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web.groovymark@gmail.com
- December 14, 2024
Question 41
In the context of global compensation, what is meant by the term “sunshine rules”?
a) Rules that ensure transparency in salary disclosures
b) Rules that limit expatriate compensation to avoid local resentment
c) Rules that standardize employee benefits across all subsidiaries
d) Rules that provide tax exemptions for expatriates
Correct Answer: a) Rules that ensure transparency in salary disclosures
Explanation: Sunshine rules require that salaries and compensation packages be made public, promoting transparency in compensation and reducing potential disparities among employees.
Question 42
Which of the following is a common challenge when using “virtual teams” in multinational enterprises (MNEs)?
a) Ensuring equal access to technology
b) Finding enough team members from the same country
c) Coordinating work across time zones
d) Reducing travel costs for team members
Correct Answer: c) Coordinating work across time zones
Explanation: One of the primary challenges of virtual teams, especially in multinational enterprises, is coordinating work and meetings across different time zones, which can lead to difficulties in communication and project management.
Question 43
What is the role of “professional employer organizations” (PEOs) in international human resource management (IHRM)?
a) To provide expatriates with access to local employment benefits
b) To hire and manage a foreign workforce through an existing local company
c) To standardize HR practices across multiple countries
d) To negotiate labor laws between home and host countries
Correct Answer: b) To hire and manage a foreign workforce through an existing local company
Explanation: Professional employer organizations (PEOs) enable multinational enterprises to hire and manage employees in foreign countries through a local company that handles payroll, benefits, and compliance with local labor laws.
Question 44
Which of the following is a potential drawback of using “dual employment” in multinational enterprises (MNEs)?
a) Increased costs associated with expatriate compensation
b) Difficulty in managing payroll for two separate employers
c) Legal complications due to differences in employment laws
d) Reduced employee engagement and motivation
Correct Answer: c) Legal complications due to differences in employment laws
Explanation: Dual employment can lead to legal challenges because employment laws vary significantly between countries, and managing compliance for two separate employers can be complex.
Question 45
Which of the following is a key benefit of developing a “global talent management inventory” in multinational enterprises (MNEs)?
a) Increased control over local hiring decisions
b) Improved visibility of employee skills and abilities across the organization
c) Reduction in the cost of expatriate assignments
d) Simplified performance evaluation for host country nationals
Correct Answer: b) Improved visibility of employee skills and abilities across the organization
Explanation: A global talent management inventory provides a centralized record of employees' knowledge, skills, education, and performance, making it easier to manage talent across different locations and identify high-potential employees for global assignments.
Question 46
What does “power distance” refer to in the context of Hofstede’s cultural dimensions?
a) The level of independence employees have from their managers
b) The degree to which power is distributed unequally in a society or organization
c) The ability of employees to influence decision-making at the headquarters
d) The distance between lower-level employees and senior management
Correct Answer: b) The degree to which power is distributed unequally in a society or organization
Explanation: Power distance measures how much inequality in power distribution is accepted and expected in a society or organization. In high power distance cultures, there is a strong hierarchy with significant gaps between levels of authority.
Question 47
In the context of IHRM, what is a “strategic business unit” (SBU)?
a) A local subsidiary that operates independently from headquarters
b) A specific division of a multinational enterprise responsible for a particular product or market
c) A regional office that handles recruitment and talent management
d) A cross-functional team that works on global strategy development
Correct Answer: b) A specific division of a multinational enterprise responsible for a particular product or market
Explanation: A strategic business unit (SBU) is a part of the organization that focuses on a particular product or market and operates with its own strategic objectives and responsibilities.
Question 48
What is the purpose of using “equity compensation” in multinational enterprises (MNEs)?
a) To provide employees with access to local stock markets
b) To align employees’ interests with the long-term success of the company
c) To reduce overall compensation costs
d) To provide expatriates with a more competitive salary package
Correct Answer: b) To align employees' interests with the long-term success of the company
Explanation: Equity compensation, such as stock options or phantom stock, is used to align employees’ interests with the long-term success of the company by making them part-owners and beneficiaries of the company’s financial success.
Question 49
In the context of global employee relations, what is the role of “work councils”?
a) To manage employee disputes across different subsidiaries
b) To provide employee representation in corporate decision-making
c) To coordinate labor relations between the home and host countries
d) To oversee compliance with local employment laws
Correct Answer: b) To provide employee representation in corporate decision-making
Explanation: Work councils are elected bodies that represent the workforce in discussions with management, particularly on matters affecting working conditions, company policies, and strategic decisions.
Question 50
What is one of the key benefits of “codetermination” in multinational enterprises (MNEs)?
a) Reduced labor costs through improved employee relations
b) Greater employee participation in major strategic decisions
c) Simplified performance management for expatriates
d) Enhanced local responsiveness through decentralized decision-making
Correct Answer: b) Greater employee participation in major strategic decisions
Explanation: Codetermination allows employees to be represented on supervisory boards or boards of directors, giving them a voice in significant corporate decisions,
