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web.groovymark@gmail.com
- December 14, 2024
Question 21
What is “secondment” in the context of global HR?
a) Terminating an expatriate’s contract before the assignment ends
b) An international assignee who remains employed by the home country but is loaned to the foreign subsidiary
c) Hiring local employees to replace expatriates
d) Centralizing decision-making at the headquarters level
Correct Answer: b) An international assignee who remains employed by the home country but is loaned to the foreign subsidiary
Explanation: Secondment involves an international assignee remaining employed by the home country (headquarters) while being "loaned" to work in a foreign subsidiary, often for a fixed period.
Question 22
What is the key difference between “ethical relativism” and “ethical absolutism”?
a) Ethical relativism suggests that ethical standards are universal, while ethical absolutism suggests they vary by culture
b) Ethical relativism suggests that what is right is defined by society, while ethical absolutism suggests universal ethical standards apply to all cultures
c) Ethical relativism focuses on global business standards, while ethical absolutism focuses on local business practices
d) Ethical relativism applies to expatriates, while ethical absolutism applies to host-country nationals
Correct Answer: b) Ethical relativism suggests that what is right is defined by society, while ethical absolutism suggests universal ethical standards apply to all cultures
Explanation: Ethical relativism argues that moral standards are determined by societal norms and may vary by culture, while ethical absolutism believes in a single set of universal ethical principles that apply in all circumstances.
Question 23
What is the purpose of a “global employment company” in international HR?
a) To establish equity-based partnerships between multinational enterprises
b) To hire and manage a foreign workforce through an existing foreign company
c) To centralize employee benefits decisions at the headquarters level
d) To manage employee performance across multiple subsidiaries
Correct Answer: b) To hire and manage a foreign workforce through an existing foreign company
Explanation: A global employment company (GEC), also known as a professional employer organization (PEO), allows multinational enterprises to hire and manage a foreign workforce through an established foreign company.
Question 24
What does “codetermination” refer to in the context of employee relations in multinational enterprises?
a) A legal requirement for employees to participate in major strategic decisions of an organization
b) A system for standardizing employee benefits across all subsidiaries
c) A method of centralizing HR decision-making at the headquarters level
d) A strategy for managing expatriate performance evaluations
Correct Answer: a) A legal requirement for employees to participate in major strategic decisions of an organization
Explanation: Codetermination is a legal framework in some countries that requires employees to have representation on supervisory boards or in major decision-making processes, giving them a voice in corporate governance.
Question 25
What is the focus of “corporate citizenship” in multinational enterprises?
a) Ensuring expatriates are paid according to host-country salary norms
b) Acting as responsible members of society by addressing social and environmental issues
c) Reducing the cost of expatriate assignments through localization
d) Centralizing decision-making at the headquarters level
Correct Answer: b) Acting as responsible members of society by addressing social and environmental issues
Explanation: Corporate citizenship refers to the role of multinational enterprises in being socially responsible members of society by addressing issues such as environmental sustainability, ethical behavior, and community development.
Question 26
What is the main challenge of “international workforce planning and staffing” in multinational enterprises?
a) Reducing the cost of expatriate assignments
b) Estimating employment needs, recruiting, and selecting talent across different countries
c) Standardizing employee benefits across all subsidiaries
d) Managing virtual teams across multiple time zones
Correct Answer: b) Estimating employment needs, recruiting, and selecting talent across different countries
Explanation: International workforce planning and staffing involves estimating the need for talent, recruiting, selecting, and repatriating employees across different countries, considering local labor market conditions and global business needs.
Question 27
What is the purpose of “cross-border labor movement” in international employee relations?
a) To reduce the cost of expatriate assignments
b) To allow employees to work for multiple employers simultaneously
c) To enable labor unions to collaborate across national borders to achieve common goals
d) To centralize HR decision-making at the headquarters level
Correct Answer: c) To enable labor unions to collaborate across national borders to achieve common goals
Explanation: Cross-border labor movement allows labor unions in different countries to work together to pursue shared objectives, such as improving workers' rights and working conditions in multinational enterprises.
Question 28
What is the primary goal of “corporate sustainability” in multinational enterprises?
a) To standardize employee benefits across all subsidiaries
b) To meet the needs of the present without compromising the ability of future generations to meet their own needs
c) To reduce the cost of expatriate assignments through localization
d) To centralize decision-making at the headquarters level
Correct Answer: b) To meet the needs of the present without compromising the ability of future generations to meet their own needs
Explanation: Corporate sustainability focuses on ensuring that a company's actions and decisions meet the needs of the present while preserving resources and opportunities for future generations, emphasizing long-term environmental, social, and economic responsibility.
Question 29
What is the main objective of “strategic international HRM”?
a) To reduce the cost of expatriate assignments by localizing compensation
b) To align HR practices with the overall vision and objectives of multinational enterprises in a global context
c) To centralize all HR decision-making at the headquarters level
d) To standardize employee benefits across all subsidiaries
Correct Answer: b) To align HR practices with the overall vision and objectives of multinational enterprises in a global context
Explanation: Strategic international HRM focuses on creating and implementing HR policies and practices that align with the global vision and objectives of multinational enterprises, supporting the company's success in diverse markets.
Question 30
What is the purpose of “international HRIS” (Human Resource Information System)?
a) To manage compensation and benefits packages for expatriates
b) To provide a centralized platform for managing global HR data and processes
c) To reduce the cost of expatriate training programs
d) To standardize employee benefits across all subsidiaries
Correct Answer: b) To provide a centralized platform for managing global HR data and processes
Explanation: An international HRIS is a centralized platform that allows multinational enterprises to manage HR data and processes across their global workforce, ensuring consistency and efficiency in HR management.
