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There is a trend toward treating third-country nationals the same as home-country expatriates in terms of their compensation plans.

A) True
B) False

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Home-country nationals may be used in host-country management because:


A) all of B, C, and
B) host-country nationals are unavailable.
C) home-country nationals are being groomed for IC headquarters.
D) C headquarters wants one of its nationals in the host country.
E) two of B, C, and D.

F) D) and E)
G) B) and E)

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Under a polycentric staffing orientation, ICs primarily hire HCNs for subsidiaries and PCNs for headquarters' positions, and movement from the local subsidiaries to headquarters' positions is common.

A) True
B) False

Correct Answer

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

A) True
B) False

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Parent-company nationals commonly encounter difficulty overcoming the biases of their own cultural experience and being able to understand and perform effectively within a new operating context.

A) True
B) False

Correct Answer

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

A) True
B) False

Correct Answer

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According to the text, approximately ______ percent of the companies surveyed required cross-cultural training for their expats or their families.


A) 21 percent
B) 27 percent
C) nearly half
D) 77 percent
E) 90 percent

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

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With regard to the use of women versus men for expat management assignments:


A) few qualified women candidates are available.
B) few women candidates are accepting assignments and enjoying the experience.
C) those women who go into expatriate positions tend to do well. The hurdle is in getting the assignment.
D) the women expatriates are making more money than their male counterparts.
E) two of the above.

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

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According to the text, the failure rate for expatriate assignments, including failing to achieve performance targets for an international assignment or prematurely returning from the assignment, ranges from _______ percent.


A) 6 to 10
B) 15 to 25
C) 25 to 45
D) 30 to 55
E) 41 to 65

F) C) and D)
G) None of the above

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One reason for using home-country citizens overseas is to prepare them for high-level positions at headquarters.

A) True
B) False

Correct Answer

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

A) True
B) False

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The same general criteria for selecting home-country employees apply to host-country nationals.

A) True
B) False

Correct Answer

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An advantage of using home-country citizens abroad is:


A) they have expertise in the host-country culture.
B) they expand their experience, enhancing their potential for promotion at home.
C) they have lower-cost salaries and benefits than HCNs or TCNs.
D) two of the above.
E) all of A, B, and C.

F) B) and D)
G) None of the above

Correct Answer

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Bonuses are payments made to compensate expatriates for the extra costs they must incur to live as well abroad as they did in the home country.

A) True
B) False

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A recent study reported that 77 percent of companies considered that cross-cultural training was highly valuable and required such training for their expats or their families.

A) True
B) False

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When host-county nationals are employed:


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

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

Correct Answer

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According to the text, about ____ percent of medium and large-sized companies have employees working abroad.


A) 23
B) 47
C) 55
D) 76
E) 80

F) None of the above
G) A) and C)

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An advantage of hiring personnel who are citizens of neither the home country nor the host country may be that they:


A) may accept lower wages and benefits.
B) may come from a culture similar to that of the host country.
C) all of A, B, and D.
D) As stated directly in the text.
E) two of A, B, and D.

F) B) and C)
G) A) and C)

Correct Answer

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Parent-company nationals might be concerned with:


A) the rate at which industrial skills are learned by host-country nationals.
B) how quickly they can learn the local language in their host country.
C) the exchange rate movement of their host country's currency.
D) all of the above.
E) two of A, B, and C.

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

Correct Answer

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Explain what a "global mindset" includes and why this may be important for international companies and their managers.

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