GPHR Bootcamp, 3.2023

Question 1

What are the 2 primary purposes of Expatriate Compensation?

Answer 1

1. Encouraging qualified employees to accept foreign assignments
2. Removing financial obstacles that hinder the employee’s ability to relocate to a foreign post

Question 2

What are 2 strategies organizations use to assist with the cost of global assignments? (Hint: they’re so expensive that organizations have taken to limiting them)

Answer 2

1. Allowances
2. Premiums

Question 3

This concept was developed as part of a tax equalization approach to expatriate pay. the idea is to ensure that individuals effectively pay the same amount of tax they would hypothetically have paid at home. The company pays any taxes that exceed the expatriate’s hypothetical tax liability

Answer 3

Hypothetical tax

Question 4

Tool for calculating purchasing power parity that compares prices of a Big Mac throughout the world

Answer 4

The Big Mac Index

Question 5

An approach to developing an expatriate compensation package that ensures the expat is “made whole” and does not lose money by taking the assignment

Answer 5

Balance Sheet Approach

Question 6

Financial payments over and above regular base pay, typically between 10% and 30% of base pay. Designed to induce a candidate and his family to leave familiar working and living conditions and to continue employment in another country

Answer 6

Foreign Service Premium

Question 7

Results in an unexpected windfall of money for the assignee when local taxes are lower than were originally projected.

Answer 7

Tax protection plans

Question 8

A monetary measurement of development that takes into account what money buys in different countries

Answer 8

Purchasing Power Parity

Question 9

Bilateral agreements entered into by many countries to eliminate double taxation for individuals on international assignments

Answer 9

Totalization Agreements

Question 10

UN Agency that brings together governments, employers, and workers of its member states in common action to promote decent work throughout the world

Answer 10

International Labor Organization (ILO)

Question 11

Confederation of 19 nations with agreements on trade facilitation in the Pacific region

Answer 11

Asia-Pacific Economic Cooperation (APEC)

Question 12

Formal Structure to facilitate negotiations between nations to reduce trade barriers and settle disputes

Answer 12

World Trade Organization (WTO)

Question 13

Combines resources to balance the activities of other global economic powers, especially NAFTA and the EU. Common market of the south- Argentina, Brazil, Paraguay, and Uraguay

Answer 13

Mercosur

Question 14

Act that forbids US Organizations from making or offering illegal payments or gifts to officials of foreign governments in order to get or retain business

Answer 14

US Foreign Corrupt Practices Act (FCPA)

Question 15

Small payment, permitted under the US Foreign Corrupt Practice Act (FPCA) for expediting “routine governmental action” such as obtaining permits, processing papers, providing normal government services, etc.

Answer 15

Grease, or Facilitating payments

Question 16

Largest regional trading assembly that has a common currency and allows workers to move across country borders without quotas, visas, or passports

Answer 16

European Union (EU)

Question 17

An elected employee group that shares plant level responsibility with management regarding issues involved with working conditions.
Employer must share and discuss all business decisions with the group.
They facilitate communication between employees and employer.

Answer 17

Works Council

Question 18

Process designed to resolve disputes outside publicly available administrative agencies our court

Answer 18

Alternative Dispute Resolution (ADR)

Question 19

Means by which a neutral third party assists in resolving a grievance between parties. Win-win (both parties negotiate to a mutually-satisfactory resolution of the grievance)

Answer 19

Mediation

Question 20

The final step in most union grievance procedures in which a neutral third party renders a binding decision. Win-lose (one party wins all, the other loses)

Answer 20

Arbitration

Question 21

Which employee action is most likely to contribute to developing a global mindset?
A. Completing cultural diversity courses the employer offers
B. Demonstrating motivation to work in another country
C. Spending time in educational programs abroad
D. Learning another language based on organizational locations

Answer 21

C. Spending time in educational programs abroad

Rationale: The candidate is most likely to have a global mindset are the employees who have actually spent time living outside their countries. this provides daily interactions that embody cultural differences. The other actions will also help develop a global mindset, but they do not provide the firsthand, intensive experience of living in another culture.

Question 22

A well-funded Asian art museum includes a new traditional tea garden that can accommodate both public and private events. Current staff have little understanding of Japanese tea rituals, and the museum is willing to invest in staff development. Which is the best approach HR should recommend to develop cultural awareness and appreciation for the tea garden experience?

A. Transfer a tea ceremony master from Tokyo to train the event planning staff
B. Conduct internal training on tea culture experience that includes proper behavior
C. Travel to Tokyo to experience tea culture and tour tea gardens
D. Have the team divide assignments to research the tea garden experience by topic and cross-train each other

Answer 22

C. Travel to Tokyo to experience tea culture and tour tea gardens

Rationale: For the event planning staff to develop cultural awareness and appreciation for the rooftop tea garden experience, they should travel to Tokyo, if possible. The other options may aid staff in understanding but will not offer the cultural immersion to allow them to return and relay the experience that clients will expect.

Question 23

Which 2 tendencies are critical to acquiring a global mindset?

A. Parochialism and exclusiveness
B. Cosmopolitanism and sophistication
C. Ethnocentrism and self-satisfaction
D. Curiosity and change acceptance

Answer 23

D. Curiosity and change acceptance

Rationale: a global mindset is characterized by intellectual curiosity, a desire to understand larger contexts and multiple perspectives. Employers with a global mindset tend to see change as an opportunity.

Question 24

A US-based high tech company decides to build an R&D Office in Bangalore, India. Which of the following terms describes this kind of expansion decision?

A. Greenfield operation
B. International merger
C. Joint Venture
D. Trading House

Answer 24

A. Greenfield Operation

Question 25

HR has four tools, often referred to as the 4 T’s, that it can use to influence managerial practices and develop new managerial skills. What are the 4 T’s?

A. Technology, Teams, Tasks, Transfers
B. Transfers, Team, Time, training
C. Training, Transfer, Team, Travel
D. Travel, Transfer time, Task

Answer 25

C. Training, Transfer, Team, Travel

Question 26

Effective global organizations recognize the value of travel in developing cultural awareness and appreciation. Why might short-term travel assignments be less effective in achieving these goals?

A. The shorter the travel assignment, the shorter the time its positive effects remain.
B. Up-front costs of any travel make shorter assignments less cost-effective than long-term assignments
C. Short-term assignments tend to be on team, which can remain detached
D. Coping with cultural differences and overcoming culture shock take time and multiple exposures

Answer 26

D. Coping with cultural differences and overcoming culture shock take time and multiple exposures

Rationale: The experience of culture shock and the opportunity to learn to cope with cultural differences takes time and multiple experiences in different cultures. One must learn how to live in another culture and enjoy it.

Question 27

All of the following are true of a global mindset EXCEPT:

A. A more compliant approach to policies and more culturally sensitive practices
B. Faster rollout of new product/service concepts and technologies
C. Lower failure rate of employees’ international assignmetns
D. More reactive with respect to benchmarking and learning from product and process innovations that take place outside of its domestic borders
E. More open to the concept and fact of diversity within the organization

Answer 27

D. More reactive with respect to benchmarking and learning from product and process innovations that take place outside of its domestic borders

Question 28

The 4T’s to create a global mindset are all of the following EXCEPT:

A. Travel
B. Teams
C. Time
D. Training
E. Transfers

Answer 28

C. Time

Question 29

What is the key challenge in balancing stakeholder needs in a global organization?

A. Managing expectations of external stakeholders
B. Weighing short and long-term goals
C. Solving ethical dilemmas between groups
D. Understanding cultural expectations of stakeholders

Answer 29

D. Understanding cultural expectations of stakeholders

Question 30

The HR Leader in a global organization is considering a group of headquarters managers for promotion to a position as regional director of HR. Which individual shows the most potential for developing a global mindset?

