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web.groovymark@gmail.com
- December 14, 2024
Question 21
What is a key challenge of managing “transnational structures” in multinational enterprises (MNEs)?
a) Ensuring compliance with local employment laws
b) Balancing high local responsiveness with high global integration
c) Standardizing HR practices across subsidiaries
d) Reducing the cost of expatriate assignments
Correct Answer: b) Balancing high local responsiveness with high global integration
Explanation: Transnational structures require a balance between integrating global operations and responding to local market conditions, which can be challenging in terms of coordination and decision-making.
Question 22
In international HRM, what does “brain drain” refer to?
a) The loss of talent when skilled employees leave their home country for better opportunities abroad
b) The relocation of expatriates to foreign subsidiaries
c) The process of repatriating employees after international assignments
d) The failure of expatriates to adjust to their host country
Correct Answer: a) The loss of talent when skilled employees leave their home country for better opportunities abroad
Explanation: Brain drain occurs when a country loses skilled and educated workers to other countries that offer better employment opportunities, leading to a depletion of talent in the home country.
Question 23
Which of the following best describes the “iron law of social responsibility”?
a) The social responsibility of a company is proportional to its influence and power in society
b) Companies are legally required to meet minimum environmental and social standards
c) Companies must adhere to strict ethical standards in all operations
d) The more a company grows, the less responsible it becomes for social issues
Correct Answer: a) The social responsibility of a company is proportional to its influence and power in society
Explanation: The iron law of social responsibility states that as companies grow in size and influence, their responsibility to society increases accordingly, often requiring them to address social and environmental issues.
Question 24
What is a primary benefit of developing “global leadership competencies” in multinational enterprises (MNEs)?
a) It reduces the cost of expatriate assignments
b) It helps leaders navigate cultural differences and manage diverse teams
c) It centralizes decision-making at headquarters
d) It simplifies the process of managing host-country nationals
Correct Answer: b) It helps leaders navigate cultural differences and manage diverse teams
Explanation: Developing global leadership competencies equips leaders with the skills to manage diverse teams, navigate cultural differences, and implement strategies that are effective across different regions.
Question 25
In the context of international human resource management (IHRM), what is the primary purpose of “international assignment management”?
a) To manage the compensation and benefits of expatriates
b) To handle the logistics of sending employees on international assignments
c) To ensure that expatriates are effectively integrated into their host countries and perform well
d) To reduce the costs associated with expatriate assignments
Correct Answer: c) To ensure that expatriates are effectively integrated into their host countries and perform well
Explanation: International assignment management focuses on supporting expatriates throughout their assignment, including pre-departure training, ongoing support, and performance management, to ensure successful outcomes.
Question 26
What does “polycentrism” emphasize in the context of international HRM?
a) The standardization of HR practices across all global subsidiaries
b) The adaptation of HR practices to suit the culture and context of each host country
c) The use of expatriates from the home country for key leadership roles
d) The centralization of HR decision-making at the headquarters
Correct Answer: b) The adaptation of HR practices to suit the culture and context of each host country
Explanation: Polycentrism involves adapting HR practices to fit the local culture and legal environment of each subsidiary, allowing for greater responsiveness to local needs and preferences.
Question 27
In multinational enterprises (MNEs), what is the purpose of “global employment companies” (GECs)?
a) To hire expatriates for temporary assignments in foreign subsidiaries
b) To centralize the employment of foreign workers through an existing foreign entity
c) To manage the legal compliance of international employees
d) To streamline the process of hiring host-country nationals
Correct Answer: b) To centralize the employment of foreign workers through an existing foreign entity
Explanation: Global employment companies (GECs) enable multinational enterprises to hire and manage foreign employees by using a foreign entity that is already established, simplifying the employment and compliance process.
Question 28
What does the term “going native” refer to in the context of expatriates?
a) When expatriates return to their home country after a long assignment abroad
b) When expatriates adopt the customs and lifestyle of their host country to fit in better
c) When expatriates are sent to their home country for training
d) When expatriates live in a separate community from locals in the host country
Correct Answer: b) When expatriates adopt the customs and lifestyle of their host country to fit in better
Explanation: "Going native" refers to expatriates who adopt the local customs, behaviors, and lifestyle of their host country, often blending in with the local population over time.
Question 29
What is the main advantage of using “performance wheels” in HR performance management?
a) They allow for centralized decision-making on employee appraisals
b) They provide a comprehensive approach to managing employee performance, from goal setting to feedback
c) They standardize the performance evaluation process across all subsidiaries
d) They simplify the process of evaluating expatriates
Correct Answer: b) They provide a comprehensive approach to managing employee performance, from goal setting to feedback
Explanation: Performance wheels encompass various stages of performance management, including setting goals, providing feedback, conducting appraisals, and linking rewards to performance, ensuring a well-rounded evaluation process.
Question 30
What is a key feature of “greenfield projects” in international business expansion?
a) The acquisition of an existing company in a foreign market
b) The development of new facilities from the ground up in a foreign market
c) The relocation of expatriates to manage foreign subsidiaries
d) The standardization of global HR practices across subsidiaries
Correct Answer: b) The development of new facilities from the ground up in a foreign market
Explanation: Greenfield projects involve building new operations, such as factories or offices, from scratch in a foreign market, allowing companies to establish facilities that meet their specific needs.
