2nd Edition Ball Complete Test Bank

Module 14 Managing Human Resources in an International Context

1) An expatriate is a person living outside his or her country of birth.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Bloom's : Understand
Topic : Challenges and Opportunities for Expatriate Workers

An expatriate is a person living outside his or her country of citizenship, which is not necessarily the country of birth.

2) The effectiveness of every organization depends, to a great extent, on how well its human resources are used.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Difficulty : 1 Easy
Topic : International Staffing Policies
Bloom's : Understand

The effectiveness of every organization depends to a great extent on the nature of its workforce and how well its human resources are utilized. Their effective use depends on management's policies and practices.

3) Populations in developing nations tend to be growing larger and younger at the same time.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Due to high birthrates and a decline in the rate of infant mortality, populations in the developing nations tend to be growing as well as becoming younger. Over one-third of the world's 15- to 24-year-olds, a key source of new workers during the next decade, live in just two developing countries: India and China.

4) There has been a rapid increase in the proportion of the world’s population that is age 65 or older.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

In addition to examining population as a whole, we need to consider the effects of an aging population on the workforce, a trend impacting many nations worldwide. The rapid increase in the proportion of the world’s population that is age 65 or older has received much attention in recent years. While the population of people aged 65 or older was 609 million in 2015, by 2050 this group will be about 2.5 times larger, or over 1.5 billion.

5) The movement of people from one country to another in search of jobs is called labor mobility.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

Labor mobility refers to the movement of people from country to country or area to area seeking jobs.

6) Guest workers would be welcomed in a country like the United States where there are too few people for too many jobs.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Countries that receive many refugees or have high birthrates may have too many people for the available jobs, but there are also countries that have too few people. France, Germany, the Scandinavian countries, and Switzerland, all of which have low birthrates, have encountered labor shortages. And to those countries have come so-called guest workers to perform certain types of jobs, usually in service, factory, or construction work. Most of the guest workers in these countries are from such places as Turkey, Eastern Europe, and North Africa.

7) Many economic migrants are involved in what are sometimes referred to as "3-D" jobs—digital, developmental, and demanding—which are well paid but that have inadequate numbers of qualified host-country workers to satisfy demand.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Migrant labor ranges from highly skilled jobs such as in information technology and medicine to lower-skilled jobs in agriculture, cleaning, and domestic service. Many migrants are involved in what are sometimes referred to as "3-D" jobs—dirty, dangerous, and degrading—that a nation's own workers reject or for which there are not enough available workers. Many of these 3-D jobs employ vulnerable workers, that is, workers who do not have a contract, work without benefits, are paid "under the table," and whose employment often violates local laws.

8) The loss by a country of its most intelligent and best-educated people, a phenomenon known as brain drain, is usually due to the desire to seek improved economic circumstances and pursue better professional opportunities.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

The loss by a country of its most intelligent and best-educated people, a phenomenon known as brain drain, is usually due to the desire to seek improved economic circumstances and pursue better professional opportunities. Reverse brain drain refers to the return home of highly skilled immigrants who have made a contribution in their adopted country.

9) A company would use collective bargaining when purchasing supplies from a vendor.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Collective bargaining is the process in which a union represents the interests of everyone in a bargaining unit (which may include both union members and nonmembers) in negotiations with management.

10) In recent decades, there has been a steady growth in the number of union members in most developed countries.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

For the past four decades, there has been a decline in the number of union members in most developed countries, especially among workers in industrial sectors.

11) The geocentric staffing approach is based on the home-country’s frame of reference.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-02 Explain the relationship between competitive strategies (international, multidomestic, global, and transnational) and international human resource management approaches (ethnocentric, polycentric, regiocentric, and global).

The geocentric approach is based on ability and experience without considering race or citizenship.

12) Under a polycentric staffing orientation, there is little communication flow among subsidiaries.

⊚ true
⊚ false

Under a polycentric staffing orientation, there is little communication to and from headquarters and little among subsidiaries.

13) A disadvantage of hiring local managers is that they are often unfamiliar with the home country of the IC and with its policies and practices.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

A disadvantage of hiring local managers is that they are often unfamiliar with the home country of the IC and with its corporate culture, policies, and practices. Differences in attitudes and values can cause these locally hired managers to act in ways that surprise or displease headquarters. Also, local managers may create their own upward immobility if, because of strong cultural or family ties, they are reluctant to accept promotions that would require them to leave their home country to work abroad at parent headquarters or at another subsidiary.

14) The disadvantages of using employees from the home or host countries can sometimes be avoided by sending third-country nationals to fill management posts.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

The disadvantages often encountered when using employees from the home or host country can sometimes be avoided by sending third-country nationals to fill management posts.

15) Companies with a transnational strategic orientation follow a global staffing policy, selecting the best person for each job without considering national origin and generally having consistent HRM strategy across all subsidiaries.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : International Staffing Policies
Bloom's : Understand
Difficulty : 3 Hard
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

Companies with a transnational strategic orientation follow a geocentric staffing policy, selecting the best person for each job without considering national origin and generally having consistent HRM strategy across all subsidiaries.

16) Once a person has grown accustomed to a new culture, returning to one's home culture can produce an experience of reverse culture shock.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 14-05 Identify some of the challenges and opportunities of an expat position.
Topic : Challenges and Opportunities for Expatriate Workers

Once a person has grown accustomed to a new culture, returning to one's home culture can produce a similar experience to culture shock, referred to as reverse culture shock.