A. Manager who had a minor concentration in a foreign language in college
B. Manager who interacts well with all levels of HR’s internal customers and vendors
C. Manager who has been with the organization longer than any of the other candidates
D. Manager who is significantly younger than all of the other candidates

Answer 30

B. Manager who interacts well with all levels of HR’s internal customers and vendors

Question 31

Edward T Hall Cultural Theory

A statement’s meaning is encoded in its words only

Answer 31

Low-context

Question 32

Edward T Hall Cultural Theory

A statement’s meaning includes the verbal message and the nonverbals and social and historic content attached to the statement

Answer 32

High-context

Question 33

Edward T Hall Cultural Theory

Requires a great deal of background

Answer 33

Low-context

Question 34

Edward T Hall Cultural Theory

Characterized by long standing networks of relationships

Answer 34

High-context

Question 35

Edward T Hall Cultural Theory

Relationships tend to have less history

Answer 35

Low-context

Question 36

Edward T Hall Cultural Theory

Rules are implicit and often applied flexibly

Answer 36

High-context

Question 37

Edward T Hall Cultural Theory

Communication must be very explicit

Answer 37

Low-context

Question 38

Which communication method is more likely to be effective in high-context cultures?

A. written
B. E-mail
C. Face-to-face
D. Multimedia presentations

Answer 38

C. Face-to-Face

Rationale: one aspect of high-context cultures is that their members rely more heavily on what surrounds a statement (nonverbal cues, history, the speaker’s identity) rather than the literal meaning of the communication

Question 39

A company in a high-power distance culture is expanding into another country with low power distance. Which recommendation should the VP of HR provide senior management regarding employees?

A. Expect to be asked more questions about management decisions
B. Provide employees with clear and specific guidance
C. Decrease the frequency of workforce communication
D. Display titles of those in authority

Answer 39

A. Expect to be asked more questions about management decisions

Question 40

Which culture is more likely to prefer a verbal agreement or handshake to a detailed contract?

A. Particularist
B. Outer-directed
C. Ascriptive
D. Universalist

Answer 40

A. Particularist

Rationale: in a particularist culture, a strong handshake agreement may be sufficient, and requiring a written agreement may be perceived as an insult. this may be contrasted with a universalist culture, which focuses on rules and the existence of one right way.

Question 41

Geert Hofstede’s Dimensions of Culture

Refers to how the gratification of desires is viewed

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 41

F. Indugence/Restraint

Question 42

Geert Hofstede’s Dimensions of Culture

Describes contrasting visions of how members of a society relate to each other

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 42

B. Individualism/Collectivism

Question 43

Geert Hofstede’s Dimensions of Culture

Describes the way in which power is distributed in a culture and how an unequal distribution is perceived by the culture’s less powerful members.

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 43

A. Power Distance

Question 44

Geert Hofstede’s Dimensions of Culture

Describes the extent to which a culture embodies specific traditional gender images.

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 44

D. Masculine/Feminine

Question 45

Geert Hofstede’s Dimensions of Culture

Describes how members of a culture feel about uncertainty and lack of clarity.

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 45

C. Uncertainty Avoidance

Question 46

Geert Hofstede’s Dimensions of Culture

Refers to the way the culture sees the effect of the past on the future

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 46

E. Long-term/short-term

Question 47

Geert Hofstede’s Dimensions of Culture

Cultures that ______ tend to be more rigid about rules and uncomfortable with change.

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 47

C. Uncertainty Avoidance

Question 48

Geert Hofstede’s Dimensions of Culture

An _____ culture believes in fun and pleasure, while a ____ society controls its desires according to social norms.

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 48

F. Indulgence/Restraint

Question 49

Geert Hofstede’s Dimensions of Culture

A ____ culture will be oriented toward competition and achievement, while a ____ culture is empathetic, nurturing, and collaborative.

A. Power Distance
B. Individualism/Collectivism
C. Uncertainty Avoidance
D. Masculine/Feminine
E. Long-term/short-term
F. Indulgence/Restraint

Answer 49

B. Individualism/Collectivism

Question 50

Which is the likely view of employees in an individualistic culture?

A. Those who try hard should not be penalized for failing because they have no control over outcomes
B. Financial rewards should be shared and based on the entire team’s efforts rather than paid as individual bonuses
C. Anyone can be financially successful if they work hard and demonstrate achievement of goals and objectives
D. Who you know is more important for determining financial success than what you know and can accomplish

Answer 50

C. Anyone can be financially successful if they work hard and demonstrate achievement of goals and objectives

Question 51

A manager from a diffuse culture asks an assignee to a family dinner. Which approach best demonstrates the best way for the assignee to respond?

A. Decline, as it is a token effort and the decline is expected.
B. Find out who else is attending before responding to the invitation.
C. Insist on having the manager to dinner at his own home first.
D. Accept gratefully and offer to bring something to the meal.

Answer 51

D. Accept gratefully and offer to bring something to the meal.

Question 52

Two businesses from two different countries are proposing a strategic alliance. A young junior employee was sent to country B to conclude the negotiation based on his communication skills, but the employee was not given an audience and the negotiation failed. The negotiation failed most likely because country B practices what type of culture?

A. Outer-directed
B. Ascription
C. Low power-distance
D. Synchronous

Answer 52

B. Ascription

Rationale: Ascription is the cultural tendency of assigning social status on the basis of birth, such as monarchies, caste systems, and traditions where societal roles are determined by birth. In Ascriptive cultures, titles, rank and hierarchy are important in and of themselves. Often these titles are bestowed upon individuals not because of any achievement of their own, but because of a family’s rank and status in the society. A good example is Prince Charles of England – his role is ascriptive. On the other hand, a culture of achievement values a merit-based assignment of social status where members earn their positions based on their decisions, education and hard work.

Question 53

In what culture is a verbal agreement or a handshake likely to be better received than a formal contract?

A. Outer-directed
B. Particularist
C. Universalist
D. Ascriptive

Answer 53

B. Particularist

Rationale: Particularism is the belief that circumstances dictate how ideas and practices should be applied, for example relationships over rules. Universalism is the belief that ideas and practices can be applied everywhere without modification, for example rules
over relationships.

Question 54

In country A, it is encouraged that students disagree with lecturers in class and offer opposing views. Country A most likely operates in which cultural environment?

A. Individualistic
B. Collectivist
C. Ascriptive
D. Synchronous

Answer 54

A. Individualistic

In individualistic cultures, people are often, self-reliant, assertive and independent. Students opposing the views of a lecturer is encouraged in individualistic culture. This contrast with collectivist cultures where characteristics like being self-sacrificing, dependable, generous, and helpful to others are of greater importance.

Question 55

A collectivist culture is more likely to highly value:

A. Personal freedom
B. Individual roles and responsibilities
C. Universalism
D. An orderly society

Answer 55

D. An orderly society

Rationale: A collectivist culture is more likely to value an orderly society. Collectivist cultures emphasize the needs and goals of the group as a whole over the needs and desires of each individual. In such cultures, relationships with other members of the group and the interconnectedness between people play a central role in each person’s identity.

Question 56

Mary is involved in a virtual international business negotiation. If the culture of the country she is negotiating with has a universalistic culture, which of the following will be good advice for Mary to follow?

A. Be ready to make spur-of-the moment decisions
B. Give specific instructions and ground rules at the beginning of the business negotiation
C. Be boisterous in greetings and enthusiastic in response
D. refrain from showing excessive emotions

Answer 56

B. Give specific instructions and ground rules at the beginning of the business negotiation

Rationale: Cultures based on universalism favor formal rules and clear, precise, specific instructions. The focus is more on the rules than the relationships. Universalistic cultures include Canada, the U.S., the U.K. and Australia

Question 57

A CEO decides not to make an overarching decision without asking others in the company for their opinions first. it can be deduced that the company practices a ________ culture.

