Question 1

Which of the following statements accurately reflects how vacation time varies across different countries?

Accepted Answer

A)  Workers in the United States and Canada have among the most paid days off of any country in the world 
B)  European, Middle Eastern, and African countries tend to be the most generous with vacation time 
C)  Countries in the EU require companies to provide paid 15 public holidays plus a minimum of 30 paid days off annually 
D)  All of the above 
A)  Workers in the United States and Canada have among the most paid days off of any country in the world 
B)  European, Middle Eastern, and African countries tend to be the most generous with vacation time 
C)  Countries in the EU require companies to provide paid 15 public holidays plus a minimum of 30 paid days off annually 
D)  All of the above B

Question 2

In the United States it is common to expect housing costs to be about 30% of take home pay, one of the biggest outlays in a family budget, and these costs tend to remain constant internationally so they rarely receive special consideration in the balance sheet method.

Accepted Answer

A) True 
 B)False  False

Question 3

There are big differences in compensation amounts and types across borders. Which of the following examples represent the importance of these differences?

Accepted Answer

A)  There are many nations where workers earn just a fraction of the wages typically offered in the United States 
B)  There are no nations where workers earn more than the wages typically offered in the United States 
C)  Wage differentials can only be used to explain why manufacturing jobs are being outsourced 
D)  All of the above 
A)  There are many nations where workers earn just a fraction of the wages typically offered in the United States 
B)  There are no nations where workers earn more than the wages typically offered in the United States 
C)  Wage differentials can only be used to explain why manufacturing jobs are being outsourced 
D)  All of the above A

Question 4

An effective compensation plan for expatriates will likely include all of the following except:

Accepted Answer

A)  Support for any trailing family members 
B)  Plans to repatriate the employee back into the home country after the foreign assignment concludes 
C)  The same compensation and benefits package as employees in the home country 
D)  Maintenance of a reasonable/comparable standard of living 
A)  Support for any trailing family members 
B)  Plans to repatriate the employee back into the home country after the foreign assignment concludes 
C)  The same compensation and benefits package as employees in the home country 
D)  Maintenance of a reasonable/comparable standard of living

Question 5

Why do multinationals spend so much time on performance evaluation?

Accepted Answer

A)  It is a simple task for managers to do 
B)  It helps set and manage compensation levels around the world 
C)  It is relatively easy to administer and conduct for managers and firms 
D)  The reward and compensation systems are complex, but do not have to be customized to a firm 
A)  It is a simple task for managers to do 
B)  It helps set and manage compensation levels around the world 
C)  It is relatively easy to administer and conduct for managers and firms 
D)  The reward and compensation systems are complex, but do not have to be customized to a firm

Question 6

Which of the following sources of costs associated with expatriation are considered to be direct payment/reimbursements?

Accepted Answer

A)  Tax reduction/equalization and currency protection 
B)  Spouse employment and child care providers 
C)  Home leave and emergency leave 
D)  Cultural training and language/translation services 
A)  Tax reduction/equalization and currency protection 
B)  Spouse employment and child care providers 
C)  Home leave and emergency leave 
D)  Cultural training and language/translation services

Question 7

Which of the following statements accurately reflect a key issue related to housing costs for expatriates?

Accepted Answer

A)  Housing alone may account for 70% of the total additional compensation 
B)  Housing is typically rented and often covered by a shorter-term lease, thereby driving up prices 
C)  American firms are more likely to provide free housing than housing allowances compared to Asian, Latin American, or European multinationals 
D)  Expatriates can frequently find accommodations comparable to those in the United States, including many premium add-ons in cities like Tokyo, London, or Beijing 
A)  Housing alone may account for 70% of the total additional compensation 
B)  Housing is typically rented and often covered by a shorter-term lease, thereby driving up prices 
C)  American firms are more likely to provide free housing than housing allowances compared to Asian, Latin American, or European multinationals 
D)  Expatriates can frequently find accommodations comparable to those in the United States, including many premium add-ons in cities like Tokyo, London, or Beijing

Question 8

Firms in North America tend to be the most generous with vacation time, whereas European, Middle Eastern, and African countries provide the least and in between are companies in the Asia/Pacific region.

Accepted Answer

A) True 
 B)False

Question 9

Describe some of the practical problems that emerge when expatriates are sent to places where costs are generally lower than at home.

Accepted Answer

Some practical problems that may emerge

Question 10

The balance sheet method starts the process of smoothing out cost-of-living and tax differences across countries by dividing expenses into what four basic categories?

Accepted Answer

A)  Housing, income taxes, goods and services, and retirement 
B)  Housing, income taxes, goods and services, and savings reserve or discretionary component 
C)  Discretionary component, travel, goods and services, and retirement 
D)  Discretionary component, travel, goods and services, and income taxes 
A)  Housing, income taxes, goods and services, and retirement 
B)  Housing, income taxes, goods and services, and savings reserve or discretionary component 
C)  Discretionary component, travel, goods and services, and retirement 
D)  Discretionary component, travel, goods and services, and income taxes

Question 11

Countries with a low power distance culture, (e.g., the Untied States, the UK, Denmark, and Australia) are likely to have compensation systems with which of the following characteristics?

