Which of the following is the most likely reason for hiring host country nationals to fill most of a companys foreign positions?

26.
Which of the following agreements have been adopted by Canada, Mexico, and the United States to encourage trade between the three countries?
A.

CSN

B.

NAFTA

C.

PICTA

D.

APEC

E.

TAFTA

b

27.
Peter, a British citizen, and Keith, a U.S. citizen, are employees of an electronics manufacturing company headquartered in London. While Peter works out of the London office, Keith operates out of the marketing unit in New York. Which of the following statements is true in this scenario?
A.

Peter is a host-country national.

B.

Peter is a parent-country national.

C.

Peter and Keith are expatriates.

D.

Keith is a third-country national.

E.

Keith is a home-country national.

b

28.
Gerard is an Australian citizen and works at the headquarters of an Australian company. This would make him a(n) _____.
A.

host-country national

B.

expatriate

C.

governing-country national

D.

third-country national

E.

parent-country national

e

29.
FileTech, a company headquartered in the United States, opens an overseas facility in Ireland. In this scenario, the Irish facility is located in a
A.

host country.

B.

parent country.

C.

first country.

D.

third country.

E.

guest country.

a

30.
Sergio, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Sergio is a
A.

host-country national.

B.

parent-country national.

C.

first-country national.

D.

third-country national.

E.

guest-country national.

a

31.
Thomas, a South African, is employed by a pharmaceutical company whose headquarters are in Philadelphia. Thomas operates out of the firm's production facility in Cape Town, South Africa. Thomas is considered to be a(n)
A.

parent-country national.

B.

third-country national.

C.

host-country national.

D.

repatriate.

E.

expatriate.

c

32.
Which of the following refers to a country that is neither the parent country nor the host country of a company?
A.

first country

B.

facilitating country

C.

governing country

D.

third country

E.

guest country

d

33.
Which of the following terms would accurately describe an individual who was born in the United States and is currently working in Germany for a company headquartered in China?
A.

parent-country national

B.

host-country national

C.

third-country national

D.

home-country national

E.

guest-country national

c

34.
A beverage company headquartered in Miami selects a Brazilian manager to run its Mexican operations. In this example, the Brazilian manager is a
A.

parent-country national.

B.

host-country national.

C.

third-country national.

D.

home-country national.

E.

first-country national.

c

35.
A company, which has its headquarters in Japan, has branches in the United States. A Pakistani manager works in a facility in the United States. In this scenario, Japan is the _____ country, and Pakistan is the _____ country.
A.

parent; third

B.

expatriate; host

C.

host; guest

D.

third; first

E.

parent; host

a

36.
James, an American who works for a U.S.-based company, has been sent to England for a work assignment. James would be known as a(n)
A.

expatriate.

B.

repatriate.

C.

host-country national.

D.

third-country national.

E.

guest-country national.

a

37.
John and Henry are U.S. citizens and work for the same law firm that is headquartered in New York. John, however, works from the firm's London office, while Henry works from the office in New York. Which of the following is a difference between the two employees?
A.

John is an expatriate, whereas Henry is a parent-country national.

B.

John is a host-country national, whereas Henry is an expatriate.

C.

John is a third-country national, whereas Henry is a host-country national.

D.

John is a parent-country national, whereas Henry is a host-country national.

E.

John is repatriate, whereas Henry is a third-country national.

a

38.
A company with _____ level participation is likely to have a single office, the headquarters, in the parent country.
A.

international

B.

multinational

C.

global

D.

domestic

E.

transnational

d

39.
Which of the following is the usual way in which companies first enter foreign markets?
A.

importing

B.

offshoring

C.

exporting

D.

outsourcing

E.

relocating

c

40.
Which of the following best defines an international organization?
A.

an organization that builds facilities in a number of different countries in an effort to minimize distribution costs

B.

an organization that builds facilities in a number of different countries in an effort to minimize production costs

C.

