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web.groovymark@gmail.com
- December 14, 2024
Question 01
What does “dual employment” mean in the context of international human resource management (IHRM)?
a) Working in two different roles within the same organization
b) Working for two different employers with separate payrolls
c) Working remotely for one employer and in-person for another
d) Being employed in both the home country and a foreign subsidiary simultaneously
Correct Answer: b) Working for two different employers with separate payrolls
Explanation: Dual employment refers to an employee maintaining more than one employment relationship, typically working for two employers with a split payroll arrangement.
Question 02
Which of the following best describes a “transnational corporation”?
a) A corporation that operates solely in its home country
b) A corporation that operates in multiple countries with a centralized structure
c) A corporation that integrates global operations with high local responsiveness
d) A corporation that outsources most of its operations to third-party vendors
Correct Answer: c) A corporation that integrates global operations with high local responsiveness
Explanation: Transnational corporations have a global presence but are also decentralized, allowing local subsidiaries to adapt to their local environment while maintaining global integration.
Question 03
Which of the following is a potential benefit of using a global employment company (GEC)?
a) Reduced need for compliance with local employment laws
b) Streamlined recruitment and hiring for international assignments
c) Elimination of tax obligations for expatriates
d) Centralization of decision-making for global teams
Correct Answer: b) Streamlined recruitment and hiring for international assignments
Explanation: A global employment company can streamline the process of hiring and managing expatriates and other international employees by handling employment contracts centrally.
Question 04
What does “second-generation expatriates” refer to?
a) Children of expatriates who return to their home country for education
b) Employees who relocate to the same host country as their parents
c) Naturalized citizens assigned to a country other than their birth country
d) Employees sent abroad for a second consecutive assignment
Correct Answer: c) Naturalized citizens assigned to a country other than their birth country
Explanation: Second-generation expatriates are individuals who are naturalized citizens of one country but are sent on an international assignment to another country.
Question 05
Which of the following terms best describes the transfer of knowledge from a parent company to its foreign subsidiaries?
a) Offshoring
b) Knowledge spillover
c) Reverse knowledge transfer
d) Knowledge transfer
Correct Answer: d) Knowledge transfer
Explanation: Knowledge transfer refers to the process of sharing organizational knowledge, skills, and expertise from the parent company to its foreign subsidiaries.
Question 06
What is a “phantom stock” plan used for in multinational enterprises (MNEs)?
a) To reward expatriates with stock options in the host country
b) To simulate equity compensation without giving actual shares
c) To allow employees to purchase shares in the company at a discount
d) To align expatriate compensation with local standards
Correct Answer: b) To simulate equity compensation without giving actual shares
Explanation: Phantom stock plans grant employees fictitious stock units that mirror the value of real company shares but do not confer ownership.
Question 07
Which of the following is a key advantage of using an in-house global leadership program in a multinational enterprise (MNE)?
a) Reduced costs for employee training
b) Consistent global leadership development
c) Higher employee retention rates
d) Enhanced ability to compete with local firms
Correct Answer: b) Consistent global leadership development
Explanation: In-house global leadership programs ensure that high-potential employees are trained consistently across all locations in alignment with the company's global objectives.
Question 08
What is the purpose of using “flexible benefits” in international compensation?
a) To reduce total compensation costs
b) To allow employees to choose benefits that suit their needs
c) To streamline the compensation process for expatriates
d) To provide expatriates with standardized benefits
Correct Answer: b) To allow employees to choose benefits that suit their needs
Explanation: Flexible benefits allow employees to select from a range of options that best meet their individual or family needs within a specified budget.
Question 09
What is the definition of “local responsiveness” in a multinational enterprise (MNE)?
a) The ability to follow the parent company’s policies in a foreign market
b) The ability to meet local customer needs and adapt to local conditions
c) The ability to minimize costs by standardizing operations across locations
d) The ability to centralize decision-making at the headquarters
Correct Answer: b) The ability to meet local customer needs and adapt to local conditions
Explanation: Local responsiveness refers to the ability of an MNE to adapt its operations, products, and services to meet the specific needs of local markets.
Question 10
In the context of global talent management, what is the purpose of using a “global workforce analytics” approach?
a) To track employee payroll data globally
b) To analyze workforce metrics for better decision-making
c) To predict global economic trends
d) To compare salaries between subsidiaries
Correct Answer: b) To analyze workforce metrics for better decision-making
Explanation: Global workforce analytics involves using data analysis tools to gain insights into workforce trends, performance, and talent management across a multinational organization.
