Chapter 14

Human Resource Selection and Development Across Cultures

True / False Questions
1. Home-country nationals are managers who are citizens of the country where the MNC
is headquartered.
True

False

2. Historically, MNCs have staffed key positions in their foreign affiliates with hostcountry nationals.
True

False

3. Home-country nationals are local managers who are hired by the MNC.
True

False

4. Managers who live and work outside their home country are called expatriates.
True

False

5. Many countries exert real and subtle pressures to staff the upper-management ranks
with expatriates.
True

False

6. Though politically controversial, outsourcing can save companies significant costs

and is very profitable for firms that specialize in providing these services on a
contract basis.
True

False

7. Most MNCs strive for a balance between age and experience in their expatriate
employees.
True

False

8. There are three major types of adjustments that an expatriate must make when
going on an overseas assignment: anticipatory adjustment, in-country adjustment,
and new-job-skill adjustment.
True

False

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9. Anticipatory and in-country factors will influence the expatriate's mode and degree of
adjustment to an overseas assignment.
True

False

10. One of the reasons why there has been a decline in the number of expats in recent
years is that MNCs have found that the expense can be prohibitive.
True

False

11. Base salary is the amount of money that an expatriate normally receives in the home
country plus a cost-of-living adjustment.
True

False

12. For expatriates, a cost-of-living allowance is a payment for differences between the
home country and the overseas assignment.
True

False

13. An approach to developing an expatriate compensation package that is based on

ensuring the expat is "made whole" and does not lose money by taking the
assignment is referred to as the balance-sheet approach.
True

False

14. An approach to developing an expatriate compensation package that involves giving

the expat a predetermined amount of money and letting the individual make his/her
own decisions regarding how to spend it is referred to as localization.
True

False

15. For most overseas managers, repatriation occurs within five years of the time they
leave.
True

False

16. Repatriation agreements typically promise an expatriate a specific position and salary
when he/she returns to the home office.
True

False

17. The hardest training, in terms of preparation time is to place a cultural integrator in
each foreign operation.
True

False

18. An ethnocentric MNC puts host-office people in charge of key international

management positions.
True

False

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19. In the new millennium, MNCs' learning focus applied to human resource development
may go beyond learning organizations to "teaching organizations."
True

False

20. The primary reason for training overseas managers is to improve their ability to
interact effectively with local people in general and their personnel in particular.
True

False

Multiple Choice Questions

21. There are four basic sources that MNCs can tap for positions. These are:
A. Host-country nationals, third-country nationals, United Nations placements, and
IMF placements
B. Home-country nationals, IMF placements, inpatriates, and multipatriates
C. Home-country nationals, host-country nationals, IMF placements, and
multipatriates
D. Home-country nationals, host-country nationals, third-country nationals, and
inpatriates
22. One study found that ______ were most effective in subsidiaries located in developing
countries or those that relied on a local customer base.
A.
B.
C.
D.

IMF placements
Local managers
Expatriates
Third-country nationals

23. Headquarters nationals are another term used for:

A.
B.
C.
D.

Third-country nationals
Home-country nationals
Inpatriates
Host-country nationals

24. ________ are most effective when they were in charge of larger subsidiaries or those
with a marketing theme similar to that at headquarters.
A.
B.
C.
D.

Inpatriates
Third-country nationals
Expatriates
Multipatriates

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25. Which of the following is not a reason to use home-country nationals?

A.
To satisfy host-country requirements
B.
To start up operations
C.
To provide technical expertise
D. To help the MNC maintain financial control over the operation
26. Many MNCs use _______ at the middle- and lower-level ranks.
A.
B.
C.
D.

Inpatriates
Third-country nationals
Host-country nationals
Home-country nationals

27. Which of the following statements about third-country nationals are false?
A. TCN managers can often achieve corporate objectives more effectively than do
expatriates
B. During periods of rapid expansion, TCNs can substitute for expatriates in wellestablished operations
C. During rapid expansion, TCNs can offer different perspectives that can expand on
the narrowly focused viewpoints of local nationals
D. In joint ventures, TCNs can demonstrate a global image and bring unique crosscultural skills to the relationship
28. _______ are managers who are citizens of countries other than the one in which the
MNC is headquartered or the one in which they are assigned to work by the MNC.
A.
B.
C.
D.

Multipatriates
Home-country nationals
Inpatriates
Third-country nationals

29. An individual from a host-country or a third-country national who is assigned to work

in the home country is a(n):
A.
B.
C.
D.

Expatriate
Multipatriate
Inpatriate
Quasi-patriate

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30. Factors used to choose personnel for international assignments are referred to as:
A.
B.
C.
D.

Global placement criteria

International selection criteria
Global selection heuristics
International recruitment and selection heuristics

31. All of the following are correct with regard to the impact of age, experience, and
education on expatriate managers except:
A. There is universal agreement that degrees in marketing or engineering are the
most desirable for expatriate managers
B. Most MNCs strive for a balance between age and experience
C. Many companies consider an academic degree, preferably a graduate degree, to
be of critical importance to an international executive
D. There is evidence that younger managers are more eager for international
assignments than older managers
32. This is the primary language of international business and most expatriates from all
countries can converse in it.
A.
B.
C.
D.

French
German
Spanish
English

33. Borstorff and her associates examined the factors associated with employee
willingness to work overseas and concluded that:
A. Married couples with teenage children are probably the most willing to move
B. Prior international experience appears associated with willingness to work as an
expatriate
C. Unmarried employees are least willing, compared to any other group, to accept
expat assignments
D. Careers and attitudes of spouses have an insignificant impact on employee
willingness to move overseas
34. The process of evaluating how well a family is likely to stand up to the stress of
overseas life is referred to as:
A.
B.
C.
D.

Suitability assessment
Selection fitness
Adaptability screening
Expatriate fitness

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35. The two most common selection procedures used by MNCs are:
A.
B.
C.
D.

