41. (p.

626) _____ refers to the activities an organization carries out to utilize its human
resources effectively.
A. Organizational behavior
B. Strategic management
C. Human resource management
D. Organizational policy

42. (p. 631) A citizen of one country who is working abroad in one of the firm's subsidiaries is
known as a(n)
A. Subsidiary manager
B. Foreign manager
C. International manager
D. Inpatriate manager

43. (p. 627) _____ is/are the linchpin of a firm's organization architecture.
A. People
B. Strategy
C. Business processes
D. Organizational structure

44. (p. 627) A firm following a(n) _____ strategy will try to create value by realizing experience
curve and location economies.
A. Localization
B. Domestic focused
C. Global standardization
D. International

45. (p. 627) Firms should build a strong corporate culture and an informal management network
for transmitting information and knowledge within the organization if they are pursuing a(n)
A. Transnational strategy
B. Localization strategy
C. Global standardization strategy
D. International strategy

46. (p. 628) Which of the following is mainly concerned with the selection of employees for
particular jobs?
A. Retention policy
B. Staffing policy
C. Incentive policy
D. Appraisal policy

47. (p. 628) An organization's norms and value systems are known as
A. Human resource management
B. Corporate governance
C. Business ethics
D. Corporate culture
48. (p. 628) An ethnocentric staffing policy is one in which
A. All key management positions are filled by parent company nationals
B. Host-country nationals are recruited to manage subsidiaries while parent-company nationals
occupy key positions at corporate headquarters
C. The best people, regardless of nationality, are recruited to fill key positions throughout the
organization
D. Corporate bureaucracy overwhelms the system leaving key positions to be filled in a
haphazard manner
49. (p. 628) This policy for staffing involves filling all key management positions with parent
company nationals.
A. Polycentric
B. Regiocentric
C. Ethnocentric
D. Geocentric

50. (p. 628) Many Japanese firms prefer expatriate Japanese managers to head their foreign
operations because these managers have been socialized into the firm's culture while employed
in Japan. This implies that
A. The firm may believe that such managers cannot progress beyond senior positions in their
parent company
B. The firm may see an ethnocentric staffing policy as the best way to maintain a unified
corporate culture
C. The firm is trying to create value by transferring core competencies to a foreign operation
D. The firm requires host-country nationals to be recruited to manage subsidiaries

51. (p. 628) A firm that is trying to maintain a unified corporate culture will pursue a(n)
A. Geocentric staffing policy
B. Regiocentric staffing policy
C. Ethnocentric staffing policy
D. Polycentric staffing policy

52. (p. 628) If a firm is trying to create value by transferring core competencies to a foreign
operation and believes that the best way to do accomplish this goal is to transfer parent-country
nationals who have knowledge of that competency to the foreign operation, it is pursuing a(n)
A. Ethnocentric strategy
B. Transnational strategy
C. Localization strategy
D. Global standardization strategy

53. (p. 629) A polycentric approach to staffing is one in which

A. All key management positions are filled by parent company nationals
B. Host-country nationals are recruited to manage subsidiaries while parent-company nationals
occupy key positions at corporate headquarters
C. The best people, regardless of nationality, are recruited to fill key positions throughout the
organization
D. Corporate bureaucracy overwhelms the system leaving key positions to be filled in a
haphazard manner
54. (p. 629) The use of a(n) _____ staffing policy is declining in most countries because of the
limited opportunities it provides for host-country nationals and also because it can lead to
cultural myopia.
A. Regiocentric
B. Geocentric
C. Polycentric
D. Ethnocentric

55. (p. 629) Cultural myopia refers to a firm's failure to

A. Adapt to certain ethnocentric cultures through the expatriate
B. Help female Western managers in many cultures which are extremely male-dominated
C. Understand host-country cultural differences that require different approaches to marketing
and management
D. Identify countries which are much tougher postings than others because their cultures are
more unfamiliar and uncomfortable

56. (p. 629) What is the reason for a decline in pursuing an ethnocentric staffing policy in most
international businesses?
A. It is expensive to implement
B. It limits advancement opportunities for host-country nationals
C. A gap can arise between host-country managers and parent-country managers
D. The lack of management transfers from home to host countries

57. (p. 629) If a company recruits host-country nationals to manage subsidiaries while parent-
country nationals occupy key positions at corporate headquarters, the firm is following a(n)
A. Ethnocentric staffing policy
B. Regiocentric staffing policy
C. Polycentric staffing policy
D. Geocentric staffing policy

58. (p. 629) What is the advantage of adopting a polycentric approach?

