HR in the Global Context Flashcards
8.Which approach to handling international assignee taxes involves each expatriate employee negotiating his or her own tax approach with the company?
A. Laissez-faire
B. Ad hoc
C. Tax protection
D. Tax equalization
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1275). McGraw-Hill Education. Kindle Edition.
8.B is correct. This approach involves each expatriate employee negotiating his or her own tax approach with the company.
A, C, and D are incorrect.
A is incorrect because in the laissez-faire tax approach, the employee is responsible for any taxes incurred.
C is incorrect because in the tax protection approach, the organization calculates the assignee’s hypothetical tax had he or she remained at home, compared with actual taxes paid abroad, and reimburses any disparity.
D is incorrect because in the tax equalization approach, the organization ensures that the assignee’s tax situation is neither better nor worse than it would have been at home.
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1310). McGraw-Hill Education. Kindle Edition.
9.One of the European Union’s five major institutions is the:
A. European Court of Justice
B. North Atlantic Alliance
C. International Labor Organization
D.Organization for Economic Cooperation and Development
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1275). McGraw-Hill Education. Kindle Edition.
9.A is correct. The European Court of Justice (ECJ) is the highest court in matters of European Union law in the European Union.
B, C, and D are incorrect.
B is incorrect because the North Atlantic Alliance is an intergovernmental military alliance based on the North Atlantic Treaty that provides a system of collective defense whereby its member states agree to mutual defense in response to an attack by any external party.
C is incorrect because the International Labor Organization is a United Nations agency dealing with labor issues, particularly international labor standards, social protection, and work opportunities for all.
D is incorrect because the Organization for Economic Cooperation and Development is an international economic organization of 34 countries founded in 1961 to stimulate economic progress and world trade.
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1310-1311). McGraw-Hill Education. Kindle Edition.
10.Which of the following agreements is a means of protecting the rights of workers whose international work is performed in two or more countries at the same time?
A. Subordination agreement
B. Collateral agreement
C. Shareholders agreement
D. Totalization agreement
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1275). McGraw-Hill Education. Kindle Edition.
10.D is correct. Nations may enter into reciprocal agreements regarding employment-related issues such as totalization agreements, which are designed to prevent double taxation of citizens working abroad. The United States has entered into totalization agreements with several nations in order to avoid double taxation of income for Social Security taxes.
A, B, and C are incorrect.
A is incorrect because a subordination agreement is a legal document used to make the claim of one party junior to a claim in favor of another party.
B is incorrect because a collateral agreement is a bond made over and beyond the act itself for the performance of an agreement made between two individuals.
C is incorrect because a shareholders agreement is an agreement made among shareholders of a company.
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1311). McGraw-Hill Education. Kindle Edition.
11.Of the five levels of legal actions that can be taken by European Union institutions, EU directives are defined as actions:
A.Between member countries setting out objectives and rules and defining the relationship between the EU and its member countries
B.That are directly binding on all member states
C.That set a goal that all EU countries must achieve but each country can determine how it will do so
D.Taken by the European Court of Justice that affect the way in which regulations and directives are applied
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1275-1276). McGraw-Hill Education. Kindle Edition.
11.C is correct. EU directives set a goal that all EU countries must achieve, but each country can determine how it will do so.
A, B, and D are incorrect.
A is incorrect in that a treaty is an agreement (i.e., an action) between countries setting out objectives and rules and defining the relationship between the EU and its member countries.
B is incorrect in that regulations are directly binding on all member states. They override any conflicting member state laws.
D is incorrect in that actions taken by the European Court of Justice are decisions that affect the way regulations and directives are applied.
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1311). McGraw-Hill Education. Kindle Edition.
12.Which of the following would not apply to pre-assignment cross-cultural counseling?
A. Preliminary situation and needs assessment
B. Personal cultural awareness activities
C. Detailed repatriation program
D. Business overview
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1276). McGraw-Hill Education. Kindle Edition.
12.C is correct. Repatriation is part of integrating an employee returning from an international assignment back into the home country. While not a key part of the pre-departure phase of an international assignment, it is a key part of the assignment completion phase.
A, B, and D are incorrect. They are all recommended by experts as part of a pre-assignment, comprehensive, cross-cultural counseling program.
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1311-1312). McGraw-Hill Education. Kindle Edition.
13.A Mexican company manufactures tires for a global automobile maker. The company also has facilities in other emerging economies, such as Brazil, Indonesia, and Zambia. What is this business exchange called?
A. On-shoring
B. Near-shoring
C. Off-shoring
D. Off-boarding
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1276). McGraw-Hill Education. Kindle Edition.
13.C is correct because off-shoring is happening when production or processes are relocated to another country.
A, B, and D are incorrect.
A is incorrect because on-shoring refers to moving a business that was previously located overseas back to its home country.
B is incorrect because near-shoring refers to transferring a business operation to a nearby country.
D is incorrect because off-boarding refers to completing the exit process with an employee.
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1312). McGraw-Hill Education. Kindle Edition.
14.A Portuguese company produces the main ingredient in a popular pain-relieving medication in Portugal. For the past 2 years there has not been a remarkable increase in revenue. The marketing team makes the CEO aware that this drug has the potential to really become popular in the United States and Canada. In fact, there is a U.S.-based pharmaceutical company that is rapidly gaining market share and may threaten the Portuguese company’s position. To grow, the company partners with a Mexican pharmaceutical company. With respect to strategic positioning, which of the following best describes what might be occurring?
A.Globalization push factor to enter new markets
B.Globalization push factor to increase competition
C.Globalization pull factor to increase foreign investment
D.Globalization pull factor to gain more strategic control
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (pp. 1276-1277). McGraw-Hill Education. Kindle Edition.
14.A is correct because the Portuguese company is seeking new markets to expand to because it has exhausted its ability to grow in Portugal.
B, C, and D are incorrect.
B is incorrect because push factors that are employed to address an increase in competition are implemented as a way to run more cost-effective operations and increase profits.
C is incorrect because this refers to when a company is pulled into a globalization strategy because certain government programs encourage investments outside of the home country.
D is incorrect because a pull factor to gain a better strategic position refers to a company realizing that, in addition to increased sales, the company may be able to improve other strategic factors like their brand image by expanding globally.
Willer, Dory; Willer, Dory; Truesdell, William H.; Truesdell, William H.; Kelly, William D.; Kelly, William D.; Simon-Walters, Joanne; Simon-Walters, Joanne. SHRM-CP/SHRM-SCP Certification Bundle (All-In-One) (p. 1312). McGraw-Hill Education. Kindle Edition.