A. Ascription
B. Particularism
C. Collectivist
D. Synchronic
E. Achievement

Answer 57

C. Collectivist

Question 58

__________ is the cultural tendency of assigning social status on the basis of birth.

A. Ascription
B. Particularism
C. Collectivist
D. Synchronic
E. Achievement

Answer 58

A. Ascription

Question 59

In ________ culture, people believe that each circumstance, and each relationship dictates the rules they live by.

A. Ascription
B. Particularism
C. Collectivist
D. Synchronic
E. Achievement

Answer 59

B. Particularism

Question 60

The _______ culture generally consists of highly motivated people who need little to no supervision.

A. Ascription
B. Particularism
C. Collectivist
D. Synchronic
E. Achievement

Answer 60

E. Achievement

Question 61

________ cultures tend to value priorities more than a predetermined time limit. They will do what is right to do at the moment, not follow a strict schedule.

A. Ascription
B. Particularism
C. Collectivist
D. Synchronic
E. Achievement

Answer 61

D. Synchronic

Question 62

A business having operating units located in foreign countries

A. International Corporation
B. Multinational Enterprise (MNE)
C. Capitalist/Market Economy
D. Socialist/Command Economy

Answer 62

B. Multinational Enterprise (MNE)

Question 63

A competitive market where private owners carry out activities to make profits.

A. International Corporation
B. Multinational Enterprise (MNE)
C. Capitalist/Market Economy
D. Socialist/Command Economy

Answer 63

C. Capitalist/Market Economy

Question 64

Domestic firms that use existing capabilities to move into international markets

A. International Corporation
B. Multinational Enterprise (MNE)
C. Capitalist/Market Economy
D. Socialist/Command Economy

Answer 64

A. International Corporation

Question 65

Production resources are owned by the state and production decisions are centrally located.

A. International Corporation
B. Multinational Enterprise (MNE)
C. Capitalist/Market Economy
D. Socialist/Command Economy

Answer 65

D. Socialist/Command Economy

Question 66

The poorest nations- may have unstable political regimes, high unemployment, and low employee skills

A. Developed Countries
B. Developing Countries
C. Less Developed Countries

Answer 66

C. Less Developed Countries

Question 67

Countries with mature economics, high gross domestic product (GDP) and international trade and investments

A. Developed Countries
B. Developing Countries
C. Less Developed Countries

Answer 67

A. Developed Countries

Question 68

Countries with economies that have grown extensively in the past two decades. Hong Kong, Singapore, South Korea and Taiwan

A. Developed Countries
B. Developing Countries
C. Less Developed Countries

Answer 68

B. Developing Countries

Question 69

People, skills, goods, services and ideas move freely across geographical borders

A. Globalization
B. Global Economy
C. Global HR Management

Answer 69

B. Global Economy

Question 70

The worldwide economic integration across borders that allows business to expand beyond their domestic boundaries.

A. Globalization
B. Global Economy
C. Global HR Management

Answer 70

A. Globalization

Question 71

The development of global HR Strategies to support the organization’s short and long-term business goals and corporate values

A. Globalization
B. Global Economy
C. Global HR Management

Answer 71

C. Global HR Management

Question 72

What are the 3 Stages of Globalization? (Bartlett & Ghoshal)

Answer 72

1. Importing and exporting
2. Multi-national enterprises
3. Global organization

Question 73

Corporation having business units in a number of countries

A. Importing and exporting
B. Multi-national enterprises
C. Global organization

Answer 73

C. Global organization

Question 74

Buying and selling goods and services with organizations in other countries

A. Importing and exporting
B. Multi-national enterprises
C. Global organization

Answer 74

A. Importing and exporting

Question 75

Turning sensitivity to local conditions into competitive advantage

Answer 75

Localization

Question 76

Conducts business the same throughout the world

Answer 76

Global integration

Question 77

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. It measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.

A. Balance Sheet
B. Income Statement
C. Cash Flow Statement

Answer 77

C. Cash Flow Statement

Question 78

A financial statement that reports a company’s assets, liabilities and shareholders’ equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial statement that provides a snapshot of what the company owns and owes, as well as the amount invested by shareholders.

A. Balance Sheet
B. Income Statement
C. Cash Flow Statement

Answer 78

A. Balance Sheet

Question 79

A Financial statement that shows you how profitable your business was over a given reporting period. It shows your revenue, minus your expenses and losses.

A. Balance Sheet
B. Income Statement
C. Cash Flow Statement

Answer 79

B. Income Statement

Question 80

What is the Return on Investment (ROI) Formula?

Answer 80

ROI = ((Cost of Investment- Gain on Investment) / Gain of Investment) * 100

Benefits of a project over a set period of time divided by the amount invested in the project.

Question 81

Decisions made by lower levels of authority

A. Centralized
B. Decentralized
C. Functional
D. Divisional
E. Span of Control
F. Division of Labor
G. Matrix

Answer 81

B. Decentralized

Question 82

The term refers to the number of subordinates or direct reports a supervisor is responsible for, used in Human resource management.

A. Centralized
B. Decentralized
C. Functional
D. Divisional
E. Span of Control
F. Division of Labor
G. Matrix

Answer 82

E. Span of Control

Question 83

Organizational Chart arranged by function/department/skills/tasks/expertise

A. Centralized
B. Decentralized
C. Functional
D. Divisional
E. Span of Control
F. Division of Labor
G. Matrix

Answer 83

C. Functional

Question 84

Hybrid organizational structure in which individuals from different functional areas are assigned to work on a specific project or task.

A. Centralized
B. Decentralized
C. Functional
D. Divisional
E. Span of Control
F. Division of Labor
G. Matrix

Answer 84

G. Matrix

Question 85

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency

A. Centralized
B. Decentralized
C. Functional
D. Divisional
E. Span of Control
F. Division of Labor
G. Matrix

Answer 85

F. Division of Labor

Question 86

Decision-making powers are retained in the head office, and all other offices receive commands from the main office.

A. Centralized
B. Decentralized
C. Functional
D. Divisional
E. Span of Control
F. Division of Labor
G. Matrix

Answer 86

A. Centralized

Question 87

Organizational chart separated by product, market, group, region, etc.

A. Centralized
B. Decentralized
C. Functional
D. Divisional
E. Span of Control
F. Division of Labor
G. Matrix

Answer 87

D. Divisional

Question 88

Mexican assembly plants owned by international companies to take advantage of the abundant labor supply and low wages. Most are owned by American, Japanese, and Korean manufacturers.

Answer 88

Maquiladoras

Question 89

The outsourcing of business processes, especially information technology processes, to companies in a nearby country, often sharing a border with the target country.

A. Off-shoring
B. Onshoring/In-shoring
C. Near-shoring

Answer 89

C. Nearshoring

Question 90

The relocation of business processes including production/manufacturing to a lower cost of location, usually overseas

A. Off-shoring
B. Onshoring/In-shoring
C. Near-shoring

Answer 90

A. Off-shoring

Question 91

The relocation of foreign business processes to the US

A. Off-shoring
B. Onshoring/In-shoring
C. Near-shoring

Answer 91

B. Onshoring/In-shoring

Question 92

Multi-national organization makes a project fully operational and trains local managers and workers before the foreign owner takes control.

A. Greenfield Project
B. Brownfield Project
C. Turnkey Project

Answer 92

C. Turnkey Project

Question 93

Starting a foreign operation from scratch

A. Greenfield Project
B. Brownfield Project
C. Turnkey Project

Answer 93

A. Greenfield Project

Question 94

Starting a foreign operation from a building that needs to be demolished or renovated.