17) Relatively few expatriate failures are family-related. Most relate to the expatriate's lack of technical skills.

⊚ true
⊚ false

It has been suggested that as many as 9 in 10 such failures are family-related, and more than 75 percent of the employees who declined relocations in recent surveys cited family concerns as the basis for their decision.

18) Planning for an expatriate's return should begin once they have been reassigned to return to the home country office.

⊚ true
⊚ false

Planning for an expatriate's return should start before his or her overseas assignment even begins.

19) In the method favored by the majority of American ICs, the salary part of an expatriate employee's compensation package will generally be governed by the employee's level in the organization and will not be higher because of the foreign assignment.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 14-06 Describe some of the complications of compensation packages for expatriate executives.
Topic : Compensation and Performance Appraisal Systems

The method traditionally favored by the majority of American ICs is the balance sheet approach, whereby the expatriate is paid a base salary equal to that of a domestic counterpart and then, in the belief that no one should be worse off for accepting foreign employment, to add a variety of allowances and bonuses. This approach can work well for expatriates who are at mid or senior levels of an organization. The expatriate is not put at a disadvantage relative to domestic counterparts in the same or similar positions, and it may facilitate easier movement between expatriate and domestic assignments.

20) A cost-of-living allowance provides an expat with money that would cover price differences in food, transportation, clothing, and medical expenses.

⊚ true
⊚ false

Cost-of-living allowances are based on differences in the prices paid for food, utilities, transportation, entertainment, clothing, personal services, and medical expenses overseas compared with the prices paid for these items in the IC’s headquarters city.

21) A local labor market is made up of

A) the entire population of people in the local operating area.
B) a country's pool of people with the required skill set.
C) the pool of available employees with the necessary skills and who are within commuting distance.
D) the pool of employees with the necessary skills who are in the country or surrounding nations.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

When a foreign company enters a new nation, it must take what it finds in terms of the local labor market, which refers to the pool of available employees with the necessary skills who are within commuting distance of an employer.

22) Jake asked his team to find out how many employees were available in the proposed foreign market that had the data analysis skills the company needed to complete the task. This information will help him decide if the foreign market is viable for the company to enter into. What type of information is Jake looking for?

A) population size
B) population growth
C) labor market
D) labor force

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations

23) Low birthrates and low levels of immigration are causing populations in developed countries to

A) decline.
B) increase.
C) stabilize.
D) implode.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

In contrast, populations in many developed countries are projected to decline in the coming years, due to factors such as low birthrates and low levels of immigration.

24) More than one-third of the world’s population age 15–24 live in which two developing countries?

A) Indonesia and South Africa
B) U.S. and Germany
C) India and China
D) Brazil and Argentina

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

More than 34 percent of the world’s 15- to 24-year-olds, a key source of new workers over the next decade, live in just two developing countries: India and China.

25) In 2010, what percent of the population in developed countries was 65 or older?

A) 42 percent
B) 56 percent
C) 12 percent
D) 25 percent

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

The aging of populations is more pronounced in developed countries than in developing nations, as shown in Figure 14.1. The percentage of the population aged 65 or over in developed countries is projected to grow from 12 percent in 2010 to more than 25 percent by 2050.

26) By the year 2050, what percent of the population in developed countries is projected to be 65 or older?

A) 42 percent
B) 56 percent
C) 12 percent
D) 25 percent

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

27) During the past century, there has been a noticeable shift in the workforce from

A) coastal to inland settings.
B) urban to rural settings.
C) inland to coastal settings.
D) rural to urban settings.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

The population and labor force worldwide have been shifting dramatically from rural to urban during the past century.

28) The increasing levels of the population moving to urban areas in developing countries results in a labor pool of

A) low-skilled workers.
B) workers demanding higher wages.
C) fewer workers.
D) technically-skilled workers.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

As populations migrate from rural areas to urban areas, particularly within developing nations, they also move from agriculturally based employment to employment in industry and service sectors. Often, this influx of labor from rural areas creates a pool of low-cost, low-skilled workers, a large portion of which may be classified as part of the vulnerable workforce, those at most risk of losing their jobs.

29) Trent has worked for the same company in Maryland for the past ten years. He was recently offered a position at a different company in Australia and has decided to take the job because it offers better pay, more responsibility, and his cost of living expenses will be lower. Employees like Trent who move from country to country in seek of a job are examples of

A) labor mobility.
B) population growth.
C) the labor force.
D) economies of scale.

Labor mobility refers to the movement of people from country to country or area to area seeking jobs.

30) One challenge presented to employers by the rural to urban migration is

A) educating the rural immigrants in etiquette associated with city life.
B) supporting the social and psychological adjustment necessary for rural immigrants in an urban work setting.
C) maintaining the rural immigrant's interest in work.
D) fully utilizing the new pool of highly skilled immigrant workers.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

While labor trainers for international companies in developing nations have found that people learn industrial skills rapidly, a more difficult challenge is teaching new workers who come from farms and villages how to adjust socially and psychologically to modern work life demands in industrial or service sectors.

31) Worldwide, labor tends to be

A) immobile.
B) unreliable.
C) mobile.
D) well-trained.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

When possible, people move to secure better economic situations, regardless of their socioeconomic level, and immigration is at least partly the result of the relative supply of and demand for labor as well as regulations influencing those factors.