an organization that sets up one or a few facilities in one or a few foreign countries

D.

an organization that exports goods to more than a few countries

E.

an organization that exports goods to a number of different countries

c

41.
Which of the following best describes a multinational company?
A.

an organization that builds facilities within the same country to facilitate large-scale exports to various countries

B.

an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs

C.

an organization that sets up one or a few facilities in one or a few foreign countries

D.

an organization that operates from one country and has customers from all over the globe

E.

a domestic organization that chooses to locate a facility using cultural differences as an advantage

b

42.
Which of the following organizations are most likely to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage?
A.

foreign subsidiaries

B.

international organizations

C.

multinational organizations

D.

global organizations

E.

domestic organizations

d

43.
Dev and Emily are employees of a publishing house and work together on the same team. Dev believes that Emily hails from an individualistic culture, while Emily disagrees. Which of the following, if true, would strengthen Dev's argument?
A.

Emily prioritizes helping her team members attain their career advancement goals.

B.

Emily focuses on self-development and puts her needs before those of the group.

C.

Emily places emphasis on achieving upward social mobility by fulfilling common goals.

D.

Emily prefers decision making through her team members' participation in management.

E.

Emily's traits are typical of those from cultures that expect protection from the community.

b

44.
Jerome believes that the key to effective management is to involve his team members in the firm's decision-making processes. He surmises that this will allow him and his team to work as one unit, making choices that will benefit them all in addition to the firm. In this case, Jerome's thoughts reflect that of a person with
A.

an individualistic nature.

B.

a collectivist nature.

C.

high power distance.

D.

low uncertainty avoidance.

E.

a short-term orientation.

b

45.
Edward, a U.S. businessman, visits India for a corporate meeting. While interacting with the board members, he addresses them by their first names, as he does with board members in the United States. However, the board members in India were offended by this gesture. Which of the following differences in culture does this scenario reveal?
A.

individualism/collectivism

B.

uncertainty avoidance

C.

power distance

D.

long-term/short-term orientation

E.

masculinity/femininity

c

46.
Tanya works at a retail store in Los Angeles. She addresses her Indian manager, Priya, by her first name. Tanya's colleague advises against addressing Priya by her name, as she might find it disrespectful. The colleague is most likely right if Priya's cultural beliefs align with a
A.

long-term orientation.

B.

collectivist nature.

C.

high power distance.

D.

low uncertainty avoidance.

E.

short-term orientation.

c

47.
Sheena hails from a country whose legal system is based on religious scriptures. Social and business behaviors are judged based on religious laws and legal codes to a great extent. Which aspect of culture do these conditions represent?
A.

masculinity

B.

time orientation

C.

high uncertainty avoidance

D.

individualism

E.

power distance

c

48.
Eric's company lays down stringent rules for employees to follow at work. Employees are expected to set goals for each day and week, and to share those goals on the company intranet. This way, Eric and his coworkers can be aware of the progress of departmental projects and prepare far in advance to meet deadlines. These qualities best describe a company that rates high on
A.

individualism.

B.

long-term orientation.

C.

femininity.

D.

uncertainty avoidance.

E.

power distance.

d

49.
Joanne and Patrick are expatriates working for different companies in two different countries. Joanne's company is very structured, follows rigid rules for security, and expects employees to behave in a certain manner. Patrick's company is a little more relaxed, and they tend to take each day as it comes. Which of the following cultural differences contributes to this difference in the way these corporations operate?
A.

Joanne's company is in a country high in feminine culture, whereas Patrick's company is in a country high in masculine culture.

B.

The culture of Joanne's company functions with a low power distance, whereas the culture of Patrick's functions with high power distance.

C.

Joanne's host country functions at an individualistic level, whereas Patrick's host country functions at a collectivist level.

D.

Joanne is in a company with a short-term orientation culture, whereas Patrick is in a company with a long-term orientation culture.

E.

