Global HR

Question 1

Top 5 Reasons for Moving Abroad

Answer 1

• for a new challenge
• to improve quality of life
• to improve job prospects
• to improve earnings
• to find purpose

Question 2

Costs of an Expatriate (2)

Answer 2

• Costs balloon → companies must provide additional compensation for expatriates
• Failure costs $1 million

Question 3

Ethnocentric Staffing

Answer 3

Key management positions are given to parent company nationals

Benefits:
- mitigate unqualified locals
- unified company culture
- transfer of core competencies

Cons:
- local resentment
- cultural myopia

Question 4

Polycentric Staffing

Answer 4

Key management positions are given to host country nationals

Benefits:
- cheaper
- more locally responsive
- knowledge of cultural norms

Cons:
- isolation from parent company

Question 5

Geocentric Staffing

Answer 5

Key management positions are given to the best people for the job

Cons:
- very costly
- issues with immigration laws

Question 6

U Curve of Cross Cultural Adjustment

Answer 6

Honeymoon → culture shock → adjustment → mastery

Question 7

3 Reasons for Expatriate Failure

Answer 7

• lack of cultural awareness
• poor communication
• poor preparation/training

Question 8

Balance Sheet Approach to Compensation

Answer 8

Goal: provide equivalent purchasing power abroad

Pros:
- cheaper if COL is lower in the host country
Cons:
- more expensive if COL is higher in the host country

Question 9

Destination Approach to Compensation

Answer 9

Goal: treat expatriate like a member of the host country

Pros:
- expatriate salary matches peers
Cons:
- expatriate may not maintain SOL