32) The major motivation for immigration is a

A) better economic situation.
B) more stimulating environment.
C) safer, more secure environment.
D) chance to leave urban areas for a rural lifestyle.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

33) Migrant labor is often involved in “3-D” jobs, which stands for

A) dirty, dangerous, and degrading.
B) detailed, diverse, and digital.
C) demanding, demeaning, and decorated.
D) displaced, daily, and dismissed.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

Migrant labor spans the spectrum of skills, ranging from highly skilled jobs such as those in information technology and medicine to lower-skilled jobs in agriculture, cleaning, and domestic service. Many migrants are involved in what are sometimes referred to as 3-D jobs—dirty, dangerous, and degrading.

34) In 2017, what percentage of the U.S. population was foreign-born?

A) 29 percent
B) 5 percent
C) 14 percent
D) 40 percent

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

In 2017, almost 14 percent of the people residing in the United States were foreign-born, up from 5 percent in 1970.

35) Nations listed in the text as losing the largest number of their people to emigration include

A) Mexico, Canada, and the United States.
B) Russia, China, and India.
C) Germany, Russia, and Ukraine.
D) India, Russia, and the United States.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

More than 258 million people live in a different nation than where they were born, nearly four times the number in 1960. Of the world’s migrants, 64 percent live in developed countries, particularly the United States, Europe, and Australia. The nations losing the largest number of their people to emigration are India, Mexico, Russia, China, Bangladesh, Syria, Pakistan, and Ukraine. Nations receiving the largest numbers of international migrants are the United States, Saudi Arabia, Germany, and Russia.

36) Guest workers are immigrants who

A) immigrate for specified periods to perform service, factory, or construction work.
B) travel seasonally, usually without visas, in agricultural work.
C) obtain visas to work on specific projects, usually in scientific research.
D) work in a country illegally, usually in 3-D jobs.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Guest workers are people who go to a foreign country legally to perform certain types of jobs on a temporary basis. Usually these jobs are in service, factory, or construction work.

37) Guest workers are usually associated with jobs in what industries?

A) factory and construction
B) health care and elder care
C) education and childcare,
D) data entry and economics

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

And to those countries have come so-called guest workers to perform certain types of jobs, usually in service, factory, or construction work.

38) Brain drain affects developing countries because

A) lower-skilled workers demand higher wages.
B) multiple companies are competing for the same business.
C) they lose talent to migration, and this impacts their development.
D) their pool of low-cost, unskilled workers is reduced, damaging potential for incoming foreign direct investment.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Developing countries lose the talent on which they could have built their future. The loss by a country of its most intelligent and best-educated people is usually due to the desire to seek improved economic circumstances and pursue better professional opportunities. Brain drain has become a serious problem for developing countries, because it means the loss of such skilled professionals as scientists, IT specialists, engineers, teachers, and health care professionals. In some Central American and sub-Saharan African countries, over half of the college-educated population emigrates, often to seek adequate infrastructures in the area in which they have trained.

39) Developing nations are greatly concerned when highly-skilled professionals such as scientists, IT specialists, teachers, and health care professionals leave the country to seek better living arrangements. What term is given to this type of emigration?

A) self-fulfilling prophecy
B) ethnocentrism
C) groupthink
D) brain drain

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

The loss by a country of its most intelligent and best-educated people, a phenomenon known as brain drain, is usually due to the desire to seek improved economic circumstances and pursue better professional opportunities. Brain drain has become a serious problem for developing countries because it means the loss of such skilled professionals as scientists, IT specialists, engineers, teachers, and health care professionals.

40) What is the motivation behind brain drain?

A) the need to move from a rural to urban setting
B) government trade barriers that prevent the free flow of trade
C) the desire to seek improved economic circumstances
D) the search for economies of scale to lower production costs

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

41) What has been the traditional destination for migrating skilled workers?

A) Western Europe
B) the United States
C) China
D) the United Kingdom

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Remember
Difficulty : 1 Easy

Traditionally, a major destination for migrating skilled workers has been the United States, due to factors such as top-quality universities; dynamic companies; an open, merit-based economic system; the social environment; and the standard of living.

42) Elizabeth is a highly-sought-after scientific researcher. She relocated to Europe ten years ago but is now returning to the United States. While the United States welcomes her skill level, there is also some concern regarding the contributions she made in Europe. This situation demonstrates the idea of

A) groupthink.
B) reverse brain drain.
C) self-fulfilling prophecy.
D) brain drain.

Reverse brain drain, which refers to the return home of highly skilled immigrants who have contributed to their adopted country, has recently become a concern of educators, public policy makers, and businesspeople.

43) American firms contribute to reverse brain drain from the United States by

A) terminating foreign workers.
B) outsourcing knowledge work, which pulls talent back to the home country.
C) encouraging their best U.S. researchers to accept foreign postings.
D) hiring globally.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Outsourcing often pulls natives back to the home country. Think of India and China.

44) Jenae is negotiating with a foreign electrical supply company that includes an organization of workers who formed a group that advances and protects the interests of the group. This group is asking for higher wages than Jenae’s company can afford. This group is an example of

A) a promotional mix.
B) a brain drain.
C) a labor union.
D) a manufacturing supply company.

Labor unions are an organization of workers, formed to advance the interest of its members.

45) Terri Henson represents his union at the negotiations table as they talk with the company management team about higher wages and more health insurance coverage. The process Terri engages in with the company is called

A) collective bargaining.
B) reverse brain drain.
C) guest work.
D) repatriation.

Labor legislation in the United States has mostly confined itself to the framework of collective bargaining. Collective bargaining is the process in which a union represents the interests of everyone in a bargaining unit (which may include both union members and nonmembers) in negotiations with management.

