Question 1

One of the most expensive cities in the world for expatriates to live in is currently:

Accepted Answer

Seoul has consistently ranked as one of the most expensive cities for expatriates due to its high cost of living, including housing, transportation, food, and entertainment expenses.

Question 2

The most extensive type of cross-cultural training is the affective approach,which focuses on providing expatriates with the psychological and managerial skills they will need to perform effectively during a moderate-length assignment.

Accepted Answer

The most extensive type of cross-cultural training is the immersion approach, which involves placing the expatriate in a cultural environment similar to the one they will experience, offering a more comprehensive and practical learning experience than the affective approach, which focuses more on attitudes and sensitivities.

Question 3

A lengthy cross-cultural training that typically includes language training and field experiences as well as training for the manager's family is a(n):

Accepted Answer

The answer of A lengthy cross-cultural training that typically includes...

Question 4

Calculating the compensation package for expatriate employees is one of the most difficult tasks facing multinational companies.

Accepted Answer

This statement is true. Calculating the compensation package for expatriate employees involves considerations such as cost of living, taxes, exchange rates, and cultural differences, making it a complex task for multinational companies.

Question 5

Which of the following is LEAST relevant to successful career planning for expatriates?

Accepted Answer

Power distance is a cultural factor that may affect how an expatriate adjusts to a foreign work environment, but it is less relevant to career planning than the other options listed. A, B, and D all directly relate to ensuring that the expatriate's career is successful during and after their international assignment.

Question 6

International expatriates should be selected by a board consisting of former expatriates.

Accepted Answer

Selecting international expatriates is a critical task as it involves finding the right candidate who can adapt to a new culture and a foreign work environment. Having a board consisting of former expatriates can provide valuable insights into the challenges and opportunities of living and working abroad. Former expatriates can provide first-hand knowledge and experience of foreign countries, enabling them to assess future candidates' suitability for the position. Additionally, these boards can offer mentoring, support, advice, and advocacy to the new expatriates, which can help them in their transition and enhance their success in the new role.

Question 7

The standard "add-on" incentive for accepting an international assignment is ________ of base salary.

Accepted Answer

The standard "add-on" incentive for accepting an international assignment is 15% of base salary.

Question 8

General Motors has a less than 1% premature return rate of expatriate managers,which is most likely because of its emphasis on:

Accepted Answer

The low premature return rate of expatriate managers in General Motors is most likely because of the emphasis on cross-cultural training, which helps ensure that managers are better prepared to work in a foreign country and adapt to the local culture. This can help prevent premature returns due to culture shock or inability to adjust to a new environment. Screening candidates' families, career planning for repatriates, and international HR policies and practices may also be beneficial, but cross-cultural training is the most likely reason for General Motors' success in retaining expatriate managers.

Question 9

One selection technique that will improve the effectiveness of the appointment of expatriate managers is the use of foreign-born employees.

Accepted Answer

The use of foreign-born employees can bring valuable insight and understanding of the local culture, language, and business practices, making them effective in identifying and selecting suitable expatriate candidates.

Question 10

A company wants a moderately extensive approach to cross-cultural training that will take a month or less and will focus on psychological and managerial skills.Their best choice for cross-cultural training would be a(n):

Accepted Answer

The affective approach focuses on developing psychological and behavioral skills necessary to live and work effectively in a new culture. This approach can help individuals learn to overcome their own cultural biases and develop empathy for other cultures. It would be the most appropriate for a moderately extensive approach to cross-cultural training that focuses on psychological and managerial skills within a month or less.

Question 11

Aileen is going to Paris for three weeks to train new store managers.Which would be the best type of training approach to prepare Aileen for her assignment?

Accepted Answer

The answer of Aileen is going to Paris for three...

Question 12

While it is illegal to ask domestic candidates questions about their family,it is essential to explore this area with candidates for an expatriate assignment.

Accepted Answer

Asking about a candidate's family is important for expatriate assignments as it can impact their willingness to relocate, their ability to adjust to a new culture, and the support they may need during the transition. However, it is illegal to ask domestic candidates questions about their family or marital status during the hiring process as per anti-discrimination laws.

Question 13

According to the text,what is the most challenging task for expatriates dealing with global issues?

Accepted Answer

The text states that "Anticipating political risks and navigating foreign business environments can be quite challenging" for expatriates dealing with global issues.

Question 14

General Motors' low premature-return rate of its expatriates is evidence of the effectiveness of its cross-cultural training program.

Accepted Answer

The statement implies that GM's expatriates are successfully adapting to their new cultural environments, which suggests that the cross-cultural training program is effective.

Question 15

What has been the primary problem facing foreign-based U.S.firms that offer employee hotlines for reporting ethics violations?

Accepted Answer

Privacy concerns have been the primary problem facing foreign-based U.S. firms that offer employee hotlines for reporting ethics violations. This is because different countries have different privacy laws, and some employees may feel uncomfortable reporting violations if they feel their identity will not be protected.

Question 16

Compensation policies can create conflict.If locals compare their compensation to the expatriate's,they may feel they are being treated unfairly.

Accepted Answer

This statement is true. When locals compare their compensation to the expatriate's, they may feel they are being treated unfairly, which can create conflict within the organization.

Question 17

Which of the following is most important when planning compensation for expatriates?

Accepted Answer

Granting cost-of-living adjustments is crucial for expatriates to maintain their standard of living in a foreign country, accounting for differences in living costs.

Question 18

Which of the following has improved the ability of firms to develop compensation plans for expatriates?

Accepted Answer

Internet access to international pay surveys has improved the ability of firms to develop compensation plans for expatriates by providing them with access to comprehensive data on pay scales and cost of living in different countries. Involvement of U.S. and foreign governments and the value of U.S currency are not directly related to improving the ability of firms to develop compensation plans for expatriates. The decline of the global economy may impact compensation plans, but it does not necessarily improve the ability to develop them.

Question 19

Norstrand Enterprises wants the most cost effective cross-cultural training for its expatriate managers.Which of the following would be most appropriate?

Accepted Answer

The most cost-effective cross-cultural training method would be the information-giving approach. This approach focuses on providing the necessary information and knowledge about the new culture to the expatriate managers. It does not involve any cultural simulations or personal interaction, making it less expensive than other methods. The affective approach focuses on changing the attitudes and emotions of individuals towards other cultures, which can be time-consuming and costly. The fictional-cultural approach uses stories and case studies to illustrate cultural differences, which may not be as effective as providing concrete information. The impression approach focuses on providing a positive impression of the new culture, which may not be as effective in preparing expatriates for cultural differences.

Question 20

Additional Case 17.2 
Golden Rod is an electronics firm based in Detroit with subsidiaries in several countries including Indonesia, Egypt, Argentina, and Thailand. The top management positions in these subsidiaries are filled by U.S. citizens. Golden Rod is planning on creating a new expatriate assignment in Egypt. The firm has created a selection board of expatriates to choose the best person for the job. In the past, Golden Rod has experienced a high turnover rate among repatriated managers, so executives hope to solve this problem.

-Refer to Additional Case 17.2.It would be most effective for the selection board to:

Accepted Answer

Selecting someone who has had previous international experience is the most effective choice as they would be familiar with the challenges of working in foreign countries and have a greater chance of successfully adapting to a new environment. This would lower the risk of repatriation failure, which is the problem the executives hope to solve. Screening applicants' families could also be beneficial to ensure they are willing to adapt to the new environment, but it is not mentioned as an option. Technical ability is important but not as crucial as international experience in this case. Discriminating against foreign-born employees is illegal and goes against diversity and inclusion values.

Quiz 17: International HRM Challenge