A. Greenfield Project
B. Brownfield Project
C. Turnkey Project

Answer 94

B. Brownfield Project

Question 95

Local foreign firm produces the international company’s product to be sold in its local market or other markets

A. Licensing
B. International Franchising
C. Contract Manufacturing

Answer 95

C. Contract Manufacturing

Question 96

Domestic franchiser grants comprehensive licensing agreement to foreign franchisee for the use of the whole business operation

A. Licensing
B. International Franchising
C. Contract Manufacturing

Answer 96

B. International Franchising

Question 97

Contractual agreement between a domestic licensor and a foreign licensee where the foreign licensee provides royalties to the domestic licensor. Easiest, lowest-cost, least risky way for companies to go international.

A. Licensing
B. International Franchising
C. Contract Manufacturing

Answer 97

A. Licensing

Question 98

An alliance with formal contracts specifying each organization’s contribution to the relationship.

A. International Joint Venture (IJV)
B. Formal International Cooperative Alliance
C. Independent Management Structure
D. Informal International Cooperative Alliance

Answer 98

B. Formal International Cooperative Alliance

Question 99

Non-legally binding agreement between international organizations to cooperate on a value-chain activity, usually limited in scope and time.

A. International Joint Venture (IJV)
B. Formal International Cooperative Alliance
C. Independent Management Structure
D. Informal International Cooperative Alliance

Answer 99

D. Informal International Cooperative Alliance

Question 100

A separate legal entity owned by parent organizations from different countries. Each parent organization has an equity or ownership position in the new venture.

A. International Joint Venture (IJV)
B. Formal International Cooperative Alliance
C. Independent Management Structure
D. Informal International Cooperative Alliance

Answer 100

A. International Joint Venture (IJV)

Question 101

Independent joint venture (IJV) managers have nearly complete decision-making autonomy.

A. International Joint Venture (IJV)
B. Formal International Cooperative Alliance
C. Independent Management Structure
D. Informal International Cooperative Alliance

Answer 101

C. Independent Management Structure

Question 102

Perlmutter Multi-National Human Resources Management Orientation or Philosophy

Each Subsidiary is treated as its own entity, and each country-level operation is treated separately for HRM purposes.

A. Ethnocentric
B. Geocentric/Global
C. Polycentric
D. Regiocentric

Answer 102

C. Polycentric

Question 103

Perlmutter Multi-National Human Resources Management Orientation or Philosophy

Organization’s headquarters maintains strong control over international operations.

A. Ethnocentric
B. Geocentric/Global
C. Polycentric
D. Regiocentric

Answer 103

A. Ethnocentric

Question 104

Perlmutter Multi-National Human Resources Management Orientation or Philosophy

Organization with more coordination within the region than headquarters. Region-wide HRM policies are adopted.

A. Ethnocentric
B. Geocentric/Global
C. Polycentric
D. Regiocentric

Answer 104

D. Regiocentric

Question 105

Perlmutter Multi-National Human Resources Management Orientation or Philosophy

One of the methods of international recruitment where the multi-national companies recruit the most suitable employee for the job irrespective of their nationality. This approach uses managers from various countries- it is a team approach.

A. Ethnocentric
B. Geocentric/Global
C. Polycentric
D. Regiocentric

Answer 105

B. Geocentric/Global

Question 106

What are Michael Porters 3 Generic Strategies?

Answer 106

Cost Leadership
Differentiation
Focus Strategy

Question 107

Organizational strategy to satisfy the customer’s desire for unique products and services

A. Cost Leadership
B. Differentiation
C. Focus Strategy

Answer 107

B. Differentiation

Question 108

Organizational strategy to satisfy consumer needs for quality, low cost, products and services.

A. Cost Leadership
B. Differentiation
C. Focus Strategy

Answer 108

A. Cost Leadership

Question 109

Management tool that provides a concise picture of the overall organization performance - a report card of the organization- four perspectives.

Answer 109

Balanced Scorecard

Question 110

What are the 4 perspectives of a Balanced Scorecard?

Answer 110

Financial
Customer
Business Process
Learning and growth

Question 111

What are some typical reasons for an International Assignment

Answer 111

-Filling a need in an existing operation
-Transferring technology or knowledge to a worksite or to a client’s worksite
-Developing an individual career through challenging tasks in an international assignment in an international setting
-Launching a new product or service

Question 112

What are some guidelines for enhancing Global Assignment Success?

Answer 112

1. The assignment must be aligned with the organizational activities.
2. Involve the right people in the selection process
3. Provide a RJP of the assignment- benefits and challenges
4. Provide language training- this is an essential requirement
5. Provide well-planned ongoing training and support

Question 113

What are the steps in the Global Assignment Process?

Answer 113

1. Assessment and selection
2. Management and assignee decision
3. Pre-departure preparation
4. On-assignment
5. Completing the assignment
6. Repatriation or redeployment

Question 114

During this phase of the Global Assignment Process, we:
-develop the criteria for the assignment
-Create a talent pool
-Involve the candidates’ spouses if appropriate
-Conduct interviews including managers from both the home and host country
-Make selections and final recommendations after subsequent rounds

Answer 114

Assessment and Selection

Question 115

During this phase of the Global Assignment Process, we:
-provide the selected candidate with time to evaluate the offer and make a decision
-prepare the letter of assignment- memorandum of understanding (MoU)

Answer 115

Management and Assignee Decision

Question 116

During this phase of the Global Assignment Process, we:
-use a third-party vendor to coordinate the important things related to the deployment process
-Prepare visas and work permits
-Discuss safety issues
-Provide cross-cultural counseling

Answer 116

Pre-departure Preparation

Question 117

During the “On Assignment” phase of the Global Assignment, the assignee goes through several of their own phases, they are:
-Honeymoon
-Culture Shock
-Adjustment
-Mastery

Answer 117

-Honeymoon
-Culture Shock
-Adjustment
-Mastery

Question 118

Integrating the employee and family back to the home country. Involves training to avoid reverse culture shock.

Answer 118

Repatriation

Question 119

Assigning the employee to another position in the host country or assigning the employee to another assignment in a different country

Answer 119

Redeployment

Question 120

In which step of the Global Assignment Process should the cultural training be conducted?
A. Assessment and selection
B. Management and assignee decision
C. Pre-departure preparation
D. On-assignment
E. Completing the assignment
F . Repatriation or redeployment

Answer 120

C. Pre-Departure Preparation

Question 121

In which phase of the On-Assignment Process might the international assignee and/or family experience disillusionment and dissatisfaction due to the challenges of living and working abroad?
A. Honeymoon
B. Culture Shock
C. Adjustment
D. Mastery

Answer 121

Culture Shock

Question 122

In Which phase of the On-Assignment Process would the international assignee and/or family be most able to fully participate and be comfortable in the host country?
A. Honeymoon
B. Culture Shock
C. Adjustment
D. Mastery

Answer 122

Mastery

Question 123

In which phase of the On-Assignment process would the international assignee and/or family experience excitement and be pleased with the decision to move to the host country?
A. Honeymoon
B. Culture Shock
C. Adjustment
D. Mastery

Answer 123

A. Honeymoon

Question 124

Organization with more coordination within the region than with headquarters
A. Regiocentric
B. Geocentric
C. Ethnocentric
D. Polycentric

Answer 124

A. Regiocentric

Question 125

Organization seen as a single international business
A. Regiocentric
B. Geocentric
C. Ethnocentric
D. Polycentric

Answer 125

B. Geocentric

Question 126

Each subsidiary is seen as its own entity, and each country-level operation is treated separately for HRM purposes
A. Regiocentric
B. Geocentric
C. Ethnocentric
D. Polycentric

Answer 126

D. Polycentric

Question 127

Organization’s headquarters maintains strong control over international operations.
A. Regiocentric
B. Geocentric
C. Ethnocentric
D. Polycentric

Answer 127

C. Ethnocentric

Question 128

The worldwide economic integration across borders that allows business to expand beyond their domestic boundaries

Answer 128

Globalization

Question 129

The distribution channel of a product, from its sourcing to its delivery, to the end customer

Answer 129

Supply Chain (Value Chain)

Question 130

Turning sensitivity to local conditions into competitive advantage.