Assessment centers and tests

References and interviews
Application forms and assessment centers
Tests and interviews

36. In general, some evidence suggests that testing is:

A.
Extremely popular among MNCs
B.
Not extremely popular among MNCs
C. Used more in the selection of overseas managers than domestic managers
D. Used by a high percentage of MNCs in selecting expatriate managers
37. In recent years, international human resources management scholars have
developed theoretical models that help to explain the factors involved in effectively
adjusting to overseas assignments. These models are called:
A.
B.
C.
D.

Adjustment models
Adaptation theorems
Alignment models
Congruence theorems

38. ________ concerns have been cited as the most common reason for assignment
refusal.
A.
B.
C.
D.

Spousal career
Job performance
Family
Lack of relevance to future career progress

39. The adjustment model of the selection procedure for international assignments would
include:
A.
B.
C.
D.

Training and previous experience

Education and modification
Work experience and exposure
Abilities and behavior

40. The organizational input into anticipatory adjustment is most directly related and
concerned with the:
A.
B.
C.
D.

Motivation process
Selection process
Compensation plan
Quality of leadership

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41. Traditionally, what was the only selection criterion MNCs relied on for overseas
assignments?
A.
B.
C.
D.

Training
Technical competence
Previous experience
Education

42. The most common elements in the typical expatriate compensation package include:
A. Base salary, benefits, allowances, incentives, and taxes
B. Base salary, bonuses, stock options, and free housing
C. Base salary, benefits, free housing, and free education for the expatriate's children
D. Base salary, benefits, free travel, free housing, and taxes
43. Expatriate salaries typically are set according to the base pay of:
A. An index of firms maintained by the United Nations
B.
The home country
C.
The host-country
D. A neutral third-country determined by the expatriate and his/her company
44. These are an expensive feature of expatriate compensation packages.
A.
B.
C.
D.

Base salaries
Allowances
Incentives
Taxes

45. An allowance may cover a variety of expenses, including all of the following except:
A.
B.
C.
D.

Relocation
Housing
Education
Salary

46. The ________ approach involves working out a special, ad hoc arrangement that is
acceptable to both the company and the expat.
A.
B.
C.
D.

Negotiation
Balance-sheet
Localization
Cafeteria

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47. An approach to developing an expatriate compensation package that involves paying

the expat a salary comparable to that of local nationals are referred to as:
A.
B.
C.
D.

The cafeteria approach

The balance-sheet approach
Localization
The lump-sum method

48. An approach to developing an expatriate compensation package that involves giving

the expat a predetermined amount of money and letting the individual make his/her
own decisions regarding how to spend it is referred to as the:
A.
B.
C.
D.

Localization approach
Cafeteria approach
Lump-sum method
Balance-sheet approach

49. This approach to developing an expatriate compensation package entails giving the
individual a series of options and letting the person decide how to spend the
available funds.
A.
B.
C.
D.

Lump-sum method
Cafeteria approach
Localization approach
Balance-sheet approach

50. Which of the following approaches is used to develop an expatriate compensation

package that involves setting a compensation system for all expats who are assigned
to a particular region and paying everyone in accord with that system?
A.
B.
C.
D.

Regional system
Balance-sheet approach
Cafeteria approach
Lump-sum method

51. A number of thorny issues surround compensation for expatriates, including all of the
following except:
A. Whether third-country benefits programs should be available to local nationals
B. Whether the home or host country is responsible for the expatriates' social security
benefits
C. Whether benefits should be subject to the requirements of the home or host
country
D.
Which country should pay for benefits?

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52. Strategies used to help smooth the adjustment from an overseas to a stateside
assignment are:
A.
B.
C.
D.

Readjustment strategies
Transition strategies
Changeover strategies
Progression strategies

53. An agreement whereby the firm tells the individual how long she/he will be posted
overseas and promises to give the individual, on return, a job that is mutually
acceptable is a:
A.
B.
C.
D.

Strategic plan
Human resource plan
Labor-contract agreement
Repatriation agreement

54. This is the process of altering employee behavior and attitudes in a way that
increases the probability of goal attainment.
A.
B.
C.
D.

Organizing
Planning
Training
Controlling

55. An individual who is responsible for ensuring that a firm's business systems are in
accord with those of the local culture is a(n):
A.
B.
C.
D.

Cultural integrator
Global facilitator
International transition specialist
Global socialization specialist

56. The four basic philosophical positions that multinationals can assume and influence a
company's training program are:
A. Polycentric, geocentric, multicentric, and ultracentric
B. Ethnocentric, globalcentric, regiocentric, and unicentric
C. Multicentric, globalcentric, geocentric, and unicentric
D. Ethnocentric, polycentric, regiocentric, and geocentric

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57. A(n) _____ MNC puts home-office people in charge of key international management
positions.
A.
B.
C.
D.

Ethnocentric
Polycentric
Multicentric
Geocentric

58. Which of the following MNCs places local nationals in key positions and allows these
managers to appoint and develop their own people?
A.
B.
C.
D.

Globalcentric
Polycentric
Regiocentric
Ethnocentric

59. This type of MNC relies on local managers from a particular geographic region to
handle operations in and around that area.
A.
B.
C.
D.

Ethnocentric
Geocentric
Ultracentric
Regiocentric

60. This type of MNC seeks to integrate diverse regions of the world through a global
approach to decision making.
A.
B.
C.
D.

Polycentric
Ethnocentric
Geocentric
Unicentric

61. These MNCs do all of their training at their headquarters.

A.
B.
C.
D.

Multicentric
Regiocentric
Polycentric
Ethnocentric

62. This is the acquisition of skills, knowledge, and abilities that results in a relatively
permanent change in behavior.
A.
B.
C.
D.

Learning
Development
Motivation
Controlling

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63. "Learning organizations" continually focus on activities such as:

A.
B.
C.
D.

Planning and development

Organizing and controlling
Training and development
Planning and organizing

64. Training programs are useful in preparing people for overseas assignments for many
reasons. These reasons can be put into two general categories which are:
A.
B.
C.
D.