A. It is inexpensive to implement and reduces the costs of value creation
B. Host-country nationals have opportunities to gain experience outside their own country
C. It enables the firm to make the best use of its human resources
D. It enables the firm to build a cadre of international executives who feel at home working in a
number of cultures

59. (p. 629) What is the major drawback with a polycentric approach?
A. Training and relocation costs increase when transferring managers from country to country
B. It can lead to cultural myopia
C. It limits advancement opportunities for host-country nationals
D. The gap that can form between host-country managers and parent-country managers

60. (p. 630) A polycentric approach may be effective for firms pursuing a(n)
A. International strategy
B. Localization strategy
C. Transnational strategy
D. Global standardization strategy
61. (p. 630) Food and detergents giant Unilever had foreign subsidiaries that had evolved into
quasi-autonomous operations, each with its own strong national identity. They objected
strenuously to corporate headquarters' attempts to limit their autonomy. Thus, Unilever found it
very difficult to shift from a strategic posture that emphasized localization to a transnational
posture because of
A. Difficulty in achieving the coordination required to pursue experience curve and location
economies
B. The difficulty in achieving coordination required to transfer core competencies
C. The federation that resulted from a polycentric approach
D. Expensive implementation and increased costs of value creation

62. (p. 630) What is the most important advantage of using a geocentric staffing policy?
A. It enables the firm to build a cadre of international executives who feel at home working in a
number of cultures
B. It may be less expensive to implement than other policies, reducing the costs of value creation
C. The higher pay managers on an international fast track enjoy is a source of inspiration within
a firm
D. It involves no costs of training and relocation when transferring managers from country to
country

63. (p. 630) Which of the following is a problem that limits a firm's ability to pursue a geocentric
policy?
A. The lack of management transfers from home to host countries and vice versa, can lead to a
lack of integration between corporate headquarters and foreign subsidiaries
B. The higher pay managers on an international fast track enjoy may be a source of resentment
within a firm
C. The firm fails to understand host-country cultural differences that require different approaches
to marketing and management
D. It limits advancement opportunities for host-country nationals

64. (p. 630) A geocentric approach to staffing is one in which

A. All key management positions are filled by parent company nationals
B. Host-country nationals are recruited to manage subsidiaries while parent-country nationals
occupy key positions at corporate headquarters
C. The best people, regardless of nationality, are recruited to fill key positions throughout the
organization
D. Corporate bureaucracy overwhelms the system leaving key positions to be filled in a
haphazard manner

65. (p. 630) An ethnocentric approach to staffing is appropriate for firms that are pursuing a(n)
A. International strategy
B. Localization strategy
C. Global standardization strategy
D. Transnational strategy
66. (p. 631) What is the advantage of using an ethnocentric staffing approach?
A. Uses human resources efficiently
B. Alleviates cultural myopia
C. Inexpensive to implement
D. Helps transfer core competencies

67. (p. 631) Firms may avoid the polycentric approach to staffing because
A. It produces resentment in host country and can lead to cultural myopia
B. It limits career mobility and isolates headquarters from foreign subsidiaries
C. It may be difficult to implement as a result of national immigration policies and it is expensive
to implement
D. It is expensive to implement and it can lead to cultural myopia

68. (p. 631) A citizen of France who moves to Germany to work at BMW is a(n)
A. Host-country national
B. Local
C. Inpatriate
D. Acquired citizen

69. (p. 631) The premature return of an expatriate manager to his/her home country is known as
A. Repatriation
B. Expatriate failure
C. Inpatriate failure
D. Foreign manager failure

70. (p. 632) For American multinationals, the biggest impediment to expatriate success is
A. The inability of the spouse to adjust
B. The manager's inability to adjust
C. The manager's inability to cope with larger overseas responsibilities
D. The manager's personal or emotional maturity
71. (p. 632) Among Japanese companies, the most commonly cited reason for expatriate failure
is
A. The manager's inability to adjust
B. The inability of the spouse to adjust
C. The manager's personal or emotional maturity
D. The manager's inability to cope with larger overseas responsibilities

72. (p. 632) European firms believe that the main reason for failure among expatriates is
A. The manager's inability to cope with larger overseas responsibilities
B. The inability of the spouse to adjust
C. The manager's inability to adjust
D. The manager's personal or emotional maturity