Joanne's company's culture functions with a high uncertainty avoidance, whereas Patrick's company's culture functions with a low uncertainty avoidance.

e

50.
Adrian and Ben are employees of a software development firm in San Francisco. Ben believes that Adrian exhibits behaviors that resemble those of individuals from masculine cultures. Which of the following, if true, would support Ben's beliefs?
A.

Adrian places more emphasis on a harmonious working relationship between members in his team.

B.

Adrian places more emphasis on creating an atmosphere of competition among his team members.

C.

Adrian places more emphasis on undertaking initiatives aimed at mobilizing funds for the underprivileged.

D.

Adrian places more emphasis on undertaking initiatives aimed at preventing environmental degradation.

E.

Adrian places more emphasis on achieving social mobility through collectivist means.

b

51.
Tiffany, the marketing manager of a mobile phone company, is achievement-oriented and exhibits high levels of assertiveness. She creates marking plans that will maximize financial returns and enjoys competing against other managers in the company. Tiffany is most likely to be an individual whose culture reflects
A.

masculine traits.

B.

a short-term orientation.

C.

high power distance.

D.

low uncertainty avoidance.

E.

collectivist views.

a

52.
Stephen works as an accountant in the headquarters of a fast-food chain. He encourages his colleagues to participate in an initiative he started that involved planting trees and flowers on the office's grounds. Stephen's initiative most likely reflects one of individuals in a _____ culture.
A.

collectivist

B.

short-term

C.

feminine

D.

high power distance

E.

low uncertainty avoidance

c

53.
Which of the following statements is true about cultures with a long-term orientation?
A.

They have a tendency to look down upon those who invest in savings.

B.

They prefer jobs that are relaxed, easy, and do not involve hard work.

C.

They focus primarily on cultural values that fulfill obligations in the present.

D.

They promote respect for those who are good at achieving immediate results.

E.

They focus primarily on cultural values that tend to pay off in the future.

e

54.
Jenny, a sales executive, believes that her hard work and persistence will reap rewards in the future. She is not very assertive, prefers to be instructed, and awaits her team's approval before taking decisions. Jenny's attitudes and behavior are consistent with a culture that
A.

is highly individualistic.

B.

has high power distance.

C.

is low on uncertainty avoidance.

D.

is feminine.

E.

is long-term oriented.

e

55.
_____ promote respect for past tradition and for fulfilling social obligations in the present.
A.

Short-term orientations

B.

Masculine cultures

C.

Feminine cultures

D.

Individual orientations

E.

Capitalist orientations

a

56.
Which of the following is a feature of a company with an individualistic culture?
A.

It has flatter pay structures.

B.

It exhibits greater differences between the highest and lowest pay in the organization.

C.

It emphasizes on organizational rather than individual performance.

D.

It involves employees in collective decision making.

E.

It has compensation systems based on fixed pay according to seniority.

b

57.
The _____ of a country's labor force affect how and the extent to which foreign companies want to operate there.
A.

population

B.

HR practices

C.

education and skill levels

D.

cultural differences

E.

collectivism and potential for unionization

c

58.
Which of the following is the best way for an internationally-expanding organization to gain expertise in a host country's legal requirements?
A.

gather advice from a third-country national, since they are a neutral party

B.

hire one more host-country nationals

C.

increase the number of parent-country lawyers

D.

open a facility based on the parent-country's legal system and adjust operations as the need arises

E.

interview host-country nationals to learn how they would like facilities in their countries to be run

b

59.
ExAlt Technologies forecasts a sales increase in several product lines, so management is planning how to expand production capacity at its three factories in Mississippi, Poland, and Thailand. The HR department prepares estimates of local labor costs and availability of workers in each location. What else should the decision makers take into account when planning labor needs?
A.

calculating of the total number of floating holidays each employee will receive

B.

the probability that newly hired employees at each location will suffer culture shock

C.

whether the country in which the factory operates has an individualistic culture

D.

if the company can put a greater emphasis on protecting workers' jobs

E.

how these considerations weigh against financial and operational requirements

e

60.
Several years ago, Seventh National Bank set up a large customer service facility in India and hired English-speaking operators to handle questions from customers. Now, although the bank forecasts continued growth, the human resource department is planning for fewer workers in India. What changes in its customer facility is most likely in this situation?
A.

