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WorksheetsBAC 106 Final Exam
Total questions: 48
Worksheet time: 29mins
The process of procuring, allocating and effectively utilizing human resources in an international business is
IHRM
International Pricing
International Promotion
Distribution Channel
Which is NOT a challenge in IHRM?
Different business activities
Complex employee mix
Increased political and economic complexities
Creativity and innovation
An employee who is a citizen of the country in which the multinational company has its headquarters is a(n):
home country national
expatriate
host country national
local
Citizen of a country other than the parent or the host country is referred to as:
Expatriates
Third-country national
Locals
Home-country national
Which is an advantage of hiring PCNs?
familiarity with home office, goals and practices
lower hiring cost
makes truly international managers
informed about host country environments
Which is an advantage of hiring HCNs?
familiarity with home office, goals and practices
lower hiring cost than PCNs
makes truly international managers
informed about host country environments than PCNs
Which is an advantage of hiring TCNs?
familiarity with home office, goals and practices
no language barrier
makes truly international managers
easy organizational control
What name is given to the practice of appointing staff on a worldwide basis regardless of national origin?
Polycentric
Geocentric
Ethnocentric
Regioncentric
Which IHRM recruitment and selection approach seeks the best people for key jobs, irrespective of nationality
Ethnocentric
Polycentric
Geocentric
Regiocentric
A belief that home-country attitude, management style and knowledge are far more superior than the host country has to offer is known as:
Geocentric
Polycentric
Expatriates
Ethnocentric
Which approach where firms actively search on a worldwide or regional basis for the best people to fill key positions?
Regiocentric
Ethnocentric
Polycentric
Geocentric
Which of the following describes a 'polycentric' approach to staffing?
The firm would staff its foreign subsidiaries with locals of the host country
Filling all key staff with home country national
Staffing managerial position with the most qualified person regardless of nationality
Staffing the foreign subsidiary with third national country
Which of the following are the key advantage of an ethnocentric approach?
Reduce local cultural misunderstanding
Maintain a unified corporate culture and tighter control
Minimize language barriers
Enhance public image for hiring local workers
Which of the following are likely to be important when relocating staff abroad?
Appraisal performance
Provide training on the culture and language of the foreign subsidiary
Assistance in buying new clothes
Assistance in providing loan to move abroad
Which of the following statement is TRUE?
Employers hire expatriates because of its low cost
The implementation specific HR practices does not depend on the cultural context in which the firm operates
Multi-national companies uses the same HR policy in all of its foreign subsidiaries
International firms need to adapt with the inter-country differences when managing employees
Which factors are important in relation to training expatriates to work in a different country?
Language requirements
Business norms
Cultural, political and legal practice of the country
All of the above
Who typically heads up an international division?
third country nationals
host country nationals
parent country nationals
primary country nationals
The term "expat" means "out of the country" and refers to PCN and TCN.
True
False
Partially true
Which of the following is NOT a reason for employing expatriates?
Gain control on overseas subsidiaries
Regulation of the government
Unable to find qualified candidate
Ways to develop top managers
According to the philosophy regarding the nationality of firms' international managers, which of the following groups are firms can hire from?
Parent Country Nationals
Host Country Nationals
Third-country Nationals
All of the above
Which of the factors will cause an expatriate to fail abroad?
Open to outside culture
Inability of the expatriate's family to adapt
Getting along with new co-workers
Political sensitivity
What is a disadvantage of using host country nationals to manage foreign operations?
high relocation costs to firm
unfamiliarity with firm's practices
loss of key talent from headquarters
inability to understand local customs
Which is not a drawback of using PCN?
Little development of HCNs
Less firm-wide coordination
PCN/family adaptation problems
Costly to relocate family
Which method can reduce the level of culture shock an expatriate is likely to experience?
predeparture language training
increased foreign compensation
initial long-term assignments
personality testing
Which is the criteria in selecting expats?
Ability to adapt and technical competence
Spouse and family adaptability and human relations skills
Desire to serve overseas and previous overseas experience
All of the above
Which of the following statement is TRUE?
