Which of the following statements is true of the going rate approach of compensating expatriates?

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Bruce works for a Houston-based energy company and has been assigned to live and work in Indonesia for the next three years. When Bruce is living in India, he is an example of a(n) ________.

urbanizer

expatriate

collective bargainer

union

The pool of available employees with the necessary knowledge. skills, and abilities within commuting distance of an employer is called the _________ _________.

Which two developing countries contain over one-third of the world's 15- to 24-year-olds?

Brazil

India

China

United States

By 2050, in developed countries, the population aged 65 or over is expected to be over ______.

35%

25%

50%

45%

Which of the following are a result of the urbanization of workforce? (Check all that apply.)

a vulnerable workforce

a pool of low-skilled workers

increase in industry sector employment

a pool of high-cost workers

a vulnerable workforce

a pool of low-skilled workers

increase in industry sector employment

A person who lives outside of his or her country of citizenship is called a(n)

The term __________ _________ refers to people moving from country to country in search of work.

Which of the following are dimensions associated with labor conditions? (Check all that apply.)

urbanization of workforces

best-selling books

overall size of the workforce

aging populations

immigration

labor unions

urbanization of workforces

overall size of the workforce

aging populations

immigration

labor unions

Which of the following are characteristic of "3-D" jobs? (Check all that apply.)

Workers are often paid under the table.

Jobs typically include benefits.

They employ vulnerable workers.

Workers move quickly to the top of the organization.

Workers do not have a contract.

Employment often violates local laws.

Workers are often paid under the table.

They employ vulnerable workers.

Workers do not have a contract.

Employment often violates local laws.

What factors are contributing to the decline in population in many developed countries? (Check all that apply.)

high infant mortality rates

low levels of immigration

high death rates

low birthrates

low levels of immigration

low birthrates

True or false: The aging population is more evident in developing countries than in developed countries.

False - The aging population is more evident in developed countries than in developing countries.

Which of the following are characteristic of developing countries? (Check all that apply.)

increase in agriculturally based employment

increase in economic development

increase in the level of urbanization of the workforce

increase in population

increase in economic development

increase in the level of urbanization of the workforce

increase in population

Which four of the following countries are receiving the largest number of international migrants? (Check all that apply.)

Germany

Saudi Arabia

Mexico

Russia

United States

Germany

Saudi Arabia

Russia

United States

The term "3-D" jobs refers to work that is _______. (Check all that apply.)

dirty

depressing

desired

degrading

dangerous

dirty, degrading, dangerous

Countries such as Switzerland and France have experienced low birthrates that have brought about labor shortages. As a result, these countries bring in people from foreign countries to legally work in the factory and construction jobs that need employees. The people who come into the country to do these jobs are known as ________ workers.

seasonal

labor

migrant

guest

Which of the following has led to the loss of skilled professionals, such as scientists, in developing countries?

guest worker mentality

ethnocentric movement

brain drain

bright flight

For which of the following reasons do migrating skilled workers choose the United States as a destination? (Check all that apply.)

top-quality universities

political environment

standard of living

open, merit-based economic system

top-quality universities

standard of living

open, merit-based economic system

Which of the following are a result of the urbanization of workforce? (Check all that apply.)

a pool of low-skilled workers

increase in industry sector employment

a pool of high-cost workers

a vulnerable workforce

A(n) __________ ________ is an organization of workers formed to promote the interest of its members.

Which three of the following countries are losing the largest number of their population to emigration? (Check all that apply.)

Mexico

Russia

Brazil

China

United States

A _______ _______ is a person who goes to a foreign country temporarily and legally in order to perform certain types of jobs.

In which process does a union represent the interests of its members in negotiations with management?

arbitration

dispute resolution

strike

collective bargaining

Which of the following explain declining union membership? (Check all that apply.)

movement of jobs to lower-cost countries

employers' efforts to keep their businesses union-free

Increase in lower-wage secondary income workers

fewer women in the labor force

increase in industrial jobs in developed countries

movement of jobs to lower-cost countries

employers' efforts to keep their businesses union-free

Increase in lower-wage secondary income workers

True or false: In the United States, native-born citizens create new businesses at a rate 30% greater than do immigrants.

false - In the United States, immigrants create new businesses at a rate 30% greater than do native-born citizens.

Which approach to international human resource management is based on the parent company's home-country frame of reference?

geocentric

ethnocentric

regiocentric

polycentric

Labor unions _________ from one nation to another.

are identical

are similar

vary significantly

Staffing includes which two activities? (Check all that apply.)

selection

training

development

recruitment

Which of the following are characteristic of a polycentric approach to staffing? (Check all that apply.)