46) The process in which a union represents the interests of everyone in the union when bargaining with management is called

A) economies of scale.
B) collective bargaining.
C) comparative advantage.
D) a greenfield investment.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Collective bargaining is the process in which a union represents the interests of everyone in a bargaining unit (which may include both union members and nonmembers) in negotiations with management.

47) A policy of hiring and promoting based on ability and experience without considering race or citizenship is

A) an ethnocentric policy.
B) a polycentric policy.
C) a regiocentric policy.
D) a geocentric policy.

A policy of hiring and promoting based on ability and experience without considering race or citizenship is a geocentric policy.

48) A policy of hiring and promoting based on the parent company's home-country frame of reference is

A) an ethnocentric policy.
B) a polycentric policy.
C) a regiocentric policy.
D) a geocentric policy.

A policy of hiring and promoting based on the parent company's home-country frame of reference is an ethnocentric policy.

49) The staffing policy at Super Food International is based on the specific local context in which the company’s subsidiaries operate. What type of staffing policy does this reflect?

A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Topic : International Staffing Policies
Learning Objective : 14-02 Explain the relationship between competitive strategies (international, multidomestic, global, and transnational) and international human resource management approaches (ethnocentric, polycentric, regiocentric, and global).

David Heenan and Howard Perlmutter developed a model that considers these four competitive strategies to determine whether the organization’s IHRM approach to hiring and promoting employees should be ethnocentric, that is, based on the parent company’s home-country frame of reference; polycentric, based on the specific local context in which the subsidiary operates; regiocentric, based on the specific regional context in which the subsidiary operates; or geocentric, based on ability and experience without considering race or citizenship.

50) An employee who is a citizen of the nation in which the parent company is headquartered is known as

A) a home-country national.
B) a host-country national.
C) an ethnocentric employee.
D) an expatriate.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Topic : International Staffing Policies
Learning Objective : 14-02 Explain the relationship between competitive strategies (international, multidomestic, global, and transnational) and international human resource management approaches (ethnocentric, polycentric, regiocentric, and global).

An employee who is a citizen of the nation in which the parent company is headquartered is known as a home-country national.

51) Relatively low levels of authority and decision making in headquarters is associated with

A) ethnocentric staffing.
B) regiocentric staffing.
C) geocentric staffing.
D) polycentric staffing.

As shown in Table 14.1, relatively low levels of authority and decision making in headquarters is associated with polycentric staffing and multidomestic strategy.

52) At Mighty-Tuf Industrial Products Group, 30 percent of its employees are neither a citizen of the parent company nation nor the host nation where they have a manufacturing plant. These employees would be classified as

A) third-country nationals.
B) home-country nationals.
C) host-country nationals.
D) parent-country nationals.

Employees may be classified into one of three categories: (1) home-country national or parent-country national (PCN), a citizen of the nation in which the parent company is headquartered; (2) host-country national (HCN), a citizen of the nation in which the subsidiary is operating, which is different from the parent company’s home nation; or (3) third-country national (TCN), a citizen of neither the parent company nation nor the host country.

53) Companies in which there is little pressure to reduce costs or adjust for local responsiveness and where most decisions are made using the home country’s frame of reference have adopted which type of staffing policy?

A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

Companies with a primarily international strategic orientation (characterized by low pressures for cost reduction and low pressures for local responsiveness) may adopt an ethnocentric staffing policy. In this approach, most decisions are made at headquarters, using the home country’s frame of reference.

54) Ferguson Furniture group has adopted an ethnocentric staffing policy. Based on this, where are most of the decisions made for the home and host country facilities?

A) at both the home and host country facilities depending on which is being affected by the decision
B) at a third-country national in order to promote collective bargaining
C) at the host country facility in order to accommodate for local customs.
D) at the company’s headquarters, using the home country’s frame of reference

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Topic : International Staffing Policies
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

55) Regency Hotel Group uses an ethnocentric staffing policy. Based on this, how would the company most likely handle an issue involving labor in a host country?

A) The home country office would not be aware of the matter since this staffing policy creates two separate organizations.
B) They would send a labor negotiator from the home country to mitigate the issue.
C) They would expect the host country management team to handle the issue.
D) They would seek out a third-party group more familiar with the host country policies to handle the matter.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Topic : International Staffing Policies
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

In this approach, most decisions are made at headquarters, using the home country’s frame of reference. International companies (ICs) utilize citizens of their own countries, or PCNs, in key foreign management and technical positions. Labor negotiators and other specialists may be sent to troubleshoot such problems as product warranty, international contracts, taxes, accounting, and reporting.

56) A drawback of ethnocentric staffing policies is that

A) it is less expensive to use employees from the home country.
B) there are no additional expenses associated with relocating these employees and their families.
C) home-country employees may not have experience with the language and culture of the host country.
D) they expand the experience base of home-country employees.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

A drawback of ethnocentric staffing policies is that home-country managers may find it difficult to be effective in the host country, due to differences of language and culture as well as other environmental forces.

57) A polycentric staffing policy is appropriate when

A) there are low levels of pressure for cost reduction and high levels for local responsiveness.
B) information technology is of increasing importance.
C) there are low levels of pressure for cost reduction and low levels for localization.
D) there are more females involved in management.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

When the company's primary strategic orientation is multidomestic, with low pressures for cost reduction and high pressures for local responsiveness, a polycentric approach may be used.

