Q&A Hero

Q: Which of the following best defines international business? A) It includes all economic flows between two or more countries. B) It includes all private economic flows between two or more countries. C) It includes all business transactions involving two or more countries. D) It includes all business transactions in countries other than your home country.

Q: The broadening set of interdependent relationships among people from different parts of the world is known as ________. A) globalization B) offshoring C) franchising D) outsourcing

Q: In the context of international labor relations, what are the concerns of organized labor?

Q: What is the purpose of cultural training before a foreign posting?

Q: International businesses differ markedly in their approaches to international labor relations. The trend now is toward _____ that reflect(s) international firms attempts to rationalize their global operations. A. decentralized labor activities B. greater centralized control C. autonomy D. lateral relationships E. national legislation

Q: International businesses differ in terms of their approaches to international labor relations, mainly in the degree to which: A. labor relations activities are centralized or decentralized. B. labor relations are formal or informal. C. labor relations are given a high priority or a low priority. D. labor relations are internally or externally managed. E. firms follow a polycentric or geocentric staffing policy.

Q: Which of the following is true of organizations like the International Labor Organization and the Organization for Economic Cooperation and Development in terms of their role in international labor relations? A. They have been highly successful in uniting unions of different countries. B. They have significantly reduced competition between national unions. C. They have adopted codes of conduct for multinational firms to follow in labor relations. D. They are responsible for the import of employment practices from the home country of the firm. E. They have increased the bargaining power of multinational firms.

Q: Which of the following is an impediment to cooperation between national unions? A. The retention of highly skilled tasks in the host country B. The reciprocal tax treaty C. The wide variation in the structure and ideology of unions D. The common perception unions have about multinational companies E. The decreasing bargaining power of multinational companies

Q: International trade secretariats have been less successful because of the: A. similarity in the structure of unions on a global level. B. common perception unions have about multinational companies. C. reciprocal tax treaty. D. competition between national unions to attract investment from international businesses. E. retention of highly skilled tasks in the host country.

Q: In the 1960s, organized labor believed that by coordinating union action across countries through an international trade secretariat, it could counter the power of a multinational corporation by: A. threatening to disrupt production on an international scale. B. introducing a reciprocal tax treaty. C. trying to farm out highly skilled tasks back to the home country of the firm. D. increasing its bargaining power. E. lobbying for importing employment practices from the home country of the firm.

Q: The long-term goal for organized labor to establish international trade secretariats was to: A. import employment practices and contractual agreements from the home country of the multinational firm. B. retain low-skilled tasks in the host country. C. prevent multinational firms from switching production from one location to another as economic conditions warrant. D. introduce a reciprocal tax treaty. E. be able to bargain transnationally with multinational firms.

Q: In the 1960s, organized labor began to establish _____ to provide worldwide links for national unions in particular industries. A. HR watchdog groups B. international trade secretariats C. unorganized labor organizations D. international orientation resources E. reciprocal tax treaties

Q: Organized labor responds to the increased bargaining power of multinational corporations by: A. trying to impose regulations on multinationals through organizations such as GATT. B. trying to achieve international regulations on multinationals through the United Nations. C. trying to establish regional boards. D. lobbying for multinational corporations to restrict their global reach to three or fewer foreign countries. E. trying to develop a local trade forum.

Q: In the context of international labor relations, one of the reasons for a decline in union influence is the: A. introduction of a reciprocal tax treaty. B. retention of low-skilled tasks in an international firm's home country. C. importing of employment practices and contractual agreements that are alien to the host country. D. increased bargaining power of organized labor. E. their increased ability to threaten to disrupt production, either by a strike or some other form of work protest.

Q: In the context of international labor relations, a labor union concern arises when an international business: A. keeps low-skilled tasks in its home country. B. signs a reciprocal tax treaty with the host country. C. increases the bargaining power of organized labor. D. faces difficulty in switching production from one location to another. E. attempts to import employment practices and contractual agreements from its home country.

Q: In the context of international labor relations, which of the following is a concern of organized labor? A. An international business increases the bargaining power of organized labor. B. An international business keeps highly skilled tasks in its home country and farms out only low-skilled tasks to foreign plants. C. An international business faces difficulty in switching production from one location to another. D. An international business does not import employment practices and contractual agreements from its home country. E. An international business signs a reciprocal tax treaty with the host country.

Q: A principal concern of domestic unions about multinational firms is that the 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.