Answer 130

Localization

Question 131

Conducting business the same throughout the world regardless of individual markets

Answer 131

Global-integration

Question 132

Responds to the unique needs of the markets in each country

Answer 132

Local-Responsiveness

Question 133

International strategy through which the organization seeks both global efficiency and local responsiveness

Answer 133

Multi-national or multi-domestic strategy

Question 134

Firm that attempts to balance local responsiveness and global scale via a network of specialized operating units

Answer 134

Transnational Corporation

Question 135

Federation of local firms tightly controlled through sophisticated management systems and corporate staffs

Answer 135

International Organization

Question 136

Family situation where both spouses have a career, making it difficult to relocate

Answer 136

Dual Career Couple

Question 137

Reaction to new cultural experiences that cause psychological disorientation, can lead to negative feelings about the host country

Answer 137

Culture Shock

Question 138

Payment to compensate for the differences in expenditures between the home and host countries

Answer 138

Cost of Living Allowance (COLA)

Question 139

Additional compensation for expatriates assigned to locations with difficult living and working conditions

Answer 139

Hardship Allowance

Question 140

An incentive designed to increase the international mobility of employees, with the purpose of compensating for some of the inconvenience relating to the move, such as separation from family, friends and the home environment

Answer 140

Mobility Bonus

Question 141

Cash allowance given to an employee who agrees to transfer to a foreign location, also called an international adjustment allowance or international assignment premium

Answer 141

Foreign Service Premium

Question 142

Which of the following is NOT an advantage of using a professional employer organization (PEO)?
A. Control
B. Cost
C. Compliance
D. Flexibility

Answer 142

A. Control

When a company contracts with a professional employer organizations (PEO), the PEO becomes a co-employer. The term co-employment can be very unsettling for business owners. Losing control is one of the top concerns expressed by potential PEO clients.

Question 143

How can Global Human Resources help to build successful cross-border alliances?
A. By ensuring that organizations spend 25% of their budgets on cross-border alliances
B. By ensuring that a strategy is in place before embarking on a cross-border alliance
C. By ensuring that organizations export their ideas to other societies and cultures
D. By ensuring that international joint ventures are staffed by high quality managers

Answer 143

D. By ensuring that international joint ventures are staffed by high quality managers

Strategic global human resources can support the process of building successful cross-border alliances in a number of ways, by working to ensure that international joint ventures (IJVs) are staffed by high quality managers, for example, or by helping to ensure that cultural diversity is managed effectively in mergers and acquisitions

Question 144

The critical success factor to post merger and combination is
a) cultural due diligence
b) employee engagement
c) integration and synergy
d) training and coaching

Answer 144

c) integration and synergy

To capitalize on the latent synergies of the newly merged or „transition“ organization, the transition process itself must reflect the principles of – and provide the conditions for – synergy throughout its design and execution. This means promptly involving people from both organizations in core business tasks (selling, planning, decision-making), as well as on merger project teams. It also means visibly demonstrating a commitment to learning and to creating together something greater than either party could create on its own.

Question 145

Which of the following BEST identifies the stages in globalization for an organization? 1. domestic; 2. international; 3. multinational; 4. transnational; 5. global.
a) 1, 2, 3, 4, 5.
b) 1, 2, 3, 5, 4.
c) 1, 2, 4, 3, 5.
d) 1, 4, 2, 3, 5.

Answer 145

b) 1, 2, 3, 5, 4.

According to the Bartlett and Ghoshal framework, there are five stages of globalization that enterprises may go through. In the first “domestic” stage, corporations focus on domestic sales and international sales make up a small portion of total revenue. During the second “international” phase, although the focus still remains on domestic sales, one or a few international divisions may be added to oversee global operations and growth. International growth related to foreign operations is often more opportunistic. In the third “multinational” stage, a firm usually has several offices throughout the world. However, each of the offices are treated almost as separate units where key decisions are made by headquarters, the locals manage most of the day-to-day operations and organizational strategy is often poorly coordinated between national sites. During the fourth “global” phase, all offices are managed as if one unit developing one shared strategic business plan. Talent often moves readily from one location to another as specific needs arise, and the world is viewed as one market instead of multiple regional markets. However, similar to being in the “multinational” stage, key strategic decisions are made by headquarters. Finally, in the last “transnational” phase, organizations achieve the epitome of globalization where decisions and planning is made across borders, but local offices are able to retain their flexibility. They have intensive organization-wide coordination and shared decision-making.

Question 146

The most important factor of implementing HRIS for a global company is:
a) inexpensive with less technology resource.
b) one platform with one policy.
c) flexibility that can be adopted by different countries.
d) the best-qualified employees to serve on the team.

Answer 146

c) flexibility that can be adopted by different countries.

Designing global HRIS is challenging due to different national regulations, standards, security measures, and business cultures. Country customization is necessary when national headquarters cannot agree about what information or data should be collected. Transnational HRIS are technological challenges as systems that link multiple countries require proper networking technology, trained programming staff throughout the world, global legal knowledge, and knowledge of cultural specific approaches and uses of technology.

Question 147

Refers to Political, Economic, Social, and Technological factors that used in the external environmental scanning component of strategic management.

Answer 147

PEST Analysis

PEST Analysis (Political, Economic, Social and Technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those four areas are central to this model. PEST analysis is also called PESTEL model that involves the collection and portrayal of information about external factors which have, or may have, an impact on business. The letters stand for Political, Economic, Social, Technological, Environmental and Legal. Depending on the organisation, it can be reduced to PEST or some areas can be added i.e. International.

Question 148

An organization with a _______________ would typically benefit by using more local managers, thereby reducing the cost of training and sending expatriate managers.
a) Geocentric orientation
b) Polycentric or Regiocentric HRM orientation
c) Ethnocentric HRM orientation
d) Global HRM orientation

Answer 148

b) Polycentric or Regiocentric HRM orientation

In an organization with a polycentric or regiocentric orientation, each subsidiary is treated as its own entity, and each country-level operation is treated separately for HRM purposes. Hiring and training at the local level would be most cost-effective.

Question 149

The common reasons for international assignment refusal are NOT:
a) tax concerns
b) career concerns
c) family concerns
d) all of the above

Answer 149

a) tax concerns

Concerns for career and family are the most frequently mentioned reasons for a manager to refuse a foreign assignment. Initially most candidates are worried about uprooting a family and settling into a strange environment. The most important career related reservation is the fear that a two or three year absence will adversely affect opportunities for advancement. In order to minimize the extra tax burden on employees sent on international assignments, many companies have introduced tax equalization or tax protection programs and reimburse such employees for additional taxes in both countries.

Question 150

Which of the following is NOT a potential reason for geographic differentials in pay?
a) Incentive to attract workers to a foreign country
b) Existence of a large group of minorities in the area
c) Different cost of living standards
d) Incentive to attract skilled workers to an area, which normally has rain for 80% of the year

Answer 150

b) Existence of a large group of minorities in the area

Geographic differentials in pay may exist because of varying cost of living standards. In addition, employers may be attempting to attract workers to a foreign country or to attract skilled workers to a specifically unattractive area (ie area where it rains approximately 80% of the year). Geographic differentials in pay do not exist because of a large group of minorities in a specific area. Compensation is not based on national origin or race, but skill level. Varying compensation exists purely based on economics and its associated demand and supply.

