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A firm pursues an ethnocentric staffing policy because it:


A) believes in providing growth opportunities to host-country nationals.
B) wants to avoid cultural myopia.
C) believes the host country lacks qualified individuals for senior management positions.
D) wants to keep all core competencies within the home country.
E) wants to build strong cultural and informal management networks in all its subsidiaries.

F) C) and D)
G) A) and B)

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

A) True
B) False

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The norms and value systems of an organization constitute its:


A) corporate social responsibility.
B) cultural toughness.
C) cultural sensitivity.
D) corporate culture.
E) perceptual ability.

F) All of the above
G) A) and B)

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Poor health care and housing standards and inhospitable climate make it difficult for expatriates to adjust to a particular posting. According to Mendenhall and Oddou's four dimensions that predict success in a foreign posting, which of the following is required in this situation?


A) Perceptual ability
B) Cultural toughness
C) Self-orientation
D) Others-orientation
E) Self-confidence

F) B) and C)
G) A) and E)

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Which of the following staffing policies seeks the best people for key jobs throughout the organization, regardless of nationality?


A) Global
B) Ethnocentric
C) Geocentric
D) Polycentric
E) Transnational

F) None of the above
G) C) and D)

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From a strategic perspective, a compensation system must reward managers for taking actions that are consistent with the strategy of the enterprise.

A) True
B) False

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A concern of organized labor is that an international business keeps highly skilled tasks in its home country and farms out low-skilled tasks to foreign plants.

A) True
B) False

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Most countries require extensive documentation if they wish to hire a foreign national instead of a local national. Which of the following staffing approaches is most likely to be affected by this?


A) Polycentric
B) Geocentric
C) Transnational
D) Ethnocentric
E) Local

F) A) and D)
G) A) and C)

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Which of the following strategies is compatible with a geocentric staffing policy?


A) Global standardization strategy
B) Localization strategy
C) International strategy
D) Ethical strategy
E) Global strategy

F) A) and E)
G) None of the above

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Which of the following is intended to build a manager's skills over his or her career with a firm?


A) Ethnocentrism
B) Cultural toughness
C) Total Quality Management
D) Management development
E) Learning effects

F) A) and B)
G) B) and C)

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From a strategic perspective, the key issue in international labor relations is:


A) dealing with multiple business units.
B) the degree to which organized labor can limit the choices of an international business.
C) whether to hire parent-country nationals, host-country nationals, or third-country nationals.
D) helping expatriates cope with new role demands.
E) the extent to which a reciprocal tax treaty can be brought into effect.

F) C) and D)
G) A) and B)

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International trade secretariats have been minimally successful because of the:


A) similarity in the structure of unions on a global level.
B) common perception unions have about multinational companies.
C) reciprocal tax treaty.
D) competition between national unions to attract investment from international businesses.
E) retention of highly skilled tasks in the host country.

F) A) and E)
G) C) and D)

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Define an expatriate manager. Describe the dimensions of self-orientation and others-orientation that predict success in a foreign posting.

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An expatriate manager is a citizen of on...

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International firms pursuing an ethnocentric staffing policy may be better able to create value from the pursuit of experience curve and location economies than firms pursuing other staffing policies.

A) True
B) False

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Which of the following was established by organized labor in 1960s to provide worldwide links for national unions in particular industries?


A) HR watchdog groups
B) International trade secretariats
C) Unorganized labor organizations
D) International orientation resources
E) Reciprocal tax treaties

F) A) and B)
G) C) and D)

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The human resource management function can help a firm achieve its primary strategic goals of reducing the costs of value creation and adding value by better serving customer needs.

A) True
B) False

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A(n) expatriate manager refers to:


A) a citizen of one country who is working abroad in one of the firm's subsidiaries.
B) a parent-country national who works in the parent country.
C) a host-country national who works in the host country.
D) any person who lives in a foreign country.
E) a person willing to work in different departments of a foreign firm.

F) C) and D)
G) A) and B)

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In terms of expatriate pay, what does a firm typically do when a reciprocal tax treaty is not in force?


A) The firm requires the expatriate to pay one-third of the income tax to the host-country government.
B) The firm requires the expatriate to pay 50 percent of the income tax to the host-country government.
C) The firm pays the expatriate's income tax to the host-country government.
D) The firm requires the expatriate to pay the income tax to both the host-country and home-country governments.
E) The firm pays the expatriate's income tax to the home-country government.

F) B) and C)
G) B) and E)

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An expatriate's base salary is normally lower than the base salary for a similar position in the home country.

A) True
B) False

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Which of the following strategies is concerned with the selection of employees for particular jobs?


A) Compensation policy
B) Staffing policy
C) Performance appraisal policy
D) Training policy
E) Management development policy

F) A) and D)
G) D) and E)

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