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1. A multidomestic corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas
markets.
a.
True
b.
False
ANSWER:
False
2. In some countries, night shifts are taboo.
a.
True
b.
False
ANSWER:
True
3. LightWays is a U.S. firm that has subsidiaries that operate as fully autonomous units in other countries, making
LightWays a multidomestic corporation.
a.
True
b.
False
ANSWER:
True
4. ChannelSystems would be considered a global corporation because it has fully autonomous units operating in multiple
countries.
a.
True
b.
False
ANSWER:
False
5. An expatriate should request a repatriation interview if it is not automatically offered by the firm in order to gain
information about the host country prior to beginning the foreign assignment.
a.
True
b.
False
ANSWER:
False
6. The European Union (EU) was established to facilitate free trade with the United States.
a.
True
b.
False
ANSWER:
False
7. XLTek, a German company, operates in South Korea. South Korea is the host country.
a.
True
b.
False
ANSWER:
True
8. Different cultural environments require different organizational behaviors.
a.
True
b.
False
ANSWER:
True
9. A global HR information system facilitates coordination between world units but is difficult to put in place.
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a.
True
b.
False
ANSWER:
True
10. Because of low labor costs and language similarities, it is likely that KyoTek, an Indian company, will locate its new
call center in the United States.
a.
True
b.
False
ANSWER:
False
11. Steve is an American. He works for a U.S. company at its facilities in Great Britain. Steve is considered a third-
country national.
a.
True
b.
False
ANSWER:
False
12. LightWays is just beginning to expand internationally. At this point, it is most likely that the firm will try to use host-
country nationals to manage its international facilities.
a.
True
b.
False
ANSWER:
False
13. One reason companies hire local citizens to work in their international facilities is that it is generally less costly than
relocating expatriates.
a.
True
b.
False
ANSWER:
True
14. One reason to employ host-country nationals is that local governments want good jobs for their citizens.
a.
True
b.
False
ANSWER:
True
15. LightWays hires natives of the host country to manage its international facilities as much as possible. These workers
are known as host country nationals.
a.
True
b.
False
ANSWER:
True
16. Michelle is French and is spending some time in the United States. A work permit or visa issued by the U.S.
government would allow her to seek employment in the country.
a.
True
b.
False
ANSWER:
True
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17. Louis is a student spending a year abroad. If he gets a work permit, or a visa issued by the government, he will be
permitted to work up to 20 hours per week for an organization that is headquartered in his home country.
a.
True
b.
False
ANSWER:
False
18. Foreign workers invited to come to perform needed labor are usually referred to as guest workers.
a.
True
b.
False
ANSWER:
True
19. Apprenticeship training in the United States is far superior to that in Europe.
a.
True
b.
False
ANSWER:
False
20. Transnational teams consist of people from the same country working on different international projects.
a.
True
b.
False
ANSWER:
False
21. For most companies, the transnational form represents an ideal, rather than a reality.
a.
True
b.
False
ANSWER:
True
22. About 25 percent of expatriates are women, and they perform just as well as men.
a.
True
b.
False
ANSWER:
True
23. The first step in selecting expatriates should be self-selection, where employees who volunteer to go abroad are given
the chance to do so.
a.
True
b.
False
ANSWER:
True
24. The failure of expatriate assignments is most often due to lack of technical and managerial ability.
a.
True
b.
False
ANSWER:
False
25. One reason that it is a good idea to have a repatriation interview is to address any technical issues related to the job
itself.
a.
True
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b.
False
ANSWER:
True
26. English is almost universally accepted as the language for international business.
a.
True
b.
False
ANSWER:
True
27. In order to encourage international companies to hire locals when they open a facility in a country, the host country
will often offer tax incentives, tariffs, and quotas.
a.
True
b.
False
ANSWER:
True
28. In recent years, there has also been a trend to send expatriates on longer, less project-based assignments.
a.
True
b.
False
ANSWER:
False
29. Managers in Latin American countries can encourage performance by using personal influence and working through
individual members of a group.
a.
True
b.
False
ANSWER:
True
30. In Asian countries, the underlying philosophy is cooperation.
a.
True
b.
False
ANSWER:
True
31. Despite improved telecommunications and travel, it is more difficult than ever to match up employers and employees
worldwide.
a.
True
b.
