Question 1

Which of the following is true of hiring LCNs?

Accepted Answer

A) Companies incur relocation expenses and other substantial expenses associated with the use of LCNs. 
B) Companies have to be concerned about LCNs' adapting to the local culture. 
C) Only rarely do organizations decide that hiring LCNs is appropriate. 
D) Employment of LCNs satisfies nationalistic demands for hiring locals. 
A) Companies incur relocation expenses and other substantial expenses associated with the use of LCNs. 
B) Companies have to be concerned about LCNs' adapting to the local culture. 
C) Only rarely do organizations decide that hiring LCNs is appropriate. 
D) Employment of LCNs satisfies nationalistic demands for hiring locals. D

Question 2

In Malaysia and Mexico, egalitarian pay structures fit best with the culture.

Accepted Answer

A) True 
 B)False  False

Question 3

KYZ Inc., a U.S.firm, sends its manager, Ryan, to London to manage its operations there.Ryan's salary is still based on the U.S pay system, however KYZ offers him a lump-sum payment to offset the additional standards-of-living expense in London.In this case, which of the following approaches to expatriate compensation is used by KYZ?

Accepted Answer

A) The cafeteria approach 
B) The localization approach 
C) The local plus approach 
D) The balance sheet approach 
A) The cafeteria approach 
B) The localization approach 
C) The local plus approach 
D) The balance sheet approach A

Question 4

An Indian citizen working for a Japanese company in India is a _____.

Accepted Answer

A) foreign country national 
B) third-country national 
C) parent-country national 
D) local country national 
A) foreign country national 
B) third-country national 
C) parent-country national 
D) local country national

Question 5

It is easier and less complex to compare living costs across countries than total compensation.

Accepted Answer

A) True 
 B)False

Question 6

Briefly summarize the degree to which the social contract constrains the employment relationship in organizations with an example.

Accepted Answer

Viewed as part of the social contract, t

Question 7

Distinguish between parent-country nationals, local-country nationals, and third-country nationals with examples.

Accepted Answer

Employees temporarily working and living

Question 8

Approximately 20 percent of expats leave their company within a year of their return to the U.S.

Accepted Answer

A) True 
 B)False

Question 9

_____ sets salaries according to the home-country system and simply offers employees lump sums of money to offset differences in standards of living.

Accepted Answer

A) The modified balance sheet approach 
B) The localization approach 
C) The cafeteria approach 
D) The balance sheet approach 
A) The modified balance sheet approach 
B) The localization approach 
C) The cafeteria approach 
D) The balance sheet approach

Question 10

Traditionally, Japan's employment relationships were supported by _____.

Accepted Answer

A) lifetime security within the company 
B) performance-based pay systems alone 
C) centralized unions representing workers across several companies within an industry 
D) performance-based promotion systems alone 
A) lifetime security within the company 
B) performance-based pay systems alone 
C) centralized unions representing workers across several companies within an industry 
D) performance-based promotion systems alone

Question 11

Which of the following is a factor determining base pay in the Japanese traditional national system?

Accepted Answer

A) Job evaluation 
B) Career category 
C) Market pricing 
D) Specific job title 
A) Job evaluation 
B) Career category 
C) Market pricing 
D) Specific job title

Question 12

According to Hofstede's cultural dimensions, in Malaysia and Mexico, where there is high power distance, _____ pay structures are appropriate.

Accepted Answer

A) equitable 
B) hierarchical 
C) egalitarian 
D) parallel 
A) equitable 
B) hierarchical 
C) egalitarian 
D) parallel

Question 13

In Germany, an employee's pay is affected by his or her age.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements about evolution and change in the traditional German model is true?

Accepted Answer

A) Nearly one in 10 German adults owns stock. 
B) High birth rates are pushing up the costs of the social support system. 
C) A relatively flexible labor market means that employers are finding it easier to move to other EU countries. 
D) Many of the changes in Germany are the result of global competitive pressures and technological changes. 
A) Nearly one in 10 German adults owns stock. 
B) High birth rates are pushing up the costs of the social support system. 
C) A relatively flexible labor market means that employers are finding it easier to move to other EU countries. 
D) Many of the changes in Germany are the result of global competitive pressures and technological changes.

Question 15

Only 5 percent of U.S.expatriates believe their company values their overseas experience.

Accepted Answer

A) True 
 B)False

Question 16

MayFly Inc., a firm headquartered in Paris, France, sends one of its employees to Frankfurt, Germany and Barcelona, Spain to manage its operations in these cities.The employee would be required to alternate between the two cities every six months.Mayfly offers only a moving expense on top of the base pay as the employee would be moving only within the European Union countries.Which of the following approaches to expatriate compensation is exemplified in this situation?