The bank will switch to exporting these services to customers from its home office.

B.

The facility is moving to a higher-wage country.

C.

The bank does not intend to continue this service to customers.

D.

The bank is expecting the workers to handle each call faster.

E.

The facility is automating the process of answering routine questions.

e

61.
Identify an advantage of having wide latitude in reducing a company workforce.
A.

It gives employers the option of hiring for peak needs and laying off employees if needs decline.

B.

It helps in protecting workers' jobs.

C.

It helps employees adjust to a new culture.

D.

It allows workers to keep more of their earnings regardless of the taxes they pay.

E.

It gives employees the advantage of accumulating many years of work experience in an organization.

a

62.
U.S.-based GlitterMe introduced a line of accessories that have been very popular in France, leading the company to want to open a distribution facility there. The marketing manager is optimistic and wants to scale up fast, but the HR manager advises proceeding with caution. What difference between the countries best explains the HR manager's advice?
A.

If the company replaces French workers in the future, they will have to develop new skills.

B.

HR planning addresses hiring but cannot prepare the company for a possible slowdown.

C.

French companies are developing computer systems to automate distribution facilities.

D.

French laws encourage layoffs when business slows, which is bad for morale.

E.

U.S. laws give employers wide latitude for workforce reductions, but French laws do not.

e

63.
When Builder Bob Enterprises, a maker of construction equipment, needs supervisors for its factories in China, it recruits Chinese workers before it looks in other countries. Which statement best explains Builder Bob's recruiting practices in China?
A.

Any Chinese workers Builder Bob hires must be eligible to work in the United States.

B.

The United States ranks among the most challenging destinations for expatriate assignments.

C.

Sometimes third-party nationals have better technical and human relations skills.

D.

Chinese employees work harder and are better motivated than expatriate employees.

E.

Hiring locally is much less expensive than training and transporting expatriate employees.

e

64.
Which of the following is the most likely reason for hiring host-country nationals to fill most of a company's foreign positions?
A.

they are familiar with the parent-country's customs

B.

they can easily understand the values of the local workforce

C.

they cost more to train, showing the company invests in its workers

D.

the company will not be required to transport the employee's spouse

E.

these employees are far more open to taking on new job responsibilities

b

65.
Sean, a consultant, was assigned an overseas project in China for a period of two years. After a period of seven months, Sean's manager decides to bring Sean back to his home country and replace him with someone else in China. Which of the following, if true, is most likely to have resulted in this decision?
A.

Sean exhibited the ability to effectively communicate in Mandarin.

B.

Sean exhibited a sense of intolerance toward collectivist ideals.

C.

Sean exhibited high levels of extraversion that was required for the job.

D.

Sean exhibited high levels of cohesiveness.

E.

Sean exhibited lower levels of disillusionment than other employees.

b

66.
Betty, an American, works for an automobile manufacturer in New Jersey. Her manager, Ruth, sends her on an overseas assignment to handle operations at the company's newly acquired plant in Japan. Which of the following, if true, could have most likely led to Betty being chosen for the assignment?
A.

Betty lacks tolerance to ambiguity and resists change

B.

Betty prefers to work in a less challenging work environment

C.

Betty works best with those from feminine cultures with low power distance

D.

Betty is insensitive to differences in cultures and norms

E.

Betty possesses the motivation to succeed and is achievement-oriented

e

67.
Wowee Appliances is setting up production and distribution facilities in India to meet the growing demand there. The company's executives want the human resource department to identify one of its U.S. managers to lead the operations there, so he or she can ensure that the company culture is maintained. They ask the HR vice president to recommend a person with strong financial skills. The HR vice president agrees, but adds that they also should use psychological testing to identify candidates who are highly flexible and conscientious. Which statement best supports the HR vice president's advice?
A.

