CHAPTER 14

There are four basic sources that multinational companies (MNCs) can
QN=101 tap for positions. These are:
host-country nationals, third-country nationals, United Nations
a. placements, and International Monetary Fund (IMF) placements.
home-country nationals, International Monetary Fund (IMF) placements,
b. inpatriates, and multipatriates.
home-country nationals, host-country nationals, International Monetary
c. Fund (IMF) placements, and multipatriates.
home-country nationals, host-country nationals, third-country nationals,
d. and inpatriates.
ANSWER: D
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

One study found that _____ were most effective in subsidiaries located
QN=102 in developing countries or those that relied on a local customer base.
a. inpatriates
b. local managers
c. home-country nationals
d. third-country nationals
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

Which of the following statements is true about home-country

QN=103 nationals?
They are third-country nationals who are assigned to work in the home
a. country.
They are expatriate managers who are citizens of the country where a
b. multinational corporation (MNC) is headquartered.
They are managers who are citizens of countries other than the country
c. in which the multinational corporation (MNC) is headquartered.
They are likely to be used by multinational corporations (MNCs) at the
d. middle- and lower-level ranks.
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes
QN=104 Identify a true statement about third-country national (TCN) managers.
They frequently have a deep understanding of a corporation's policies
a. from the perspective of a foreigner.
They are often incapable of achieving corporate objectives more
b. effectively than expatriates or local nationals.
They are most effective when they are in charge of subsidiaries located
c. in developing countries or those that relied on a local customer base.
They are often unable to offer different perspectives that can
d. complement the narrowly focused viewpoints of both local nationals.
ANSWER: A
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

QN=105 Which of the following statements is true about host-country nationals?

One of the most common reasons why multinational corporations
a. (MNCs) use host-country nationals is for starting up operations.
Historically, multinational corporations (MNCs) have staffed key
b. positions in their foreign affiliates with host-country nationals.
Multinational corporations (MNCs) use them at the middle- and lower-
c. level ranks because many countries expect the MNC to hire local talent.
They are individuals from a host country who are assigned by a
d. multinational corporation (MNC) to work in the home country.
ANSWER: C
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

Which of the following statements about third-country nationals (TCNs)

QN=106 is false?
Third-country nationals (TCNs) can often achieve corporate objectives
a. more effectively than expatriates.
During periods of rapid expansion, third-country nationals (TCNs) can
b. substitute for expatriates in well-established operations.
During rapid expansion, third-country nationals (TCNs) can offer
different perspectives that can expand on the narrowly focused
c. viewpoints of local nationals.
In joint ventures, third-country nationals (TCNs) can demonstrate a
d. global image and bring unique cross-cultural skills to the relationship.
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

Factors used to choose personnel for international assignments are

QN=107 referred to as _____.
a. global placement criteria
b. international selection criteria
c. global selection heuristics
d. international recruitment and selection heuristics
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

Borstorff and her associates examined a number of factors associated

QN=108 with employee willingness to work overseas and concluded that:
unmarried employees are least willing than any other group to accept
a. expat assignments.
employee and spouse perceptions of organizational support for
b. expatriates are critical to employee willingness to work overseas.
married couples with children at home or those with teenage children
c. are probably the most willing to move.
individuals most committed to their professional careers and to their
employing organizations are prone to be less willing to work as
d. expatriates.
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

The two most common selection procedures used by multinational

QN=109 corporations (MNCs) are _____.
a. assessment centers and tests
b. references and interviews
c. application forms and assessment centers
d. tests and interviews
ANSWER: D
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes
 Which of the following is a factor that influences an expatriate while
QN=110 making an anticipatory adjustment?
The previous experience the expat may have had with the assigned
a. country or with countries with similar cultures
The toughness with which the expatriate faces a whole new cultural
b. experience
The job itself, as reflected by the clarity of the role the expat plays in the
c. host management team
The expat's ability to maintain a positive outlook in the face of a high-
d. pressure situation
ANSWER: A
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

The organizational input into anticipatory adjustment is most directly

QN=111 related and concerned with the _____.
a. motivation process
b. selection process
c. compensation plan
d. quality of leadership
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

QN=112 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.
a neutral third-country determined by the expatriate and his/her
d. company.
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

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

QN=113 following except _____.
a. relocation
b. housing
c. education
d. salary
ANSWER: D
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

Which of the following statements is true about localization as an

QN=114 approach to formulating compensation packages?
According to Mercer's findings, localization is practiced in Latin America
a. and Asia Pacific more than Europe and North America.
Localization is a direct consequence of increasing corporate growth and
b. profitability, as well as a stable economic environment.
The increasing trend toward localization reflects companies' efforts to
either tap into the local talents or to offer less generous packages to
c. locally hired foreign workers.
The trend toward localization failed in emerging markets because the
local compensation and benefits packages are more generous than
d. home-country plans.
ANSWER: C
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

The most common approach to formulating a compensation package of

an expat is the _____, which involves ensuring that the expat is "made
QN=115 whole" and does not lose money by taking the assignment.
a. regional system approach
b. balance-sheet approach
c. cafeteria approach
d. localization approach
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

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

QN=116 stateside assignment are referred to as _____.
a. readjustment strategies
b. transition strategies
c. changeover strategies
d. progression strategies
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

_____ is defined as the process of altering employee behavior and

QN=117 attitudes in a way that increases the probability of goal attainment.
a. Organizing
b. Planning
c. Training
d. Controlling
ANSWER: C
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

The four basic philosophical positions that multinationals can assume

QN=118 and influence a company's training program are:
a. polycentric, geocentric, multicentric, and ultracentric positions.
b. ethnocentric, globalcentric, regiocentric, and unicentric positions.
c. multicentric, globalcentric, geocentric, and unicentric positions.
d. ethnocentric, polycentric, regiocentric, and geocentric positions.
ANSWER: D
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

A(n) _____ multinational corporation (MNC) puts home-office people in

QN=119 charge of key international management positions.
a. ethnocentric
b. polycentric
c. multicentric
d. geocentric
ANSWER: A
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes
 _____ is the acquisition of skills, knowledge, and abilities that result in a
QN=120 relatively permanent change in behavior.
a. Learning
b. Development
c. Motivation
d. Controlling
ANSWER: A
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

_____ are managers who are citizens of countries other than the one in
which a multinational corporation (MNC) is headquartered or the one in
which they are assigned to work by the multinational corporation
QN=254 (MNC).
a. Multipatriates
b. Home-country nationals
c. Inpatriates
d. Third-country nationals
ANSWER: D
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

All of the following are correct with regard to the impact of age,
QN=255 experience, and education on expatriate managers except:
there is universal agreement that degrees in marketing or engineering
a. are the most desirable for expatriate managers.
most multinational corporations (MNCs) strive for a balance between
b. age and experience.
many companies consider an academic degree, preferably a graduate
c. degree, to be of critical importance to an international executive.
there is evidence that younger managers are more eager for
d. international assignments than older managers.
ANSWER: A
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

Traditionally, multinational corporations (MNCs) relied only on _____ as

QN=256 an important selection criterion for overseas assignments.
a. trainability
b. technical competence
c. previous experience
d. education
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

Research shows that small firms undertaking international business

QN=257 generally rely on _____.
a. standard training programs
b. strategic alliances
c. trade zones
d. uniform commercial codes
ANSWER: A
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes

Which of the following terms refers to the quality of being effective and
QN=258 producing the desired results?
a. Capacity
b. Validity
c. Reliability
d. Stability
ANSWER: B
MARK: 1
UNIT: 14
LO: 5
MIX CHOICES: Yes