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A principal concern of domestic unions about multinational firms is that a company can counter its bargaining power with:


A) work schedules tied to global rather than domestic standards.
B) wage rates tied to global rather than domestic standards.
C) the power to import labor from abroad.
D) the power to move production to another country.
E) the retention of low-skilled tasks in home country.

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

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Which of the following is the most common approach to expatriate pay, which equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home?


A) Merit approach
B) Correspondence approach
C) Balance sheet approach
D) Parity approach
E) Perceptual approach

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

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In terms of expatriate pay, which of the following is true of a foreign service premium?


A) It ensures that expatriates' children receive adequate schooling.
B) It helps to evaluate expatriates' performance without any unintentional bias.
C) It ensures that expatriates are prepared for reentry into their home-country organization.
D) It is paid as a percentage of base salary, with 16 percent being the average premium.
E) It allows a firm to pay expatriates' income tax in the host country.

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

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Describe the different approaches that international businesses take to labor relations.

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International businesses differ markedly...

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Which of the following staffing policies is followed by firms that can reduce the issue of compensation to that of how much home-country expatriates should be paid?


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

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

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