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The balance sheet approach aims to maintain the ______________ and _____________ of the employee while on their foreign assignment to levels equivalent to those they would have enjoyed had they stayed at home.


A) comfort level; social standing
B) purchasing power; living standard
C) living standard; superannuation benefits
D) working conditions; living standard

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

Correct Answer

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________________ managers are a subset of expatriate managers who are citizens of a foreign country working in the home country of their multinational employer.


A) Inpatriate
B) Transpatriate
C) Crosspatriate
D) Ethnopatriate

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

Correct Answer

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Through collective bargaining with management, labour unions generally try to obtain better pay, greater job security and:


A) better management.
B) better working conditions.
C) greater statutory rights.
D) participation rates.

E) B) and D)
F) B) and C)

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Third-country nationals are employees who move from country to country for work.

A) True
B) False

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The balance sheet approach ensures that there are equal numbers of parent-country and host-country managers.

A) True
B) False

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A number or arguments have been put forward to explain why female managers are less likely to be selected for foreign assignments. The three most common arguments are: prejudices of host-country nationals against women, lack of interest by female managers in going abroad, and:


A) lack of places suitable for women to work in.
B) lack of housing suitable for women.
C) lack of culturally aware women.
D) lack of suitably qualified women in the recruitment pool.

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

Correct Answer

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It is advisable to arrange for an expatriate to take a familiarisation trip to the host country, prior to transfer, as a form of:


A) practical training.
B) language training.
C) cultural training.
D) political training.

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

Correct Answer

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A polycentric staffing policy can minimise the dangers of cultural myopia.

A) True
B) False

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Which function of an international business is typically responsible for managing international labour relations?


A) Trade and international business
B) Operations management
C) Finance and accounting
D) Human resource management

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

Correct Answer

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Mendenhall and Oddou identified four dimensions that seem to predict success in a foreign posting:


A) cultural ability, leadership skills, flexibility and technical skills.
B) self-orientation, others-orientation, perceptual ability and cultural toughness.
C) cross-cultural communication skills, family suitability, adaptability and previous international experience.
D) leadership skills, interpersonal skills, flexibility and cultural awareness.

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

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The international trade secretariats (ITSs) were first established in the 1960s by:


A) a transnational trade association.
B) OECD countries.
C) organised labour.
D) the United Nations.

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

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Host-nations managers' appraisals of expatriate managers may be biased by:


A) their own cultural frames of reference and expectations.
B) lack of understanding about what is involved in the role.
C) jealousy and lack of any relationship with the expatriate manager.
D) their own lack of experience of working abroad.

E) A) and B)
F) B) and D)

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The development of internet technologies is having a significant impact on the ability to reach and manage the administration of global expatriates.

A) True
B) False

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A firm's success requires HRM policies to be congruent with the firm's strategy and with its _________ and ________ structure and controls.


A) formal; informal
B) technical; operational
C) manufacturing; production.
D) organisational; operational

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

Correct Answer

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What type of allowance is paid to expatriates who are sent to difficult locations?


A) A hardship allowance
B) A base salary allowance
C) A cost-of-living allowance
D) An education allowance

E) B) and C)
F) C) and D)

Correct Answer

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Training can lower the probability of expatriate failure. Training should be provided to both the expatriate manager and their spouse, and should include:


A) cognitive, cultural and practical training.
B) practical, language and cultural training.
C) technical, language and religious training.
D) cultural, practical and safety training.

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

Correct Answer

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Firms pursuing ________________ need a strong unifying corporate culture and informal management networks to assist in coordination and control.


A) a localisation strategy
B) an ethnocentric strategy
C) a transnational strategy

D) A) and C)
E) A) and B)

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Seventy-three per cent of companies use the __________________ approach when setting expatriates' pay. An alternative approach is the _________________ approach.


A) local-plus; local
B) home-based; transnational
C) balance sheet; host-based
D) international; national

E) B) and D)
F) None of the above

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With regard to expatriate pay, the ___________________ equalises purchasing power across countries, so employees can enjoy the same living standard in their foreign posting as they enjoyed at home.


A) balance sheet approach.
B) standard of living approach.
C) merit approach.
D) correspondence approach.

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

Correct Answer

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