
B.
ethnocentric staffing policy
C.
geocentric staffing policy
D.
uniform staffing policy
A geocentric staffing policy seeks the best people for key jobs throughout
the organization, regardless of nationality.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
49.
A polycentric approach may be effective for firms pursuing a(n):
A.
international strategy.
B.
localization strategy.
C.
transnational strategy.
D.
global standardization strategy.
Although a polycentric approach may be effective for firms pursuing a
localization strategy, it is inappropriate for other strategies.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
50.
A firm using a polycentric staffing policy:
A.
is less likely to suffer from cultural myopia.
B.
seeks the best people for key jobs throughout the organization,
regardless of nationality.
C.
will most likely follow an ethnocentric strategy.
D.
is likely to have improved communication between host-country
managers and parent-country managers.
One advantage of adopting a polycentric approach is that the firm is less
likely to suffer from cultural myopia. Host-country managers are unlikely to
make the mistakes arising from cultural misunderstandings to which
expatriate managers are vulnerable.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
51.
What is the most important advantage of using a geocentric staffing policy?
A.
It enables the firm to build a cadre of international executives who feel at
home working in a number of cultures.
B.
It may be less expensive to implement than other policies, reducing the
costs of value creation.
C.
The higher pay managers on an international fast track enjoy is a source
of inspiration within a firm.
D.
It reduces the need for futile and time consuming documentation.
Geocentric policy enables the firm to build a cadre of international
executives who feel at home working in a number of cultures. Creation of
such a cadre may be a critical first step toward building a strong unifying
corporate culture and an informal management network, both of which are
required for global standardization and transnational strategies.
52.
An ethnocentric approach to staffing is appropriate for firms that are
pursuing a(n):
A.
localization strategy.
B.
international strategy.
C.
global standardization strategy.
D.
transnational strategy.
Broadly speaking, an ethnocentric approach is compatible with an
international strategy, a polycentric approach is compatible with a
localization strategy, and a geocentric approach is compatible with both
global standardization and transnational strategies.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
53.
Which of the following staffing approaches will be most effective for a firm
that is pursuing a transnational strategy?
A.
A polycentric staffing policy
B.
An ethnocentric staffing policy
C.
A geocentric staffing policy
D.
An internal staffing policy
Broadly speaking, an ethnocentric approach is compatible with an
international strategy, a polycentric approach is compatible with a
localization strategy, and a geocentric approach is compatible with both
global standardization and transnational strategies.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
54.
A geocentric staffing policy _____.
A.
requires host-country nationals to be recruited to manage subsidiaries,
while parent-country nationals occupy key positions at corporate
headquarters
B.
leads to ineffective use of human resources
C.
requires extensive documentation
D.
is compatible with both international and localization strategy.
Most countries, including the United States, require firms to provide
extensive documentation if they wish to hire a foreign national instead of a
local national. This documentation can be time consuming, expensive, and
at times futile.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-02 Identify the pros and cons of different approaches to staffing policy in international business
firms.
Topic: Staffing Policy
55.
A citizen of France who moves to the U.S. to work at Ford is a(n):
A.
host-country national.
B.
local.
C.
inpatriate.
D.
acquired citizen.
The term inpatriates is used to identify a subset of expatriates who are
citizens of a foreign country working in the home country of their
multinational employer.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-03 Explain why managers may fail to thrive in foreign postings.
Topic: Staffing Policy
56.
Expatriate failure refers to:
A.
expatriates who follow host-country norms instead of their home-country
norms.
B.
the inability of expatriate managers to treat foreign nationals as if they
were home-country nationals.
C.
the premature return of an expatriate manager to his or her home-
country.
D.
the ethical drawbacks of the ethnocentric staffing approach.
A prominent issue in the international staffing literature is expatriate failure
—the premature return of an expatriate manager to his or her home country.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 19-03 Explain why managers may fail to thrive in foreign postings.
Topic: Staffing Policy
57.
In a seminal study, R. L. Tung found that for American multinationals, the
biggest impediment to expatriate success was:
A.
the inability of the spouse to adjust.
B.
the manager’s inability to adjust.
C.
the manager’s inability to cope with larger overseas responsibilities.
D.
the lack of adequate technical training.
Tung asked her sample of multinational managers to indicate reasons for
expatriate failure. For U.S. multinationals, the reasons, in order of
importance, were: 1. Inability of spouse to adjust. 2. Manager’s inability to
adjust. 3. Other family problems. 4. Manager’s personal or emotional
maturity. 5. Inability to cope with larger overseas responsibilities.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-03 Explain why managers may fail to thrive in foreign postings.
Topic: Staffing Policy
58.
In a seminal study, R. L. Tung found that for Japanese multinationals, the
biggest impediment to expatriate success was:
A.
the inability of the spouse to adjust.
B.
inadequate compensation.
C.
the manager’s inability to cope with larger overseas responsibilities.
D.
the lack of adequate technical training.
For the Japanese firms, the reasons for failure were: 1. Inability to cope with
larger overseas responsibilities. 2. Difficulties with new environment. 3.
Personal or emotional problems. 4. Lack of technical competence. 5.
Inability of spouse to adjust.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-03 Explain why managers may fail to thrive in foreign postings.
Topic: Staffing Policy
59.
Mendenhall and Oddou’s “others-orientation” dimension, in their study on
what predicts success in foreign jobs postings, refers to:
A.
the expatriate’s self-esteem, self-confidence, and mental well-being.
B.
the expatriate’s ability to interact effectively with host-country nationals.
C.
the expatriate’s ability to understand why people of other countries
behave the way they do.
D.
the relationship between the country of the assignment and how well an
expatriate adjusts to a particular posting.
The attributes of “others-orientation” dimension enhance the expatriate’s
ability to interact effectively with host-country nationals.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 19-03 Explain why managers may fail to thrive in foreign postings.
Topic: Staffing Policy