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Student name:__________
TRUE/FALSE – Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) An expatriate is a person living outside his or her country of birth.
⊚ true
⊚ false
2) The effectiveness of every organization depends, to a great extent, on how well its human
resources are used.
⊚ true
⊚ false
3) Populations in developing nations tend to be growing larger and younger at the same
time.
⊚ true
⊚ false
4) There has been a rapid increase in the proportion of the world’s population that is age 65
or older.
⊚ true
⊚ false
5) The movement of people from one country to another in search of jobs is called labor
mobility.
⊚ true
⊚ false
6) Guest workers would be welcomed in a country like the United States where there are too
few people for too many jobs.
⊚ true
⊚ false
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7) Many economic migrants are involved in what are sometimes referred to as “3-D” jobs—
digital, developmental, and demanding—which are well paid but that have inadequate numbers
of qualified host-country workers to satisfy demand.
⊚ true
⊚ false
8) The loss by a country of its most intelligent and best-educated people, a phenomenon
known as brain drain, is usually due to the desire to seek improved economic circumstances and
pursue better professional opportunities.
⊚ true
⊚ false
9) A company would use collective bargaining when purchasing supplies from a vendor.
⊚ true
⊚ false
10) In recent decades, there has been a steady growth in the number of union members in
most developed countries.
⊚ true
⊚ false
11) The geocentric staffing approach is based on the home-country’s frame of reference.
⊚ true
⊚ false
12) Under a polycentric staffing orientation, there is little communication flow among
subsidiaries.
⊚ true
⊚ false
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13) A disadvantage of hiring local managers is that they are often unfamiliar with the home
country of the IC and with its policies and practices.
⊚ true
⊚ false
14) The disadvantages of using employees from the home or host countries can sometimes be
avoided by sending third-country nationals to fill management posts.
⊚ true
⊚ false
15) Companies with a transnational strategic orientation follow a global staffing policy,
selecting the best person for each job without considering national origin and generally having
consistent HRM strategy across all subsidiaries.
⊚ true
⊚ false
16) Once a person has grown accustomed to a new culture, returning to one’s home culture
can produce an experience of reverse culture shock.
⊚ true
⊚ false
17) Relatively few expatriate failures are family-related. Most relate to the expatriate’s lack of
technical skills.
⊚ true
⊚ false
18) Planning for an expatriate’s return should begin once they have been reassigned to return
to the home country office.
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⊚ true
⊚ false
19) In the method favored by the majority of American ICs, the salary part of an expatriate
employee’s compensation package will generally be governed by the employee’s level in the
organization and will not be higher because of the foreign assignment.
⊚ true
⊚ false
20) A cost-of-living allowance provides an expat with money that would cover price
differences in food, transportation, clothing, and medical expenses.
⊚ true
⊚ false
MULTIPLE CHOICE – Choose the one alternative that best completes the statement or
answers the question.
21) A local labor market is made up of
A) the entire population of people in the local operating area.
B) a country’s pool of people with the required skill set.
C) the pool of available employees with the necessary skills and who are within
commuting distance.
D) the pool of employees with the necessary skills who are in the country or
surrounding nations.
22) Jake asked his team to find out how many employees were available in the proposed
foreign market that had the data analysis skills the company needed to complete the task. This
information will help him decide if the foreign market is viable for the company to enter into.
What type of information is Jake looking for?
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A) population size
B) population growth
C) labor market
D) labor force
23) Low birthrates and low levels of immigration are causing populations in developed
countries to
A) decline.
B) increase.
C) stabilize.
D) implode.
24) More than one-third of the world’s population age 15–24 live in which two developing
countries?
A) Indonesia and South Africa
B) U.S. and Germany
C) India and China
D) Brazil and Argentina
25) In 2010, what percent of the population in developed countries was 65 or older?
A) 42 percent
B) 56 percent
C) 12 percent
D) 25 percent
26) By the year 2050, what percent of the population in developed countries is projected to be
65 or older?
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A) 42 percent
B) 56 percent
C) 12 percent
D) 25 percent
27) During the past century, there has been a noticeable shift in the workforce from
A) coastal to inland settings.
B) urban to rural settings.
C) inland to coastal settings.
D) rural to urban settings.
