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Discuss the four types of allowances provided in an expatriate compensation package.

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Four types of allowances are often inclu...

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________ refers to the extra pay an expatriate receives for working outside his or her country of origin.


A) Parity adjustment
B) Cost of living allowance
C) Foreign service premium
D) Expat allowance
E) Dividend

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

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According to Mendenhall and Oddou, what dimension 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

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

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During performance appraisals at Carson Engineering Corp., both the host-nation managers and the home-office managers evaluate the performance of expatriate managers. A company might do this to avoid the problem of


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

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

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An increase in ________ is an additional and difficult dimension to the long-standing problem of expatriate failure.


A) formal training
B) dual-career families
C) cultural diversity
D) single parenting
E) cultural toughness

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

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Which type of staffing policy directly implies that a company should pay managers based on country-specific standards because there is a lack of mobility among national operations?


A) polycentric
B) ethnocentric
C) geocentric
D) domestic
E) regional

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

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Valerie is considered an excellent candidate for the foreign job posting because she is self-confident and demonstrates strong self-esteem. Mendenhall and Oddou would label these characteristics as


A) perceptual ability.
B) self-orientation.
C) others-orientation.
D) cultural toughness.
E) empathy.

F) B) and E)
G) A) and E)

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A(n) ________ staffing policy is concerned with the need for a cadre of international managers that may include many different nationalities and raises the question "should all members receive the same pay and incentives?"


A) polycentric
B) geocentric
C) ethnocentric
D) domestic
E) regional

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

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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 promote goodwill among all managers regardless of posting.
E) It is offered as an inducement to accept foreign postings and live away from family.

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

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As the human resources manager, Marcus knows it is important for the company to develop a program for expatriates who return to work at the home office. What type of program is Marcus referring to?


A) standardization
B) inpatriation
C) repatriation
D) localization
E) appreciation

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

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________ 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

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

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A(n) ________ allowance is paid when an expatriate is being sent to a difficult location.


A) education
B) housing
C) hardship
D) cost of living
E) reciprocal

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

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A(n) ________ approach to staffing limits career mobility and isolates headquarters from foreign subsidiaries.


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

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

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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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Compare and contrast the ethnocentric, polycentric, and geocentric approaches to staffing for international businesses. Discuss the role of cultural myopia within the ethnocentric staffing policy.

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An ethnocentric staffing policy is one i...

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Jacob works for a large U.S. corporation that has operations in more than 30 countries. Currently, there is conflict among the international managers, as they feel that they are not being compensated fairly and claim that U.S. managers like Jacob are paid more because they come from countries with a higher cost of living. The firm is deciding whether or not to equalize the pay for all managers regardless of country of origin. What type of staffing policy does this company have in place?


A) polycentric
B) geocentric
C) ethnocentric
D) domestic
E) regional

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

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What 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) A) and B)
G) A) and E)

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Borsh Lawn Products, a German manufacturer, did not succeed in its international ventures because it used its domestic marketing mix "as-is" in foreign markets. This failure to understand host-country cultural differences that require different approaches to marketing and management is referred to as


A) cultural parity.
B) cultural myopia.
C) power distance.
D) cultural toughness.
E) cultural polarization.

F) A) and E)
G) B) and E)

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Within 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

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

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In the context of international labor relations, what 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 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.

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

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