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Firms that have a broad geographic scope are most likely to have a(n) _____ mind-set.


A) ethnocentric
B) polycentric
C) transnational
D) geocentric
E) localized

F) A) and E)
G) D) and E)

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In the Swiss firm Terabithia Systems AG,all the important positions in its international operations are held by Swiss nationals.Terabithia follows a(n) _____ staffing policy.


A) eurocentric
B) ethnocentric
C) polycentric
D) geocentric
E) transnational

F) B) and E)
G) A) and E)

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Mendenhall and Oddou identified that expatriates with _____,a dimension that predicts success,were able to adapt their interests in food,sport,and music.


A) perceptual ability
B) self-orientation
C) others-orientation
D) cultural toughness
E) empathy

F) B) and D)
G) B) and E)

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According to Mendenhall and Oddou,expatriate managers who lack the dimension of _____ tend to treat foreign nationals as if they were home-country nationals.


A) cultural toughness
B) self-orientation
C) others-orientation
D) perceptual ability
E) willingness to communicate

F) A) and B)
G) B) and D)

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How is a geocentric staffing policy beneficial to a firm?


A) It requires the firm to provide little or no documentation to hire a foreign national.
B) It is inexpensive to implement.
C) It helps the firm follow a localization strategy.
D) It allows all key management positions to be filled by parent-country nationals.
E) It enables the firm to make the best use of its human resources.

F) None of the above
G) A) and D)

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What is the purpose of cultural training before a foreign posting?

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Cultural training seeks to foster an app...

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According to the survey undertaken by Towers Perrin,which of the following countries provides the highest pay to HR executives?


A) Switzerland
B) The United States
C) Japan
D) Australia
E) Argentina

F) D) and E)
G) B) and C)

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Which of the following is an advantage of adopting a polycentric staffing approach?


A) It is less expensive to implement as compared to other staffing approaches.
B) It gives host-country nationals unlimited opportunities to gain experience outside their own country.
C) It increases career mobility.
D) It increases interaction between the headquarters of a firm and its foreign subsidiaries.
E) It bridges the gap between host-country managers and parent-country managers.

F) A) and E)
G) A) and D)

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Unless a host country has a reciprocal tax treaty with the expatriate's home country,an expatriate must pay income tax to both the home- and host-country governments.

A) True
B) False

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Which of the following is an advantage of an ethnocentric staffing policy?


A) It alleviates cultural myopia.
B) It is inexpensive to implement.
C) It helps build strong informal management networks.
D) It helps transfer core competencies to a foreign operation.
E) It uses human resources efficiently.

F) D) and E)
G) B) and C)

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According to Mendenhall and Oddou,which of the following dimensions that predicts success in a foreign posting strengthens an expatriate's self-esteem,self-confidence,and mental well-being?


A) Cultural toughness
B) Others-orientation
C) Perceptual ability
D) Self-orientation
E) Empathy

F) A) and C)
G) A) and B)

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The major drawback with a(n) _____ staffing policy is the gap that can form between host-country managers and parent-country managers.


A) global
B) geocentric
C) polycentric
D) ethnocentric
E) transnational

F) A) and B)
G) A) and E)

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Which of the following allowances ensures that an expatriate will enjoy the same standard of living in the foreign posting as at home?


A) Hardship allowance
B) Base salary allowance
C) Cost-of-living allowance
D) Quality-of-life allowance
E) Housing allowance

F) A) and E)
G) C) and D)

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International businesses differ in terms of their approaches to international labor relations,mainly in the degree to which:


A) labor relations activities are centralized or decentralized.
B) labor relations are formal or informal.
C) labor relations are given a high priority or a low priority.
D) labor relations are internally or externally managed.
E) firms follow a polycentric or geocentric staffing policy.

F) B) and C)
G) A) and E)

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Describe any two components of a typical expatriate compensation package.

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In the 1960s,organized labor believed that by coordinating union action across countries through an international trade secretariat,it could counter the power of a multinational corporation by:


A) threatening to disrupt production on an international scale.
B) introducing a reciprocal tax treaty.
C) trying to farm out highly skilled tasks back to the home country of the firm.
D) increasing its bargaining power.
E) lobbying for importing employment practices from the home country of the firm.

F) None of the above
G) A) and B)

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According to Mendenhall and Oddou,the attribute of _____ provides an expatriate the ability to understand why people of other countries behave the way they do.


A) cultural toughness
B) perceptual ability
C) self-orientation
D) others-orientation
E) willingness to communicate

F) All of the above
G) A) and E)

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In international businesses,a polycentric staffing policy increases the costs of value creation.

A) True
B) False

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Citizens of a foreign country working in the home country of their multinational employer are known as repatriates.

A) True
B) False

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In international businesses,firms pursue a polycentric staffing policy because they see it as the best way to maintain a unified corporate culture.

A) True
B) False

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