28) The increasing levels of the population moving to urban areas in developing countries
results in a labor pool of
A) low-skilled workers.
B) workers demanding higher wages.
C) fewer workers.
D) technically-skilled workers.
29) Trent has worked for the same company in Maryland for the past ten years. He was
recently offered a position at a different company in Australia and has decided to take the job
because it offers better pay, more responsibility, and his cost of living expenses will be lower.
Employees like Trent who move from country to country in seek of a job are examples of
A) labor mobility.
B) population growth.
C) the labor force.
D) economies of scale.
30) One challenge presented to employers by the rural to urban migration is
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A) educating the rural immigrants in etiquette associated with city life.
B) supporting the social and psychological adjustment necessary for rural immigrants in
an urban work setting.
C) maintaining the rural immigrant’s interest in work.
D) fully utilizing the new pool of highly skilled immigrant workers.
31) Worldwide, labor tends to be
A) immobile.
B) unreliable.
C) mobile.
D) well-trained.
32) The major motivation for immigration is a
A) better economic situation.
B) more stimulating environment.
C) safer, more secure environment.
D) chance to leave urban areas for a rural lifestyle.
33) Migrant labor is often involved in “3-D” jobs, which stands for
A) dirty, dangerous, and degrading.
B) detailed, diverse, and digital.
C) demanding, demeaning, and decorated.
D) displaced, daily, and dismissed.
34) In 2017, what percentage of the U.S. population was foreign-born?
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A) 29 percent
B) 5 percent
C) 14 percent
D) 40 percent
35) Nations listed in the text as losing the largest number of their people to emigration
include
A) Mexico, Canada, and the United States.
B) Russia, China, and India.
C) Germany, Russia, and Ukraine.
D) India, Russia, and the United States.
36) Guest workers are immigrants who
A) immigrate for specified periods to perform service, factory, or construction work.
B) travel seasonally, usually without visas, in agricultural work.
C) obtain visas to work on specific projects, usually in scientific research.
D) work in a country illegally, usually in 3-D jobs.
37) Guest workers are usually associated with jobs in what industries?
A) factory and construction
B) health care and elder care
C) education and childcare,
D) data entry and economics
38) Brain drain affects developing countries because
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A) lower-skilled workers demand higher wages.
B) multiple companies are competing for the same business.
C) they lose talent to migration, and this impacts their development.
D) their pool of low-cost, unskilled workers is reduced, damaging potential for
incoming foreign direct investment.
39) Developing nations are greatly concerned when highly-skilled professionals such as
scientists, IT specialists, teachers, and health care professionals leave the country to seek better
living arrangements. What term is given to this type of emigration?
A) self-fulfilling prophecy
B) ethnocentrism
C) groupthink
D) brain drain
40) What is the motivation behind brain drain?
A) the need to move from a rural to urban setting
B) government trade barriers that prevent the free flow of trade
C) the desire to seek improved economic circumstances
D) the search for economies of scale to lower production costs
41) What has been the traditional destination for migrating skilled workers?
A) Western Europe
B) the United States
C) China
D) the United Kingdom
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42) Elizabeth is a highly-sought-after scientific researcher. She relocated to Europe ten years
ago but is now returning to the United States. While the United States welcomes her skill level,
there is also some concern regarding the contributions she made in Europe. This situation
demonstrates the idea of
A) groupthink.
B) reverse brain drain.
C) self-fulfilling prophecy.
D) brain drain.
43) American firms contribute to reverse brain drain from the United States by
A) terminating foreign workers.
B) outsourcing knowledge work, which pulls talent back to the home country.
C) encouraging their best U.S. researchers to accept foreign postings.
D) hiring globally.
44) Jenae is negotiating with a foreign electrical supply company that includes an
organization of workers who formed a group that advances and protects the interests of the
group. This group is asking for higher wages than Jenae’s company can afford. This group is an
example of
A) a promotional mix.
B) a brain drain.
C) a labor union.
D) a manufacturing supply company.
45) Terri Henson represents his union at the negotiations table as they talk with the company
management team about higher wages and more health insurance coverage. The process Terri
engages in with the company is called
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A) collective bargaining.
B) reverse brain drain.
C) guest work.
D) repatriation.