Organizational and personal

Economic and philosophical
Personal and impersonal
Financial and psychological

65. The belief that one's own way of doing things is superior to that of others is:
A.
B.
C.
D.

Polycentrism
Geocentrism
Ethnocentrism
Regiocentrism

66. This is common in many large MNCs where managers believe that the home office's
approach to doing business can be exported intact to all other countries because this
approach is superior to anything at the local level.
A.
B.
C.
D.

Regiocentrism
Ethnocentrism
Geocentrism
Polycentrism

67. Research shows that small firms undertaking international business generally rely
on:
A.
B.
C.
D.

Standard training programs

Strategic alliances
Trade zones
Uniform commercial codes

68. Which of the following training programs are created for the specific needs of the
participants?
A.
B.
C.
D.

Generic
Standardized
Tailor-made
Universal

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69. A(n) _____ is a programmed learning technique that is designed to expose members
of one culture to some of the basic concepts, attitudes, role perceptions, customs,
and values of another.
A.
B.
C.
D.

Cultural assimilator
Ethnocentric regulator
Educational regulator
Developmental assimilator

70. Which of the following terms refer to the quality of being effective and producing the
desired results?
A.
B.
C.
D.

Capacity
Validity
Reliability
Stability

Essay Questions
71. Identify and explain the different sources that multinational corporations can use in
their recruiting and selection procedures.

72. Identify the criteria that would influence a multinational corporation in the selection
of an individual for an international assignment.

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73. Discuss the various approaches that can be used to formulate a compensation
package.

74. Describe what is meant by the term training. What factors influence a company's
approach to training?

75. What is a cultural assimilator? What do cultural assimilators try to accomplish?

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Chapter 14 Human Resource Selection and Development

Across Cultures Answer Key
True / False Questions
1.

Home-country nationals are managers who are citizens of the country where the
MNC is headquartered.
TRUE
Home-country nationals are managers who are citizens of the country where the
MNC is headquartered. In fact, sometimes the term headquarters nationals are
used.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

2.

Historically, MNCs have staffed key positions in their foreign affiliates with hostcountry nationals.
FALSE
Historically, MNCs have staffed key positions in their foreign affiliates with homecountry nationals or expatriates.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 2 Medium
Topic: Sources of Human Resources

3.

Home-country nationals are local managers who are hired by the MNC.
FALSE
Host-country nationals are local managers who are hired by the MNC.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

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4.

Managers who live and work outside their home country are called expatriates.
TRUE
These managers commonly are called expatriates, or simply "expats," which refers
to those who live and work outside their home country.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 3 Hard
Topic: Sources of Human Resources

5.

Many countries exert real and subtle pressures to staff the upper-management
ranks with expatriates.
FALSE
In addition, many countries exert real and subtle pressures to staff the uppermanagement ranks with nationals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

6.

Though politically controversial, outsourcing can save companies significant costs

and is very profitable for firms that specialize in providing these services on a
contract basis.
TRUE
Though politically controversial, outsourcing can save companies significant costs
and is very profitable for firms that specialize in providing these services on a
contract basis.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

7.

Most MNCs strive for a balance between age and experience in their expatriate
employees.
TRUE
Most MNCs strive for a balance between age and experience.
AACSB: Analytic
Blooms: Remember
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McGraw-Hill Education.

Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Selection Criteria for International Assignments

8.

There are three major types of adjustments that an expatriate must make when
going on an overseas assignment: anticipatory adjustment, in-country adjustment,
and new-job-skill adjustment.
FALSE
There are two major types of adjustments that an expatriate must make when
going on an overseas assignment: anticipatory and in-country adjustment.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: International Human Resource Selection Procedures

9.

Anticipatory and in-country factors will influence the expatriate's mode and degree
of adjustment to an overseas assignment.
TRUE
These anticipatory and in-country factors will influence the expatriate's mode and
degree of adjustment to an overseas assignment. They can help to explain why
effective selection of expatriates is multifaceted and can be very difficult and
challenging.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: International Human Resource Selection Procedures

10.

One of the reasons why there has been a decline in the number of expats in recent
years is that MNCs have found that the expense can be prohibitive.
TRUE
One of the reasons there has been a decline in the number of expats in recent
years is that MNCs have found that the expense can be prohibitive. Reynolds
estimated that, on average, "expats cost employers two to five times as much as
home-country counterparts and frequently ten or more times as much as local
nationals in the country to which they are assigned."

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

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11.

Base salary is the amount of money that an expatriate normally receives in the
home country plus a cost-of-living adjustment.
FALSE
Base salary is the amount of money that an expatriate normally receives in the
home country.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

12.

For expatriates, a cost-of-living allowance is a payment for differences between the

home country and the overseas assignment.
TRUE
One of the most common parts is a cost-of-living allowancea payment for
differences between the home country and the overseas assignment. This
allowance is designed to provide the expat with the same standard of living that
he or she enjoyed in the home country, and it may cover a variety of expenses,
including relocation, housing, education, and hardship.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

13.

An approach to developing an expatriate compensation package that is based on

ensuring the expat is "made whole" and does not lose money by taking the
assignment is referred to as the balance-sheet approach.
TRUE
In formulating the compensation package, a number of approaches can be used.
The most common is the balance-sheet approach, which involves ensuring that the
expat is "made whole" and does not lose money by taking the assignment.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

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14.

An approach to developing an expatriate compensation package that involves

giving the expat a predetermined amount of money and letting the individual
make his/her own decisions regarding how to spend it is referred to as localization.
FALSE
A fourth approach is the lump-sum method, which involves giving the expat a
predetermined amount of money and letting the individual make his or her own
decisions regarding how to spend it.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

15.

For most overseas managers, repatriation occurs within five years of the time they
leave.
TRUE
For most overseas managers, repatriation, the return to one's home country,
occurs within five years of the time they leave.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-03 DISCUSS the reasons why people return from overseas assignments; and present
some of the strategies used to ensure a smooth transition back into the home-market operation.
Level of Difficulty: 2 Medium
Topic: Repatriation of Expatriates

16.