These traits will replace the need for support from family members.

B.

These traits will help the manager be extroverted in the new environment.

C.

These traits are associated with a high degree of financial skills.

D.

These traits will prevent the manager from noticing cultural differences.

E.

These traits will help the manager persevere through culture shock.

e

68.
When an expatriate sent on a foreign assignment begins experiencing feelings of isolation, criticism, stereotyping, and even hostility, they are said to be experiencing _____.
A.

validation

B.

adjustment

C.

recovery

D.

culture shock

E.

repatriation

d

69.
Roger, an automobile engineer, was sent on a foreign assignment to Spain. Initially, Roger was fascinated by the culture and history of the town he lived in. Within a month, he began to feel disillusioned and discomforted by the differences in norms and values. Which of the following terms best describe this phase of Roger's experience?
A.

recovery

B.

culture shock

C.

honeymoon

D.

validation

E.

adjustment

b

70.
Christophe works for a German automobile company. He was sent to the United States for an assignment. Initially, he enjoyed the culture and practices of the country. As time progressed, however, Christophe found it difficult to adjust to the new culture and to abide by its norms and values. Christophe's experience can be defined as _____.
A.

power distance

B.

time orientation

C.

repatriation

D.

validation

E.

culture shock

e

71.
While training and developing a global workforce, which of the following is a challenge that an organization is most likely to face?
A.

creating a comprehensive training program for employees from different cultures

B.

making employees aware of the training content and the method of evaluation

C.

linking training objectives to performance management

D.

making employees aware of the development plans

E.

deciding the duration of the training program

a

72.
Beenes & Bacon Ltd., a consulting firm with offices in seven countries, is bringing together employees from all locations for a leadership training event. Which of the following considerations is most affected by the international nature of the workforce?
A.

the need to measure training outcomes

B.

the need to have training objectives

C.

management's interest in the topic

D.

the employees' motivation level

E.

cultural differences

e

73.
Which of the following statements describes an approach that is most appropriate for training employees from cultures high in uncertainty avoidance?
A.

trainers adopt an impromptu style of instruction

B.

trainers provide a formal instructional environment

C.

trainers are flexible and open to schedule and activity changes

D.

trainers allow trainees to determine the pace of the programs

E.

trainers emphasize trainees' relationships with one another

b

74.
_____ refers to training employees on overseas work assignments to work through national and cultural boundaries.
A.

Adventure learning

B.

Experiential learning

C.

Validation

D.

Cross-cultural preparation

E.

Repatriation

d

75.
_____ refers to training employees and their family members to get them ready for an assignment in a foreign country.
A.

Acculturation

B.

Uncertainty avoidance

C.

Cross-cultural preparation

D.

Community training

E.

Biculturalism

c

76.
Ricardo has been selected to work at his firm's manufacturing plant in China. The training department divides the cross-cultural preparation into three phases. Which of the following is the training team likely to do during the departure phase of cross-cultural preparation?
A.

They are likely to conduct training sessions that include language instructions.

B.

They are likely to arrange a mentoring program for the assignment overseas.

C.

They are likely to provide information about changes in the home-country workplace.

D.

They are likely to provide the company's newsletters and local newspapers.

E.

They are likely to provide a formal program for the actual assignment.

a

77.
International assignments are especially beneficial to the organization if they are linked to the company's ____.
A.

labor relations

B.

outsourcing programs

C.

training methods

D.

bonus plans

E.

development programs

e

78.
According to your text, appropriate behavior in Ghana includes
A.

touching foreheads as a sign of greeting.

B.

dramatic displays of loyalty only when it suits the individual.

C.

disobedience of government-suggested regulations and procedures.

D.

the length of eye contact.