46) The process in which a union represents the interests of everyone in the union when
bargaining with management is called
A) economies of scale.
B) collective bargaining.
C) comparative advantage.
D) a greenfield investment.
47) A policy of hiring and promoting based on ability and experience without considering
race or citizenship is
A) an ethnocentric policy.
B) a polycentric policy.
C) a regiocentric policy.
D) a geocentric policy.
48) A policy of hiring and promoting based on the parent company’s home-country frame of
reference is
A) an ethnocentric policy.
B) a polycentric policy.
C) a regiocentric policy.
D) a geocentric policy.
49) The staffing policy at Super Food International is based on the specific local context in
which the company’s subsidiaries operate. What type of staffing policy does this reflect?
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A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
50) An employee who is a citizen of the nation in which the parent company is headquartered
is known as
A) a home-country national.
B) a host-country national.
C) an ethnocentric employee.
D) an expatriate.
51) Relatively low levels of authority and decision making in headquarters is associated with
A) ethnocentric staffing.
B) regiocentric staffing.
C) geocentric staffing.
D) polycentric staffing.
52) At Mighty-Tuf Industrial Products Group, 30 percent of its employees are neither a
citizen of the parent company nation nor the host nation where they have a manufacturing plant.
These employees would be classified as
A) third-country nationals.
B) home-country nationals.
C) host-country nationals.
D) parent-country nationals.
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53) Companies in which there is little pressure to reduce costs or adjust for local
responsiveness and where most decisions are made using the home country’s frame of reference
have adopted which type of staffing policy?
A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
54) Ferguson Furniture group has adopted an ethnocentric staffing policy. Based on this,
where are most of the decisions made for the home and host country facilities?
A) at both the home and host country facilities depending on which is being affected by
the decision
B) at a third-country national in order to promote collective bargaining
C) at the host country facility in order to accommodate for local customs.
D) at the company’s headquarters, using the home country’s frame of reference
55) Regency Hotel Group uses an ethnocentric staffing policy. Based on this, how would the
company most likely handle an issue involving labor in a host country?
A) The home country office would not be aware of the matter since this staffing policy
creates two separate organizations.
B) They would send a labor negotiator from the home country to mitigate the issue.
C) They would expect the host country management team to handle the issue.
D) They would seek out a third-party group more familiar with the host country policies
to handle the matter.
56) A drawback of ethnocentric staffing policies is that
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A) it is less expensive to use employees from the home country.
B) there are no additional expenses associated with relocating these employees and their
families.
C) home-country employees may not have experience with the language and culture of
the host country.
D) they expand the experience base of home-country employees.
57) A polycentric staffing policy is appropriate when
A) there are low levels of pressure for cost reduction and high levels for local
responsiveness.
B) information technology is of increasing importance.
C) there are low levels of pressure for cost reduction and low levels for localization.
D) there are more females involved in management.
58) Companies that use a polycentric staffing policy would
A) feel pressure to reduce costs.
B) rely on home country policies for issues related to human resources.
C) face pressures for local responsiveness.
D) be more concerned with home country than host country cultural issues.
59) A drawback of polycentric staffing policies is that
A) it is less expensive to use employees from the home country.
B) there are additional expenses associated with relocating employees.
C) these employees may not have experience with the language and culture of the host
country.
D) there can be a conflict of loyalty between the host country and the employer.
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60) Casey Conglomerates only hires regional employees to fill key positions in host
countries. What type of staffing policy is the company using?
A) polycentric
B) regiocentric
C) ethnocentric
D) geocentric
61) What is a characteristic of a geocentric staffing policy?
A) It enables the practices used at headquarters to be transferred worldwide.
B) It only hires regional employees to fill positions in the host country.
C) It selects the best person for each job, without considering national origin.
D) It involves human resources policies that are created at the local level for the specific
context in which the local operations operate.
62) The board of directors told the corporate offices to hire the best person for the
management position in the host country office. That person did not have to be from either the
home or host country but had to have the skills to do the job. Which type of staffing policy does
this demonstrate?
A) regiocentric
B) ethnocentric
C) geocentric
D) polycentric
63) A potential downfall for the home-country office when hiring and training local, host-
country employees in a country where talented managers are hard to find is that
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A) the company has to pay them a higher salary, which creates inflation.