Repatriation agreements typically promise an expatriate a specific position and

salary when he/she returns to the home office.
FALSE
Repatriation agreements tell an individual how long she or he will be posted
overseas and promises to give the individual, on return, a job that is mutually
acceptable. This agreement typically does not promise a specific position or salary,
but the agreement may state that the person will be given a job that is equal to, if
not better than, the one held before leaving.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-03 DISCUSS the reasons why people return from overseas assignments; and present
some of the strategies used to ensure a smooth transition back into the home-market operation.
Level of Difficulty: 2 Medium
Topic: Repatriation of Expatriates

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17.

The hardest training, in terms of preparation time is to place a cultural integrator

in each foreign operation.
FALSE
The simplest training, in terms of preparation time, is to place a cultural integrator
in each foreign operation.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

18.

An ethnocentric MNC puts host-office people in charge of key international

management positions.
FALSE
An ethnocentric MNC puts home-office people in charge of key international
management positions.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

19.

In the new millennium, MNCs' learning focus applied to human resource

development may go beyond learning organizations to "teaching organizations."
TRUE
In the new millennium, this learning focus applied to human resource development
may go beyond learning organizations to "teaching organizations."
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 1 Easy
Topic: Training in International Management

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McGraw-Hill Education.

20.

The primary reason for training overseas managers is to improve their ability to
interact effectively with local people in general and their personnel in particular.
TRUE
The primary reason for training overseas managers is to improve their ability to
interact effectively with local people in general and with their personnel in
particular.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

Multiple Choice Questions

21.

There are four basic sources that MNCs can tap for positions. These are:
A. Host-country nationals, third-country nationals, United Nations placements, and
IMF placements
B. Home-country nationals, IMF placements, inpatriates, and multipatriates
C. Home-country nationals, host-country nationals, IMF placements, and
multipatriates
D. Home-country nationals, host-country nationals, third-country nationals, and
inpatriates
MNCs can tap four basic sources for positions: (1) home-country nationals; (2)
host-country nationals; (3) third-country nationals; and (4) inpatriates.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 2 Medium
Topic: Sources of Human Resources

14-20
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McGraw-Hill Education.

22.

One study found that ______ were most effective in subsidiaries located in
developing countries or those that relied on a local customer base.
A.
B.
C.
D.

IMF placements
Local managers
Expatriates
Third-country nationals

This study found that local managers were most effective in subsidiaries located in
developing countries or those that relied on a local customer base.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

23.

Headquarters nationals are another term used for:

A.
B.
C.
D.

Third-country nationals
Home-country nationals
Inpatriates
Host-country nationals

Home-country nationals are managers who are citizens of the country where the
MNC is headquartered. In fact, sometimes the term headquarters nationals are
used.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

24.

________ are most effective when they were in charge of larger subsidiaries or
those with a marketing theme similar to that at headquarters.
A.
B.
C.
D.

Inpatriates
Third-country nationals
Expatriates
Multipatriates

Expatriates were most effective when they were in charge of larger subsidiaries or
those with a marketing theme similar to that at headquarters.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
14-21
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McGraw-Hill Education.

Level of Difficulty: 1 Easy

Topic: Sources of Human Resources

25.

Which of the following is not a reason to use home-country nationals?

A.
B.
C.
D.

To satisfy host-country requirements

To start up operations
To provide technical expertise
To help the MNC maintain financial control over the operation

There are a variety of reasons for using home-country nationals. One of the most
common is to start up operations. Another is to provide technical expertise. A third
is to help the MNC maintain financial control over the operation.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 2 Medium
Topic: Sources of Human Resources

26.

Many MNCs use _______ at the middle- and lower-level ranks.

A.
B.
C.
D.

Inpatriates
Third-country nationals
Host-country nationals
Home-country nationals

Host-country nationals are local managers who are hired by the MNC. For a
number of reasons, many MNCs use host-country managers at the middle- and
lower-level ranks.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

14-22
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McGraw-Hill Education.

27.

Which of the following statements about third-country nationals are false?

A. TCN managers can often achieve corporate objectives more effectively than do
expatriates
B. During periods of rapid expansion, TCNs can substitute for expatriates in wellestablished operations
C. During rapid expansion, TCNs can offer different perspectives that can expand
on the narrowly focused viewpoints of local nationals
D. In joint ventures, TCNs can demonstrate a global image and bring unique crosscultural skills to the relationship
During periods of rapid expansion, TCNs can not only substitute for expatriates in
new and growing operations but also offer different perspectives that can
complement and expand on the sometimes narrowly focused viewpoints of both
local nationals and headquarters personnel.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 2 Medium
Topic: Sources of Human Resources

28.

_______ are managers who are citizens of countries other than the one in which the
MNC is headquartered or the one in which they are assigned to work by the MNC.
A.
B.
C.
D.

Multipatriates
Home-country nationals
Inpatriates
Third-country nationals

Third-country nationals (TCNs) are managers who are citizens of countries other
than the country in which the MNC is headquartered or the one in which they are
assigned to work by the MNC.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

14-23
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McGraw-Hill Education.

29.

An individual from a host-country or a third-country national who is assigned to

work in the home country is a(n):
A.
B.
C.
D.

Expatriate
Multipatriate
Inpatriate
Quasi-patriate

An inpatriate, or inpat, is an individual from a host country or a third-country

national who is assigned to work in the home country.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 1 Easy
Topic: Sources of Human Resources

30.

Factors used to choose personnel for international assignments are referred to as:
A.
B.
C.
D.

Global placement criteria

International selection criteria
Global selection heuristics
International recruitment and selection heuristics

Making an effective selection decision for an overseas assignment can prove to be

a major problem. Typically, this decision is based on international selection criteria,
which are factors used to choose international managers.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 1 Easy
Topic: Selection Criteria for International Assignments

14-24
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McGraw-Hill Education.

31.