Question 11
What is one of the main goals of “cross-cultural preparation” in international human resource management (IHRM)?
a) To reduce the cost of expatriate training programs
b) To help expatriates understand and adapt to the host country’s culture
c) To ensure that expatriates maintain their home-country values
d) To promote host country nationals to leadership positions
Correct Answer: b) To help expatriates understand and adapt to the host country's culture
Explanation: Cross-cultural preparation helps expatriates and their families adjust to the cultural norms and expectations of the host country, reducing culture shock and increasing assignment success.
Question 12
What is the role of “inpatriates” in a multinational enterprise (MNE)?
a) Employees who are sent to a foreign subsidiary from the parent company
b) Host country nationals who work in the home-country headquarters
c) Expatriates who return home after completing a foreign assignment
d) Employees hired locally in the host country for temporary assignments
Correct Answer: b) Host country nationals who work in the home-country headquarters
Explanation: Inpatriates are employees from the host country or third countries who are relocated to the parent company's headquarters, typically for short-term assignments.
Question 13
Which of the following is a primary factor contributing to “cultural divergence” in multinational enterprises (MNEs)?
a) Use of expatriates in key management roles
b) Global integration of business processes
c) Persistent cultural values and norms in different regions
d) Standardization of global operations across subsidiaries
Correct Answer: c) Persistent cultural values and norms in different regions
Explanation: Cultural divergence occurs when the cultural values and practices of countries continue to exert influence, leading to differences in business and HR practices across regions.
Question 14
In an international context, what is a “learning-driven international assignment”?
a) A short-term project focused on gaining operational experience
b) An assignment designed to transfer knowledge and develop local talent
c) A permanent relocation to a foreign subsidiary
d) An assignment focused on improving financial performance
Correct Answer: b) An assignment designed to transfer knowledge and develop local talent
Explanation: Learning-driven assignments focus on transferring knowledge, skills, and corporate culture from expatriates to local employees in the host country.
Question 15
Which of the following is a key feature of an “ethnocentric” staffing approach in multinational enterprises (MNEs)?
a) Preference for host country nationals in management roles
b) Reliance on parent country nationals for key leadership positions
c) Use of a regional talent pool for staffing decisions
d) Focus on global talent regardless of nationality
Correct Answer: b) Reliance on parent country nationals for key leadership positions
Explanation: Ethnocentric staffing prioritizes parent country nationals for leadership roles in subsidiaries to maintain close control over operations and strategy.
Question 16
What is the “balance sheet approach” used for in international compensation?
a) To balance employee benefits with local labor laws
b) To ensure expatriates maintain a similar standard of living as in their home country
c) To standardize compensation across different countries
d) To calculate tax deductions for expatriates
Correct Answer: b) To ensure expatriates maintain a similar standard of living as in their home country
Explanation: The balance sheet approach is designed to compensate expatriates in a way that ensures they maintain their home-country standard of living while working abroad.
Question 17
In Hofstede’s cultural dimensions, which of the following represents a high level of uncertainty avoidance?
a) Acceptance of risk and innovation
b) Preference for clear rules and structured environments
c) Strong individualism in workplace culture
d) A focus on long-term planning and future orientation
Correct Answer: b) Preference for clear rules and structured environments
Explanation: High uncertainty avoidance cultures prefer structured environments, clear rules, and minimize ambiguity in the workplace to avoid uncertainty.
Question 18
Which of the following describes the role of “Global Union Federations” (GUFs) in international labor relations?
a) To oversee labor disputes within multinational enterprises
b) To represent trade unions in specific industrial sectors on a global level
c) To manage negotiations between governments and labor unions
d) To create labor laws applicable to multinational enterprises
Correct Answer: b) To represent trade unions in specific industrial sectors on a global level
Explanation: Global Union Federations (GUFs) represent national and regional trade unions in specific industrial sectors and help coordinate international labor activities.
Question 19
Which term refers to the practice of developing a subsidiary by acquiring land and building facilities from scratch?
a) Offshoring
b) Joint venture
c) Greenfield project
d) Merger
Correct Answer: c) Greenfield project
Explanation: A greenfield project involves developing a subsidiary from scratch by acquiring undeveloped land (a "green field") and constructing the necessary facilities.
Question 20
What does the term “strategic international HRM” (SIHRM) refer to in a multinational enterprise (MNE)?
a) The hiring of only local employees for key roles
b) The development and implementation of HR practices that support global business strategies
c) The focus on cost-cutting measures in foreign subsidiaries
d) The training of expatriates in international labor laws
Correct Answer: b) The development and implementation of HR practices that support global business strategies
Explanation: Strategic international HRM involves aligning human resource management practices with the multinational enterprise's global business objectives and strategies.
