-
web.groovymark@gmail.com
- December 14, 2024
Question 41
What is the main purpose of “international mergers and acquisitions” in global business?
a) To centralize decision-making at the headquarters level
b) To expand market presence and gain access to new resources and technologies
c) To reduce the need for expatriate assignments
d) To standardize HR practices across all subsidiaries
Correct Answer: b) To expand market presence and gain access to new resources and technologies
Explanation: International mergers and acquisitions allow multinational enterprises to grow their market presence, access new resources, and gain technological capabilities, helping them remain competitive in the global business environment.
Question 42
What is a “third-country national” (TCN) in the context of multinational enterprises?
a) A parent-country national transferred to work in a foreign subsidiary
b) A local employee hired to work in a subsidiary located in their own country
c) An employee hired from a country other than the parent or host country
d) An expatriate who works for more than one multinational enterprise
Correct Answer: c) An employee hired from a country other than the parent or host country
Explanation: Third-country nationals are employees from a country other than the parent or host country, often hired for their expertise or specific skills to work in a subsidiary of the multinational enterprise.
Question 43
What is the purpose of “employment at will” in the context of employee relations in multinational enterprises?
a) To ensure that employees cannot be terminated without cause
b) To allow either the employer or the employee to terminate employment without advance notice
c) To centralize HR decision-making at the headquarters level
d) To reduce the cost of expatriate assignments through localization
Correct Answer: b) To allow either the employer or the employee to terminate employment without advance notice
Explanation: The employment-at-will doctrine allows both the employer and the employee to terminate the employment relationship at any time, without prior notice, provided that it does not violate any laws or contractual agreements.
Question 44
In global HR, what is “extra-territorial law”?
a) A law that applies only to foreign subsidiaries of a multinational enterprise
b) A law that applies to a country’s businesses even when they operate outside the country’s borders
c) A law that centralizes decision-making at the headquarters level
d) A law that regulates the compensation packages for expatriates
Correct Answer: b) A law that applies to a country's businesses even when they operate outside the country's borders
Explanation: Extra-territorial laws are laws that have written provisions extending their application beyond a country's borders, affecting multinational enterprises operating in foreign locations.
Question 45
What is the role of “performance management” in global HR?
a) To reduce the cost of expatriate assignments
b) To align individual and team performance with organizational goals across multiple countries
c) To centralize HR decision-making at the headquarters level
d) To standardize compensation packages across all subsidiaries
Correct Answer: b) To align individual and team performance with organizational goals across multiple countries
Explanation: Performance management in global HR focuses on ensuring that employees' performance in different countries aligns with the overall goals and objectives of the multinational enterprise, contributing to its success in the global market.
Question 46
What is “strategic management” in the context of global business?
a) Approaches used by managers to reduce the cost of expatriate assignments
b) Approaches used by managers to run a company, derived from the firm’s vision and objectives
c) A method of centralizing decision-making at the headquarters level
d) A process of standardizing employee benefits across all subsidiaries
Correct Answer: b) Approaches used by managers to run a company, derived from the firm's vision and objectives
Explanation: Strategic management involves the approaches and actions that managers use to guide the company toward achieving its long-term vision and objectives, ensuring that the business remains competitive and successful in the global marketplace.
Question 47
What is the key challenge of “managing expatriate compensation” in multinational enterprises?
a) Reducing the cost of expatriate assignments through localization
b) Maintaining equity and competitiveness while accounting for cost-of-living differences, tax obligations, and hardship allowances
c) Centralizing compensation decisions at the headquarters level
d) Standardizing employee benefits across all subsidiaries
Correct Answer: b) Maintaining equity and competitiveness while accounting for cost-of-living differences, tax obligations, and hardship allowances
Explanation: Managing expatriate compensation involves creating packages that maintain equity and competitiveness while considering cost-of-living differences, tax liabilities, and potential hardships in the host country.
Question 48
What is the purpose of “employee stock ownership plans” (ESOPs) in multinational enterprises?
a) To provide employees with the option to purchase company stock at a discounted price
b) To grant employees shares of company stock as part of their compensation
c) To reduce the cost of expatriate assignments
d) To centralize decision-making at the headquarters level
Correct Answer: b) To grant employees shares of company stock as part of their compensation
Explanation: Employee stock ownership plans (ESOPs) provide employees with shares of company stock, often as part of a bonus or profit-sharing plan, aligning their interests with the success of the company.
Question 49
What is the purpose of “international labor relations organizations” in global HR?
a) To centralize decision-making at the headquarters level
b) To address labor-related issues across multiple countries and industries
c) To standardize employee benefits across all subsidiaries
d) To reduce the cost of expatriate assignments
Correct Answer: b) To address labor-related issues across multiple countries and industries
Explanation: International labor relations organizations, such as the International Trade Union Confederation (ITUC) and European Trade Union Confederation (ETUC), focus on representing workers' rights and addressing labor-related issues in multinational enterprises operating in different countries.
Question 50
In global HR management, what does “decentralization” refer to?
a) The centralization of decision-making at the headquarters level
b) The distribution of decision-making and authority to local subsidiaries and regions
c) The reduction of employee benefits in response to cost-cutting measures
d) The standardization of HR practices across all subsidiaries
Correct Answer: b) The distribution of decision-making and authority to local subsidiaries and regions
Explanation: Decentralization in global HR management involves delegating decision-making authority to subsidiaries and regions, allowing them to operate with greater autonomy and responsiveness to local conditions.