E.

repaying obligations.

e

79.
Which of the following statements best describes a difference of giving performance feedback outside the United States?
A.

In contrast to U.S. practices, performance feedback outside the United States includes repayment of obligations.

B.

Performance feedback is expected in the United States, but is forbidden by many other countries' laws.

C.

U.S. workers are more interested than other workers in hearing about whether they are loyal.

D.

Employees in other countries seek out direct negative feedback more readily than U.S. employees do.

E.

Employees in other countries are less likely to be comfortable with direct statements about their performance.

e

80.
Kendra, a human resource professional, works for a U.S. company that will be opening an office in Mexico City. She is preparing an outline for training the managers there in how to carryout performance management. Which of the following statements expresses a valid point to cover in the training?
A.

If growth slows, the company may have to update its performance plans more often.

B.

If managers are concerned about bad karma, they do not have to give employees feedback.

C.

In delivering feedback, managers should meet cultural standards for bowing and eye contact.

D.

Managers should review employees' shortcomings before giving praise.

E.

Managers can expect that employees want to know what they are doing right.

e

81.
In Brazil, the pay structure includes high pay for managers relative to nonmanagement employees. Which statement best explains the wide pay difference in Brazil?
A.

Market structures are consistent across countries.

B.

Brazil does not have good recruiting systems for identifying talented managers.

C.

Brazilian managers tend not to be loyal, so companies are constantly replacing them.

D.

Multinational companies have been leaving Brazil because of falling demand.

E.

The demand for managers with technical expertise has been outstripping the supply.

e

82.
Identify a true statement about decisions related to the global compensation strategy.
A.

They affect a company's costs and abilities to compete.

B.

They focus more on flexibility than on fairness to account for differences across cultures.

C.

They are made on the basis of the cost of living in the home country.

D.

They do not compare wages across countries.

E.

They are not determined by labor costs.

a

83.
The founder of Rainbow Fine China wants to open its second facility to produce housewares in the United States. However, the finance manager suggests an overseas location would help the company remain competitive, because labor costs are lower in many other countries. To arrive at the decision that will best promote Rainbow's ability to compete, what other HR factors, if any, should the company consider?
A.

access to resources in each possible location

B.

differences in transportation costs from factories to customers

C.

no other factors, because costs determine competitiveness

D.

differences in workforces' education levels and languages

E.

differences in workforces' education, skill, and productivity

e

84.
Identify a true statement about employee benefits.
A.

In both the United States and Europe, the awarding of stock options is linked to specific performance goals.

B.

Pension plans are more widespread in the United States and Japan than in Western Europe.

C.

Unlike in the United States, compensation plans in other countries are less likely to include benefits.

D.

Paid vacation tends to be more generous in Western Europe than in the United States.

E.

Although stock options became a common form of incentive pay in Europe during the 1990s, American businesses did not begin to adopt them until the end of that decade.

d

85.
Weeble Brass, a maker of musical instruments based in Akron, Ohio, is preparing to open a branch office in Paris. Its benefits package in the United States includes the benefits most commonly offered in this country. What additional benefits are the French employees likely to expect?
A.

two weeks of paid vacation and national health insurance

B.

unpaid family leave and paid vacation time

C.

health insurance and unpaid maternity leave

D.

pensions and flexible work schedules

E.

pensions and more paid vacation time

e

86.
Identify a true statement about international labor relations.
A.

In comparison with U.S. organizations, European organizations exert more centralized control over labor relations in the countries they operate.

B.

The day-to-day decisions about labor relations are usually handled by each foreign subsidiary in companies that operate across borders.

C.

Governments never get involved to protect workers who immigrate to other countries.

D.

Most U.S. organizations, in contrast to European organizations, bargain with a union representing an entire industry's employees, rather than with the local union.

E.

Companies that operate across national boundaries mostly work only with unions in the home country.

b

87.
Rachel, a Canadian citizen, has been working in the United States for two years. Rachel's manager, Kevin, believes she possesses the skills required for adaptation and is ideal for an overseas managerial assignment in India. Which of the following, if true, strengthens Kevin's belief?
A.