Question 151

Which of the following is NOT a basic objective of a total compensation system?
a) Internal and external equity for employees
b) Aligns with organization’s vision, mission, and short and long-term strategies
c) All of the above
d) Provides direct compensation that leads the market

Answer 151

d) Provides direct compensation that leads the market

An organization is not required nor would it be necessarily recommended to provide direct compensation that leads the market. The decision to lead, to lag, or be at the market level is dependent upon several factors regarding an organization’s compensation philosophy. When an organization is creating a total compensation system, one of the primary objectives is to align the structure with the organization’s vision, mission, and short-term and long-term strategies. Another consideration is to create a structure that is internally and externally equitable for employees.

Question 152

Which of the following would not be calculated in the balance sheet approach?
a) Cost-of-Living Allowance (COLA)
b) Tax equalization (TEQ)
c) Housing Costs
d) Hardship allowance

Answer 152

d) Hardship allowance

The main emphasis of the balance sheet is to pay an expatriate comparably to incumbents in same or similar positions in the home country. Thus, the expatriate neither gains nor loses from a financial perspective. The categories are taxes, housing, goods and services, and reserve (e.g., savings and discretionary payments). Incentive allowances such as foreign service premium or bonus, a mobility premium, and hardship or danger pay are not included in balance sheet calculation.

Question 153

A good MBO (management by objectives) shares all of the following aspects EXCEPT:
a) Periodic feedback about objectives
b) Goals are established by the supervisor/ manager
c) Goals which align with corporate level goals and strategies
d) Goals which are measurable

Answer 153

b) Goals are established by the supervisor/ manager

Management by objective is a management approach that involves a four-step process for achieving the incident goal. The Management by Objectives approach includes the following: establishing overarching objectives; developing and issuing assignments, plans, procedures, and protocols; establishing specific, measurable objectives for various incident management functional activities and directing efforts to fulfill them, in support of defined strategic objectives; and documenting results to measure performance and facilitate corrective action. This approach is a collaborative method by both the manager and the employee, which ensures the buy-in and commitment from the employee.

Question 154

The PRIMARY reason that global organizations may not excel at performance management is because
a) the process is not implemented consistently.
b) the organizational systems and strategies are not aligned.
c) the concept of performance appraisal is interpreted in many ways.
d) there are multiple expectations of the process.

Answer 154

b) the organizational systems and strategies are not aligned.

While all of these options can explain the failure of a performance appraisal system, the primary reason for failure is the lack of alignment of organizational systems, strategies, and philosophies. This is the foundation of effective performance management, and this process affects all others.

Question 155

A MNC wishes to adopt a global mindset, in regards to global diversity and inclusion initiatives, understand the MOST powerful differentiator is:
a) Religion
b) Language
c) National culture
d) Ethnicity

Answer 155

c) National culture

Most experts agree that one’s national culture is the most powerful differentiator there is, greater than ethnicity, Religion or language.

Question 156

Employers are most likely required to discuss which of the following with their European Works Council (EWC)?
a) Investments.
b) Safety issues.
c) Training.
d) Equal opportunity

Answer 156

a) Investments.

According to the EWC Directive, “information and consultation” shall cover: “a) Information on the recent and probable development of the undertaking’s or the establishment’s activities and economic situation. b) Information and consultation on the situation, structure and probable development of employment within the undertaking or establishment and on any anticipatory measures envisaged, in particular where there is a threat to employment. c) Information and consultation on decisions likely to lead to substantial changes in work organization or in contractual relations, including those covered by the Community provisions referred to in Article 9(1).” Because investments will likely affect the organizations economic situation, the EWC must be kept informed. Training issues, safety and equal opportunity are less likely to have a direct effect on the organization’s economic situation, probable development of employment within the organization or substantial changes in work organization or contractual relations.

Question 157

A U.S. based expatriate manager develops a new operation method in the South Korea subsidiary. What should the manager do for leading change with the local employees?
a) Just ask them to implement the change
b) Explain the why the change is important to company mission
c) Organize a task force and ask for feedback
d) Sign an agreement with the union

Answer 157

c) Organize a task force and ask for feedback

For many leaders, the subject of change in Korea can immediately cause stress, because senior and mid-ranking employees have a reputation for being very resistant. To compound matters, they are often backed by strong unions, which can make even incremental changes very difficult to accept. As with any change management programme, anywhere in the world, there is always a problem when change happens too frequently, and Employee Engagement can suffer the ‘death from a thousand cuts’ syndrome. In Korea particularly, it is of paramount importance to make changes swiftly, sensitively, and also comprehensively, in order to avoid this scenario. One of the keys was in finding ‘ambassador’ employees who accepted the changes, and helped to influence other employees around them.

Question 158

Which of the following statements are correct about the EU General Data Protection Regulation (GDPR)? (Select all that apply)
a) GDPR is designed as a direct replacement for the EU Data Protection Act.
b) GDPR applies to all EU nations and every company holding data on EU citizens.
c) GDPR pertains to information used to identify an individual or their personal details.
d) GDPR has clear consent policies, while the privacy notices must be provided to consumers.
e) Businesses are are encouraged to report when data breaches occur, not obligation.
f) Any company employing more than 150 people will be mandated to appoint a dedicated data protection officer.

Answer 158

[a, b, d]

With the new General Data Protection Regulation coming into effect in May 2018, the GDPR is designed as a direct replacement for the EU Data Protection Act. The previous European Data Protection Directive utilised much more of a light-touch approach than GDPR, setting out aims and requirements for data protection standards that were then implemented through national legislation. By contrast, GDPR is a binding piece of regulation, which will be legally enforceable, and applies to all EU nations and every company holding data on EU citizens. GDPR will expand the definition of “personal data” to include a much wider range of consumer information. Whereas the Data Protection Act only pertains to information used to identify an individual or their personal details, GDPR broadens that scope to include online identification markers, location data, genetic information and more. Under the old rules, data collection does not necessarily require an opt-in, but under GDPR clear privacy notices must be provided to consumers, allowing them to make an informed decision on whether they consent to allow their data to be stored and used. With the current rules in place, businesses are under no obligation to report when data breaches occur, although they are encouraged to do so. This will change with the advent of GDPR, with any future breaches having to be reported to the relevant authorities within 72 hours of the incident. The Data Protection Act does not stipulate how the governance of data security functions should be allocated, requiring only a basic commitment to the concept from management. GDPR will change this, as any company employing more than 250 people will be mandated to appoint a dedicated data protection officer, as will any firm processing more than 5,000 subject profiles annually.

Question 159

The direct benefits of cross-border HR audits do not always include:
a) uncovering compliance issues.
b) reinforcing the organization’s own in-house code of conduct.
c) promoting corporate values and norms
d) guaranteeing the organizational success.

Answer 159

d) guaranteeing the organizational success.

Cross-border HR compliance initiatives have many facets. A multinational has obvious incentives to verify that its overseas HR operations comply both with foreign local laws and with the growing list of “extraterritorial” laws that reach workplaces internationally. In addition to legal compliance, multinationals need to verify that their overseas operations conform to the organization’s own in-house code of conduct, other international policies, employment agreements, and corporate values and norms. However, the auditing cannot guarantee the organizational success.

Question 160

Message is communicated almost entirely by words, therefore it needs to be explicit is an example of:
a) low-context culture.
b) high-context culture.
c) cultural diversity.
d) intercultural communication.

Answer 160

a) low-context culture.