Question 31
What is the main focus of “training and development” in global HR management?
a) To provide short-term assignments for expatriates
b) To develop and improve the skills and knowledge of employees to enhance job performance
c) To reduce the cost of employee benefits in multinational enterprises
d) To standardize HR practices across all subsidiaries
Correct Answer: b) To develop and improve the skills and knowledge of employees to enhance job performance
Explanation: Training and development focus on enhancing employees' capabilities by providing learning opportunities that improve job performance and support career growth within the global organization.
Question 32
What is the main challenge of “brain drain” in the context of global HR?
a) The relocation of highly skilled professionals to foreign countries, leading to a loss of talent for their home country
b) The centralization of HR decision-making at the headquarters level
c) The reduction of employee benefits in multinational enterprises
d) The need for expatriates to adapt to local cultural norms
Correct Answer: a) The relocation of highly skilled professionals to foreign countries, leading to a loss of talent for their home country
Explanation: Brain drain occurs when highly skilled professionals leave their home country for better opportunities abroad, creating a talent shortage in their home country and impacting its economic and social development.
Question 33
In global HR, what is “localization” in the context of expatriate assignments?
a) Sending expatriates on short-term assignments
b) Converting expatriates to permanent local employees in the host country
c) Standardizing HR practices across all subsidiaries
d) Hiring third-country nationals for key positions
Correct Answer: b) Converting expatriates to permanent local employees in the host country
Explanation: Localization refers to the process of converting expatriates into permanent local employees in the host country, often after they have spent several years working abroad.
Question 34
What is the role of “international succession planning” in multinational enterprises?
a) To reduce the need for expatriates by hiring host-country nationals
b) To ensure a pipeline of qualified candidates for leadership roles across global subsidiaries
c) To centralize decision-making at the headquarters level
d) To standardize employee benefits across all subsidiaries
Correct Answer: b) To ensure a pipeline of qualified candidates for leadership roles across global subsidiaries
Explanation: International succession planning involves identifying and developing potential leaders within the global workforce, ensuring that multinational enterprises have a strong pool of talent for future leadership roles.
Question 35
What is the main purpose of “global leadership development” programs in multinational enterprises?
a) To reduce the need for expatriate assignments
b) To develop leaders who can effectively manage and navigate the complexities of global business
c) To centralize HR decision-making at the headquarters level
d) To standardize employee benefits across all subsidiaries
Correct Answer: b) To develop leaders who can effectively manage and navigate the complexities of global business
Explanation: Global leadership development programs are designed to equip leaders with the skills and competencies needed to manage the challenges of operating in diverse cultural, economic, and political environments across the globe.
Question 36
What is the main challenge of “managing heterogeneous teams” in a global business environment?
a) Reducing the cost of expatriate assignments
b) Managing cultural differences, communication styles, and diverse perspectives
c) Centralizing decision-making at the headquarters level
d) Standardizing employee benefits across all subsidiaries
Correct Answer: b) Managing cultural differences, communication styles, and diverse perspectives
Explanation: Managing heterogeneous teams in a global business environment involves addressing challenges related to cultural differences, communication styles, and varying perspectives, which can impact collaboration and decision-making.
Question 37
In global HR, what is “flexibility-security nexus” in the context of European labor markets?
a) The need to balance job security with flexible labor market practices to remain globally competitive
b) The process of reducing employee benefits in response to cost-cutting measures
c) The centralization of HR decision-making at the headquarters level
d) The focus on standardizing compensation packages across all subsidiaries
Correct Answer: a) The need to balance job security with flexible labor market practices to remain globally competitive
Explanation: The flexibility-security nexus refers to the balance required in European labor markets between providing job security for employees and allowing flexibility in labor practices to enable global competitiveness.
Question 38
What is the main focus of “international remuneration” in multinational enterprises?
a) To standardize employee benefits across all subsidiaries
b) To design compensation and benefits packages for employees working in different countries
c) To centralize HR decision-making at the headquarters level
d) To reduce the cost of expatriate assignments
Correct Answer: b) To design compensation and benefits packages for employees working in different countries
Explanation: International remuneration focuses on creating compensation and benefits packages that are tailored to the specific needs of employees working in various global locations, taking into account local cost of living, market rates, and legal requirements.
Question 39
What is the main objective of “international assignment management” in multinational enterprises?
a) To reduce the number of expatriate assignments
b) To manage the deployment, performance, and return of employees working on international assignments
c) To centralize decision-making at the headquarters level
d) To standardize employee benefits across all subsidiaries
Correct Answer: b) To manage the deployment, performance, and return of employees working on international assignments
Explanation: International assignment management involves overseeing the entire process of sending employees on global assignments, from selection and deployment to performance evaluation and repatriation, ensuring that assignments are successful for both the employee and the organization.
Question 40
What is “phantom stock” in the context of global compensation?
a) A type of equity compensation where employees receive shares of company stock
b) A simulated equity plan that grants employees fictitious stock units whose value corresponds to real stock prices
c) A method of reducing compensation for expatriates
d) A strategy for centralizing compensation decisions at the headquarters level
Correct Answer: b) A simulated equity plan that grants employees fictitious stock units whose value corresponds to real stock prices
Explanation: Phantom stock is a type of simulated equity compensation where employees are awarded fictitious stock units whose value fluctuates based on real stock prices, offering a reward without actual stock ownership.