All of the following are correct with regard to the impact of age, experience, and
education on expatriate managers except:
A. There is universal agreement that degrees in marketing or engineering are the
most desirable for expatriate managers
B. Most MNCs strive for a balance between age and experience
C. Many companies consider an academic degree, preferably a graduate degree,
to be of critical importance to an international executive
D. There is evidence that younger managers are more eager for international
assignments than older managers
Most MNCs strive for a balance between age and experience. There is evidence
that younger managers are more eager for international assignments. These
managers tend to be more "worldly" and have a greater appreciation of other
cultures than older managers do. By the same token, young people often are the
least developed in management experience and technical skills; they lack realworld experience. To gain the desired balance, many firms send both young and
seasoned personnel to the same overseas post. Many companies consider an
academic degree, preferably a graduate degree, to be of critical importance to an
international executive; however, universal agreement regarding the ideal type of
degree is nonexistent.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Selection Criteria for International Assignments

32.

This is the primary language of international business and most expatriates from
all countries can converse in it.
A.
B.
C.
D.

French
German
Spanish
English

English is the primary language of international business, and most expatriates

from all countries can converse in English. Those who can speak only English are
at a distinct disadvantage when doing business in non-English-speaking countries,
however.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 1 Easy
Topic: Selection Criteria for International Assignments

14-25
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McGraw-Hill Education.

33.

Borstorff and her associates examined the factors associated with employee
willingness to work overseas and concluded that:
A. Married couples with teenage children are probably the most willing to move
B. Prior international experience appears associated with willingness to work as an
expatriate
C. Unmarried employees are least willing, compared to any other group, to accept
expat assignments
D. Careers and attitudes of spouses have an insignificant impact on employee
willingness to move overseas
These findings were affirmed and extended by Borstorff and her associates, who
examined the factors associated with employee willingness to work overseas and
concluded that prior international experience appears associated with willingness
to work as an expatriate.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Selection Criteria for International Assignments

34.

The process of evaluating how well a family is likely to stand up to the stress of
overseas life is referred to as:
A.
B.
C.
D.

Suitability assessment
Selection fitness
Adaptability screening
Expatriate fitness

One popular approach in appraising the family's suitability for an overseas

assignment is called adaptability screening. This process evaluates how well the
family is likely to stand up to the rigors and stress of overseas life.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Selection Criteria for International Assignments

14-26
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McGraw-Hill Education.

35.

The two most common selection procedures used by MNCs are:

A.
B.
C.
D.

Assessment centers and tests

References and interviews
Application forms and assessment centers
Tests and interviews

MNCs use a number of selection procedures. The two most common are tests and
interviews.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: International Human Resource Selection Procedures

36.

In general, some evidence suggests that testing is:

A.
Extremely popular among MNCs
B.
Not extremely popular among MNCs
C. Used more in the selection of overseas managers than domestic managers
D. Used by a high percentage of MNCs in selecting expatriate managers
Some evidence suggests that although some firms use testing, it is not extremely
popular. For example, an early study found that almost 80 percent of the foreign
operations managers who were surveyed reported that their companies used no
tests in the selection process.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: International Human Resource Selection Procedures

37.

In recent years, international human resources management scholars have

developed theoretical models that help to explain the factors involved in
effectively adjusting to overseas assignments. These models are called:
A.
B.
C.
D.

Adjustment models
Adaptation theorems
Alignment models
Congruence theorems

Theoretical models containing the variables that are important for adjusting to an
overseas assignment have been developed. These adjustment models can help
contribute to more effective selection of expatriates.
AACSB: Analytic
14-27
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McGraw-Hill Education.

Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 1 Easy
Topic: International Human Resource Selection Procedures

38.

________ concerns have been cited as the most common reason for assignment
refusal.
A.
B.
C.
D.

Spousal career
Job performance
Family
Lack of relevance to future career progress

Not surprisingly, family concerns were cited as the most common reason for
assignment refusal, with 89 percent of those surveyed identifying families as the
primarily reason employees turn down an assignment.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Economic Pressures and Trends in Expat Assignments

39.

The adjustment model of the selection procedure for international assignments

would include:
A.
B.
C.
D.

Training and previous experience

Education and modification
Work experience and exposure
Abilities and behavior

Anticipatory adjustment is carried out before the expat leaves for the assignment
and is influenced by a number of important factors. One factor is the pre-departure
training that is provided. This often takes the form of cross-cultural seminars or
workshops, and it is designed to acquaint expats with the culture and work life of
the country to which they will be posted. Another factor affecting anticipatory
adjustment is the previous experience the expat may have had with the assigned
country or with countries with similar cultures.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: International Human Resource Selection Procedures

14-28
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McGraw-Hill Education.

40.

The organizational input into anticipatory adjustment is most directly related and
concerned with the:
A.
B.
C.
D.

Motivation process
Selection process
Compensation plan
Quality of leadership

The organizational input into anticipatory adjustment is most directly related and
concerned with the selection process.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 3 Hard
Topic: International Human Resource Selection Procedures

41.

Traditionally, what was the only selection criterion MNCs relied on for overseas
assignments?
A.
B.
C.
D.

Training
Technical competence
Previous experience
Education

Traditionally, MNCs relied on only one important selection criterion for overseas
assignments: technical competence.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: International Human Resource Selection Procedures

42.

The most common elements in the typical expatriate compensation package

include:
A. Base salary, benefits, allowances, incentives, and taxes
B.
Base salary, bonuses, stock options, and free housing
C. Base salary, benefits, free housing, and free education for the expatriate's
children
D. Base salary, benefits, free travel, free housing, and taxes
There are five common elements in the typical expatriate compensation package:
base salary, benefits, allowances, incentives, and taxes.
AACSB: Analytic
Blooms: Remember

14-29
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McGraw-Hill Education.

Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

43.

Expatriate salaries typically are set according to the base pay of:
A.
An index of firms maintained by the United Nations
B.
The home country
C.
The host-country
D. A neutral third-country determined by the expatriate and his/her company
Expatriate salaries typically are set according to the base pay of the home
countries.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

44.

These are an expensive feature of expatriate compensation packages.

