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An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.

A) True
B) False

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A strong _____, the organization's norms and value systems, can help a firm to implement its strategy.


A) corporate culture
B) human resources division
C) mission statement
D) beliefs systems

E) None of the above
F) All of the above

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_____ is considered the language of world business.


A) Chinese
B) English
C) Spanish
D) Hindi

E) C) and D)
F) A) and B)

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A firm using a polycentric staffing policy:


A) is less likely to suffer from cultural myopia.
B) seeks the best people for key jobs throughout the organization, regardless of nationality.
C) will most likely follow an ethnocentric strategy.
D) is likely to have improved communication between host-country managers and parent-country managers.

E) None of the above
F) B) and C)

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One of the strategies pursued by international businesses is _____, where value is created by realizing experience curve and location economies.


A) global standardization
B) localization
C) international
D) transnational

E) None of the above
F) A) and B)

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Management development programs aim to:


A) facilitate an ethnocentric approach to staffing.
B) reduce job rotations of managers.
C) build a formal management network.
D) build a unifying corporate culture.

E) A) and B)
F) C) and D)

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A polycentric approach to staffing is one in which:


A) host-country nationals are recruited to manage subsidiaries while parent-company nationals occupy key positions at corporate headquarters.
B) standard psychological tests are used to assess perceptual ability and cultural toughness, when selecting a manager for foreign posting.
C) all key management positions are filled by parent company nationals.
D) the best people, regardless of nationality, are recruited to fill key positions throughout the organization.

E) None of the above
F) B) and C)

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Cultural toughness refers to the relationship between the country of assignment and how well an expatriate adjusts to a particular posting.

A) True
B) False

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A foreign service premium is:


A) paid when the expatriate is being sent to a difficult location.
B) the extra pay that an expatriate receives for working outside his or her country of origin.
C) normally given to ensure that the expatriate can afford the same quality of housing in the foreign country as at home.
D) paid to ensure that the expatriate enjoys the same standard of living in the foreign posting as at home.

E) None of the above
F) B) and C)

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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) Cost-based approach

E) None of the above
F) All of the above

Correct Answer

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