Rachel can take criticism only from positions above hers.

B.

Rachel needs time to develop a positive self-image in a new place.

C.

Rachel has the ability to foster relationships with people in a host country.

D.

Rachel does not understand and value her own culture very well.

E.

Rachel is very assertive and resistant to change.

c

88.
Lindsay, a human resource professional, is evaluating some of the company's managers to select one for an overseas assignment. She knows she may not discriminate based on age or sex, but she also doesn't want to send someone on an assignment that will cause personal difficulties, disrupt family relations, and cause complications for the manager's success. How can she best avoid discrimination while selecting a candidate who can thrive in the assignment?
A.

by maintaining a positive view of the assignment so all candidates will be interested

B.

by inviting a frank, but private, conversation about family-related issues

C.

by interviewing only candidates without spouses or children

D.

by asking each candidate to describe his or her family situation

E.

by giving a complete, accurate preview of the assignment and the host country's culture

e

89.
Which of the following employees is likely to be the most motivated to take on an overseas assignment?
A.

Sayed, who may have medical conditions to deal with if he travels overseas

B.

Tina, who has a very realistic understanding of what working and living abroad require

C.

Ria, whose spouse doesn't want to shift to a new culture and learn a new language

D.

Elizabeth, who is ethnocentric and has stereotypical views about other cultures

E.

Rick, who requires extensive training to acquire the basic skills required for the assignment

b

90.
Identify a true statement about the balance sheet approach used for expatriate compensation.
A.

It includes planning for how the returning employee will contribute to the organization.

B.

It ensures managers receive extra pay for the inconvenience of locating overseas.

C.

It refers to the expatriate receiving information and recognizing changes while abroad.

D.

It withholds the amount of tax to be paid in the host country.

E.

It constantly changes in response to a host of economic forces.

b

91.
Gloria, a human resource professional in the United States, is reviewing the plans to send a U.S.-born production manager to Argentina to oversee the opening of a new factory. What does her employer most likely expect her to do about the potential for language barriers with this assignment?
A.

Because the manager must be fluent in Spanish, she should assume there are no language barriers.

B.

Gloria should provide enough training to eliminate all language barriers during the assignment.

C.

Gloria should reassure the manager that English is the international language of business.

D.

Gloria should provide a trainer to teach Spanish to the manager.

E.

Gloria should select a manager who can learn Spanish and cope with language barriers.

e

92.
Victor, a human resource professional, is preparing for Jeanne, a U.S. production manager, to take an assignment at a new facility in Vietnam. Victor wants to measure Jeanne's success in establishing high productivity, so he uses the excellent productivity numbers Jeanne achieved in her current assignment as a basis for setting performance goals for the Vietnamese position. How could this method of measuring performance be improved?
A.

by using communication technology to send frequent updates of the performance measures

B.

by raising the measure to motivate Jeanne to improve on her past accomplishments

C.

by lowering the measure to account for Jeanne's limited knowledge of French and Vietnamese

D.

by adjusting the measure to account for the facility being in a different time zone

E.

by adjusting the measure for local factors that could affect productivity

e

93.
What is the main objective of a company using the balance sheet approach to determine compensation for expatriate managers?
A.

to ensure that the company does not get stuck with paying the higher costs of living in an overseas location

B.

to adjust the manager's pay downward so total compensation reflects the benefits of getting to travel

C.

to give the manager the same amount of pay as in the home country, but in the host country's currency

D.

to give the manager an amount of compensation that enables the company to balance the books

E.

to give the manager the same standard of living plus extra for the inconvenience of moving

e

94.
Daniel, an American, is selected by his firm to undertake a temporary assignment in Russia. Daniel's compensation is determined and adjusted in accordance with the standard of living in Russia. He is also paid relocation expenses to ensure he is not inconvenienced by the transfer. Which of the following approaches have been used to determine Daniel's compensation?
A.