58) Companies that use a polycentric staffing policy would

A) feel pressure to reduce costs.
B) rely on home country policies for issues related to human resources.
C) face pressures for local responsiveness.
D) be more concerned with home country than host country cultural issues.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

When the company’s primary strategic orientation is multidomestic, with low pressures for cost reduction and high pressures for local responsiveness, a polycentric approach may be used. Polycentric staffing relies on human resource policies that are created at the local level for the specific context of the local operations.

59) A drawback of polycentric staffing policies is that

A) it is less expensive to use employees from the home country.
B) there are additional expenses associated with relocating employees.
C) these employees may not have experience with the language and culture of the host country.
D) there can be a conflict of loyalty between the host country and the employer.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

A drawback of polycentric staffing policies is that there can be a conflict of loyalty between the host country and the employer. For example, the host-country national may give preference to a local supplier even though imported products may be less expensive or of better quality. Local managers may oppose headquarters' requests to set low transfer prices that might benefit the IC by causing lower levels of taxes to be paid to the host government.

60) Casey Conglomerates only hires regional employees to fill key positions in host countries. What type of staffing policy is the company using?

A) polycentric
B) regiocentric
C) ethnocentric
D) geocentric

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Topic : International Staffing Policies
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

Companies with a regional strategic approach (with slightly higher pressures for cost reduction and slightly lower pressures for local responsiveness than is the case for the multidomestic strategy) can employ a regiocentric staffing approach. In this approach, regional employees are selected for key positions in the region.

61) What is a characteristic of a geocentric staffing policy?

A) It enables the practices used at headquarters to be transferred worldwide.
B) It only hires regional employees to fill positions in the host country.
C) It selects the best person for each job, without considering national origin.
D) It involves human resources policies that are created at the local level for the specific context in which the local operations operate.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

Companies with a transnational strategic orientation, driven simultaneously by high pressures for cost reduction and high pressures for local responsiveness, often follow a geocentric staffing policy. These organizations select the best person for each job without considering national origin and can therefore capitalize on the advantages of each staffing policy.

62) The board of directors told the corporate offices to hire the best person for the management position in the host country office. That person did not have to be from either the home or host country but had to have the skills to do the job. Which type of staffing policy does this demonstrate?

A) regiocentric
B) ethnocentric
C) geocentric
D) polycentric

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Topic : International Staffing Policies
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

Companies with a transnational strategic orientation, driven simultaneously by high pressures for cost reduction and high pressures for local responsiveness, often follow a geocentric staffing policy. These organizations select the best person for each job without considering national origin and can, therefore, capitalize on the advantages of each staffing policy.

63) A potential downfall for the home-country office when hiring and training local, host-country employees in a country where talented managers are hard to find is that

A) the company has to pay them a higher salary, which creates inflation.
B) culture-based knowledge is hard to translate.
C) the company may lose them to local firms or other ICs once they are trained.
D) it enables reverse brain drain.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 1 Easy
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

In many countries, there is a shortage of talented, experienced managers and other skilled employees. The best of these people may be pirated away by local firms or other IC subsidiaries, as local executive recruiters are constantly on the lookout to make raids and entice the most talented employees to leave the original IC and join another firm that is seeking to overcome its own shortage of skilled personnel.

64) Training and development of potential candidates for expatriate assignments is

A) universal for all situations.
B) unnecessary with home-country nationals.
C) based on whether the candidate is a home-, host-, or third-country national.
D) typically done after the assignment starts.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 14-04 Distinguish among the training and development considerations for home-country, host-country, and third-country nationals as international company executives.
Topic : International Staffing Policies

The training and development of managers and other key IC employees vary somewhat, depending on whether the candidate is from the home country, the host country, or a third country.

65) When host-country nationals are employed, companies know that

A) training costs are a minimum.
B) they are familiar with local customs, culture, and language.
C) they are already familiar with the home country.
D) any conflict of interest is removed.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-04 Distinguish among the training and development considerations for home-country, host-country, and third-country nationals as international company executives.
Topic : International Staffing Policies
Bloom's : Understand

Host-country nationals are familiar with the customs, culture, and language of their own country. However, host-country nationals are more likely to lack knowledge of advanced business techniques, particularly those that are specific to business applications and operations of the IC, and knowledge of the company as a whole. As a result, training programs will need to be developed to enable host-country nationals to more fully understand and perform effectively within the IC.

66) Tiger Appliance Group needs to fill a management position in its foreign office in Germany. They haven’t been able to find anyone in Germany with the skills for the job, so they are extending their search to other parts of Europe hoping to find someone with similar cultural values as the German office. Which category of employee are they looking for?

A) home-country national
B) host-country national
C) third-country national
D) parent-country national

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 14-04 Distinguish among the training and development considerations for home-country, host-country, and third-country nationals as international company executives.
Topic : International Staffing Policies

Hiring employees who are citizens of neither the home country nor the host country is often advantageous. TCNs may accept lower wages and benefits than will employees from the home country, and they may come from a culture similar to that of the host country.

67) The use of third-country nationals as IC executives in developing countries is a growing practice because

A) they tend to prefer working in developing countries.
B) there is frequently a shortage of skilled host-country nationals.
C) they are not limited by cultural values.
D) they do not need work permits for the host country.

The use of TCNs has become particularly prevalent in developing countries because of shortages of literate, skilled local employees.

68) Generalizations about TCNs are difficult because

A) the IC usually does not know enough about their backgrounds.
B) the geocentric staffing policy prohibits these generalizations.
C) the use of TCNs is a new phenomenon and we don't know much about them yet.
D) people achieve the TCN status in different ways.