Accepted Answer

A)  Highly structured, lock-step compensation plans 
B)  Compensation tied to place in social structure 
C)  Large salary gap between workers and management 
D)  Wage gap between lower and higher jobs that is often not large 
A)  Highly structured, lock-step compensation plans 
B)  Compensation tied to place in social structure 
C)  Large salary gap between workers and management 
D)  Wage gap between lower and higher jobs that is often not large

Question 12

Data does not support the view that expatriate compensation preferences are tied to cultural environment, and it is possible to strike a balance between standardization and the needs of a far-flung and heterogeneous set of employees.

Accepted Answer

A) True 
 B)False

Question 13

A variety of options are available for how multinationals can go about constructing compensation plans for expatriates. Which of the following popular methods is not correctly defined?

Accepted Answer

A)  The localization method: paying the expatriate at least 20%-25% more than local employees in similar positions 
B)  The balance sheet model: "balancing out" the cost differences between the expatriate's home country lifestyle and their foreign assignment location 
C)  The ad hoc approach: the company and its expatriates negotiate on a case-by-case basis to cover the costs inherent in a foreign assignments 
D)  The localization method: paying the expatriate essentially the same as local employees in similar positions 
A)  The localization method: paying the expatriate at least 20%-25% more than local employees in similar positions 
B)  The balance sheet model: "balancing out" the cost differences between the expatriate's home country lifestyle and their foreign assignment location 
C)  The ad hoc approach: the company and its expatriates negotiate on a case-by-case basis to cover the costs inherent in a foreign assignments 
D)  The localization method: paying the expatriate essentially the same as local employees in similar positions

Question 14

What are some of the sources multinationals can use to estimate goods and services prices worldwide as well as the differentials that may be necessary when sending expatriates to particular locations?

Accepted Answer

Multinationals can use a variety of sour

Question 15

How might cultural beliefs regarding the basis for compensation affect an approach to rewarding expatriates and host-country/third-country nationals in the same firm? How can a firm respond to these differences?

Accepted Answer

Cultural beliefs regarding the basis for

Question 16

There are numerous complications for multinationals that would not be important for a firm that is not multinational when it comes to developing and implementing a compensation system. Which of the following factors must be considered by multinationals?

Accepted Answer

A)  Requires the same amount of time on performance evaluation to help set and manage compensation levels around the world 
B)  Must account for the variety in human resource practices that exist among all their competitors 
C)  Must deal with the special compensation challenges associated with sending expatriates abroad 
D)  Must account for the fact that living costs, attitudes about pay, and laws governing compensation are consistent from country to country 
A)  Requires the same amount of time on performance evaluation to help set and manage compensation levels around the world 
B)  Must account for the variety in human resource practices that exist among all their competitors 
C)  Must deal with the special compensation challenges associated with sending expatriates abroad 
D)  Must account for the fact that living costs, attitudes about pay, and laws governing compensation are consistent from country to country

Question 17

Various consulting firms publish prices on hundreds of goods and services and provide cost-of-living indices for virtually every city in the world, based on data that are updated regularly, and this information can be used by multinationals for compensation decisions.

Accepted Answer

A) True 
 B)False

Question 18

An effective compensation plan for expatriates will likely include some form of incentive for an employee to accept an expatriate assignment (e.g., money, benefits, career mobility/advancement).

Accepted Answer

A) True 
 B)False

Question 19

The United States has earned a reputation for paying its senior leaders more than other countries anywhere else.

Accepted Answer

A) True 
 B)False

Question 20

The balance sheet method is a simple, inexpensive, and easy to administer method to treat expatriates fairly.

Accepted Answer

A) True 
 B)False

Which of the following statements accurately reflects how vacation time varies across different countries?

In the United States it is common to expect housing costs to be about 30% of take home pay, one of the biggest outlays in a family budget, and these costs tend to remain constant internationally so they rarely receive special consideration in the balance sheet method.

There are big differences in compensation amounts and types across borders. Which of the following examples represent the importance of these differences?

An effective compensation plan for expatriates will likely include all of the following except:

Why do multinationals spend so much time on performance evaluation?

Which of the following sources of costs associated with expatriation are considered to be direct payment/reimbursements?

Which of the following statements accurately reflect a key issue related to housing costs for expatriates?

Firms in North America tend to be the most generous with vacation time, whereas European, Middle Eastern, and African countries provide the least and in between are companies in the Asia/Pacific region.

Describe some of the practical problems that emerge when expatriates are sent to places where costs are generally lower than at home.

The balance sheet method starts the process of smoothing out cost-of-living and tax differences across countries by dividing expenses into what four basic categories?

