Question 1

Employers with many employees abroad buy kidnapping and ransom insurance.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true of actual pay practices in China?

Accepted Answer

A) pay is based on a guaranteed income plan 
B) unlikely to include bonuses 
C) much variation in pay from employee to employee 
D) heavy emphasis on incentives 
E) no relationship between pay and seniority

Question 3

Unions tend to have more autonomy and decision-making power in the European Union than in the United States.

Accepted Answer

A) True 
 B)False

Question 4

What value classification refers to a belief that the best manager for a specific position could be in any of the countries in which the firm operates?

Accepted Answer

A) geocentric 
B) francocentric 
C) polycentric 
D) monocentric 
E) ethnocentric

Question 5

If a firm chooses to fill key management jobs in foreign subsidiaries by seeking out the best people regardless of nationality, the firm is following a staffing policy.

Accepted Answer

A) francocentric 
B) ethnocentric 
C) polycentric 
D) geocentric 
E) monocentric

Question 6

Foreign service premiums compensate expatriates for exceptionally hard living and working conditions at certain foreign locations.

Accepted Answer

A) True 
 B)False

Question 7

When the values of a firm's top executives are classified as polycentric, it means that there is a .

Accepted Answer

A) belief that the best manager for a specific position may be anywhere in the world 
B) the best managers are multi-lingual 
C) prevailing attitude that the home country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country has to offer 
D) conscious belief that only host country managers can ever really understand the culture and behavior of the host country market 
E) the foreign subsidiary should be managed by expatriates

Question 8

In general, employers in China do not stress pay incentives as part of employee pay packages.)

Accepted Answer

A) True 
 B)False

Question 9

Which term below refers to the process of assessing the assignee's (and spouse's)probable success in handling a foreign transfer and alerting them tissues the move may involve?

Accepted Answer

A) competency assessment 
B) adaptability screening 
C) balance sheet assessment 
D) language skills placement testing 
E) culture shock resistance scoring

Question 10

Foreign service premiums usually range between 10% and 30% of base pay.

Accepted Answer

A) True 
 B)False

Question 11

In Germany, employees have the legal right to a voice in setting company policies. This is called .

Accepted Answer

A) work council leadership 
B) employment at will 
C) internal coordination 
D) employee participation 
E) co-determination

Question 12

Employees preparing for overseas assignments should be trained in cultural differences, attitude formation and behavioral influence, factual country knowledge, and language skills.

Accepted Answer

A) True 
 B)False

Question 13

Which group tends to earn the highest total compensation from the parent company?

Accepted Answer

A) host country nationals 
B) third country nationals 
C) parent country nationals 
D) both A and B 
E) all of the above

Question 14

The basis of the approach to formulating expatriate pay is to estimate the employee's expenses in the home country and what that standard of living will cost in the host country.

Accepted Answer

A) performance 
B) cash flow 
C) equitable wage rate 
D) balance sheet 
E) income sheet

Question 15

Frank Williams is being sent to Saudi Arabia for two years to work for his company's Saudi affiliate. Which of the following suggestions should Frank follow to minimize his chances of being the victim of a kidnapping?

Accepted Answer

A) equip car and home with adequate security systems 
B) wait at the airport in main traffic areas 
C) take the same route to and from work each day 
D) emphasize that he is an American 
E) all of the above

Question 16

What is the term for a supplement used to induce individuals to accept an international assignment?

Accepted Answer

A) foreign-service premium 
B) cultural adjustment premium 
C) mobility premium 
D) hardship premium 
E) cost-of-living allowance

Question 17

When the values of a firm's top executives are classified as ethnocentric, it means that there is a .

Accepted Answer

A) prevailing attitude that the home country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country has to offer 
B) the best managers are multi-lingual 
C) the foreign subsidiary should be managed by local people 
D) conscious belief that only host country managers can ever really understand the culture and behavior of the host country market 
E) belief that the best manager for a specific position may be anywhere in the world

Question 18

In many European countries, replace the union -based worker-management mediations typical in the U.S.

Accepted Answer

A) work councils 
B) employee boards 
C) unions 
D) mediation groups 
E) advisory boards

Question 19

What were the three key global pressures affecting human resource management practices named by international HR managers? Briefly explain each pressure.

Accepted Answer

The answer of What were the three key global pressures...

Question 20

The idea that a manager who accepts a foreign assignment is entitled to the same standard of living the manager enjoyed at home is the basis for .

Accepted Answer

A) hardship premiums 
B) premium expatriate salaries 
C) balance sheet approach 
D) tax equalization 
E) foreign-service premiums

Exam 17: Managing Global Human Resources

Employers with many employees abroad buy kidnapping and ransom insurance.

Which of the following is true of actual pay practices in China?

Unions tend to have more autonomy and decision-making power in the European Union than in the United States.

What value classification refers to a belief that the best manager for a specific position could be in any of the countries in which the firm operates?

If a firm chooses to fill key management jobs in foreign subsidiaries by seeking out the best people regardless of nationality, the firm is following a staffing policy.

Foreign service premiums compensate expatriates for exceptionally hard living and working conditions at certain foreign locations.

When the values of a firm's top executives are classified as polycentric, it means that there is a .

In general, employers in China do not stress pay incentives as part of employee pay packages.)

Which term below refers to the process of assessing the assignee's (and spouse's) probable success in handling a foreign transfer and alerting them tissues the move may involve?

Foreign service premiums usually range between 10% and 30% of base pay.

In Germany, employees have the legal right to a voice in setting company policies. This is called .

Employees preparing for overseas assignments should be trained in cultural differences, attitude formation and behavioral influence, factual country knowledge, and language skills.

Which group tends to earn the highest total compensation from the parent company?

The basis of the approach to formulating expatriate pay is to estimate the employee's expenses in the home country and what that standard of living will cost in the host country.

Frank Williams is being sent to Saudi Arabia for two years to work for his company's Saudi affiliate. Which of the following suggestions should Frank follow to minimize his chances of being the victim of a kidnapping?

What is the term for a supplement used to induce individuals to accept an international assignment?

When the values of a firm's top executives are classified as ethnocentric, it means that there is a .

In many European countries, replace the union -based worker-management mediations typical in the U.S.

What were the three key global pressures affecting human resource management practices named by international HR managers? Briefly explain each pressure.

The idea that a manager who accepts a foreign assignment is entitled to the same standard of living the manager enjoyed at home is the basis for .