We must be careful with generalizations about third-country personnel, partly because people achieve that status in different ways. They may be foreigners hired in the home country and sent to a host-country subsidiary either because they have had previous experience there or because that country's culture is similar to their own. Third-country nationals may have originally been home-country personnel who were sent abroad and became dissatisfied with the job but not with the host country. After leaving the firm that sent them abroad, they take positions with subsidiaries of multinationals from different home countries. Another way in which TCNs can be created is by promotion within an IC.

69) The Ritter Group has assigned two people to travel to their foreign offices in South America to determine why the same data issues keep occurring on order placements. This is a six-month assignment. These two employees are examples of

A) inpatriates.
B) monopatriates.
C) expatriates.
D) flexpatriates.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 14-05 Identify some of the challenges and opportunities of an expat position.
Topic : Challenges and Opportunities for Expatriate Workers

Some of the international positions, especially those that deal with addressing a specific technical problem or transferring specialized knowledge, will be staffed with home- or third-country employees who are on short-term assignments (called flexpatriates).

70) About ________ percent of medium and large companies have employees working abroad.

A) 25
B) 80
C) 55
D) 10

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 14-05 Identify some of the challenges and opportunities of an expat position.
Topic : Challenges and Opportunities for Expatriate Workers

About 80 percent of medium- and large-sized companies have employees working abroad, and 86 percent of surveyed companies reported that their number of employees on international assignments would either remain the same or increase in the next five years.

71) The proportion of expatriates who are women has

A) declined.
B) increased.
C) remained steady.
D) dropped to zero.

A higher proportion of expatriates are women, around 27 percent, versus the historical average of 15 percent.

72) The failure rate for expatriate assignments, including failing to achieve performance targets for an international assignment or prematurely returning from the assignment, range from ________ percent.

A) 6 to 10
B) 50 to 75
C) 25 to 45
D) 40 to 65

Various studies report that failure rates for expatriate assignments—including failing to achieve performance targets for an international assignment or prematurely returning from the assignment—range from 25 to 45 percent.

73) Studies show that approximately ________ of expatriates leave their firms during the course of their overseas assignment.

A) one-tenth
B) one-quarter
C) about one-third
D) one-half

Approximately one-quarter of expats leave their firms during the course of their overseas assignment, and an additional 28 percent leave their companies within a year of their return from abroad.

74) The anxiety that people often experience when they move from a familiar culture to one that is entirely different is known as

A) self-fulfilling prophecy.
B) culture shock.
C) brain drain.
D) expatriate syndrome.

The anxiety that people often experience when they move from a familiar culture to one that is entirely different is known as culture shock.

75) Researchers have found three dimensions associated with cross-cultural adjustment, including: interaction with local nationals, adjusting to the general environment, and

A) the work context.
B) level of education.
C) ethnocentric patterns.
D) daily habits.

Researchers have identified three dimensions associated with cross-cultural adjustment. The first is associated with the work context, such as the extent of job clarity, inherent conflict in the person’s role, and the amount of discretion associated with completing the job tasks. Adjustment to the general environment, the second dimension, is associated with reacting to differences in housing, food, education, health, safety, and transportation. The third dimension, interaction with local nationals, involves adjusting to differences in behavioral norms, ways of dealing with conflict, communication patterns, and other relationship issues that can produce anger or frustration.

76) It has been found that as much as 90 percent of expatriate failure is the result of

A) language barriers.
B) family-related issues.
C) lack of knowledge of the host country.
D) local customs.

Studies examining the failure of expatriates suggest that as many as 9 in 10 such failures are family-related, and more than 75 percent of the employees who declined relocations in recent surveys cited family concerns as the basis for their decision.

77) What is an accurate description of the spouses of expatriates?

A) They are able to legally work in the host nation, although their pay and benefits may face limits.
B) Nearly one-quarter of spouses were employed during the course of the expat assignment.
C) Many experience stages of grief, similar to the loss of a loved one, due to career effects of the assignment.
D) They typically aren’t pursuing a professional career.

In many countries, the employee's spouse does not have the legal right to work, as work permits for foreigners may be difficult or nearly impossible to acquire. As a result, as few as 8 percent of spouses were employed during the course of the expat assignment, which can increase financial pressures and strain relationships before, during, and after the expatriate assignment. The trailing spouse must often make major adjustments in lifestyle, family balance of power, and self-image. They often experience stages of grief from derailment of their careers that is similar to the loss of a loved one—going through shock, denial, and anger—and sometimes fail to reach the reconciliation stage of adjustment.

78) Walter is an executive for a large company. He has two children who are considered “third-culture kids.” What does this mean?

A) Walter has returned from an expat assignment and brought his children gifts from the local culture he was assigned to.
B) Walter and his family are expats who have lived in several different countries.
C) Walter and his family are expats and the children are unwilling to learn the host-country language.
D) Walter works for a company that employs people from many different cultures and societies.

A move does not merely involve changing schools; there are also new systems, new learning styles, new language, and so forth to which the child must adjust. Sometimes these children are referred to as third-culture kids (or TCKs) because they often speak several different languages, hold passports from more than one country, and have difficulty explaining where they are from (i.e., where “home” is). As a consequence of these challenges, companies are increasing their focus on easing the disruptions faced by children.

79) How does knowledge of foreign languages help an expat?

A) It requires too much work to be worth the effort.
B) It can be of great assistance in making sales abroad.
C) It is useless if you know English.
D) It is of academic but not business value.

