Deck 13: Strategizing, Structuring, and Learning Around the World

Question 1

In the United States, unionized employees earn less than non-unionized employees.

Answer 1

False

Question 2

HR managers must do more homework to better understand their HCNs.

Answer 2

True

Question 3

In developed economies, a firm s key concern is to cut cost and enhance competitiveness to fight off low-cost rivals from emerging economies, such as China and India.

Answer 3

True

Question 4

To reach the top at most MNEs today, international experience is optional.

Question 5

MNEs intend to eventually replace even top-level expatriates with HCNs, in part to save cost.

Question 6

A combination of work-related and family-related problems usually does not lead to expatriate failures.

Question 7

Many Western managers are unwilling to accept a local plus package instead of the traditional expatriate package full of perks.

Question 8

The best way to reduce expatriate turnover is a career development plan.

Question 9

Repatriation, if not managed well, can be traumatic for expatriates and their families, but not for the firm.

Question 10

HCNs in management and professional positions have increasing bargaining power.

Question 11

The going rate approach is the most widely used method in expatriate compensation.

Question 12

The term HRM indicates that people are key resources of the firm that must be actively managed and developed.

Question 13

An ethnocentric approach emphasizes the norms and practices of the parent company by relying on PCNs.

Question 14

Global standardization or transnational strategies often require a geocentric approach, resulting in the mix of HCNs, PCNs, and TCNs.

Question 15

European MNEs are more likely to appoint HCNs and TCNs to lead subsidiaries.

Question 16

Staffing, training and development, compensation, and labor relations are main areas of multinational enterprises.

Question 17

For the Germany-based Siemen s, PCNs would be employees from any country other than Germany.

Question 18

Desirable expatriate attributes include a positive attitude, emotional stability, and previous international experience.

Question 19

Companies with a global strategic orientation follow a geocentric staffing policy.

Question 20

A psychological contract is hard to violate.

Question 21

Which of the following is NOT an advantage of parent-country nationals?

A) PNCs gain international experience.
B) PCNs may be the best people for the job because of special skills and experience.
C) Language and cultural barriers are eliminated.
D) Control and coordination by HQ are facilitated.

Question 22

A(n) ____ emphasizes the norms and practices of the parent company relying on PCNs.

A) Polycentric approach
B) Geocentric approach
C) Regioncentric approach
D) Ethnocentric approach

Question 23

The most widely used method in expatriate compensation is:

A) Going rate approach
B) Balance sheet approach
C) Performance appraisal
D) Employee s request

Question 24

MNE strategies are:

A) home replication
B) localization and global standardization
C) transnational
D) home replication, localization, global standardization, and transnational

Question 25

Which of the following is NOT a factor in expatriate individual selection decision?

A) Cross-cultural adaptability
B) Spouse and family preferences
C) Technical ability and expertise
D) Host country/subsidiary preferences and language skills

Question 26

An ethnocentric staffing policy:

A) Utilizes host country nationals in key foreign management and technical positions.
B) Assigns expatriates who have learned the language and culture of the country of their assignment.
C) Is required in order to prepare home-country citizens for high-level managerial positions at headquarters.
D) None of these answers

Question 27

Expatriate failure can be defined as

A) premature (earlier than expected) return
B) unmet business objectives
C) unfulfilled career development objectives
D) All of these answers

Question 28

Non-native employees who work and reside in a foreign country are known as:

A) Host-country nationals
B) Expatriates
C) Multinationals
D) Repatriates

Question 29

Desirable attributes for cross-cultural adaptability include:

A) Financial stability and a positive attitude
B) Education and an established career
C) Positive attitude, emotional stability, and previous international experience
D) Education, financial stability, and previous international experience

Question 30

Which of the following is NOT a balance sheet approach disadvantage?

A) Costly
B) Great disparities between expatriates and HCNs
C) Variation between assignments in different locations for the same employees
D) Organizationally complex to administer

Question 31

Which country is now Manpower s largest market ahead of the United States?

A) France
B) Germany
C) China
D) India

Question 32

Problems associated with repatriation include:

A) Career anxiety and work adjustment
B) Loss of status and pay
C) Difficult for the spouse and children to adjust
D) All of these answers

Question 33

____ is leading the world in managerial compensation.

A) United States
B) Britain
C) Japan
D) Germany

Question 34

Which of the following is not a situational factor in an expatriate selection decision?

A) Corporate headquarters preferences
B) Technical ability and expertise
C) Host country/subsidiary preferences
D) Language skills

Question 35

The expatriates important roles are:

A) Manager and trainer
B) Controller and ambassador
C) Daily manager, trainer, strategist, and ambassador
D) Controller, manager and trainer

Question 36

Which of the following is NOT a going rate approach advantage?

A) Simplicity
B) Identification with host country
C) Equality among PCNs, TCNs, and HCNs in the same location
D) Facilitates expatriate re-entry

Question 37

MNEs are rushing into ____, whereby the local supply of top talent is limited.

A) Japan
B) Mexico
C) Eastern Europe
D) Brazil, Russia, India, and China

Question 38

Which of the following is NOT a disadvantage of host-country nationals?

A) Control and coordination by HQ may be impeded.
B) Adaptation may take a long time.
C) HCNs may have limited opportunities.
D) International experience for PCNs is limited.

Question 39

Non-HR managers need to proactively manage their careers to develop a global mindset.

Question 40

The majority of MNEs employees would be:

A) HCNs
B) PCNs
C) TCNs
D) Multinationals

Question 41

Compare and contrast going rate vs. balance sheet approach.

Question 42

Human resource management is indeed:

A) Strategic
B) One-dimensional
C) Simplistic
D) Cost prohibitive

Question 43

HR managers need to:

A) Know the formal and informal rules of the game governing HRM in all regions of operations
B) Develop organizational capabilities that drive business success
C) Nurture and develop people
D) All of these answers

Question 44

Non-HR managers must be:

A) Curious
B) Competent
C) Proactive in managing international careers
D) Caring and courageous

Question 45

Describe the role of expatriates.

Question 46

Describe several problems associated with repatriation.

Question 47

How do institutions and resources affect human resource management?

Question 48

The resource-based view focuses on:

A) Value and rarity
B) Imitability
C) Organization and value
D) Value, rarity, imitability, and organization

Question 49

What are the problems associated with inpatriation?

Question 50

Identify the four Cs of the human resource manager.

Question 51

Identify the typical staffing approaches.