A low-context culture relies on explicit communication. In low-context communication, more of the information in a message is spelled out and defined. Cultures with western European roots, such as the United States and Australia, are generally considered to be low-context cultures.

Question 161

A company determines to assign critical positions from Home-Country because:
a) host country has less critical talents.
b) language barrier can be eliminated.
c) the hiring costs can be saved.
d) cultural sensitivity is required.

Answer 161

a) host country has less critical talents.

Global staffing from home-country approach can be motivated by an (actual or perceived) lack of talent of host country nationals, or by the need for headquarters to effectively communicate with the leader of the subsidiary. However, the disadvantages of home-country approach are language barriers and hiring cost. Moreover, the expatriate may not have cultural sensitivity.

Question 162

Which of the following is a measure of recruiting effectiveness in the long term?
A. Cost per applicant hired
B. Quantity of applicants
C. Average time required to recruit applicants
D. Turnover of hires

Answer 162

D. Turnover of hires

Question 163

A good MBO (management by objectives) shares all of the following aspects EXCEPT:
A. Periodic feedback about objectives
B. Goals which align with corporate level goals and strategies
C. Goals are established by the supervisor/manager
D. Goals which are measurable

Question 164

You are assisting a highly talented engineering architect in repatriation after a short-term international assignment in Bangalore, India. After are re-entry, there are no appropriate positions available in the organization at headquarters. Which of the following goals is NOT a potential goal for redeploying this individual?

A. Maintain employee morale in the host country
B. Building a global workforce
C. Sharing the recently acquired knowledge
D. Retaining the talent for the future

Answer 164

A. Maintain employee morale in the host country

Question 165

A manager works very closely with his subordinates to create an effective working environment. Once a new person is hired, he works with the employee to set realistic goals for the short-term and long-term. In addition, he continuously works employees to discuss career paths and career ambitions. He is constantly coaching, counseling, and mentoring. Once his employees reach goals, he rewards them through merit increase/bonuses, offering job responsibilities with new challenges, and publicly recognizes their achievement in cross-departmental meetings. Which of the following motivational theories is least utilized in his management approach to motivating his employee?

A. B.F. Skinner’ Theory of Behavioral Reinforcement
B. McGregor’s Theory X and Theory Y
C. Vroom’s Expectancy Theory
D. Self-Efficacy Theory
E. Herzberg’s Motivation-Hygiene Theory

Answer 165

D. Self-Efficacy Theory

Question 166

Which of the following factors dose NOT affect the trainability of individuals?

A. Perception of environment
B. Time
C. Ability
D. Motivation

Answer 166

B. Time

Question 167

Which of the following is NOT a common mistake in selection procedures?

A. Ignore long-term strategic considerations and goals for the position
B. Adjusting global competencies to local cultures
C. Use insufficient or not valid selection criteria
D. Choose final candidate too quickly based on time constraints

Answer 167

B. Adjusting global competencies to local cultures

Question 168

Which of the following factors is an incentive for company to pursue localization?

A. Market responsiveness
B. Brand integrity
C. Product quality
D. Economies of scale

Answer 168

A. Market responsiveness

Question 169

An organization has decided to utilize a geographic organizational structure. It has several offices throughout Europe and one office in Asia, in particular, in
Shenzhen, China. Although the European offices are very well integrated into headquarters, the office in China has been running fairly independently. Of the locations, this office has been the most resistant to expatriates entering and to developing local talent, In fact, headquarters suspects that most of the hiring and promotions have been based on nepotism. Which of the following gaps does the China office NOT exhibit in this scenario?

A. Retention gap
B. Skill & competency gap
C. Knowledge sharing gap
D. Succession gap

Answer 169

A. Retention gap

Question 170

Which of the following does NOT represent a strategic financial goal for a global company?

A. Effectively manage currency exchange fluctuations
B. Decrease cost of goods
C. New market penetration
D. Increase revenue

Answer 170

C. New market penetration

Question 171

A company has decided to terminate the employment of an executive for performance reasons. The HP Manager to create a severance package. Which of the following factors would NOT be considered when creating the final severance package?

A. Severity of his lack of performance
B. Length of service at company
C. Total compensation in relation to severance package
D. Notice pay protection laws

Answer 171

A. Severity of his lack of performance

Question 172

Which of the following is NOT a reason why individuals refuse international assignments?

A. Personal familial issues, like spouse is reluctant to change careers or children are already in high school
B. No clear, identified path for career development guaranteed after the assignment
C. Financial incentives are inadequate
D. Company’s poor record of successful expatriations programs

Answer 172

B. No clear, identified path for career development guaranteed after the assignment

Question 173

Which of the following challenges is faced PRIMARILY when developing a global competency model?

A. Base model only on past experience
B. View the global plan as a sum of individual country plans
C. Differences in perceptions of various attributes
D. Balance the day-to-day demands with strategic plans

Answer 173

C. Differences in perceptions of various attributes

Question 174

A U.S. based high tech company has built a R&D office in Bangalore, India. Four years have passed since the Greenfield operation was successfully built. During this time, the new location has taken on higher priority engineering projects and trained and developed managerial skills of its newly recruited managers in
Bangalore.

Headquarters wants the office to take on a new engineering project that would expand its business in the U.S. by adding a new product line. This project has been identified as the most important objective for the corporation in the mid-term. The project is still in the phase of identifying specifications and developing milestones, where the engineering management team is working closely with the product manager. Which of the following types international assignment is the most appropriate for the product manager during this phase of the project?

A. Extended business travel
B. Long-term expatriation
C. International commuting
D. Localized transfer

Answer 174

A. Extended business travel

Question 175

Which of the following measures the level of learning achieved by the participants of a training program?

A. 360-degree feedback process
B. Performance tests
C. Performance appraisals
D. Pre-/post measures

Answer 175

D. Pre-/post measures

Question 176

Which of the following processes attempts to determine the relative worth of jobs within an organization?

A. Job design
B. Job evaluation
C. Job analysis
D. Comparable worth

Answer 176

B. Job evaluation

Question 177

The HR Director of a multinational, U.S.-based company is proposing a staffing plan where foreign offices are staffed with as many local nationals as possible instead of expatriates. Which of the following are NOT business justifications for this proposal?

A. Building local expertise competencies
B. Compliance with U.S. tax regulations
C. Favorable tax treatment by local government
D. Realization of cost savings

Answer 177

B. Compliance with U.S. tax regulations

Question 178

You have decided to measure the organizations recruiting effectiveness in the long term by calculating turnover. Which of the following reasons represents the
PRIMARY purpose of this measurement?

A. Improve quality of employee
B. Motivating employees effectively
C. Risk management
D. Assessing cost effectiveness of programs

Answer 178

B. Motivating employees effectively

Question 179

A company decide to propose an international assignment program to fill a new position in its new office Beijing, China. With the assistance of the human resources professional, the management team has finalized a list of selection criteria of the candidate for the role considering the entire scope of the international assignment. During the interviewing process, they utilize various tools to isolate out the success factors.

After deciding on the candidate and the individual accepting the offer, the human resources professional with vendors to provide cross-cultural training prior to departure and plans all the logistical details for the relocation. The human resources professional also assists the individual and his family by providing contacts and setting up meetings with other expatriates in the host country to orientate the expatriate before country, i.e., career development, potential roles, personal transition, etc. In this scenario, which of the following actions items were forgotten to ensure a successful international assignment?

A. Plan for a successful repatriation
B. Provide ongoing support, while on assignment
C. Plan the international assignment as part of a process, not an activity
D. Provide appropriate training

Answer 179

B. Provide ongoing support, while on assignment

Question 180

Which of the following stages of globalization is an organization likely in if it is pursuing a polycentric staffing approach?