A.
B.
C.
D.

Base salaries
Allowances
Incentives
Taxes

Allowances are an expensive feature of expatriate compensation packages. One of

the most common parts is a cost-of-living allowancea payment for differences
between the home country and the overseas assignment.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 1 Easy
Topic: Compensation

14-30
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McGraw-Hill Education.

45.

An allowance may cover a variety of expenses, including all of the following

except:
A.
B.
C.
D.

Relocation
Housing
Education
Salary

An allowance is designed to provide the expat with the same standard of living
that he or she enjoyed in the home country, and it may cover a variety of
expenses, including relocation, housing, education, and hardship.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 3 Hard
Topic: Compensation

46.

The ________ approach involves working out a special, ad hoc arrangement that is
acceptable to both the company and the expat.
A.
B.
C.
D.

Negotiation
Balance-sheet
Localization
Cafeteria

Negotiation involves working out a special, ad hoc arrangement that is acceptable

to both the company and the expat.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

47.

An approach to developing an expatriate compensation package that involves

paying the expat a salary comparable to that of local nationals are referred to as:
A.
B.
C.
D.

The cafeteria approach

The balance-sheet approach
Localization
The lump-sum method

Localization involves paying the expat a salary that is comparable to the salaries
of local nationals. This approach most commonly is used with individuals early in
their careers who are being given a long-term overseas assignment.
AACSB: Analytic
14-31
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McGraw-Hill Education.

Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

48.

An approach to developing an expatriate compensation package that involves

giving the expat a predetermined amount of money and letting the individual
make his/her own decisions regarding how to spend it is referred to as the:
A.
B.
C.
D.

Localization approach
Cafeteria approach
Lump-sum method
Balance-sheet approach

The lump-sum method involves giving the expat a predetermined amount of

money and letting the individual make his or her own decisions regarding how to
spend it.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

49.

This approach to developing an expatriate compensation package entails giving

the individual a series of options and letting the person decide how to spend the
available funds.
A.
B.
C.
D.

Lump-sum method
Cafeteria approach
Localization approach
Balance-sheet approach

The cafeteria approach entails giving expats a series of options and letting them
decide how to spend the available funds.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

14-32
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McGraw-Hill Education.

50.

Which of the following approaches is used to develop an expatriate compensation

package that involves setting a compensation system for all expats who are
assigned to a particular region and paying everyone in accord with that system?
A.
B.
C.
D.

Regional system
Balance-sheet approach
Cafeteria approach
Lump-sum method

Under the regional system, the MNC sets a compensation system for all expats
who are assigned to a particular region. The most important thing to remember
about global compensation is that the package must be cost-effective and fair.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

51.

A number of thorny issues surround compensation for expatriates, including all of

the following except:
A. Whether third-country benefits programs should be available to local nationals
B. Whether the home or host country is responsible for the expatriates' social
security benefits
C. Whether benefits should be subject to the requirements of the home or host
country
D.
Which country should pay for benefits?
A number of thorny issues surround compensation for expatriates. These include:
1. Whether MNCs should maintain expatriates in home-country benefit programs,
particularly if these programs are not tax-deductible.
2. Whether MNCs have the option of enrolling expatriates in host-country benefit
programs or making up any difference in coverage.
3. Whether host-country legislation regarding termination of employment affects
employee benefits entitlements.
4. Whether the home or host country is responsible for the expatriates' social
security benefits.
5. Whether benefits should be subject to the requirements of the home or host
country.
6. Which country should pay for the benefits?
7. Whether other benefits should be used to offset any shortfall in coverage.
8. Whether home-country benefits programs should be available to local nationals.

AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation
14-33
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McGraw-Hill Education.

52.

Strategies used to help smooth the adjustment from an overseas to a stateside

assignment are:
A.
B.
C.
D.

Readjustment strategies
Transition strategies
Changeover strategies
Progression strategies

When they return, expatriates often find themselves facing readjustment

problems, and some MNCs are trying to deal with these problems through use of
transition strategies.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-03 DISCUSS the reasons why people return from overseas assignments; and present
some of the strategies used to ensure a smooth transition back into the home-market operation.
Level of Difficulty: 2 Medium
Topic: Repatriation of Expatriates

53.

An agreement whereby the firm tells the individual how long she/he will be posted
overseas and promises to give the individual, on return, a job that is mutually
acceptable is a:
A.
B.
C.
D.

Strategic plan
Human resource plan
Labor-contract agreement
Repatriation agreement

A repatriation agreement tells an individual how long she or he will be posted

overseas and promises to give the individual, on return, a job that is mutually
acceptable. This agreement typically does not promise a specific position or salary,
but the agreement may state that the person will be given a job that is equal to, if
not better than, the one held before leaving.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-03 DISCUSS the reasons why people return from overseas assignments; and present
some of the strategies used to ensure a smooth transition back into the home-market operation.
Level of Difficulty: 2 Medium
Topic: Repatriation of Expatriates

14-34
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McGraw-Hill Education.

54.

This is the process of altering employee behavior and attitudes in a way that
increases the probability of goal attainment.
A.
B.
C.
D.

Organizing
Planning
Training
Controlling

Training is the process of altering employee behavior and attitudes in a way that
increases the probability of goal attainment.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 1 Easy
Topic: Training in International Management

55.

An individual who is responsible for ensuring that a firm's business systems are in
accord with those of the local culture is a(n):
A.
B.
C.
D.

Cultural integrator
Global facilitator
International transition specialist
Global socialization specialist

The simplest training, in terms of preparation time, is to place a cultural integrator

in each foreign operation. This individual is responsible for ensuring that the
operation's business systems are in accord with those of the local culture. The
integrator advises, guides, and recommends actions needed to ensure this
synchronization.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

14-35
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McGraw-Hill Education.

56.

The four basic philosophical positions that multinationals can assume and
influence a company's training program are:
A.
B.
C.
D.

Polycentric, geocentric, multicentric, and ultracentric

Ethnocentric, globalcentric, regiocentric, and unicentric
Multicentric, globalcentric, geocentric, and unicentric
Ethnocentric, polycentric, regiocentric, and geocentric

The four basic philosophical positions of multinational corporations that can

influence the training program are ethnocentric, polycentric, regiocentric, and
geocentric positions.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

57.

