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web.groovymark@gmail.com
- December 14, 2024
Question 41
In Hofstede’s cultural dimensions, which concept measures the extent to which less powerful members of a society accept unequal distribution of power?
a) Individualism
b) Power distance
c) Masculinity
d) Uncertainty avoidance
Correct Answer: b) Power distance
Explanation: Power distance refers to the degree to which people accept inequalities in power and authority in their society or organization.
Question 42
Which of the following is a primary reason for the failure of international mergers and acquisitions (IM&As)?
a) Lack of government support
b) Insufficient technical knowledge transfer
c) Poor cultural integration between merging companies
d) Legal disputes over intellectual property
Correct Answer: c) Poor cultural integration between merging companies
Explanation: Cultural integration is often a key factor in the failure of international mergers and acquisitions, as differences in organizational culture can disrupt collaboration.
Question 43
Which of the following describes the process of an employee being “seconded” to a foreign office?
a) They are terminated from their home office and rehired abroad
b) They remain employed by their home office but are temporarily transferred abroad
c) They are permanently relocated to a foreign office
d) They are employed simultaneously by both the home office and the foreign subsidiary
Correct Answer: b) They remain employed by their home office but are temporarily transferred abroad
Explanation: In secondment, employees are temporarily transferred to work in a foreign location but remain on the payroll and under contract with their home office.
Question 44
What is a primary consideration when developing a global compensation strategy for multinational enterprises (MNEs)?
a) Aligning with home-country tax regulations
b) Ensuring comparability and equity across different locations
c) Focusing on recruiting local talent only
d) Using only local currencies for compensation
Correct Answer: b) Ensuring comparability and equity across different locations
Explanation: A key challenge in developing global compensation strategies is ensuring that salaries and benefits are comparable and equitable across all the locations where the MNE operates.
Question 45
What is one of the most significant risks of expatriate failure for multinational enterprises (MNEs)?
a) High tax rates
b) Poor job performance
c) High repatriation costs
d) Lack of family adaptation to the host country
Correct Answer: d) Lack of family adaptation to the host country
Explanation: A common reason for expatriate failure is the difficulty that family members face in adapting to the host country’s culture and lifestyle.
Question 46
Which of the following terms refers to an expatriate who is sent on assignment for knowledge transfer or learning purposes?
a) Demand-driven assignee
b) Learning-driven assignee
c) Repatriate
d) Third Country National (TCN)
Correct Answer: b) Learning-driven assignee
Explanation: A learning-driven assignee is an expatriate sent abroad primarily to transfer knowledge or acquire new skills, often for the benefit of both the individual and the organization.
Question 47
What does “localization” mean in the context of expatriate management?
a) Hiring only local employees for key roles in a foreign subsidiary
b) Converting an expatriate’s compensation package to align with the local market
c) Returning expatriates to the home country for key roles
d) Training local employees to work in the home country
Correct Answer: b) Converting an expatriate's compensation package to align with the local market
Explanation: Localization involves adjusting an expatriate's compensation to match local market conditions, including salary, benefits, and tax structures.
Question 48
What does “receptive IHRM strategy” refer to in multinational enterprises (MNEs)?
a) A strategy that allows a high degree of local responsiveness
b) A strategy with high levels of integration and low local responsiveness
c) A strategy that focuses exclusively on host country nationals for key roles
d) A strategy that decentralizes decision-making authority to subsidiaries
Correct Answer: b) A strategy with high levels of integration and low local responsiveness
Explanation: A receptive IHRM strategy focuses on high integration with headquarters but offers low local responsiveness, making decisions centrally.
Question 49
In Hofstede’s cultural dimensions, which country is most likely to score high on individualism?
a) Japan
b) United States
c) China
d) Mexico
Correct Answer: b) United States
Explanation: The United States is known for its high score in individualism, valuing personal freedom and individual achievement over collective goals.
Question 50
What does “phantom stock” refer to in the context of international compensation?
a) Shares that are purchased at a discounted price
b) Fictitious stock units granted to employees that mimic the value of real shares
c) A portion of the company stock that is reserved for future employee purchase
d) Stock units that are transferred to a third-party entity
Correct Answer: b) Fictitious stock units granted to employees that mimic the value of real shares
Explanation: Phantom stock refers to simulated equity plans that grant employees units whose value mirrors actual company shares without giving them ownership of the shares.