B) culture-based knowledge is hard to translate.
C) the company may lose them to local firms or other ICs once they are trained.
D) it enables reverse brain drain.
64) Training and development of potential candidates for expatriate assignments is
A) universal for all situations.
B) unnecessary with home-country nationals.
C) based on whether the candidate is a home-, host-, or third-country national.
D) typically done after the assignment starts.
65) When host-country nationals are employed, companies know that
A) training costs are a minimum.
B) they are familiar with local customs, culture, and language.
C) they are already familiar with the home country.
D) any conflict of interest is removed.
66) Tiger Appliance Group needs to fill a management position in its foreign office in
Germany. They haven’t been able to find anyone in Germany with the skills for the job, so they
are extending their search to other parts of Europe hoping to find someone with similar cultural
values as the German office. Which category of employee are they looking for?
A) home-country national
B) host-country national
C) third-country national
D) parent-country national
67) The use of third-country nationals as IC executives in developing countries is a growing
practice because
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A) they tend to prefer working in developing countries.
B) there is frequently a shortage of skilled host-country nationals.
C) they are not limited by cultural values.
D) they do not need work permits for the host country.
68) Generalizations about TCNs are difficult because
A) the IC usually does not know enough about their backgrounds.
B) the geocentric staffing policy prohibits these generalizations.
C) the use of TCNs is a new phenomenon and we don’t know much about them yet.
D) people achieve the TCN status in different ways.
69) The Ritter Group has assigned two people to travel to their foreign offices in South
America to determine why the same data issues keep occurring on order placements. This is a
six-month assignment. These two employees are examples of
A) inpatriates.
B) monopatriates.
C) expatriates.
D) flexpatriates.
70) About ________ percent of medium and large companies have employees working
abroad.
A) 25
B) 80
C) 55
D) 10
71) The proportion of expatriates who are women has
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A) declined.
B) increased.
C) remained steady.
D) dropped to zero.
72) The failure rate for expatriate assignments, including failing to achieve performance
targets for an international assignment or prematurely returning from the assignment, range from
________ percent.
A) 6 to 10
B) 50 to 75
C) 25 to 45
D) 40 to 65
73) Studies show that approximately ________ of expatriates leave their firms during the
course of their overseas assignment.
A) one-tenth
B) one-quarter
C) about one-third
D) one-half
74) The anxiety that people often experience when they move from a familiar culture to one
that is entirely different is known as
A) self-fulfilling prophecy.
B) culture shock.
C) brain drain.
D) expatriate syndrome.
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75) Researchers have found three dimensions associated with cross-cultural adjustment,
including: interaction with local nationals, adjusting to the general environment, and
A) the work context.
B) level of education.
C) ethnocentric patterns.
D) daily habits.
76) It has been found that as much as 90 percent of expatriate failure is the result of
A) language barriers.
B) family-related issues.
C) lack of knowledge of the host country.
D) local customs.
77) What is an accurate description of the spouses of expatriates?
A) They are able to legally work in the host nation, although their pay and benefits may
face limits.
B) Nearly one-quarter of spouses were employed during the course of the expat
assignment.
C) Many experience stages of grief, similar to the loss of a loved one, due to career
effects of the assignment.
D) They typically aren’t pursuing a professional career.
78) Walter is an executive for a large company. He has two children who are considered
“third-culture kids.” What does this mean?
A) Walter has returned from an expat assignment and brought his children gifts from the
local culture he was assigned to.
B) Walter and his family are expats who have lived in several different countries.
C) Walter and his family are expats and the children are unwilling to learn the host–
country language.
D) Walter works for a company that employs people from many different cultures and
societies.
79) How does knowledge of foreign languages help an expat?
A) It requires too much work to be worth the effort.
B) It can be of great assistance in making sales abroad.
C) It is useless if you know English.
D) It is of academic but not business value.
80) Repatriation can be associated with
A) reverse brain drain.
B) the self-fulfilling prophecy.
C) ethnocentrism.
D) reverse culture shock.
81) Companies should keep in mind that planning for an expat’s return should start
A) when the expat announces they want to return home.
B) within six months of the return date.
C) well before the assignment even begins.
D) on the first day of the expat assignment.
82) For expatriate employees, the salary portion of the compensation package is