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International firms try to create value by:


A) transferring products and competencies overseas.
B) following a local staffing policy.
C) focusing on local responsiveness.
D) emphasizing a localization strategy.
E) adopting an ethnocentric staffing approach.

F) A) and D)
G) A) and E)

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According to a study by R.L.Tung,the most important reason for expatriate failure among U.S.multinationals is difficulty coping with a new environment.

A) True
B) False

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A(n) expatriate manager refers to:


A) a citizen of one country who is working abroad in one of the firm's subsidiaries.
B) a parent-country national who works in the parent country.
C) a host-country national who works in the host country.
D) any person who lives in a foreign country.
E) a person willing to work in different departments of a foreign firm.

F) A) and D)
G) C) and D)

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What is expatriate failure? According to Tung's survey,what are the different reasons for expatriate failure in U.S.multinationals?

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Expatriate failure refers to the prematu...

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It is important that the spouse of an expatriate manager,and perhaps the whole family,be included in cultural training programs.

A) True
B) False

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Amanda,an American manager,is successfully adjusting in a country where the culture is extremely male-dominated.According to Mendenhall and Oddou,which of the following dimensions that predict success in foreign postings is involved in this situation?


A) Perceptual ability
B) Others-orientation
C) Cultural toughness
D) Self-orientation
E) Empathy

F) C) and D)
G) B) and C)

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In the context of expatriate compensation,what is the role of a balance sheet approach?


A) It equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home.
B) It helps expatriate managers and their families to adjust to the day-to-day life of the host country.
C) It rewards expatriates on the basis of merit and performance.
D) It helps expatriates to come to terms with the standard of living of the host country.
E) It is offered as an inducement to accept foreign postings and live away from family.

F) C) and E)
G) A) and C)

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Which of the following is a disadvantage of an ethnocentric staffing policy?


A) It leads to resentment in the host country.
B) It isolates the headquarters from foreign subsidiaries.
C) It does not allow transfer of core competencies.
D) It leads to a dearth of qualified managers in the host nation.
E) It diversifies corporate culture.

F) All of the above
G) C) and E)

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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.

A) True
B) False

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Which of the following steps is true of bias in performance evaluations?


A) More weight should be given to an off-site manager's appraisal than an on-site manager's appraisal.
B) Cultural bias increases when the on-site manager is of the same nationality as the expatriate.
C) Home-office managers should write performance evaluations without consulting on-site managers to avoid bias.
D) Due to proximity, an on-site manager is more likely to evaluate the soft variables that are important aspects of an expatriate's performance.
E) A performance appraisal is invalid when the on-site manager is of the same nationality as the expatriate manager.

F) All of the above
G) D) and E)

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An impediment to cooperation between national unions is the wide variation in union structure.

A) True
B) False

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For international firms,an ethnocentric staffing approach is compatible with a localization strategy.

A) True
B) False

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In terms of expatriate pay,which of the following is a characteristic of a foreign service premium?


A) It allows a firm to pay expatriates' income tax in the host country.
B) It ensures that expatriates' children receive adequate schooling.
C) It helps to evaluate expatriates' performance without any unintentional bias.
D) It ensures that expatriates are prepared for reentry into their home-country organization.
E) It compensates expatriates for having to live in an unfamiliar country.

F) A) and B)
G) A) and C)

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It is believed that a firm attains higher performance when its employees are predisposed toward its value systems by their personality type.

A) True
B) False

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If a firm tries to create value by transferring core competencies to a foreign operation and,therefore,transfers parent-country nationals who have knowledge of that competency to the foreign operation,it pursues a(n) _____ staffing policy.


A) ethnocentric
B) polycentric
C) geocentric
D) eurocentric
E) transnational

F) None of the above
G) C) and D)

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In international businesses,a geocentric staffing policy is one in which all key management positions are filled by parent-country nationals.

A) True
B) False

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Organizational architecture refers to an organization's norms and value systems.

A) True
B) False

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In firms following a(n) _____ staffing policy,the lack of managers' mobility among national operations implies that the pay for expatriates should be kept country specific.


A) regiocentric
B) ethnocentric
C) geocentric
D) polycentric
E) international

F) B) and C)
G) C) and E)

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Unintentional bias makes it easy to evaluate the performance of expatriate managers objectively.

A) True
B) False

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In terms of expatriate pay,which of the following is true of a foreign service premium?


A) It ensures that expatriates' children receive adequate schooling.
B) It helps to evaluate expatriates' performance without any unintentional bias.
C) It ensures that expatriates are prepared for reentry into their home-country organization.
D) It is paid as a percentage of base salary, with 16 percent being the average premium.
E) It allows a firm to pay expatriates' income tax in the host country.

F) C) and D)
G) A) and B)

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