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There are vast differences in local market needs in the consumer food business across the world.Yamaguchi Media,a Japanese multinational advertising agency,specializes in the food industry.Toward this,Yamaguchi Media uses a geocentric staffing approach.Which of the following is an advantage of adopting a geocentric staffing approach for Yamaguchi Media?


A) It tends to reduce cultural myopia and enhance local responsiveness.
B) It is inexpensive to implement.
C) It reduces the costs of value creation.
D) It allows all key management positions of a firm and its subsidiaries to be filled by parent-country nationals.
E) It requires minimal documentation for hiring foreign nationals.

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

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Kagemusha,Inc.,is a Japanese multi-national with operations in 23 countries around the world.It is Kagemusha's policy to staff all the key positions in the company's foreign operations with Japanese managers.What is Kagemusha's staffing policy?


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

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

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Define an expatriate manager.Describe the dimensions of self-orientation and others-orientation that predict success in a foreign posting .

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An expatriate manager is a citizen of on...

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Describe the different approaches that international businesses take to labor relations.

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International businesses differ markedly...

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Bringing managers together in one location for extended periods and rotating them through different jobs in several countries help a firm build an informal management network.

A) True
B) False

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During performance appraisals,two groups evaluate the performance of expatriate managers-host-nation managers and home-office managers.This is aimed at avoiding the problem of


A) cultural conflict.
B) unintentional bias.
C) operational errors.
D) central tendency.
E) culture shock.

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

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Which of the following is a disadvantage of adopting a geocentric staffing approach?


A) Cultural myopia negatively influences effective management control.
B) Training and relocation costs increase when transferring managers from country to country.
C) Host-country nationals cannot progress beyond senior positions in their own subsidiary.
D) A gap forms between host-country managers and parent-country managers.
E) The lack of management transfers leads to a lack of integration between corporate headquarters and foreign subsidiaries.

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

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How does unintentional bias affect the performance appraisal of expatriates? How can it be reduced?

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Unintentional bias makes it difficult to...

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Dalian Pharma,a Chinese company,has a core competence in expedited innovative drug discovery.It has used this core competence,which is based on the collective knowledge of hundreds of scientists and project managers,to grow and become a dominant player in the industry.What is the staffing policy likely to be followed by Dalian Pharma when it expands to India?


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

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

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In terms of expatriate pay,the income statement approach equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home.

A) True
B) False

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Briefly describe how national differences in compensation can affect an international business.

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Substantial differences exist in the com...

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In the absence of a reciprocal tax treaty,an expatriate may


A) have to pay income tax to both the home- and host-country governments.
B) not have to pay any tax.
C) not have to pay income tax only to the host-country government.
D) not have to pay income tax to the home-country government.
E) have to pay 50 percent less tax to the host-country government.

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

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Describe how management development programs can increase the value of human capital in an international business firm.

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Selection is just the first step in matc...

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A principal concern of domestic unions about multinational firms is that a company can counter its bargaining power with


A) work schedules tied to global rather than domestic standards.
B) wage rates tied to global rather than domestic standards.
C) the power to import labor from abroad.
D) the power to move production to another country.
E) the retention of low-skilled tasks in home country.

F) B) and D)
G) B) and E)

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Megan,a U.S.citizen,is the operations manager at the Middle East office of HS Constructions Inc.,an American firm.In this situation,she is an example of a(n)


A) immigrant manager.
B) host-country manager.
C) inpatriate manager.
D) expatriate manager.
E) virtual manager.

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

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An international firm that adopts a polycentric staffing policy is more likely to suffer from cultural myopia.

A) True
B) False

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According to Mendenhall and Oddou,expatriates with perceptual ability tend to be judgmental and evaluative in interpreting the behavior of host-country nationals.

A) True
B) False

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International firms that have a broad geographic scope are the most likely to have a geocentric mindset.

A) True
B) False

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Which of the following staffing approaches limits career mobility and isolates headquarters from foreign subsidiaries?


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

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

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In international businesses,firms pursue a polycentric staffing policy because they see it as the best way to maintain a unified corporate culture.

A) True
B) False

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