third-country based approach

B.

flat-pay approach

C.

transactional approach

D.

balance sheet approach

E.

going-rate approach

d

95.
The _____ begins by determining how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings when taking a foreign work assignment.
A.

going-rate approach

B.

destination-based approach

C.

home-country-based approach

D.

flat-pay approach

E.

balance sheet approach

e

96.
The four components of a total pay package are _____, tax equalization allowance, benefits, and allowances to make a foreign assignment more attractive.
A.

salary allowance

B.

exchange rates

C.

health plans

D.

uprooting fees

E.

base salary

e

97.
During which phase does an employee returning from a foreign assignment experience culture shock in reverse?
A.

expatriation

B.

cross-cultural preparation

C.

repatriation

D.

honeymoon

E.

validation

c

98.
Alex, an employee of Teal Inc., an American company, was sent to Turkey for an assignment. HR specialists at Teal Inc. have been preparing Alex for his return to the United States after three years. Which of the following terms describes the process being undertaken by the HR team at Teal Inc.?
A.

cross-cultural preparation

B.

time orientation

C.

repatriation

D.

uncertainty avoidance

E.

culture shock

c

99.
Kim, a civil engineer, was sent by her firm to Kuwait on a temporary assignment. After completing her project within the given span of six months, Kim approaches the HR department of her firm to arrange for her return. The HR department is likely to prepare for Kim's _____ as the first task.
A.

expatriation

B.

validation

C.

repatriation

D.

culture shock

E.

overseas assignment

c

100.
Communication and _____ are the activities used by companies in the process of helping employees repatriate.
A.

validation

B.

equalization

C.

dissolution

D.

resolution

E.

exclusion

a

101.
To help Pedro, an expatriate, prepare for his eventual return home, his employer sends him information that will help him recognize the changes have been happening at home. What type of repatriation support is this?
A.

validation

B.

equalization

C.

communication

D.

resolution

E.

rationalization

c

102.
Dan is sent on a foreign assignment to London. On his return, he is rewarded with a flattering story about his experiences in the company newsletter and a meeting with executives to discuss opportunities for using what he learned in key assignments. The firm's recognition of Dan's service can be best described as a form of _____.
A.

expatriation

B.

validation

C.

accreditation

D.

cross-cultural preparation

E.

adjustment

b

103.
Which of the following activities involves giving the expatriate recognition for the overseas service when the person returns home?
A.

resolution

B.

dissolution

C.

rationalization

D.

communication

E.

validation

e

104.
Dynamo Dynamics is opening an overseas office for the first time and is sending its best sales manager to oversee the start-up for two years. Ray, Dynamo's human resource manager, is preparing cross-cultural training for the sales manager. A colleague suggests to Ray that he include the manager's husband in the training. Should Ray follow the advice of his colleague?
A.

No, train only the employee because the employee is the only one going on the assignment.

B.

No, train only the employee because including the spouse adds to costs but not benefits.

C.

Yes, the husband should be included because not doing so could be seen as sex discrimination.

D.

Yes, the husband should be included because doing so shows that the company values diversity.

E.

Yes, the husband should be included because the family's adjustment affects the success of an assignment.

e

105.
Bryan, an American, works for a company that manufactures electronics. His managers select him for an assignment to lead the launch of a new product line in Japan. Which of the following topics will be the most important in training to prepare him for the assignment?
A.

the advantages of U.S. culture

B.

marketing skills

C.

details about the new product line

D.

what to expect from Japanese culture

E.

how to determine the purchasing power of his salary in Japan

d

What is an advantage of hiring host country nationals for an organization's foreign positions?

Which of the following is a reason why host country nationals are usually hired as nonmanagerial employees in international businesses?

What is one of the advantages of using host country nationals?

Which of the following is the usual way in which companies first enter foreign markets?