Employers hire expatriates because of its low cost
The implementation specific HR practices does not depend on the cultural context in which the firm operates
Multi-national companies uses the same HR policy in all of its foreign subsidiaries
International firms need to adapt with the inter-country differences when managing employees
What is a reason(s) for using home-country nationals?
Provide technical expertise and start up operations.
The need to maintain and facilitate organizational coordination and control
Provide the company’s more promising managers with international experience to equip them better for more responsible positions
All are correct
Which of the following is the key advantage of an ethnocentric approach?
Reduce local cultural misunderstanding
Maintain a unified corporate culture and tighter control
Minimize language barriers
Enhance public image for hiring local workers
Firms using a(n) ________ primarily use parent country nationals to staff higher-level foreign positions.
ethnocentric staffing model
polycentric staffing model
geocentric staffing model
monocentric staffing model
The most important factor perceived by international assignees that contributes to success in a foreign assignment is:
extracultural openness
family situation
relational skills
flexibility / adaptability
Expatriate managers generally receive differential compensation to make up for dramatic differences in
technical responsibilities
standards of living
travel demands
healthcare
After training and development takes place, what comes next in the international human resource management process?
contribution to organizational effectiveness
performance appraisal
compensation and benefits
labor relations
( ) appraisal practices for non-managerial employees also differ dramatically among countries, depending on local laws, customs, and cultures.
Contractual and non-contractual
Business and performance
Performance and reward
Compensation and performance
This approach in global compensation focuses on home-country groups of expenses—income taxes, housing, goods and services, and discretionary expense.
Balance Sheet Approach
Local Going Rate Approach
Hybrid Approach
Global Approach
This approach in global compensation can be desirable in high-paying countries such as the US or Switzerland.
Balance Sheet Approach
Local Going Rate Approach
Hybrid Approach
Global Approach
A more complex set of compensation issues apply to expatriate managers. Most international businesses find it necessary to provide these managers with ( ) to make up for dramatic differences in currency valuation, standards of living, lifestyle norms, and so on.
hardship compensation
tax compensation
differential compensation
living compensation
This approach in global compensation refers to the variation in the home and host system where a balance sheet is compared to local market rate equivalent.
Balance Sheet Approach
Local Going Rate Approach
Hybrid Approach
Global Approach
Which of the following is a special benefit that an international business must provide apart from salary adjustments for their expatriate managers?
Extra Training
Travel Allowances
Company memberships
Private car
________ refers to bringing a manager back home after a foreign assignment has been completed.
Expatriation
Repatriation
Expatriate failure
Acculturation
The firm’s managers must design an HRM strategy that promotes the company’s ( ).
overall human resource and international strategies
overall corporate strategies only
overall corporate and business strategies
overall business strategies only
What is international management concerned with?
Ownership and management of assets and operations beyond one's home country
Ownership and management of assets and operations within one's home country
Ownership and management of assets and operations within one's region
Ownership and management of assets and operations within one's host country
What does international management involve?
Planning, organizing, leadership, and controlling in a specific continent
Planning, organizing, leadership, and controlling in a specific region
Planning, organizing, leadership, and controlling in more than one country
Planning, organizing, leadership, and controlling in one country only
Who is responsible for knowledge transfer throughout the international spectrum of an organization?
Human Resources Manager
Finance Manager
Operations Manager
Marketing Manager
What must organizations do to succeed and thrive?
Adapt and fit
Adapt and exploit
Adapt and exploit
Adapt and unexploit
An USA company in Botswana have local workers and a US CEO. The US parent makes all policies and decisions. They Zoom every day to enforce it.
This is geocentric
This is an ethnocentric attitude
This is polycentric management
This shows trust in the local workers
IBM's workforce management initiative (WMI) goal was to enable the company to deploy
experts from the host country
people who could best do the task at hand
develop a core of experts
develop managers for IBM
What country would make you hesitant to send female employees to?
Canada
Denmark
Israel
Saudi Arabia
Why is it important to select the best HR approach in international business?