When you are trying to sell to potential customers, it is much better to speak their language. Having at least some ability to speak the language of your customers cannot only allow you to better understand their culture, but it may also enhance your ability to establish trust and a good working relationship.

80) Repatriation can be associated with

A) reverse brain drain.
B) the self-fulfilling prophecy.
C) ethnocentrism.
D) reverse culture shock.

An expatriate returning home often experiences reverse culture shock. He or she will have gained new skills and knowledge, and the company's attitudes and people will have changed. Expatriates who have become accustomed to high levels of autonomy while abroad often struggle with the more restrictive work context when they return home, as well as experiencing the common frustration of failing to be promoted or having their job expectations fulfilled after repatriation.

81) Companies should keep in mind that planning for an expat’s return should start

A) when the expat announces they want to return home.
B) within six months of the return date.
C) well before the assignment even begins.
D) on the first day of the expat assignment.

That is why planning for an expat’s return should start well before the overseas assignment even begins. The assignee and the employer should discuss up front how the assignment will fit the employee’s long-range career goals and how the company will handle the return.

82) For expatriate employees, the salary portion of the compensation package is

A) usually higher than employees at the same level in the home company.
B) usually lower than employees at the same level in the home company.
C) usually within the range of the employees at the same level in the home company.
D) usually on a separate, expatriate schedule.

83) Employee compensation payments added to base salaries because of higher expenses encountered when living abroad are considered

A) bonuses.
B) allowances.
C) perks.
D) tax exempt.

Allowances are employee compensation payments added to the base salaries of expatriates because of higher expenses encountered when living abroad. The most common allowances are for housing, cost of living, tax differentials, education, and moving.

84) For cost-of-living allowances, the U.S. Department of State index is

A) considered suitable for all locations.
B) adjusted frequently.
C) based on costs in Washington, D.C.
D) equated to currency value changes.

Many ICs use the U.S. Department of State index, which is based on the cost of these items in Washington, D.C., but have found it is not altogether satisfactory. For one thing, critics claim this index is not adjusted often enough to account for either the rapid inflation in some countries or the changes in relative currency values. Another objection is that the index does not include many cities in which the firm operates.

85) ________ are paid by firms in recognition that expatriates and their families undergo some hardships and inconveniences and make sacrifices while living abroad.

A) Bonuses
B) Allowances
C) Perks
D) Salaries

Bonuses are expatriate employee compensation payments in addition to base salaries and allowances because of hardship, inconvenience, or danger.

86) Contract termination payments are

A) made to induce the employee to quit.
B) made to prevent the employee from completing the contract term.
C) frequently made for work in hardship areas.
D) made by the employee in order to return early from an expatriate assignment.

These payments are made as inducements for employees to stay on their jobs and work out the periods of their overseas contracts. They may be used if the foreign post is a hardship or not a particularly desirable one.

87) Sasha is an expat who is currently on home leave. This means that

A) he is recuperating from an illness.
B) his family was not allowed to travel with him on the expat assignment, so he is visiting them.
C) his company allows periodic trips back to the home country.
D) his expat position was terminated but he will be assigned a new job at the home office.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 14-06 Describe some of the complications of compensation packages for expatriate executives.
Topic : Compensation and Performance Appraisal Systems

Home Leave ICs that post home-country—and sometimes third-country—nationals in foreign countries make it a practice to pay for periodic trips back to the home country by such employees and their families.

88) International status entitles the expatriate to

A) work for more than one international company.
B) the balance sheet approach to salary.
C) work in the host country while living in the home country.
D) all applicable allowances and bonuses for the place of residence and employment.

International status entitles the expatriate employee to all the allowances and bonuses applicable to the place of residence and employment. Merely being from another country does not automatically qualify an employee for all the benefits we have mentioned. Sometimes firms promote host-country employees to international status even without transferring them abroad. Thus, international status means being paid some or all of the allowances and bonuses we have discussed, and there can be other sorts of payments as individual circumstances and people's imaginations combine to create them.

89) In terms of worker compensation associated with an IC, health insurance is considered a(n)

A) perk.
B) bonus.
C) premium.
D) allowance.

Perks originated in the perquisites of the medieval lords of the manor, whose workers paid parts of their profits or produce to the lords to be allowed to continue working. Today, perks are symbols of rank in the corporate hierarchy and are used to compensate executives while minimizing taxes. Among the most common perks are:
• Cars, which may include chauffeurs, especially for senior-level executives
• Private pension plan
• Retirement payment
• Life insurance
• Health insurance.

90) Rinaldo is an expat working in Singapore. As part of his compensation package, a chauffeur drives him to and from work each day. The chauffer is an example of a(n)

A) bonus.
B) allowance.
C) wage.
D) perk.

Perks are symbols of rank in the corporate hierarchy and are used to compensate executives while minimizing taxes.

91) A person living outside of his or her country of citizenship is called a(n) ________.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

An expatriate is a person living outside his or her country of citizenship, which is not necessarily the country of birth.

92) The pool of available potential employees with the necessary skills within commuting distance from an employer is referred to as the ________.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

The pool of available potential employees with the necessary skills within commuting distance from an employer is known as a labor market.

93) Due to high birthrates and a decline in the rate of infant mortality, populations in the ________ nations tend to be growing, as well as, becoming younger.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Due to high birthrates and a decline in the rate of infant mortality, populations in the developing nations tend to be growing as well as becoming younger.

94) The movement of people from country to country or area to area to get jobs is referred to as ________.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Labor mobility refers to the movement of people from country to country or area to area seeking jobs.