False
ANSWER:
False
32. Jay, a European, felt disoriented for the first two months that he worked in the United States. He was experiencing
culture shock.
a.
True
b.
False
ANSWER:
True
33. Morris, a manager for an American company, has just been transferred to the office in India. Repatriation is part of the
training he will receive to prepare him for that assignment.
a.
True
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b.
False
ANSWER:
False
34. Nearly all companies have career development programs designed for repatriating employees.
a.
True
b.
False
ANSWER:
False
35. Marissa works for a company whose pay plan focuses on internal equity and personal needs. It is likely that she works
for a Taiwanese company.
a.
True
b.
False
ANSWER:
True
36. Pay plans in Japan tend to focus on individual performance and achievement.
a.
True
b.
False
ANSWER:
False
37. Elana has an H2B visa. She can come to the United States for a maximum of six months to perform temporary,
agricultural seasonal work that is one-time only.
a.
True
b.
False
ANSWER:
False
38. Employee benefits in the United States are among the highest in the world.
a.
True
b.
False
ANSWER:
False
39. Companies tend to continue to use expatriates only when a specific skillset is needed or when individuals in the host
country require development.
a.
True
b.
False
ANSWER:
True
40. The balance sheet approach to compensation refers to designing pay systems that equalize the purchasing power of
employees at comparable positions living overseas and in the home country.
a.
True
b.
False
ANSWER:
True
41. A compensation method used to correct for the higher costs of goods and services overseas is the balance sheet
approach.
a.
True
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b.
False
ANSWER:
True
42. Host-based pay is compensation that is equivalent to that earned by employees in the country where the expatriate is
assigned, and companies use this method because it is less costly than other methods.
a.
True
b.
False
ANSWER:
True
43. Domestic managers may not be able to understand an expatriate’s experience.
a.
True
b.
False
ANSWER:
True
44. Poor cultural fit is a major reason why international job assignments fail.
a.
True
b.
False
ANSWER:
True
45. While unions are most often thought of as being associated with labor, China has only one union, which is more
closely aligned with management.
a.
True
b.
False
ANSWER:
True
46. In some countries, unions have alliances with other organizations like political parties, churches, or governments.
a.
True
b.
False
ANSWER:
True
47. The International Labour Organization enforces international labor standards.
a.
True
b.
False
ANSWER:
False
48. ExerEnterprises is considering several countries in which to open new facilities. The leading country under
consideration requires that there be a representation of labor on the board of directors. The country ExerEnterprises is
considering is Germany.
a.
True
b.
False
ANSWER:
True
49. Codetermination refers to the training an expatriate manager receives before an international assignment.
a.
True
b.
False
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ANSWER:
False
50. A domestic firm that has leveraged its existing capabilities to penetrate overseas markets is a(n) __________
corporation.
a.
transnational
b.
international
c.
multinational
d.
global
ANSWER:
b
51. ConFab has given its foreign subsidiaries the latitude to make decisions as appropriate in their regions of the world.
ConFab would best be characterized as
a.
an international corporation.
b.
a multidomestic corporation.
c.
a transnational corporation.
d.
a global enterprise.
ANSWER:
b
52. ShamRoth is a multinational firm that has kept control of its operations centralized in its the home office. ShamRoth
can best be characterized as a(n) __________ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
ANSWER:
d
53. TredWorks is a corporation that treats the world market as a whole and tries to combine its activities in
various countries to maximize efficiency. TredWorks can best be characterized as a(n) __________ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
ANSWER:
d
54. Because it treats the world market as a unified whole and works to maximize efficiencies on a globalized scale, the
Japanese company Matsushita is considered a(n) __________ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
ANSWER:
d
55. ShamRoth’s approach to international business is to try to achieve both local responsiveness and global efficiency.
ShamRoth can best be characterized as a(n) __________ corporation.
a.
transnational
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b.
international
c.
multinational
d.
global
ANSWER:
a
56. A company like McDonald’s, which offers culture-specific food items in different countries, is an example of a(n)
__________ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
ANSWER:
a
57. A task force has been created at KyoTek to explore the possibility of entering into various international markets. As
part of this team, Jon is responsible for analyzing market and trade cycles and currency fluctuations in the targeted
regions. Jon is researching __________ factors.
a.
economic.
b.
political.
c.
sociocultural.
d.
technological.
ANSWER:
a
58. The International Trade Union Confederation (ITUC) is a confederation of 311 national trade union centers
representing union members in __________ countries and territories.
a.