Q: In the context of international labor relations, which of the following is true of organized labor? A. It supports the pursuit of a transnational standardization strategy. B. It supports the pursuit of a global standardization strategy. C. It increases unintentional bias in evaluating the performance of expatriate managers. D. It limits a firm's ability to integrate and consolidate its global operations. E. It reduces a firm's ability to understand host-country cultural differences that require different approaches to marketing.

Q: From a strategic perspective, the key issue in international labor relations is: A. dealing with multiple business units. B. the degree to which organized labor can limit the choices of an international business. C. whether to hire parent-country nationals, host-country nationals, or third-country nationals. D. helping expatriates cope with new role demands. E. the extent to which a reciprocal tax treaty can be brought into effect.

Q: The _____ function of an international business is typically responsible for international labor relations. A. public relations B. human resource management C. finance and accounting D. legal E. logistics

Q: In terms of expatriate pay, what does a firm typically do when a reciprocal tax treaty is not in force? A. The firm requires the expatriate to pay one-third of the income tax to the host-country government. B. The firm requires the expatriate to pay 50 percent of the income tax to the host-country government. C. The firm pays the expatriate's income tax to the host-country government. D. The firm requires the expatriate to pay the income tax both to the host-country and the home-country government. E. The firm pays the expatriate's income tax to the home-country government.

Q: In the absence of a reciprocal tax treaty, the expatriate: A. may have to pay income tax to both the home- and host-country governments. B. may not have to pay any tax. C. may not have to pay income tax only to the host-country government. D. may not have to pay income tax the home-country government. E. may have to pay 50 percent less tax to the host-country government.

Q: Which of the following allowances ensures that an expatriate will enjoy the same standard of living in the foreign posting as at home? A. Hardship allowance B. Base salary allowance C. Cost-of-living allowance D. Quality-of-life allowance E. Housing allowance

Q: With regard to the types of allowances often included in an expatriate's compensation package, a(n) _____ allowance is paid when the expatriate is being sent to a difficult location. A. education B. housing C. hardship D. cost-of-living E. reciprocal

Q: 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.

Q: 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.

Q: Which of the following is true of a foreign service premium? A. It helps to evaluate expatriates' performance without any unintentional bias. B. It is offered to expatriates as an inducement to accept foreign postings. C. It allows a firm to pay expatriates' income tax in the host country. D. It ensures that expatriates' children receive adequate schooling. E. It ensures that expatriates are prepared for reentry into their home-country organization.

Q: A(n) _____ refers to extra pay the expatriate receives for working outside his or her country of origin. A. parity adjustment B. special bonus C. foreign service premium D. expat allowance E. benefit

Q: A firm's ability to reduce its use of expatriates may be limited, particularly if it is pursuing a(n) _____ staffing policy. A. geocentric B. polycentric C. transnational D. regiocentric E. neocentric

Q: In the context of approaches to expatriate pay, which of the following is true of a balance sheet approach? A. It helps expatriate managers and their families to adjust to the day-to-day life of the host country. B. It rewards expatriates on the basis of merit and performance. C. It is offered as an inducement to accept foreign postings and stay away from family in unfamiliar country. D. It provides financial incentives to offset qualitative differences between assignment locations. E. It reduces the amount of tax that the expatriates have to pay while on the foreign assignment.

Q: 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.

Q: Which of the following is the most common approach to expatriate pay which equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home? A. Merit approach B. Correspondence approach C. Balance sheet approach D. Parity approach E. Perceptual approach

Q: In a firm with a(n) _____ staffing policy, considerable resentment is caused among foreign nationals who are members of the international cadre and work with U.S. nationals, if pay is not equalized. A. polycentric B. geocentric C. ethnocentric D. regiocentric E. localized

Q: One aspect of a(n) _____ staffing policy is the need for a cadre of international managers that may include many different nationalities. A. polycentric B. geocentric C. ethnocentric D. regiocentric E. localized

Q: 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

Q: In firms following a(n) _____ staffing policy, the issue of compensation can be reduced to that of how much home-country expatriates should be paid. A. polycentric B. ethnocentric C. geocentric D. international E. global

Q: According to the survey undertaken by Towers Perrin, which of the following countries provides the highest pay to HR executives? A. Switzerland B. The United States C. Japan D. Australia E. Argentina

Q: 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 expatriates performance. E. A performance appraisal is invalid when the on-site manager is of the same nationality as the expatriate manager.

Q: Home-country managers' performance appraisals may be biased by: A. distance and by their own lack of experience of working abroad. B. poor networking skills. C. lack of technological know-how. D. learning effects. E. taking hard variables as well as soft variables into consideration.