95) People who go to a foreign country legally to perform certain types of jobs on a temporary basis are called ________.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand
Difficulty : 3 Hard

People who go to a foreign country legally to perform certain types of jobs on a temporary basis are guest workers. They generally perform certain types of jobs, usually in service, factory, or construction work.

96) The loss by a country of its most intelligent and best-educated people is known as ________.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

The loss by of country of its most intelligent and best-educated people is known as brain drain. This phenomenon is usually due to the desire to seek improved economic circumstances and pursue better professional opportunities.

97) A(n) ________ is an organization of workers, formed to advance the interest of its members.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

A labor union is an organization of workers, formed to advance the interest of its members.

98) The process in which a union represents the interests of a bargaining unit in negotiations with management is referred to as ________.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

Collective bargaining is the process in which a union represents the interests of everyone in a bargaining unit (which may include both union members and nonmembers) in negotiations with management.

99) The hiring and promoting of employees on the basis of the specific regional context in which the subsidiary operates is a ________ strategy.

A policy of hiring and promoting based on the specific regional context in which the subsidiary operates is a regiocentric policy.

100) A ________ strategy relates to hiring and promoting employees based on ability and experience without considering race or citizenship.

A policy of hiring and promoting based on ability and experience without considering race or citizenship is a geocentric policy.

101) The country in which an IC has its worldwide headquarters is called the ________.

The country in which an IC has its worldwide headquarters is called the home country or parent country.

102) An employee who is a citizen of the nation in which the subsidiary is operating, which is different from the parent company's home nation, is known as a ________ national.

An employee who is a citizen of the nation in which the subsidiary is operating, which is different from the parent company's home nation, is known as a host-country national.

103) A ________ country national is an employee who is a citizen of neither the home or host country.

A third-country national is an employee who is a citizen of neither the home or host country.

104) A company with a primarily international strategic orientation with low pressures for cost reduction and low pressures for local responsiveness, may adopt a(n) ________ staffing policy.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

A company with a primarily international strategic orientation with low pressures for cost reduction and low pressures for local responsiveness, may adopt an ethnocentric staffing policy.

105) A company with a primarily regional strategic orientation may adopt a(n) ________ staffing policy.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Topic : International Staffing Policies
Bloom's : Understand
Learning Objective : 14-03 Compare recruitment and selection considerations for home-country, host-country, and third-country nationals as international company executives.

A company with a primarily regional strategic orientation may adopt a regiocentric staffing policy.

106) The anxiety people often experience when they move from a culture with which they are familiar to one that is entirely different is known as ________.

The anxiety people often experience when they move from a culture with which they are familiar to one that is entirely different is known as culture shock.

107) In two-career families, when one member accepts a foreign assignment and the spouse goes along, that spouse is referred to as a ________ spouse.

When in two-career families, one accepts a foreign assignment and the spouse goes along, that spouse is referred to as a trailing spouse.

108) _________ refers to the return of an expatriate to his or her home country after an assignment abroad.

Repatriation refers to the return of an expatriate to his or her home country after an assignment abroad.

109) Employee compensation payments added to base salaries to compensate for higher expenses encountered when living abroad are considered ________.

Employee compensation payments added to base salaries because of higher expenses encountered when living abroad are considered allowances.

110) ________ status entitles the expatriate employee to all the allowances and bonuses applicable to the place of residence and employment.

International status entitles the expatriate employee to all the allowances and bonuses applicable to the place of residence and employment.

111) Describe the urbanization of the workforce. How does this affect the available workforce?

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

112) Discuss labor mobility and some of the reasons workers leave their countries to work abroad. Explain the “3-D” jobs associated with migrant labor.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

113) How do brain drain and reverse brain drain affect the home country?

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 14-01 Identify several of the major factors that may affect the quantity and quality of labor in a nation.
Topic : International Labor Relations
Bloom's : Understand

114) Explain each of ethnocentric, polycentric, regiocentric, and geocentric approaches toward international human resource management, including when and how each is best used.

115) Discuss components of the compensation package for employees on international assignment.

Document Information

Document Type:

DOCX

Chapter Number:

All in one

Created Date:

Aug 21, 2025

Chapter Name:

Module 14 Managing Human Resources In An International Context

Author:

Michael Geringer, Jeanne McNett, Donald Ball

Connected Book

International Business 2e | Test Bank with Answer Key by Geringer and McNett

By Michael Geringer, Jeanne McNett, Donald Ball

Test Bank General

View Product →

Explore recommendations drawn directly from what you're reading

Module 12 International Markets Assessment And Entry Modes

DOCX Ch. All in one

Module 13 Marketing Internationally

DOCX Ch. All in one

Module 14 Managing Human Resources In An International Context

DOCX Ch. All in one Current

Module 15 International Accounting And Financial Management

DOCX Ch. All in one

Module A International Institutions From A Business Perspective

DOCX Ch. A

$24.99

100% satisfaction guarantee

Buy Full Test Bank

Quick Navigation

Preview Document Info Connected Book Recommendations

Benefits

Immediately available after payment

Answers are available after payment

ZIP file includes all related files

Files are in Word format (DOCX)

Check the description to see the contents of each ZIP file

We do not share your information with any third party

2nd Edition Ball Complete Test Bank

Document Information

Connected Book

International Business 2e | Test Bank with Answer Key by Geringer and McNett

Explore recommendations drawn directly from what you're reading

$24.99

Quick Navigation

Benefits

Report Unauthorized Use

Added to Cart