87
b.
123
c.
162
d.
176
ANSWER:
c
59. Cultural environment includes all of the following components EXCEPT
a.
education.
b.
values or ideologies.
c.
corporate structure.
d.
religious beliefs.
ANSWER:
c
60. The term used to refer to the communications, religion, values and ideologies, education, and social structure of a
nation is the
a.
ritual environment.
b.
general environment.
c.
cultural environment.
d.
task environment.
ANSWER:
c
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61. The country in which an international business operates is a(n)
a.
receptive country.
b.
adaptive country.
c.
resource country.
d.
host country.
ANSWER:
d
62. WTO member countries cover approximately __________ of all international trade.
a.
37 percent
b.
57 percent
c.
77 percent
d.
97 percent
ANSWER:
d
63. Home-country nationals can also be called
a.
host-country nationals.
b.
third-country nationals.
c.
international managers.
d.
expatriates.
ANSWER:
d
64. Randall is a U.S. citizen sent by a U.S. company to work abroad. Randall is a(n)
a.
host-country national.
b.
third-country national.
c.
international manager.
d.
expatriate.
ANSWER:
d
65. When an American corporation hires an employee from Italy to work in its office in Rome, this employee is referred
to as a(n)
a.
expatriate.
b.
international manager.
c.
host-country national.
d.
third-country national.
ANSWER:
c
66. When an American corporation hires an employee from Italy to work in its office in India, this employee is referred to
as a(n)
a.
expatriate.
b.
international manager.
c.
host-country national.
d.
third-country national.
ANSWER:
d
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67. The source of overseas employees that provides the advantages of less cost and greater facility in the language is
a.
host-country nationals.
b.
home-country nationals.
c.
third-country nationals.
d.
expatriates.
ANSWER:
a
68. If General Motors, an American company, transferred Karl Hammer, a native German, from his assignment in Bonn to
a new assignment in Paris, Karl would then be considered a
a.
home-country national.
b.
host-country national.
c.
third-country national.
d.
first-country national.
ANSWER:
c
69. A task force has been created at KyoTek to explore the possibility of entering into various international markets. As
part of this team, Louise is responsible for analyzing the stability of governments and laws, especially related to property
rights, in the targeted regions. Louise is researching __________ factors.
a.
economic
b.
political
c.
sociocultural
d.
technological.
ANSWER:
b
70. A task force has been created at KyoTek to explore the possibility of entering into various international markets. As
part of this team, Emma is responsible for analyzing the maturity of manufacturing equipment, information systems, and
intellectual property in the targeted regions. Emma is researching __________ factors.
a.
political
b.
technological
c.
economic
d.
sociocultural
ANSWER:
b
71. Marissa wants to get a job overseas. In order to do so, she will need to obtain a(n) __________ from the government
of the country in which she seeks employment.
a.
patent
b.
allowance permit
c.
work permit
d.
passport
ANSWER:
c
72. Guest workers
a.
are another name for home-country nationals.
b.
are invited to a country to perform needed labor.
c.
are not required to obtain a work permit.
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d.
are used when adequate numbers of skilled workers are available.
ANSWER:
b
73. Apprenticeship training in Europe directs a large number of youths into
a.
managerial training.
b.
white-collar training.
c.
supervisory training.
d.
vocational training.
ANSWER:
d
74. The __________ system of apprenticeship is one of the best in Europe.
a.
British
b.
Irish
c.
Dutch
d.
German
ANSWER:
d
75. Ira has an H2B visa. This means he can come to the United States for a maximum of __________ months to perform
temporary, nonagricultural seasonal work that is onetime only.
a.
6
b.
9
c.
12
d.
18
ANSWER:
b
76. ShamRoth has begun to use teams to conduct its international business. These transnational teams tend to be
a.
focused on projects that span multiple countries.
b.
comprised of members with generalized skills.
c.
homogenous.
d.
comprised of members from the same region.
ANSWER:
a
77. Levi Strauss has identified all of the following as attributes of successful global managers EXCEPT
a.
the ability to seize strategic opportunities.
b.
sensitivity to issues of diversity.
c.
interpersonal competency.
d.
the capability to manage a highly centralized organization.
ANSWER:
d
78. Today women comprise around __________ of expatriates.
a.
25 percent
b.