Q: During performance appraisals, two groups evaluate the performance of expatriate managershost-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

Q: International businesses pursuing a(n) _____ strategy are increasingly using management development as a strategic tool as they need a strong unifying corporate culture and informal management networks to assist in coordination and control. A. localization B. international C. transnational D. global standardization E. ethnocentric

Q: Repatriation refers to: A. sending expatriate managers to a new host country. B. training expatriate managers to adjust to the new environment of the host country. C. reentry of expatriate managers into their home-country organization. D. helping expatriate managers build rapport with local employees. E. the process of increasing expatriate managers' effectiveness in dealing with host-country nationals.

Q: In terms of training and management development, _____ is aimed at helping the expatriate manager and family ease themselves into day-to-day life in the host country. A. cognitive training B. practical training C. house training D. cultural training E. perceptual ability training

Q: For expatriate managers, an exclusive reliance on English: A. increases their effectiveness in dealing with host-country nationals. B. eases culture shock. C. diminishes their ability to interact with host-country nationals. D. helps them adjust to the day-to-day life in the host country. E. helps them build rapport with local employees.

Q: Which of the following is intended to build a manager's skills over his or her career with the firm? A. Ethnocentrism B. Cultural toughness C. Total Quality Management D. Management development E. Learning effects

Q: Which of the following is an additional and difficult dimension to the long-standing problem of expatriate failure due to the inability of the spouse to adjust? A. Formal training B. Dual-career families C. Cultural diversity D. Single parenting E. Cultural toughness

Q: Poor health care and housing standards and inhospitable climate make it difficult for expatriates to adjust to a particular posting. According to Mendenhall and Oddou's four dimensions that predict success in a foreign posting, which of the following is required in this situation? A. Perceptual ability B. Cultural toughness C. Self-orientation D. Others-orientation E. Self-confidence

Q: 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

Q: According to Mendenhall and Oddou, the dimension of _____ refers to the relationship between the country of assignment and how well an expatriate adjusts to a particular posting. A. self-orientation B. perceptual ability C. cultural toughness D. others-orientation E. willingness to communicate

Q: According to Mendenhall and Oddou, expatriate managers who lack the dimension of _____ tend to treat foreign nationals as if they were home-country nationals. A. cultural toughness B. self-orientation C. others-orientation D. perceptual ability E. willingness to communicate

Q: According to Mendenhall and Oddou, perceptual ability refers to: A. an expatriate's willingness to use the host-country language. B. an expatriate's ability to strengthen his or her self-esteem. C. an expatriate's ability to empathize. D. the relationship between the country of assignment and how well an expatriate adjusts to a particular posting. E. the ability to develop long-lasting friendships with host-country nationals.

Q: According to Mendenhall and Oddou, the attribute of _____ provides an expatriate the ability to understand why people of other countries behave the way they do. A. cultural toughness B. perceptual ability C. self-orientation D. others-orientation E. willingness to communicate

Q: According to Mendenhall and Oddou, relationship development and willingness to communicate are two important factors of the dimension of _____. A. self-orientation B. perceptual ability C. cultural toughness D. others-orientation E. personal interest

Q: According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, which of the following is a result of the attribute of others-orientation? A. The expatriate has high self-esteem. B. The expatriate empathizes with the host-country nationals. C. The expatriate speaks to the host-country nationals in the local language. D. The expatriate adjusts to the inhospitable climate of the host country. E. The expatriate is comfortable working in a male-dominated environment.

Q: In a review of the research on expatriate selection, _____ state(s) that a major problem in many firms is that human resource managers tend to equate domestic performance with overseas performance potential. A. R.L. Tung B. Medenhall and Oddou C. Towers Perrin D. Prahalad and Doz E. Christopher Bartlett and Sumantra Ghoshal

Q: According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, relationship development refers to: A. an expatriate's willingness to use the host-country language. B. the ability to understand why people of other countries behave the way they do. C. the ability to empathize with foreign nationals. D. the relationship between the country of assignment and how well an expatriate adjusts to a particular posting. E. the ability to develop long-lasting friendships with host-country nationals.