73. (p. 632) According to research, American companies experience an expatriate failure rate
that is
A. Similar to that of Japanese firms
B. Similar to that of European companies
C. Higher than both European and Japanese enterprises
D. Lower than both European and Japanese multinationals
74. (p. 633) Mendenhall and Oddou's "others-orientation" dimension, in their study on what
predicts success in foreign jobs postings, refers to
A. The expatriate's self-esteem, self-confidence and mental well-being
B. The expatriate's ability to interact effectively with host-country nationals
C. The expatriate's ability to understand why people of other countries behave the way they do
D. The relationship between the country of the assignment and how well an expatriate adjusts to
a particular posting

75. (p. 633) Which dimension of Mendenhall and Oddou's study suggests that an expatriate with
high self-esteem, self-confidence and mental well-being is likely to succeed in a foreign job
posing?
A. Self-orientation
B. Others-orientation
C. Cultural toughness
D. Perceptual ability

76. (p. 633) In terms of enhancing the expatriate's ability to interact effectively with host-country
nationals, which of the following factors is particularly important?
A. Perceptual ability
B. High self-esteem
C. Mental well-being
D. Relationship development

77. (p. 634) Expatriate managers who lack this dimension of predicting success in a foreign
posting tend to treat foreign nationals as if they were home-country nationals.
A. Others-orientation
B. Self-orientation
C. Perceptual ability
D. Cultural toughness

78. (p. 635) Mendenhall and Oddou identified cultural toughness as one of the dimensions in
their study on what predicts success in foreign jobs postings. This dimension refers to
A. The expatriate's self-esteem, self-confidence and mental well-being
B. The expatriate's ability to interact effectively with host-country nationals
C. The expatriate's ability to understand why people of other countries behave the way they do
D. The relationship between the country of the assignment and how well an expatriate adjusts to
a particular posting

79. (p. 635) According to some researchers, this is the fundamental attribute of a global manager
and is characterized by cognitive complexity and a cosmopolitan outlook.
A. A global mindset
B. Cultural toughness
C. High self-esteem
D. Perceptual ability
80. (p. 636) Which of the following is true about cultural training?
A. It should be provided only to the expatriate
B. Training should be limited to a study of language and business practices
C. It helps the expatriate appreciate the host-country culture
D. It can be offered to the spouse/family after it is clear the foreign posting is a success

81. (p. 639) _____ makes it difficult to evaluate the performance of expatriate managers
objectively.
A. Soft data
B. Hard data
C. Knowledge
D. Bias

82. (p. 639) When evaluating expatriates, home-country managers usually rely on
A. The manager's ability to develop cross-cultural awareness
B. Hard data such as market share
C. The ability of the expatriate to work with local managers
D. Their own international experience

83. (p. 642) Which of the following is the most common approach to expatriate pay?
A. Balance sheet approach
B. Net-to-net approach
C. Host-country approach
D. Higher of host or home

84. (p. 642) Which approach to expatriate pay equalizes purchasing power across countries so
employees can enjoy the same living standard in their foreign posting that they enjoyed at
home?
A. Higher of host or home
B. Net-to-net approach
C. Host-country approach
D. Balance sheet approach

85. (p. 643) Which component of a typical expatriate compensation package compensates the
expatriate for having to live in an unfamiliar country isolated from family and friends, deal with
a new culture and language and adapt to new work habits and practices?
A. Benefit
B. Cost-of-living allowance
C. Base salary
D. Foreign service premium

86. (p. 643) This allowance is paid when the expatriate is being sent to a location where such
basic amenities as health care, schools and retail stores are grossly deficient by the standards of
the expatriate's home country.
A. Housing
B. Hardship
C. Cost-of-living
D. Education
87. (p. 644) Labor unions generally try to get better pay, greater job security and better working
conditions for their members through _____ with management.
A. Collective bargaining
B. Arbitration
C. Conciliation
D. Expert determination

88. (p. 644) Unions' bargaining power is derived largely from their
A. Ability to threaten to disrupt production
B. Ability to change the organizational culture
C. Willingness to adapt to new employment practices
D. Ability to show restraint in negotiations

89. (p. 645) What is the long-term goal of international trade secretariats?
A. To reduce the competition between national unions
B. To be able to bargain transnationally with multinational firms
C. To reduce the ideological gap between union leaders in different countries
D. To get national and international bodies to regulate multinationals

90. (p. 645) What is the main difference in the way international businesses approach
international labor relations?
A. The degree to which organized labor can limit the choices of an international business
B. The way work is organized within a plant
C. The degree to which labor relations activities are centralized or decentralized
D. The way staffing, management development and compensation activities are organized