Human resource policies are made at the local level.

The company hires PCNs for headquarters positions.

Movement from the local subsidiaries to headquarters positions is common.

The company hires host-country nationals to work in foreign subsidiaries.

Human resource policies are made at the local level.

The company hires PCNs for headquarters positions.

The company hires host-country nationals to work in foreign subsidiaries.

In which one of the following regions are labor unions weak and union leaders inexperienced?

Japan

United States

Latin American countries

European nations

Over the past several years, the number of union members in developed countries has been __________.

increasing

declining

remaining the same

Which of the following are international human resource management approaches to hiring and promoting employees? (Check all that apply.)

concentric

ethnocentric

polycentric

egocentric

geocentric

regiocentric

ethnocentric

polycentric

geocentric

regiocentric

What international human resource approach would be used by companies with slightly higher pressures for cost reductions and slightly lower pressures for local responsiveness than is the case for the multidomestic strategy?

ethnocentric

polycentric

geocentric

regiocentric

If a company is driven simultaneously by high pressures for cost reduction and high pressures for local responsiveness, it is likely to follow a _______ staffing policy.

ethnocentric

regiocentric

polycentric

geocentric

Which international human resource management approach would be utilized by a company with a primarily international strategic orientation characterized by low pressures for cost reduction and low pressures for local responsiveness?

regiocentric

geocentric

ethnocentric

polycentric

Which international human resource management approach would be utilized by a company with a primarily international strategic orientation characterized by low pressures for cost reduction and low pressures for local responsiveness?

regiocentric

geocentric

ethnocentric

polycentric

Training and (hiring/development) which help employees acquire knowledge, skills, and abilities, will vary depending on whether the employee is from the host country, the home country, or a third country.

What international human resource management approach would be used when a company's primary strategic orientation is multidomestic?

polycentric

regiocentric

ethnocentric

geocentric

Prior to being sent on an international assignment, parent-country nationals may be required to __________. (Check all that apply.)

study the language of the foreign country

study the culture of the foreign country

take short trips abroad to be exposed to foreign surroundings

study the parent company's culture

study the language of the foreign country

study the culture of the foreign country

take short trips abroad to be exposed to foreign surroundings

The _________ human resource approach utilizes a variety of host-country nationals and third-country nationals for key positions in the region.

ethnocentric

geocentric

polycentric

regiocentric

Which of the following are characteristic of HCNs? (Check all that apply.)

They lack knowledge of advanced business techniques.

They lack knowledge of corporate operations.

They lack knowledge of host country culture.

They lack knowledge of host country language.

They lack knowledge of advanced business techniques.

They lack knowledge of corporate operations.

Which two human resource management activities include efforts to help employees acquire knowledge, skills, and abilities? (Check all that apply.)

testing

appraisal

development

training

True or false: After being hired, host-country graduates from home-country business schools are sent directly to the host-country subsidiaries.

false - After being hired, host-country graduates from home-country business schools are sent to headquarters to receive indoctrination.

What are the possible advantages of hiring a third-country national? (Check all that apply.)

The person may accept lower wage and benefits.

The person may come from a similar culture of the host country.

The person may be unable to get a work permit from the government.

The person may have worked for another subsidiary of the company.

The person may accept lower wage and benefits.

The person may come from a similar culture of the host country.

The person may have worked for another subsidiary of the company.

Prior to being sent on an international assignment, _________ may be required to take an international business course at a business school.

third-country nationals

host-country nationals

parent-country nationals

What is the common length of time for most expatriate assignments?

2 - 5 years

6 months to 1 year

3 - 6 months

more than 10 years

An (expatriate/inpatriate) is more likely to help transfer and install company-wide systems or cultures.

Which group of employees is most likely to lack knowledge of advanced business techniques?

third-country nationals

parent-country nationals

host-country nationals

home-country nationals

Which of the following are symptoms of culture shock? (Check all that apply.)

delusions of grandeur

physical and emotional discomfort

disorientation

feelings of inadequacy

feelings of confusion

ethnocentrism

physical and emotional discomfort

disorientation

feelings of inadequacy

feelings of confusion

To find employees who understand advanced business techniques, international companies are hiring _________ students upon graduation from home-country business schools.

host-country

parent-country

third-country

home-country

True or false: Third-country nationals often accept lower wages than employees from the home country

What is the main reason that employees decline international relocation assignments?

culture concerns

financial concerns

educational concerns

family concerns

About _____ of expatriates' spouses are employed during the course of their partner's expatriate assignment, which can increase financial pressures and strain relationships.