Q: According to Mendenhall and Oddou, which of the following is a dimension that seems to predict success in a foreign posting? A. Others-orientation B. Learning effects C. Dynamic capabilities D. Eclectic paradigm E. Factor endowments

Q: Mendenhall and Oddou identified that expatriates with _____, a dimension that predicts success, were able to adapt their interests in food, sport, and music. A. perceptual ability B. self-orientation C. others-orientation D. cultural toughness E. empathy

Q: According to Mendenhall and Oddou, which of the following dimensions that predicts success in a foreign posting strengthens an expatriate's self-esteem, self-confidence, and mental well-being? A. Cultural toughness B. Others-orientation C. Perceptual ability D. Self-orientation E. Empathy

Q: According to Mendenhall and Oddou, what is the major problem in the selection of appropriate candidates for overseas assignments in many firms? A. Lack of technical abilities B. Equating domestic performance with overseas performance potential C. Lack of communication between line managers and HR managers D. A geocentric staffing policy E. A polycentric staffing policy

Q: According to the results of a seminal study by R. L. Tung, the top reason that Japanese expatriate managers fail is: A. the inability of their spouses to adjust. B. their lack of technical competence. C. personal or emotional problems. D. the inability to cope with larger overseas responsibilities. E. their inability to deal with difficulties in the new environment.

Q: According to the results of a seminal study by R. L. Tung, what was the major reason for expatriate failure among European expatriates? A. Personal or emotional problems B. Inability to cope with overseas responsibilities C. Poor pay D. Inability of spouse to adjust to a new environment E. Lack of technical competence

Q: According to R. L. Tung's study, which of the following is the most important reason for expatriate failures for U.S. multinationals? A. Inability of the spouse to adjust B. Difficulties with the new environment C. Insufficient pay D. Personal or emotional problems E. Lack of technical competence

Q: With a(n) _____ staffing policy, the expatriates are all home-country nationals who are transferred abroad. A. geocentric B. ethnocentric C. polycentric D. international E. domestic

Q: Yuriko, a citizen of Japan, was working as a manager in the Japanese branch of an American firm. Due to her efficiency, she was assigned a temporary posting at the headquarters of the firm in America. In this situation, she is known as a(n) _____. A. repatriate B. inpatriate C. third-country national D. beneficiary E. parent-country national

Q: _____ refers to the premature return of an expatriate manager to his or her home country. A. Expatriate relief B. Expatriate failure C. Expatriate rotation D. Expatriate timing E. Repatriation

Q: _____ refers to a subset of expatriates who are citizens of a foreign country working in the home country of their multinational employer. A. Virtual expatriates B. Inpatriates C. Third-country nationals D. Host-country nationals E. Parent-country nationals

Q: Which of the following staffing policies relies extensively on the use of expatriate managers? A. Global staffing policy B. Polycentric staffing policy C. Transnational staffing policy D. Ethnocentric staffing policy E. Localized staffing policy

Q: Firms that have a broad geographic scope are most likely to have a(n) _____ mind-set. A. ethnocentric B. polycentric C. transnational D. geocentric E. localized

Q: Which of the following strategies is compatible with a geocentric staffing policy? A. Global standardization strategy B. Localization strategy C. International strategy D. Ethical strategy E. Global strategy

Q: Broadly speaking, a(n) _____ staffing approach is compatible with an international strategy. A. ethnocentric B. geocentric C. polycentric D. transnational E. ethical

Q: 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.

Q: Which of the following is an advantage of a geocentric approach to staffing for international businesses? A. It requires minimal documentation. B. It is inexpensive to implement. C. It helps build a strong culture and informal management networks. D. It helps transfer core competencies to foreign operations. E. It requires less management personnel to implement this staffing policy.

Q: Most countries require extensive documentation if they wish to hire a foreign national instead of a local national. This is a disadvantage of the _____ staffing approach. A. polycentric B. geocentric C. transnational D. ethnocentric E. local

Q: Which of the following is an advantage of adopting a geocentric staffing approach? 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.

Q: Firms pursuing a(n) _____ staffing policy may be better able to create value from the pursuit of experience curve and location economies than firms pursuing other staffing policies. A. domestic B. eurocentric C. ethnocentric D. geocentric E. local

Q: What is the advantage of a geocentric staffing policy? A. It requires firms to provide little or no documentation to hire a foreign national. B. It enables firms to build a cadre of international executives who feel at home working in a number of cultures. C. It is inexpensive to implement the policy in a firm. D. It allows all key management positions of the firms and their subsidiaries to be filled by parent-country nationals. E. It helps firms to follow a localization strategy.

Q: How is a geocentric staffing policy beneficial to a firm? A. It requires the firm to provide little or no documentation to hire a foreign national. B. It is inexpensive to implement. C. It helps the firm follow a localization strategy. D. It allows all key management positions to be filled by parent-country nationals. E. It enables the firm to make the best use of its human resources.

Q: A(n) _____ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality. A. global B. ethnocentric C. geocentric D. polycentric E. transnational

Q: A(n) _____ approach to staffing has the following disadvantages: it limits career mobility and it isolates headquarters from foreign subsidiaries. A. polycentric B. transnational C. geocentric D. ethnocentric E. global