Countries with a low power distance culture, (e.g., the Untied States, the UK, Denmark, and Australia) are likely to have compensation systems with which of the following characteristics?

Data does not support the view that expatriate compensation preferences are tied to cultural environment, and it is possible to strike a balance between standardization and the needs of a far-flung and heterogeneous set of employees.

A variety of options are available for how multinationals can go about constructing compensation plans for expatriates. Which of the following popular methods is not correctly defined?

What are some of the sources multinationals can use to estimate goods and services prices worldwide as well as the differentials that may be necessary when sending expatriates to particular locations?

How might cultural beliefs regarding the basis for compensation affect an approach to rewarding expatriates and host-country/third-country nationals in the same firm? How can a firm respond to these differences?

There are numerous complications for multinationals that would not be important for a firm that is not multinational when it comes to developing and implementing a compensation system. Which of the following factors must be considered by multinationals?

Various consulting firms publish prices on hundreds of goods and services and provide cost-of-living indices for virtually every city in the world, based on data that are updated regularly, and this information can be used by multinationals for compensation decisions.

An effective compensation plan for expatriates will likely include some form of incentive for an employee to accept an expatriate assignment (e.g., money, benefits, career mobility/advancement).

The United States has earned a reputation for paying its senior leaders more than other countries anywhere else.

The balance sheet method is a simple, inexpensive, and easy to administer method to treat expatriates fairly.

International Organizational Behavior: Challenges for Management

Cultural Frameworks: Understanding Differences in Employee Attitudes and Behavior

Communicating Effectively Across Cultures

Managing Conflict and Conducting Effective Negotiations

Motivating Employees Across Cultures

Effective Leadership in a Multicultural Environment

Managing Diversity, Conflict, and Ethical Dilemmas in an International Context

Managing Multicultural Teams and International Partnerships

Selecting and Evaluating International Employees

Global Staffing Alternatives: Expatriates and Beyond

Managing Building Global Commitment: Managing Labor Relations

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Exam 10: Rewarding and Compensating International Employees

Which of the following statements accurately reflects how vacation time varies across different countries?

In the United States it is common to expect housing costs to be about 30% of take home pay, one of the biggest outlays in a family budget, and these costs tend to remain constant internationally so they rarely receive special consideration in the balance sheet method.

There are big differences in compensation amounts and types across borders. Which of the following examples represent the importance of these differences?

An effective compensation plan for expatriates will likely include all of the following except:

Why do multinationals spend so much time on performance evaluation?

Which of the following sources of costs associated with expatriation are considered to be direct payment/reimbursements?

Which of the following statements accurately reflect a key issue related to housing costs for expatriates?

Firms in North America tend to be the most generous with vacation time, whereas European, Middle Eastern, and African countries provide the least and in between are companies in the Asia/Pacific region.

Describe some of the practical problems that emerge when expatriates are sent to places where costs are generally lower than at home.

The balance sheet method starts the process of smoothing out cost-of-living and tax differences across countries by dividing expenses into what four basic categories?

Countries with a low power distance culture, (e.g., the Untied States, the UK, Denmark, and Australia) are likely to have compensation systems with which of the following characteristics?

Data does not support the view that expatriate compensation preferences are tied to cultural environment, and it is possible to strike a balance between standardization and the needs of a far-flung and heterogeneous set of employees.

A variety of options are available for how multinationals can go about constructing compensation plans for expatriates. Which of the following popular methods is not correctly defined?

What are some of the sources multinationals can use to estimate goods and services prices worldwide as well as the differentials that may be necessary when sending expatriates to particular locations?

How might cultural beliefs regarding the basis for compensation affect an approach to rewarding expatriates and host-country/third-country nationals in the same firm? How can a firm respond to these differences?

There are numerous complications for multinationals that would not be important for a firm that is not multinational when it comes to developing and implementing a compensation system. Which of the following factors must be considered by multinationals?

Various consulting firms publish prices on hundreds of goods and services and provide cost-of-living indices for virtually every city in the world, based on data that are updated regularly, and this information can be used by multinationals for compensation decisions.

An effective compensation plan for expatriates will likely include some form of incentive for an employee to accept an expatriate assignment (e.g., money, benefits, career mobility/advancement).

The United States has earned a reputation for paying its senior leaders more than other countries anywhere else.

The balance sheet method is a simple, inexpensive, and easy to administer method to treat expatriates fairly.

International Organizational Behavior: Challenges for Management

Cultural Frameworks: Understanding Differences in Employee Attitudes and Behavior

Communicating Effectively Across Cultures

Managing Conflict and Conducting Effective Negotiations

Motivating Employees Across Cultures

Effective Leadership in a Multicultural Environment

Managing Diversity, Conflict, and Ethical Dilemmas in an International Context

Managing Multicultural Teams and International Partnerships

Selecting and Evaluating International Employees

Global Staffing Alternatives: Expatriates and Beyond

Managing Building Global Commitment: Managing Labor Relations

Filters