Question 31
What is one of the challenges associated with “inpatriation” in multinational enterprises (MNEs)?
a) Ensuring compliance with local employment laws
b) Integrating inpatriates into the parent company’s corporate culture
c) Reducing the cost of expatriate assignments
d) Balancing the need for local and global HR practices
Correct Answer: b) Integrating inpatriates into the parent company’s corporate culture
Explanation: Inpatriates, who are typically employees from subsidiaries relocated to the parent company’s headquarters, may face challenges in adapting to the corporate culture and navigating the different business practices at the parent company.
Question 32
What is the main objective of “knowledge sharing” in multinational enterprises (MNEs)?
a) To centralize all HR decisions at the headquarters
b) To transfer information and expertise across borders to improve organizational performance
c) To reduce the cost of expatriate assignments
d) To hire only host-country nationals for key leadership roles
Correct Answer: b) To transfer information and expertise across borders to improve organizational performance
Explanation: Knowledge sharing in MNEs involves transferring knowledge, skills, and expertise across subsidiaries and regions to enhance organizational performance and promote innovation.
Question 33
Which of the following best describes the term “dual employment” in international assignments?
a) An employee works for two or more employers simultaneously, typically involving split payroll
b) An expatriate is employed by both the home and host country during the assignment
c) An employee is hired on a part-time basis for assignments in multiple countries
d) An expatriate works for a local employer while on an international assignment
Correct Answer: a) An employee works for two or more employers simultaneously, typically involving split payroll
Explanation: Dual employment occurs when an employee maintains employment relationships with more than one employer, often with a split payroll arrangement, where compensation is divided between multiple companies.
Question 34
What is the purpose of “international remuneration” in multinational enterprises (MNEs)?
a) To standardize compensation packages across all subsidiaries
b) To provide a competitive compensation and benefits structure for employees in different locations
c) To reduce the overall costs of expatriate assignments
d) To centralize payroll and benefits management at the headquarters
Correct Answer: b) To provide a competitive compensation and benefits structure for employees in different locations
Explanation: International remuneration focuses on developing compensation and benefits packages that are competitive in the local market, considering factors such as cost of living, legal requirements, and cultural practices.
Question 35
In the context of cultural dimensions, what does “power distance” refer to?
a) The extent to which individuals in a society accept unequal distribution of power
b) The level of assertiveness and competitiveness within a society
c) The degree to which societies tolerate uncertainty and ambiguity
d) The emphasis on personal achievement and individualism
Correct Answer: a) The extent to which individuals in a society accept unequal distribution of power
Explanation: Power distance reflects how much people in a society accept hierarchical structures and unequal power distribution, often determining how authority and decision-making are perceived in organizations.
Question 36
Which of the following is an example of a “strategic international HRM” approach?
a) Implementing a standardized global HR policy across all subsidiaries
b) Customizing HR policies to align with each subsidiary’s local practices
c) Combining local and global HR practices to achieve the organization’s international objectives
d) Hiring only host-country nationals for leadership roles in subsidiaries
Correct Answer: c) Combining local and global HR practices to achieve the organization’s international objectives
Explanation: Strategic international HRM involves aligning HR practices with the multinational enterprise’s international goals, often combining both global and local practices to ensure the company’s success.
Question 37
What does the “balance sheet” approach in expatriate compensation aim to achieve?
a) Simplifying the expatriate compensation process
b) Ensuring that expatriates are paid the same as host-country nationals
c) Maintaining expatriates’ standard of living by balancing home and host country expenses
d) Reducing the overall cost of expatriate assignments
Correct Answer: c) Maintaining expatriates’ standard of living by balancing home and host country expenses
Explanation: The balance sheet approach ensures that expatriates maintain their standard of living by providing allowances and adjustments to cover differences in cost of living, taxes, and other expenses between the home and host countries.
Question 38
In multinational enterprises (MNEs), what is the purpose of “international workforce planning”?
a) To ensure that expatriates are adequately compensated during their assignments
b) To estimate employment needs, recruit, and manage talent across different countries
c) To reduce the cost of hiring expatriates for foreign assignments
d) To centralize HR decision-making at the headquarters
Correct Answer: b) To estimate employment needs, recruit, and manage talent across different countries
Explanation: International workforce planning involves forecasting employment needs, recruiting talent, and managing the global workforce to meet the organizational goals in different regions and subsidiaries.
Question 39
. Which of the following best describes “SMEs” in the context of global HR?
a) Small and medium-sized enterprises that operate in multiple countries
b) Expatriates sent on short-term assignments to foreign subsidiaries
c) Specialized management employees responsible for overseeing expatriates
d) Subsidiaries that are managed by host-country nationals
Correct Answer: a) Small and medium-sized enterprises that operate in multiple countries
Explanation: SMEs (small and medium-sized enterprises) refer to businesses that operate on a smaller scale than large multinational corporations but may still have international operations, requiring specific HR practices for managing their global workforce.
Question 40
What is the primary focus of “global talent management inventories” in multinational enterprises?
a) To reduce the cost of expatriate assignments
b) To centralize HR decision-making at the headquarters
c) To maintain records of employees’ skills, knowledge, and experience for global talent management
d) To standardize HR practices across all subsidiaries
Correct Answer: c) To maintain records of employees' skills, knowledge, and experience for global talent management
Explanation: Global talent management inventories store detailed information about employees’ skills, knowledge, experience, and performance, helping multinational enterprises manage their global workforce effectively.
