International Business
Chapter 9 – Human Resource Management
Minitest
I. Choose the correct answers.
1. To truly understand a culture, it is necessary to:
A)
speak the language.
B)
live like the natives.
C)
spend time in the locale.
D)
all of the above.
2. Employees who are citizens of the home country are called:
A)
locals.
B)
natives.
C)
home country nationals.
D)
home country citizens.
3. Qualifications for a good manager of an overseas operations should include:
A)
being bicultural and bilingual.
B)
knowing business practices in the home country and in the host country.
C)
having a broader skill set than domestic managers.
D)
all of the above.
4. Employee citizens of the host country are called:
A)
local employees.
B)
host country nationals.
C)
host country employees.
D)
foreign nationals.
5. An employee who is a citizen of neither the home nor the host country is known as a:
A)
third country national.
B)
foreign national.
C)
nonresident alien.
D)
foreign employee.
6. ___________ is related to hiring and promoting employees on the basis of ability and
experience without considering race or citizenship.
A)
Discrimination
B)
Monocentric
C)
Ethnocentric
D)
Geocentric
7. A person living outside of his or her country of citizenship is known as:
A)
an alien.
B)
a nonresident alien.
C)
a resident alien.
D)
an expatriate.
8. Before going on the first overseas assignment, you should:
A) arrange with someone fairly high in the company hierarchy to be your mentor.
B) insist that your bosses tell you exactly what the company expects you to
accomplish.
C) both "a" and "b".
D) none of the above.
9. The ability of a company to succeed in another country rests heavily on:
A)
the willingness of the host government to cooperate.
B)
the managers' abilities to function in that country's culture.
C)
adequate financing.
D)
all of the above.
10. Employee compensation payments added to base salaries because higher expenses are
encountered when living abroad are known as:
A)
bonuses.
B)
add-ons.
C)
allowances.
D)
expatriate compensation.
11. In the past five years, ____________ has had the best business environment in the
world, according to the Economist Intelligence Unit.
A)
Great Britain
B)
the Netherlands
C)
Hong Kong
D)
the United States
12. When an international company hires and trains local, host country people, the IC
often:
A)
pays them too much and creates inflation.
B)
over-trains them to IC culture-based standards.
C)
may lose them to local firms or other ICs once they are trained.
D)
encourages their transfer, causing brain drain.
13. When host county nationals are employed:
A)
training costs are a minimum.
B)
they are familiar with local customs, culture, and language.
C)
they are already familiar with the home country.
D)
any conflict of interest is removed.
14. Generalizations about third country nationals are difficult because:
A)
the IC usually does not know enough about their backgrounds.
B)
the geocentric staffing policy prohibits these generalizations.
C)
it is difficult to obtain work permits for their spouses.
D)
people achieve the TCN status in different ways.
15. International status is the status of:
A) every expatriate employee.
B) third country nationals.
C) employees of international organizations.
D) the IC employee who is receiving all applicable allowances and bonuses plus
perks.
II. Decide the statements whether are true or false.
1. Companies with a primarily international strategic orientation may adopt an
ethnocentric staffing policy.
2. Using third country nationals to fill management posts resolves the disadvantages
encountered when using employees from the home or host countries.
3. Many multinationals give international status to both home and third country nationals,
who then receive the same perquisites and compensation packages for the same job.
4. The use of third country nationals (TCNs) has become particularly prevalent in the
developing countries because of shortages of literate and skilled locals.
5. When managers are assigned and move abroad with their families, the most difficult
adjustments are frequently for the children.
III. Answer the questions
1. Describe the trait of good global managers.
2. Which term defines the personnel who are citizens of neither the home country nor
the host country? Why hiring them is often advantageous?
ethnocentric: employees are citizens of home country
polycentric: employees are citizens of specific local context
regiocentric: employees are citizens of specific regional context
geocentric: based on ability and experience without race or citizenship