8%

24%

51%

82%

Which of the following are advantages of hiring an expatriate? (Check all that apply.)

They have technical and managerial expertise.

They may provide trusted connections for facilitating oversight.

They provide local knowledge and cultural expertise.

They can help transfer corporate culture.

They have technical and managerial expertise.

They may provide trusted connections for facilitating oversight.

They can help transfer corporate culture.

Which of the following are potential benefits for children joining their parents on an expatriate assignment? (Check all that apply.)

developing a global mind-set

learning new languages

exposure to multiple cultures

developing a strong sense of security

developing a global mind-set

learning new languages

exposure to multiple cultures

The anxiety experienced when moving to an entirely different culture is known as ____________ ___________

True or false: After being hired, host-country graduates from home-country business schools are sent directly to the host-country subsidiaries.

False - After being hired, host-country graduates from home-country business schools are sent to headquarters to receive indoctrination.

What is the main cause for expatriate failure?

tax burdens

job clarity issues

family-related issues

culture shock

What are the advantages of understanding the host country's language? (Check all that apply.)

Expatriates better understand the local culture.

It is better to speak the local language when trying to sell to potential customers.

Speaking the local language develops trust.

Speaking a second language guarantees an increase in salary.

Expatriates better understand the local culture.

It is better to speak the local language when trying to sell to potential customers.

Speaking the local language develops trust.

What percentage of expatriates are accompanied by a spouse or partner?

50%

10%

30%

80%

True or false: Locals can teach expats where to shop and where not to shop as well as the social norms.

About ______ of expatriates have children when they take an international assignment.

26%

76%

45%

82%

When employees become accustomed to the host country's culture, upon return home they can experience _________ __________ ________

True or false: A good compensation plan will over-compensate the overseas executive.

False - The plan should be equitable and consistent and not over-compensate the overseas executive.

To find employees who understand advanced business techniques, international companies are hiring _________ students upon graduation from home-country business schools.

host-country

parent-country

third-country

home-country

The _______ ______ approach pays the expatriate a base salary equal to that of a domestic counterpart plus a variety of allowances and bonuses.

Which of the following are common services offered to expatriates and their families? (Check all that apply.)

house-hunting assistance

long-distance child care

health care programs

culture and language training

house-hunting assistance

health care programs

culture and language training

In countries with high tax rates on personal incomes, companies pay executives (lower/higher) salaries and give them expensive perquisites.

Which of the following practices should be a part of the repatriation process? (Check all that apply.)

Allow expatriates to make regular visits back to home-country office.

Offer access to counseling to promote adjustment.

Set up a mentoring program for the expatriate.

Planning should begin towards the end of the assignment.

Allow expatriates to make regular visits back to home-country office.

Offer access to counseling to promote adjustment.

Set up a mentoring program for the expatriate.

Which of the following are the most common types of allowances provided to expatriates? (Check all that apply.)

housing

education

cost of living

tax differentials

moving

transportation

health care

housing

education

cost of living

tax differentials

moving

For the expatriates' compensation plan to be effective, it must be _______.

one-size-fits-all

skewed towards overcompensation

equitable and consistent

skewed towards undercompensation

A housing _________ permits expatriates to live in housing comparable to their housing in the home country.

Cost-of-living allowances are based on difference in the prices paid for _________. (Check all that apply.)

utilities

transportation

housing

entertainment

food

utilities

transportation

entertainment

food

Which compensation approach is favored by a majority of American international companies?

lump-sum approach

balance sheet approach

localization approach

negotiation approach

Equal-pay-for-equal-work means paying ________ base salaries to host-country nationals and home-country nationals.

higher

equal

lower

Compensation payments added to the base salaries of expatriates because of higher expenses encountered when living abroad are known as _________.

per diem fees

perks

bonuses

allowances

A common rule of the housing allowance is for an international company to pay all the rent in excess of _____ of the expatriate's base salary.

15%

26%

12%

33%

If the host-country taxes are (lower/higher) than the taxes of the home country, then the company will often pay the tax differential.

Which allowance is based on the differences in prices paid for basic necessities in the host country compared to the home country?

overseas premium

orientation allowance

tax differential allowance

cost-of-living allowance

In China, private schools for children can cost as much as ______ per child.