A(n) _____ MNC puts home-office people in charge of key international

management positions.
A.
B.
C.
D.

Ethnocentric
Polycentric
Multicentric
Geocentric

An ethnocentric MNC puts home-office people in charge of key international

management positions.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

58.

Which of the following MNCs places local nationals in key positions and allows
these managers to appoint and develop their own people?
A.
B.
C.
D.

Globalcentric
Polycentric
Regiocentric
Ethnocentric

A polycentric MNC places local nationals in key positions and allows these
managers to appoint and develop their own people.
AACSB: Analytic
Blooms: Remember
14-36
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McGraw-Hill Education.

Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

59.

This type of MNC relies on local managers from a particular geographic region to
handle operations in and around that area.
A.
B.
C.
D.

Ethnocentric
Geocentric
Ultracentric
Regiocentric

A regiocentric MNC relies on local managers from a particular geographic region to

handle operations in and around that area. For example, production facilities in
France would be used to produce goods for all EU countries. Similarly, advertising
managers from subsidiaries in Italy, Germany, France, and Spain would come
together and formulate a "European" advertising campaign for the company's
products. A regiocentric approach often relies on regional group cooperation of
local managers. The Gillette MNC uses a regiocentric approach.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

60.

This type of MNC seeks to integrate diverse regions of the world through a global
approach to decision making.
A.
B.
C.
D.

Polycentric
Ethnocentric
Geocentric
Unicentric

A geocentric MNC seeks to integrate diverse regions of the world through a global
approach to decision making. Assignments are based on qualifications, and all
subsidiary managers throughout the structure are regarded as equal to those at
headquarters. IBM is an excellent example of an MNC that attempts to use a
geocentric approach.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

14-37
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McGraw-Hill Education.

61.

These MNCs do all of their training at their headquarters.

A.
B.
C.
D.

Multicentric
Regiocentric
Polycentric
Ethnocentric

Ethnocentric MNCs will do all training at headquarters, but polycentric MNCs will
rely on local managers to assume responsibility for seeing that the training
function is carried out.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

62.

This is the acquisition of skills, knowledge, and abilities that results in a relatively
permanent change in behavior.
A.
B.
C.
D.

Learning
Development
Motivation
Controlling

Learning is the acquisition of skills, knowledge, and abilities that result in a

relatively permanent change in behavior.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 1 Easy
Topic: Training in International Management

63.

"Learning organizations" continually focus on activities such as:

A.
B.
C.
D.

Planning and development

Organizing and controlling
Training and development
Planning and organizing

Over the last decade, growing numbers of multinationals have tried to become
"learning organizations," continually focused on activities such as training and
development.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
14-38
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McGraw-Hill Education.

Level of Difficulty: 2 Medium

Topic: Training in International Management

64.

Training programs are useful in preparing people for overseas assignments for
many reasons. These reasons can be put into two general categories which are:
A.
B.
C.
D.

Organizational and personal

Economic and philosophical
Personal and impersonal
Financial and psychological

Training programs are useful in preparing people for overseas assignments for
many reasons. These reasons can be put into two general categories:
organizational and personal.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

65.

The belief that one's own way of doing things is superior to that of others is:
A.
B.
C.
D.

Polycentrism
Geocentrism
Ethnocentrism
Regiocentrism

One primary reason is to help overcome ethnocentrism, the belief that one's way
of doing things is superior to that of others.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 1 Easy
Topic: Training in International Management

14-39
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McGraw-Hill Education.

66.

This is common in many large MNCs where managers believe that the home
office's approach to doing business can be exported intact to all other countries
because this approach is superior to anything at the local level.
A.
B.
C.
D.

Regiocentrism
Ethnocentrism
Geocentrism
Polycentrism

Ethnocentrism is common in many large MNCs where managers believe that the
home office's approach to doing business can be exported intact to all other
countries because this approach is superior to anything at the local level.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

67.

Research shows that small firms undertaking international business generally rely
on:
A.
B.
C.
D.

Standard training programs

Strategic alliances
Trade zones
Uniform commercial codes

Research shows that small firms usually rely on standard training programs. Larger
MNCs, in contrast, tend to design their own.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 3 Hard
Topic: Types of Training Programs

68.

Which of the following training programs are created for the specific needs of the
participants?
A.
B.
C.
D.

Generic
Standardized
Tailor-made
Universal

Tailor-made training programs are created for the specific needs of the
participants.
AACSB: Analytic
14-40
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McGraw-Hill Education.

Blooms: Remember
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 1 Easy
Topic: Types of Training Programs

69.

A(n) _____ is a programmed learning technique that is designed to expose

members of one culture to some of the basic concepts, attitudes, role perceptions,
customs, and values of another.
A.
B.
C.
D.

Cultural assimilator
Ethnocentric regulator
Educational regulator
Developmental assimilator

A cultural assimilator is a programmed learning technique that is designed to

expose members of one culture to some of the basic concepts, attitudes, role
perceptions, customs, and values of another culture.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-05 EXPLAIN how cultural assimilators work and why they are so highly regarded.
Level of Difficulty: 2 Medium
Topic: Cultural Assimilators

70.

Which of the following terms refer to the quality of being effective and producing
the desired results?
A.
B.
C.
D.

Capacity
Validity
Reliability
Stability

The term validity refers to the quality of being effective, of producing the desired
results. It means that an instrumentin this case, the cultural assimilator
measures what it is intended to measure.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-05 EXPLAIN how cultural assimilators work and why they are so highly regarded.
Level of Difficulty: 1 Easy
Topic: Cultural Assimilators

Essay Questions

14-41
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McGraw-Hill Education.

71.

Identify and explain the different sources that multinational corporations can use
in their recruiting and selection procedures.