A. Domestic
B. Global
C. Multinational
D. Transnational

Answer 180

C. Multinational

Question 181

Which of the following BEST identifies the stages in the strategic planning process ?

A. Mission & Vision -> Determine Strategic Issues by performing a Gap Analysis, SWOT Analysis, & Benchmarking -> Strategy Formulation -> Strategy Implementation -> Evaluation & Control

B. Strategy Development -> Strategy Formulation -> Strategy Implementation -> Strategy Evaluation

C. Mission & Objectives -> Strategy Formulation -> Environmental scanning -> Strategy Implementation -> Evaluation & Control

D. Mission & Objectives -> Determine Action Plans -> Strategy Implementation -> Evaluation & Control

Answer 181

A. Mission & Vision -> Determine Strategic Issues by performing a Gap Analysis, SWOT Analysis, & Benchmarking -> Strategy Formulation -> Strategy Implementation -> Evaluation & Control

Question 182

When assessing the gaps between actual and desired organizational performance, which of following measures would NOT be considered ?

A. Benchmarked results
B. Training and development
C. Individual assessment
D. Task assessment

Answer 182

B. Training and development

Question 183

Which of the following would a trainer emphasize in order to ensure that a training program focused on developing skills for a particular job is valid ?

A. Survey comparable off-the-shelf programs
B. Interview incumbent
C. Interview managers
D. Analyze the job description and job specifications

Answer 183

D. Analyze the job description and job specifications

Question 184

You are preparing an on-assignment checklist for an individual going on an international assignment. Which of the following items is the LEAST important to pursue ?

A. Creating avenues for communication
B. Identify school for children
C. Cross-cultural training
D. Moving/relocation services

Answer 184

B. Identify school for children

Question 185

Which of the following is NOT likely an issue a human resources professional would help a dual career family to work though to determine the appropriateness of an international assignment for the family at that time ?

A. How will the host country workers respond to a same sex family?
B. Will the accompanying spouse be able to find a job easily?
C. Will the employee consider commuting instead of moving the whole family to the host country?
D. How will the loss of income from one spouse impact the family and their finances?

Answer 185

A. How will the host country workers respond to a same sex family?

Question 186

Which of the following is a difference between the recruitment and selection of an individual for a position in the home country vs. For an international assignment?

A. Cost-benefit analysis
B. Interviewing of family
C. Review of previous work samples, experience, etc.
D. Reference checking

Answer 186

B. Interviewing of family

Question 187

The HR Manager is creating an interactive training program on recruiting for a group of 20 R&D managers as well as one for a group of 20 production line leads.
Which of the following is NOT a factor to consider bearing in mind these target audiences ?

A. R&D managers have probably had similar training in the past
B. Production line leads are probably kinesthetic learners
C. For the production line lead group, the best media to present this information is a video
D. The facilitator for the group of R&D managers should be a subject matter expert that can express content as “A” causes “B” incidents

Answer 187

C. For the production line lead group, the best media to present this information is a video

Question 188

In which of the following situations do HR managers have the greatest impact on organizations?

A. Assume management roles on cross-functional projects
B. Actively participates in the long-term organizational strategic planning process
C. Providing legal counsel to managers
D. Evaluate and implement process improvements throughout an organization

Answer 188

B. Actively participates in the long-term organizational strategic planning process

Question 189

Which of the following is NOT a factor when developing a compensation and benefits plan for expatriates?

A. Internal company wide pay scale
B. Compensation and benefits of expatriates in other countries
C. Compensation and benefits of local nationals
D. Compensation and benefits of peers back home

Answer 189

A. Internal company wide pay scale

Question 190

Which of the following selection methods is an effective tool to determine the psychological readiness of an individual for an international assignment ?

A. Standardized tests and inventories
B. Stress interviews
C. Simulations
D. Self-assessment

Answer 190

A. Standardized tests and inventories

Question 191

Which of the following is NOT a reason to outsource ?

A. To share financial risk
B. To manage a difficult risk
C. To create value
D. To gain access to world-class talent

Answer 191

C. To create value

Question 192

You are responsible for hiring an engineering architect in Bangalore, India through a short-term international assignment. Which of the following techniques is the
LEAST relevant selection criterion tool for this position ?

A. Standardized measures of psychological traits
B. Evaluation of work samples
C. Self-assessment
D. One-on-one interviewing

Answer 192

C. Self-assessment

Question 193

Which of the following factors is NOT a significant variable in how an individual may re-adjust after returning home ?

A. Extent of previous experience on international assignments
B. Length of time on international assignment
C. Clarity of new job and role
D. Changes in family & friends

Answer 193

A. Extent of previous experience on international assignments

Question 194

Which of the following is NOT an external third-party source for recruiting ?

A. Private employment agencies
B. Labor unions
C. Outplacement firms
D. Agencies

Answer 194

B. Labor unions

Question 195

A U.S. Based manufacturing company has decided to expand overseas to South Korea. Which of the following is an example of environmental scanning ?

A. Building internal training programs for the new international employees
B. Developing a compensation structure in line with the local market
C. Changing the company’s product mix to take advantage of the new labor market
D. Analyzing the number of skilled workers in the area

Answer 195

D. Analyzing the number of skilled workers in the area

Question 196

As part of its corporate restructuring program, a corporation has invest in a manufacturing site ten miles outside of Bangkok, Thailand. Which of the following factors is NOT a labor market factor that might affect the compensation strategy?

A. Inflation and interest rates are rapidly rising
B. Geographic concentration of labor around Bangkok, Thailand
C. Demand for labor
D. Types of remuneration sought

Answer 196

A. Inflation and interest rates are rapidly rising

Question 197

A U.S. based high tech company has built a R&D office in Bangalore, India. Four years have passed since the Greenfield operation was successfully built. During this time, the new location has taken on higher priority engineering projects and trained and developed managerial skills of its newly recruited manages in
Bangalore.

Headquarters wants the office to take on a new engineering project that would expand its business in the U.S. by adding a new product line. This project has been identified as the most important objective for the corporation in the mid-term. The project is still in the phase of identifying specifications and developing milestones, where the engineering management team is working closely with the product manager. The management team understand that is must create an international assignment program to have this project run smoothly. The team believes that extended business travel would be the most appropriate program.

In order to confirm their belief, the HR manager does extensive research. The analysis shows that extended business travel will result in $10,000,000 additional revenue in the first year and $5,000,000 additional revenue in the second year due to the customization of the product to customer demand. The cost of the
program is $400,000 initial investment plus a variable cost of $100,000 per year. What is the break-even point?

A. 2.4 months
B. 4.8 months
C. 6 months
D. 2 months

Answer 197

B. 4.8 months

Question 198

A corporation decides to pursue a participative management style in order to make improvements in their operational efficiencies. Which of the following processes is the organization utilizing in order to achieve their strategic goal?

A. Continual renewal process
B. Total quality management
C. Horizontal learning process
D. Entrepreneurial process

Answer 198

D. Entrepreneurial process

Question 199

According to the global performance management process, an organization should be aligning company systems in phases EXCEPT in which of the following stages?

A. Specifying each employee’s performance plan
B. Defining global business strategy and objectives
C. Linking benefits & rewards as well as employee development to the process
D. Conducting the appraisal with each employee

Answer 199

B. Defining global business strategy and objectives

Question 200

After performing a global gap analysis, the global HR team has identified an initiative to identify at least three potential candidates for each Senior Director and VP position. In order to build accountability for implementing this initiative, which of the following pieces of information is NOT necessary?

A. Source of resources
B. Modes of communication
C. Benefit to the individual and organization
D. Developing S.M.A.R.T objectives

Answer 200

A. Source of resources