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web.groovymark@gmail.com
- December 14, 2024
Question 21
In the context of IHRM, what does “repatriation” involve?
a) Sending employees abroad for an assignment
b) Bringing expatriates back to their home country after an assignment abroad
c) Relocating employees permanently to a foreign subsidiary
d) Hiring host country nationals to replace expatriates
Correct Answer: b) Bringing expatriates back to their home country after an assignment abroad
Explanation: Repatriation refers to the process of bringing expatriates and their families back to their home country after completing an international assignment.
Question 22
What is the primary goal of an “integrative strategy” in international performance management?
a) To reduce the cost of global training programs
b) To combine local, regional, and global performance management practices
c) To prioritize local cultural norms over global standards
d) To centralize decision-making for all global subsidiaries
Correct Answer: b) To combine local, regional, and global performance management practices
Explanation: An integrative strategy seeks to merge local, regional, and global performance management practices to create a cohesive and effective global framework.
Question 23
Which of the following best describes the “iron law of social responsibility”?
a) Companies are required to give back to society according to their profits
b) A company’s social responsibility is proportional to its social power
c) Government regulations enforce social responsibility measures
d) Firms must invest in local communities to gain business licenses
Correct Answer: b) A company’s social responsibility is proportional to its social power
Explanation: The iron law of social responsibility suggests that a company’s responsibility to society is proportional to the influence and power it holds in that society.
Question 24
What is the role of “global employment companies” (GECs) in multinational enterprises (MNEs)?
a) To handle payroll and benefits for employees working across multiple countries
b) To serve as an intermediary between headquarters and local subsidiaries
c) To provide legal advice on local labor laws
d) To recruit host country nationals for leadership roles
Correct Answer: a) To handle payroll and benefits for employees working across multiple countries
Explanation: Global employment companies manage payroll, benefits, and employment contracts for employees assigned to work in various countries within a multinational enterprise.
Question 25
What does “localization” mean in the context of IHRM strategies?
a) Adapting global HR policies to suit local cultural and legal requirements
b) Moving headquarters operations to a host country
c) Sending home-country nationals for permanent relocation abroad
d) Hiring only local employees for all positions
Correct Answer: a) Adapting global HR policies to suit local cultural and legal requirements
Explanation: Localization involves modifying global HR practices to align with the specific cultural, legal, and business environments of the host country.
Question 26
What is the main purpose of the “expatriate performance appraisal” process in multinational enterprises (MNEs)?
a) To determine if expatriates are ready for repatriation
b) To evaluate expatriates’ contributions to global strategic objectives
c) To ensure expatriates meet local cultural norms
d) To adjust compensation packages based on local performance metrics
Correct Answer: b) To evaluate expatriates' contributions to global strategic objectives
Explanation: Expatriate performance appraisals are used to assess how well expatriates are contributing to the organization’s global objectives and whether they are meeting the performance expectations of their assignments.
Question 27
What is a key difference between “expatriates” and “inpatriates” in multinational enterprises (MNEs)?
a) Expatriates are hired locally, while inpatriates are hired globally
b) Expatriates are home-country nationals working abroad, while inpatriates are host-country nationals working in the headquarters
c) Expatriates work temporarily in the host country, while inpatriates work permanently in the home country
d) Expatriates are senior leaders, while inpatriates are junior employees
Correct Answer: b) Expatriates are home-country nationals working abroad, while inpatriates are host-country nationals working in the headquarters
Explanation: Expatriates are typically employees from the parent company who are sent to work in a foreign subsidiary, while inpatriates are host-country or third-country nationals who are sent to the parent company’s headquarters.
Question 28
Which of the following best describes “just-in-time expatriates”?
a) Expatriates hired for permanent roles abroad
b) Expatriates brought in on short notice for specific, temporary assignments
c) Expatriates who have completed multiple assignments abroad
d) Expatriates assigned to long-term leadership positions in subsidiaries
Correct Answer: b) Expatriates brought in on short notice for specific, temporary assignments
Explanation: Just-in-time expatriates are contract expatriates hired externally for short-term, specific assignments and often brought in with little notice.
Question 29
What is the main function of “global workforce planning” in multinational enterprises (MNEs)?
a) To centralize hiring practices for all subsidiaries
b) To estimate global employment needs and manage talent recruitment
c) To reduce labor costs through outsourcing
d) To ensure that all employees are paid equitably
Correct Answer: b) To estimate global employment needs and manage talent recruitment
Explanation: Global workforce planning involves forecasting employment needs, recruiting talent across locations, and ensuring the right workforce is in place to meet organizational objectives.
Question 30
What is the “polycentric” approach to staffing in multinational enterprises (MNEs)?
a) Hiring parent country nationals for leadership positions
b) Emphasizing the hiring of host country nationals to manage subsidiaries
c) Hiring third-country nationals for specialized roles
d) Using a combination of local and parent-country talent for staffing decisions
Correct Answer: b) Emphasizing the hiring of host country nationals to manage subsidiaries
Explanation: The polycentric approach focuses on staffing subsidiaries with host country nationals who understand the local market, culture, and business practices.