Multiple choice question.

$100,000

$15,000

$250,000

$5,500

The objective of the __________ is to ensure that expatriates will not have less after-tax take-home pay in the host country than they would in the home country.

orientation allowance

overseas premium

tax differential allowance

cost-of-living allowance

tax differential allowance

Which of the following are types of bonuses? (Check all that apply.)

tax differentials

home leave reimbursement

overseas premiums

contract termination payments

home leave reimbursement

overseas premiums

contract termination payments

What is the typical range for an overseas premium?

30% - 40%

10% - 25%

5% - 8%

16% - 32%

What percentage of international companies provide an educational allowance for dependent children of long-term expatriates?

76%

53%

82%

27%

Contract termination payments are common in which of the following? (Check all that apply.)

hardship foreign post

petroleum industry

construction industry

agricultural sector

hardship foreign post

petroleum industry

construction industry

A(n) _____ for an expatriate is the combination of many types of payments or reimbursements and must take into consideration exchange rates and inflation.

bonus

compensation package

allowance

premium package

What term is used for compensation payments in addition to base salaries to compensate employees for hardships, inconveniences, or danger?

commissions

differentials

allowances

bonuses

Which allowance is based on the differences in prices paid for basic necessities in the host country compared to the home country?

overseas premium

tax differential allowance

orientation allowance

cost-of-living allowance

Which type of expenses are typically paid in home-country currency? (Check all that apply.)

professional society memberships

purchases during home leave

payments on outstanding debts in the home country

tuition for children in host-country schools

professional society memberships

purchases during home leave

payments on outstanding debts in the home country

The additional payments to expatriates to compensate them for disagreeable or challenging living conditions are called _________.

tax differentials

overseas premiums

orientation allowances

cost-of-living allowances

Compensation packages must take _______ into account. (Check all that apply.)

inflation

stock index

interest rates

exchange rates

Which of the following is the current trend towards compensating third-country nationals?

paying them less than home-country expatriates

paying them the same as home-country expatriates

paying them less than host-country employees

paying them more than home-country expatriates

paying them the same as home-country expatriates

Generally about 65% to 70% of an expatriate's base salary and all allowances are paid in the _________ currency.

third-country

host-country

home-country

black market

Which of the following are valued reasons for promoting host-country employees to international status? (Check all that apply.)

compensating employees for hardship or inconvenience

rewarding valuable employees

preventing employees from leaving for better jobs

putting host-country employees at a level comparable to their peers in other countries

rewarding valuable employees

preventing employees from leaving for better jobs

putting host-country employees at a level comparable to their peers in other countries

A(n) _____ for an expatriate is the combination of many types of payments or reimbursements and must take into consideration exchange rates and inflation.

allowance

premium package

compensation package

bonus

Which of the following characterize perks? (Check all that apply.)

They are symbols of rank in the corporate hierarchy.

They are used to minimize executives' tax burdens.

They are used to compensate executives.

They are premiums paid based on hardships.

They are symbols of rank in the corporate hierarchy.

They are used to minimize executives' tax burdens.

They are used to compensate executives.

Which of the following are potential issues when compensating third-country nationals? (Check all that apply.)

calculating income tax differentials

home leave reimbursements

cost-of-living issues

contract termination payments

calculating income tax differentials

home leave reimbursements

What entitles the expatriate employee to all the allowances and bonuses applicable to the place of residence and employment?

third-country nationals

international status

guest worker status

repatriation

Jeremiah has a company car, and his company pays for his gym membership. These two items are examples of _________.

salaries

bonuses

perks

allowances

Which of the following is true of performance appraisals conducted by Western multinational enterprises in high power distance countries?

Which of the following is true of performance appraisal meetings conducted by western multinational enterprises (MNEs) in high power distance countries? These meetings are not of much help as employees themselves do not place a lot of importance on self-expression.

Which of the following modes of measuring expatriate failure is the easiest to observe?

The European and U.S. multinational enterprises have a negligible expatriate failure rate. b. Unmet business objectives are the easiest way to observe the expatriate failure rate.

Is leaving one's home country to work in another country?

An expatriate, or expat, is an individual living and/or working in a country other than their country of citizenship, often temporarily and for work reasons. An expatriate can also be an individual who has relinquished citizenship in their home country to become a citizen of another.

Are non native employees who work and reside in a foreign country?

Expatriates. U.S. companies have historically defined expatriates as employees who are asked to work outside their home countries for a period of time with the intent of eventually returning to their home countries.