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MANA 3320: Chapter 15

A multinational firm that maintains control of operations back in the home office can be viewed as a
global corporation.
The type of organization that attempts to achieve the local responsiveness of a multinational corporation while also achieving the efficiencies of a global firm is a(n)
transnational corporation.
Communications, religion, values and ideologies, education, and the social structure of a country are examples of
a cultural environnent.
The country in which an international business operates is the
host country.
Natives of a country other than the home country or the host country are
third-country nationals.
The following are different sources of employees with whom to staff international operations, except
preferential union shops.
Natives of the host country who manage international operations are known as
host-country nationals.
A document issued by a government granting authority to a foreign individual to seek employment in that government’s
country is a
work permit or visa.
Compared to the United States, employee recruitment in other
countries is subject to
more government regulation.
A major source of trained labor in European nations is
apprenticeship training. programs.
Foreign workers invited to come to a country to perform needed labor are usually referred to as
guest workers.
The assembly of people of multiple nationalities who can work together effectively on projects that span multiple countries is a
transnational team.
One of the principal causes of failure among employees working internationally is a lack of
The most prevalent reasons for failure among expatriates working in foreign countries are
family and lifestyle issues.
Most executives agree that the biggest problem for the foreign business traveler is
communicating in different languages.
Managerial attitudes and behaviors are influenced by the society in which managers have
received their education and training.
Studying cultural differences can be helpful to managers in identifying and understanding cultural
work attitudes and motivation.
A disorientation that causes perpetual stress experienced by people who settle overseas for extended periods is
culture shock.
Helping employees make the transition back home is
According to a recent survey, what percentage of expatriates believed that their careers had not advanced after returning home?
To be effective, an international compensation program must
do all of the above; provide an incentive to leave the United states, facilitate re-entry home, be in writing
A compensation system designed to equal the purchasing power
in a person’s home country is a
balance-sheet approach to management.
Under which pay system, expatriates are given a portion of their pay in local currency to cover day-to-day expenses?
Compensation that is equivalent to that earned by employees in the country where the expatriate is assigned is
host-based pay.
Because expatiate assignments are very costly, many HR Managers are increasingly under pressure to calculate the
return on investment of these assignments.
Although the home-country and host-country superiors may tell an expatriate how well he or she is doing, it is also important for expatriates to provide feedback regarding
all of the above; the support they are receiving, obstacles they face, suggestions they have about the assignment
Which country only has one union?
The most active of the international union organizations has been the
International Confederation of Free Trade Unions.
Which of the following organizations has had the greatest impact on the rights of workers throughout the world?
International Labor Organization.
A higher form of worker participation in management is found in Germany where representation of labor by directors of a company is required by law. This arrangement is known as
T/F: The international corporation is essentially a domestic firm that builds on its existing capabilities to penetrate home markets.
T/F: To balance a “global/local” dilemma, a transnational corporation uses a network structure that coordinates specialized facilities positioned around the world.
T/F: International HRM is the same as domestic HRM in all aspects.
T/F: All large corporations have a part-time staff of human resources specialists devoted to assisting in the globalization process.
T/F: Third-country nationals are natives of a country other than the home country or the host country.
T/F: Recently there has been a trend to use only expatriates in the lower management positions.
T/F: Employee recruitment in the United States is subject to more government regulation than in other countries.·
T/F: The employment of non-nationals throughout the globe may involve lower direct labor costs.
T/F: In the United States, managers tend to emphasize seniority, with the most-senior person getting· the job.
T/F: One way to improve the success ofexpatriate assignments is to involve spouses early in the process.
T/F: Core skills are considered critical to an employee’s success abroad.
T/F: The biggest mistake managers can make is to assume that people are different everywhere.
T/F: One of the greatest contributions thatthe United States has made to work organizations is in improving the competence of managers.
T/F: Working abroad tends to increase a person’s responsibilities and
influence within the organization.
T/F: When compared with the Japanese, Americans may feel more loyalty to their organizations.
T/F: One of the important dimensions of leadership is the degree to which managers invite employee participation in decision making.
T/F: One of the most frequent causes of an employee’s failure to complete an international assignment is personal and family stress.
T/F: Repatriation is the process of helping an employee make the transition back home from an international assignment.
T/F: All companies have career development programs designed for repatriating employees.
T/F: More companies are making an effort to keep in touch with expatriates while they are abroad, which has been easier with
email, instant messaging, and videoconferencing.
T/F: One of the most cqmplex areas of international HRM is compensation.
T/F: Host-country employees are generally paid on the basis of productivity, time spent on the job, or a combination of these factors.
T/F: HR Managers are increasingly under pressure to calculate the return on investment on expatriate assignments.
T/F: Because for most companies, labor is their largest cost, it plays a prime role in international HR decision making.
T/F: The collective bargaining process can vary widely among countries, especially with regard to the role that government plays.
Guest workers
foreign workers invited into a foreign labor market to perform needed labor
Culture shock
perceptual stress experienced by people who settle overseas
Multi-national corporation (MNC)
firm with independent business units operating in multiple countries
Augmented skills
skills helpful in facilitating the efforts of expatriate managers
Host-country nationals
natives of the host country
representation of labor on the board of directors of a company
Global corporation
firm that has integrated worldwide operations through a centralized home office
Balance-sheet approach
compensation system designed to match the purchasing power of a person’s home country
Work permit or visa
government document granting a foreign individual the right to seek employment
Host country
country in which an international corporation operates
Expatriates, home-country nationals
employees from the home country who are sent on international assignment
Cultural environment
communication, religion, values and ideologies, education, and social structure of a country
International corporation
domestic firm that uses its existing capabilities to move into overseas markets
Transnational teams
teams composed of members of multiple nationalities working on projects that span multiple countries
Core skills
skills considered critical in an employee’s success abroad
Transnational corporation
firm that attempts to balance local responsiveness and global scale via a network of specialized operating units
Global manager
manager equfpped to.run an international business
Failure rate
percentage of expatriates who do not perform satisfactorily
Third-country nationals
natives of a country other than the home country or the host country
process that helps employees make the transition back home after a foreign assignment
Host-based pay
expatriate pay comparable to that earned by employees in a host country
Home-based pay
pay based on an .expatriate’s home country’s compensation practices
adapting pay and other compensation benefits to match that of a particular country
Global compensation system
A centralized pay system whereby host-county employees are offered a full range of training programs, benefits; and pay comparable with a firm’s domes.t ic empl.o yee but adjusted for local differences
Split pay
A system whereby expatriates are given a portion of their pay in the local currency to cover their day-to-day expenses and a portion of their pay in their home currency to safeguard their earnings from changes in inflation or foreign exchange rates.

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