35 percent
c.
45 percent
d.
55 percent
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ANSWER:
a
79. Which of the following is NOT a major component of expatriate adjustment?
a.
Economic alignment
b.
Family alignment
c.
Company alignment
d.
Country alignment
ANSWER:
a
80. The first step in selecting individuals for an international assignment is
a.
self-selection.
b.
to assess core skills.
c.
to assess augmented skills.
d.
to create a candidate pool.
ANSWER:
a
81. Which of the following is a major reason for failure among expatriates?
a.
A spouse’s inability to adapt
b.
A manager’s personality
c.
Inability to cope with larger responsibilities
d.
Distaste for travel
ANSWER:
a
82. Joe has a habit of scratching his head when he is thinking. While working in Japan, his colleagues tended to avoid
him. He did not know why, because he did not realize that in Japan, scratching the head is a sign of
a.
comprehension.
b.
a lack of understanding.
c.
excitement.
d.
anger.
ANSWER:
d
83. Which country is more focused upon competition and less on cooperation?
a.
The United States
b.
Japan
c.
Taiwan
d.
China
ANSWER:
a
84. Individuals working internationally need to know as much as possible about all of the following host-country
characteristics EXCEPT
a.
social and business etiquette.
b.
cultural values and priorities.
c.
political structure and current players.
d.
popular fashion trends.
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ANSWER:
d
85. Among the biggest problems for expatriates and foreign business travelers is
a.
foreign exchange conversion.
b.
scheduling time off.
c.
driving on the other side of the road.
d.
communication.
ANSWER:
d
86. Melanie Fitzpatrick is an American expatriate assigned to England. During a business meeting in London with
important local customers, one customer tells her that he wants to “table” the discussion on price. He probably means that
a.
he wants to put off discussing price until later.
b.
he wants to discuss other items before discussing the price.
c.
he wants to discuss the price immediately.
d.
he never wants to discuss price openly.
ANSWER:
c
87. When something is inconvenient to the __________, it is most likely downright impossible.
a.
Arabs
b.
French
c.
Chinese
d.
Indians
ANSWER:
c
88. According to cross-cultural studies, nations tend to cluster according to similarities in all of the following cultural
dimensions EXCEPT
a.
laws.
b.
work goals.
c.
values.
d.
job attitudes.
ANSWER:
a
89. According to cross-cultural studies, __________ is more likely to encourage competition among employees.
a.
Japan
b.
the United States
c.
Taiwan
d.
China
ANSWER:
b
90. Melanie has worked at an international assignment for the last six years. She is now transitioning home through a
process known as
a.
expatriation.
b.
repatriation.
c.
magnetic travel.
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d.
the Boomerang effect.
ANSWER:
b
91. European managers, especially those in France, Germany, and Italy, tend to be __________ in their decision-making
style when compared with managers in the United States.
a.
more participatory
b.
less voluntary
c.
the same
d.
more autocratic
ANSWER:
d
92. Japanese managers tend to be __________ in their decision-making style when compared with U.S. managers.
a.
more participatory
b.
the same
c.
more autocratic
d.
more likely to involve very few people
ANSWER:
a
93. Which of the following questions would be the most important to ask if one was concerned about maximizing his/her
career benefits with a foreign assignment?
a.
How much will the assignment increase his/her salary?
b.
Will the assignment provide an opportunity to learn a new language?
c.
How many executives within his/her organization have a foreign-service assignment in their background?
d.
How long will the assignment last?
ANSWER:
c
94. Even after a few years overseas, Melanie continues to experience a disorientation that causes perpetual stress, more
commonly known as
a.
future shock.
b.
culture shock.
c.
international disorientation.
d.
eustress.
ANSWER:
b
95. Some studies show that expatriates frequently leave their organizations within __________ months of returning from
an international assignment.
a.
3 to 6
b.
6 to 9
c.
9 to 18
d.
12 to 24
ANSWER:
d
96. As part of its program to help overseas workers, ShamRoth includes repatriation to
a.
train expatriates prior to their first international assignment.
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b.
help employees make the transition back home.
c.
adapt leadership and decision-making styles to the host country.
d.
reduce communication errors in foreign assignments.