Question 31
Which of the following best describes the “geocentric” approach to staffing in multinational enterprises (MNEs)?
a) Hiring parent country nationals for leadership roles across the globe
b) Prioritizing the hiring of local talent in foreign subsidiaries
c) Recruiting the best talent for the job, regardless of nationality
d) Centralizing recruitment decisions at headquarters
Correct Answer: c) Recruiting the best talent for the job, regardless of nationality
Explanation: The geocentric approach seeks to hire the most qualified individuals for global roles, regardless of their nationality, to ensure the best talent is in place across the organization.
Question 32
What is the “cafeteria plan” used for in international compensation?
a) To provide employees with a standardized compensation package
b) To allow employees to select from a range of benefit options
c) To centralize payroll and benefits across subsidiaries
d) To reduce overall compensation costs for expatriates
Correct Answer: b) To allow employees to select from a range of benefit options
Explanation: The cafeteria plan allows employees to choose from a variety of benefits (such as health insurance, retirement plans, or paid leave) within a specific budget, tailoring their compensation package to individual needs.
Question 33
Which of the following is a challenge of “offshoring” business functions to a foreign location?
a) Decreased operational efficiency
b) Lack of access to local talent
c) Loss of control over processes
d) High cost of expatriating employees
Correct Answer: c) Loss of control over processes
Explanation: Offshoring can lead to a loss of control over business processes, as operations are handled by a foreign entity, often resulting in communication challenges and issues with maintaining quality standards.
Question 34
What does the term “brain drain” refer to in global workforce management?
a) The loss of top talent due to poor compensation
b) The emigration of skilled workers from developing countries to developed countries
c) The use of outdated technology in foreign subsidiaries
d) The outsourcing of high-level functions to low-cost locations
Correct Answer: b) The emigration of skilled workers from developing countries to developed countries
Explanation: Brain drain occurs when educated and skilled professionals leave their home country to seek better job opportunities, often resulting in a shortage of talent in their home countries.
Question 35
Which of the following is a key advantage of using “stealth assignees” in international human resource management (IHRM)?
a) Reduced need for compliance with local employment laws
b) Ability to relocate employees without notifying HR
c) Flexibility in assigning employees for short-term, discreet assignments
d) Streamlined payroll and benefits management for expatriates
Correct Answer: c) Flexibility in assigning employees for short-term, discreet assignments
Explanation: Stealth assignees are employees relocated by their managers without formal HR involvement, providing flexibility for short-term, ad hoc assignments that may not require the same level of formal management as longer-term expatriate assignments.
Question 36
Which of the following is a benefit of adopting a “decentralized” strategic HRM approach in multinational enterprises (MNEs)?
a) Increased consistency in global HR practices
b) Enhanced responsiveness to local market conditions
c) Reduced costs associated with global training programs
d) Simplified decision-making at the headquarters level
Correct Answer: b) Enhanced responsiveness to local market conditions
Explanation: A decentralized approach to HRM allows subsidiaries to respond more effectively to local conditions, enabling greater flexibility in adapting to local laws, cultures, and market demands.
Question 37
In which of the following situations would a “strategic IHRM” approach be most beneficial for a multinational enterprise (MNE)?
a) When the company operates only in its home country
b) When the company is expanding operations into new international markets
c) When the company is reducing its workforce in foreign subsidiaries
d) When the company is transitioning to a fully remote workforce
Correct Answer: b) When the company is expanding operations into new international markets
Explanation: A strategic IHRM approach is crucial when expanding into new international markets, as it helps align global HR practices with business objectives and ensures consistency across different countries.
Question 38
What is a key characteristic of a “heterogeneous team” in a multinational enterprise (MNE)?
a) Team members are from the same cultural background
b) Team members have a diverse range of skills and experiences
c) Team members work in the same location
d) Team members follow standardized company processes
Correct Answer: b) Team members have a diverse range of skills and experiences
Explanation: Heterogeneous teams consist of members with diverse cultural backgrounds, skills, and experiences, which can enhance creativity and problem-solving but also present challenges in communication and collaboration.
Question 39
Which of the following describes the role of “host country nationals” (HCNs) in multinational enterprises (MNEs)?
a) Employees who are sent from the headquarters to work in foreign subsidiaries
b) Employees who work in a foreign subsidiary and are citizens of the host country
c) Employees who are hired to work in the parent company’s headquarters
d) Employees who work for a third-party vendor in a foreign country
Correct Answer: b) Employees who work in a foreign subsidiary and are citizens of the host country
Explanation: Host country nationals (HCNs) are employees who are hired in the foreign subsidiary of a multinational enterprise and are citizens of the country where the subsidiary is located.
Question 40
What is the primary objective of “receptive IHRM strategy” in multinational enterprises (MNEs)?
a) To prioritize local talent for leadership roles
b) To ensure a high degree of global integration with limited local responsiveness
c) To standardize all HR practices across subsidiaries
d) To reduce costs by outsourcing HR functions
Correct Answer: b) To ensure a high degree of global integration with limited local responsiveness
Explanation: The receptive IHRM strategy emphasizes global integration and the application of standardized HR practices across all subsidiaries, with limited local customization.