Accepted Answer

A) Modified balance sheet approach 
B) Localization approach 
C) Local plus approach 
D) Lump-sum/cafeteria approach 
A) Modified balance sheet approach 
B) Localization approach 
C) Local plus approach 
D) Lump-sum/cafeteria approach

Question 17

Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment.

Accepted Answer

A) True 
 B)False

Question 18

Since the Japanese system is so seniority-based, labor costs decrease as the average age of the workforce increases.

Accepted Answer

A) True 
 B)False

Question 19

KayLeaf Inc.wants to set up a unit in China.To facilitate this, it sends its manager to China to gather information.Which of the following is most likely to be a suggestion from its manager?

Accepted Answer

A) Use a hierarchical pay structure as there is high power distance in China. 
B) Use individual spot awards rather than stock options in the pay mix as the people in China have a long-term orientation. 
C) Use incentives linked to individual performance as China has a collectivistic culture. 
D) Have a rigid structure as the people in China have the highest level of uncertainty avoidance. 
A) Use a hierarchical pay structure as there is high power distance in China. 
B) Use individual spot awards rather than stock options in the pay mix as the people in China have a long-term orientation. 
C) Use incentives linked to individual performance as China has a collectivistic culture. 
D) Have a rigid structure as the people in China have the highest level of uncertainty avoidance.

Question 20

The country with the highest unionization rate in Europe is France, where 90 percent of workers are union members.

Accepted Answer

A) True 
 B)False

Which of the following is true of hiring LCNs?

In Malaysia and Mexico, egalitarian pay structures fit best with the culture.

An Indian citizen working for a Japanese company in India is a _____.

It is easier and less complex to compare living costs across countries than total compensation.

Briefly summarize the degree to which the social contract constrains the employment relationship in organizations with an example.

Distinguish between parent-country nationals, local-country nationals, and third-country nationals with examples.

Approximately 20 percent of expats leave their company within a year of their return to the U.S.

_____ sets salaries according to the home-country system and simply offers employees lump sums of money to offset differences in standards of living.

Traditionally, Japan's employment relationships were supported by _____.

Which of the following is a factor determining base pay in the Japanese traditional national system?

According to Hofstede's cultural dimensions, in Malaysia and Mexico, where there is high power distance, _____ pay structures are appropriate.

In Germany, an employee's pay is affected by his or her age.

Which of the following statements about evolution and change in the traditional German model is true?

Only 5 percent of U.S.expatriates believe their company values their overseas experience.

Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment.

Since the Japanese system is so seniority-based, labor costs decrease as the average age of the workforce increases.

KayLeaf Inc.wants to set up a unit in China.To facilitate this, it sends its manager to China to gather information.Which of the following is most likely to be a suggestion from its manager?

The country with the highest unionization rate in Europe is France, where 90 percent of workers are union members.

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 16: International Pay Systems

Which of the following is true of hiring LCNs?

In Malaysia and Mexico, egalitarian pay structures fit best with the culture.

An Indian citizen working for a Japanese company in India is a _____.

It is easier and less complex to compare living costs across countries than total compensation.

Briefly summarize the degree to which the social contract constrains the employment relationship in organizations with an example.

Distinguish between parent-country nationals, local-country nationals, and third-country nationals with examples.

Approximately 20 percent of expats leave their company within a year of their return to the U.S.

_____ sets salaries according to the home-country system and simply offers employees lump sums of money to offset differences in standards of living.

Traditionally, Japan's employment relationships were supported by _____.

Which of the following is a factor determining base pay in the Japanese traditional national system?

According to Hofstede's cultural dimensions, in Malaysia and Mexico, where there is high power distance, _____ pay structures are appropriate.

In Germany, an employee's pay is affected by his or her age.

Which of the following statements about evolution and change in the traditional German model is true?

Only 5 percent of U.S.expatriates believe their company values their overseas experience.

Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment.

Since the Japanese system is so seniority-based, labor costs decrease as the average age of the workforce increases.

KayLeaf Inc.wants to set up a unit in China.To facilitate this, it sends its manager to China to gather information.Which of the following is most likely to be a suggestion from its manager?

The country with the highest unionization rate in Europe is France, where 90 percent of workers are union members.

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Compensation of Special Groups

Union Role in Wage and Salary Administration

Government and Legal Issues in Compensation

Management: Making It Work

Filters