ANSWER:
b
97. Ilene is a French citizen working in Brazil. Her company uses __________, meaning that she is paid based on the
compensation practices used in France.
a.
home-based pay
b.
balance sheet scheduling
c.
cost-of-living pay scaling
d.
myopic earning
ANSWER:
a
98. The process of repatriation begins
a.
with the notification that the foreign assignment is over and the expatriate will return home.
b.
when an employee returns home.
c.
before an employee leaves for an international assignment.
d.
when an employee requests it.
ANSWER:
c
99. In collectivist societies such as Japan and Taiwan, pay plans focus on
a.
individual performance.
b.
internal equity and personal needs.
c.
weekly or monthly salary guarantees.
d.
non-financial incentives.
ANSWER:
b
100. Eric is a French expatriate working in Canada. He receives a portion of his pay in Canadian dollars to cover his day-
to-day expenses and a portion of his pay in Euros to safeguard his earnings from changes in inflation or foreign exchange
rates. This type of pay plan is known as
a.
host-based pay.
b.
localization.
c.
split pay.
d.
home-based pay.
ANSWER:
c
101. Among the following countries, which has the highest hourly wages?
a.
The United States
b.
Japan
c.
Netherlands
d.
Germany
ANSWER:
c
102. ShamRoth uses a compensation system known as __________ in which it adapts pay and other compensation
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benefits to match the standards and practices of the country where an employee is assigned.
a.
localization
b.
split pay
c.
host-based pay
d.
home-based pay
ANSWER:
a
103. In using the balance sheet approach to compensating expatriate managers, the term “incentives” refers to the concept
of
a.
paying essentially the same as home-country counterparts are paid in similar jobs.
b.
compensating the managers for separation from family and friends.
c.
covering moving, storage, and educational expenses.
d.
offsetting the higher costs of overseas goods, services, and housing.
ANSWER:
b
104. In using the balance sheet approach to compensating expatriate managers, the term “differentials” refers to the
concept of
a.
paying essentially the same as to home-country counterparts in similar jobs.
b.
compensating the person for separation from family and friends.
c.
covering moving, storage, and educational expenses.
d.
offsetting the higher costs of overseas goods, services, and housing.
ANSWER:
d
105. Which of the following is NOT one of the five steps related to calculating the ROI of an international assignment?
a.
Defining the assignment’s objectives
b.
Developing an equation that converts qualitative behavior into quantifiable measurements
c.
Prioritizing qualitative mechanisms and aspects
d.
Evaluating the expatriate’s performance
ANSWER:
c
106. The most active international union organization is the
a.
European Labour Organization.
b.
International Labour Organization.
c.
European Trade Union Confederation.
d.
International Trade Union Confederation.
ANSWER:
d
107. Steve’s feedback regarding his work and the support he receives is almost always reliable. The fact that he is quite
accurate in evaluating his own performance suggests that he is most likely in which job situation?
a.
Expatriates
b.
Chief executive officers
c.
Middle-level managers
d.
Technicians
ANSWER:
a
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108. China has
a.
one union.
b.
two unions.
c.
three unions.
d.
four unions.
ANSWER:
a
109. A specialized agency of the United Nations that researches and endorses labor standards is called
a.
the World Trade Organization.
b.
the International Labour Organization.
c.
the Congress of Industrial Organizations.
d.
the Center for Collective Bargaining.
ANSWER:
b
110. A task force has been created at KyoTek to explore the possibility of entering into various international markets. As
part of this team, Ruis is responsible for analyzing human rights, education standards, and population demographics in the
targeted regions. Ruis is researching __________ factors.
a.
political
b.
economic
c.
technological
d.
sociocultural
ANSWER:
d
111. A very high level of worker participation in management is found in Germany, where national law requires that labor
be part of the boards of directors of companies in an arrangement called
a.
German unionization.
b.
worker councils.
c.
shop steward movement.
d.
codetermination.
ANSWER:
d
112. A domestic firm, like Honda, General Electric, or Procter & Gamble, that builds on existing capabilities to penetrate
overseas markets is a(n) __________ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
ANSWER:
b
113. What are the primary differences among international, multidomestic, global, and transnational corporations?
ANSWER:
The international corporation is essentially a domestic firm that builds on its existing capabilities to penetrate
overseas markets. A multidomestic corporation (MDC) is a more complex form that usually has fully
autonomous units operating in multiple countries. The global corporation can be viewed as a multinational
firm that maintains control of operations back in the home office. Finally, a transnational corporation attempts
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