The basic sources include home-country nationals, host-country nationals, thirdcountry nationals, inpatriates, and subcontracting or outsourcing. Home-country
nationals are managers who are citizens of the country where the multinational
corporation is headquartered and often are referred to as "headquarters
nationals". Host-country nationals are local managers who are hired by the
multinational corporation and are mostly used at middle and lower-level positions.
Third-country nationals are managers who are citizens of countries other than the
one in which the multinational corporation is headquartered or one in which they
are assigned to work by the multinational. An inpatriate is an individual from a
host-country or a third-country national who is assigned to work in the home
country, thereby helping multinational corporations develop their global core
competencies. Subcontracting and outsourcing allow companies to utilize the
services of employees, usually from other countries on a temporary or permanent
basis, at more competitive wages.
Feedback: The basic sources include home-country nationals, host-country
nationals, third-country nationals, inpatriates, and subcontracting or outsourcing.
Home-country nationals are managers who are citizens of the country where the
multinational corporation is headquartered and often are referred to as
"headquarters nationals". Host-country nationals are local managers who are hired
by the multinational corporation and are mostly used at middle and lower-level
positions. Third-country nationals are managers who are citizens of countries other
than the one in which the multinational corporation is headquartered or one in
which they are assigned to work by the multinational. An inpatriate is an individual
from a host-country or a third-country national who is assigned to work in the
home country, thereby helping multinational corporations develop their global core
competencies. Subcontracting and outsourcing allow companies to utilize the
services of employees, usually from other countries on a temporary or permanent
basis, at more competitive wages.
AACSB: Analytic
Blooms: Understand
Learning Objective: 14-01 IDENTIFY the three basic sources that MNCs can tap when filling management
vacancies in overseas operations in addition to options of subcontracting and outsourcing.
Level of Difficulty: 2 Medium
Topic: Sources of Human Resources

14-42
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McGraw-Hill Education.

72.

Identify the criteria that would influence a multinational corporation in the

selection of an individual for an international assignment.

General criteria, adaptability to cultural change, physical and emotional health,

age, experience and education, language training, motivation for a foreign
assignment, spouses and dependents or work-family issues, leadership ability and
other considerations are all factors in making an effective selection decision for
international assignment.
Feedback: General criteria, adaptability to cultural change, physical and emotional
health, age, experience and education, language training, motivation for a foreign
assignment, spouses and dependents or work-family issues, leadership ability and
other considerations are all factors in making an effective selection decision for
international assignment.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Selection Criteria for International Assignments

14-43
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McGraw-Hill Education.

73.

Discuss the various approaches that can be used to formulate a compensation

package.

The most common is the balance-sheet approach, which involves ensuring that the
expat is "made whole" and does not lose money by taking the assignment. A
second and often complementary approach is negotiation, which involves working
out a special, ad hoc arrangement that is acceptable to both the company and the
expat. A third approach, localization, involves paying the expat a salary that is
comparable to the salaries of local nationals. A fourth approach is the lump-sum
method, which involves giving the expat a predetermined amount of money and
letting the individual make his/her own decisions regarding how to spend it. The
fifth approach is the cafeteria approach, which entails giving expats a series of
options and letting them decide how to spend the available funds. A sixth method
is the regional system, under which the MNC sets a compensation system for all
expats who are assigned to a particular region.
Feedback: The most common is the balance-sheet approach, which involves
ensuring that the expat is "made whole" and does not lose money by taking the
assignment. A second and often complementary approach is negotiation, which
involves working out a special, ad hoc arrangement that is acceptable to both the
company and the expat. A third approach, localization, involves paying the expat a
salary that is comparable to the salaries of local nationals. A fourth approach is the
lump-sum method, which involves giving the expat a predetermined amount of
money and letting the individual make his/her own decisions regarding how to
spend it. The fifth approach is the cafeteria approach, which entails giving expats a
series of options and letting them decide how to spend the available funds. A sixth
method is the regional system, under which the MNC sets a compensation system
for all expats who are assigned to a particular region.
AACSB: Analytic
Blooms: Understand
Learning Objective: 14-02 DESCRIBE the selection criteria and procedures used by organizations and individual
managers when making final decisions.
Level of Difficulty: 2 Medium
Topic: Compensation

14-44
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McGraw-Hill Education.

74.

Describe what is meant by the term training. What factors influence a company's
approach to training?

Training is the process of altering employee behavior and attitudes to increase the
probability of goal attainment. Many expatriates need training before as well as
during their overseas stay. The primary factor that will influence a company's
approach to training is the overall philosophy of international management. This
includes the basic types of MNCs: ethnocentric, polycentric, regiocentric, and
geocentric. Another factor is the learning style of the trainees.
Feedback: Training is the process of altering employee behavior and attitudes to
increase the probability of goal attainment. Many expatriates need training before
as well as during their overseas stay. The primary factor that will influence a
company's approach to training is the overall philosophy of international
management. This includes the basic types of MNCs: ethnocentric, polycentric,
regiocentric, and geocentric. Another factor is the learning style of the trainees.
AACSB: Analytic
Blooms: Understand
Learning Objective: 14-04 DESCRIBE the training process; the most common reasons for training; and the
types of training that often are provided.
Level of Difficulty: 2 Medium
Topic: Training in International Management

75.

What is a cultural assimilator? What do cultural assimilators try to accomplish?

A cultural assimilator is a programmed learning approach that is designed to

expose members of one culture to some of the basic concepts, attitudes, role
perceptions, customs, and values of another. Assimilators have been developed for
many different cultures. Their validity has resulted in the improved effectiveness
and satisfaction of those being trained as compared with other training methods.
Feedback: A cultural assimilator is a programmed learning approach that is
designed to expose members of one culture to some of the basic concepts,
attitudes, role perceptions, customs, and values of another. Assimilators have been
developed for many different cultures. Their validity has resulted in the improved
effectiveness and satisfaction of those being trained as compared with other
training methods.
AACSB: Analytic
Blooms: Remember
Learning Objective: 14-05 EXPLAIN how cultural assimilators work and why they are so highly regarded.
Level of Difficulty: 2 Medium
Topic: Cultural Assimilators

14-45
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McGraw-Hill Education.