Question 1

The components of the typical expatriate compensation package are a base salary,a foreign service premium,allowances of various types,tax differentials,and benefits.

Accepted Answer

The statement correctly describes the typical components of an expatriate compensation package.

Question 2

A polycentric staffing policy can lead to "cultural myopia."

Accepted Answer

A polycentric staffing policy focuses on hiring people from the host country to manage operations in that country. While this can help with local adaptation and reduce expatriate costs, it can also lead to cultural myopia - a narrow view and understanding of other cultures. This can hinder communication, collaboration, and overall effectiveness of the organization.

Question 3

According to the textbook,almost all expatriates believe that a position in a foreign country is beneficial to the careers of almost all expatriates,because their knowledge is highly valued by their company when they get home.

Accepted Answer

While many expatriates and companies value international experience, it's not accurate to say that almost all expatriates believe a position in a foreign country is beneficial to their careers. The perceived value can vary greatly depending on the individual's experience, the company's global strategy, and the relevance of the international experience to future roles. Some expatriates face challenges in repatriation and in having their overseas experience valued by their employers.

Question 4

A polycentric staffing policy is one in which parent-country nationals fill all key management positions.

Accepted Answer

A polycentric staffing policy is one in which host-country nationals fill all key management positions in the subsidiary, while parent-country nationals occupy the top management positions in the parent company.

Question 5

J.C.Baker's study of executives of U.S.multinationals found that most believed that knowledge of foreign languages was necessary for conducting business abroad.

Accepted Answer

The answer of J.C.Baker's study of executives of U.S.multinationals found...

Question 6

A polycentric staffing policy is appropriate for a firm following a multidomestic strategy.

Accepted Answer

A polycentric staffing policy involves hiring mostly local employees to fill positions in each country or region where the firm operates. This approach allows the firm to adapt to the unique cultural and societal norms of each market. This is particularly important for firms that pursue a multidomestic strategy, where each local market is treated as a separate entity with its own set of products, marketing strategies, and management practices. Therefore, a polycentric staffing policy is appropriate for such firms to ensure that they have a workforce that is familiar with the local market conditions and can effectively cater to the needs of the local customers.

Question 7

Cultural training seeks to foster an appreciation for the host country's culture.

Accepted Answer

Cultural training aims to provide individuals with the necessary knowledge, attitudes, and skills to effectively function and interact within their host country's cultural environment. This includes fostering an appreciation for the host country's culture, customs, values, and beliefs in order to build respectful and positive relationships with locals.

Question 8

One of the main reasons why managers turn down international assignments is concern over the impact of the assignment on their spouse's career.

Accepted Answer

This is a common concern expressed by managers in regards to international assignments.

Question 9

Substantial differences exist in the compensation of executives at the same level in various countries.

Accepted Answer

This statement is true. Different countries have different norms and standards for executive compensation, and as a result, executives at the same level may receive significantly different compensation packages depending on where they work. Factors such as local tax rates, labor laws, and the overall cost of living in a given location can all impact executive compensation.

Question 10

Describe the concept of human resources management.What extra challenges confront an international business in this area?

Accepted Answer

The answer of Describe the concept of human resources management.What...

Question 11

Compensation does not vary widely around the globe.

Accepted Answer

Compensation does vary widely around the globe due to factors such as economic conditions, cost of living, cultural values, and government regulations.

Question 12

A geocentric staffing policy is one in which all key management positions are filled by parent country nationals.

Accepted Answer

A geocentric staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality, blending parent-country nationals, host-country nationals, and third-country nationals.

Question 13

Unless a host country has a reciprocal tax treaty with the expatriate's home country,the expatriate may have to pay income tax to both the home and the host country governments.

Accepted Answer

This is true. Without a reciprocal tax treaty, the expatriate may be subject to double taxation.

Question 14

European-based multinationals experience a much higher expatriate failure rate than either Japanese or United States multinationals,according to a study conducted by R.L.Tung.

Accepted Answer

The answer of European-based multinationals experience a much higher expatriate...

Question 15

Mendenhall and Oddou identified four dimensions that seem to predict success in foreign postings: self-orientation,others-orientation,perceptual ability,and cultural toughness.

Accepted Answer

Mendenhall and Oddou did indeed identify these four dimensions as predictors of success in foreign postings.

Question 16

According to a study by R.L.Tung,the number one reason for expatriate failure among U.S.multinationals is the inability of the expatriate manager's spouse to adjust.

Accepted Answer

The statement accurately reflects the findings of the study by R.L.Tung.

Question 17

Historically,most international businesses have been more concerned with management development than with training.

Accepted Answer

The answer of Historically,most international businesses have been more concerned...

Question 18

The language of world business is Japanese.

Accepted Answer

Japanese is not the language of world business. English is considered the language of world business, as it is widely spoken and understood in business circles across the globe.

Question 19

ITSs stands for International Trade Secretariats.

Accepted Answer

ITSs stands for International Trade Secretariats, which are global organizations representing workers in specific industries or occupations.

Question 20

The two most common reasons for expatriate failure were the inability of a manager's spouse to adjust to a foreign environment and the manager's own inability to adjust to a foreign environment.

Accepted Answer

This statement is true. According to research, the inability of a manager's spouse to adjust to a foreign environment and the manager's own inability to adjust to a foreign environment are the two most common reasons for expatriate failure. Other reasons can include a lack of cultural awareness and skills, inadequate preparation, and a mismatch between the manager's skills and the requirements of the job.

Quiz 16: Global Human Resource Management