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Question
The dynamic capability theory states that for a firm to invest overseas, it must have three kinds of advantages: ownership specific, internalization, and location specific.
Answer
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Related questions
Q:
Please provide an overview of the major issues a compensation package for expatriates should address.
Q:
What challenges often confront the spouses of expatriates, and what options are available for managing these challenges?
Q:
Nancy Adler's research suggests that women:
A. will never get to the top because they take time-out for children.
B. are more likely than men to succeed if they quit the company and start their own businesses.
C. have been remarkably successful in international assignments, which does not seem to be related to gender.
D. are less likely than men to succeed in international assignments.
E. two of the above.
Q:
With regard to the use of women versus men for expat management assignments:
A. few qualified women candidates are available.
B. few women candidates are accepting assignments and enjoying the experience.
C. those women who go into expatriate positions tend to do well. The hurdle is in getting the assignment.
D. the women expatriates are making more money than their male counterparts.
E. two of the above.
Q:
Generalizations about TCNs are difficult because:
A. the IC usually does not know enough about their backgrounds.
B. the geocentric staffing policy prohibits these generalizations.
C. two of A, B, and D.
D. people achieve the TCN status in different ways.
E. all of A, B, and D.
Q:
An advantage of hiring personnel who are citizens of neither the home country nor the host country may be that they:
A. may accept lower wages and benefits.
B. may come from a culture similar to that of the host country.
C. all of A, B, and D.
D. have international experience.
E. two of A, B, and D.
Q:
Home-country nationals may be used in host-country management because:
A. all of B, C, and D.
B. host-country nationals are unavailable.
C. home-country nationals are being groomed for IC headquarters.
D. IC headquarters wants one of its nationals in the host country.
E. two of B, C, and D.
Q:
A regiocentric staffing policy:
A. involves human resource policies that are created at the local level for the specific context in which the local operations operate.
B. may send TCNs to fill management posts, to avoid problems from using PCNs or HCNs.
C. selects the best person for each job, without considering national origin.
D. two of the above.
E. all of A, B, and C.
Q:
A polycentric staffing policy:
A. involves human resource policies that are created at the local level for the specific context in which the local operations operate.
B. results in the company hiring local managers who are familiar with the home country of the IC and with its corporate culture, policies, and practices.
C. may confront the problem of having the best people pirated away by local firms or other IC subsidiaries.
D. two of the above.
E. all of A, B, and C.
Q:
A global mindset:
A. is a "prerequisite for global industry dominance."
B. combines an openness to and awareness of diversity across cultures and markets with a propensity and an ability to synthesize across this diversity.
C. results from a combination of training and language skills.
D. all of the above.
E. two of A, B, and C.
Q:
The effectiveness of every organization depends to a great extent on how well its:
A. human resources are utilized.
B. production facilities are operated.
C. financial resources are planned.
D. all of the above.
E. two of A, B, and C.
Q:
Bonuses are payments made to compensate expatriates for the extra costs they must incur to live as well abroad as they did in the home country.
Q:
In the method favored by the majority of American ICs, the salary part of an expatriate employee's compensation package will generally be governed by the employee's level in the organization and will not be higher because of the foreign assignment.
Q:
Expatriate children who lived in a foreign country for a period of time while in their impressionable adolescent years often have attributes of "third-world kids."
Q:
In exposure netting, a risk management technique similar to multilateral netting, the firm runs a centralized clearing account that matches and nets out FX exposure across currencies or currency families.
Q:
Multilateral netting is an approach to debt management in which subsidiaries aggregate their debt service.
Q:
The Global Reporting Initiative has made little effort in establishing a framework for global 3BL reporting, despite its UN collaboration.
Q:
Accounting is an objective, fact-based discipline and is not influenced by culture.
Q:
There are three points at which operating in a foreign currency raises accounting issues: when transactions are made in foreign currencies, when foreign subsidiaries consolidate their results to the parent company, and when debt is acquired in foreign currencies.
Q:
Economic exposure occurs at the operations level and results from:
A. poor decision making in foreign markets.
B. higher tax rates in foreign operations.
C. risks incurred during foreign transactions.
D. exchange rate changes on projected cash flows.
Q:
What is a controlled foreign corporation?
A. A foreign company with one major stockholder in a foreign country
B. A subsidiary with the parent company having at least 50 percent ownership and control
C. An FDI in which foreign owners own the corporation fully
D. A centralized structure for foreign ownership
Q:
Whether the functional currency is local or the parent company's currency, owner's equity is always translated at:
A. the rate in effect when the stock was issued.
B. the rate in effect the day of the consolidation.
C. the rate in effect the day of the journal entry.
D. the method of the company's choice, but consistency is required.
Q:
Swap contracts are agreements to exchange:
A. currencies at specified rates at specified times in the future.
B. equity shares in the future at today's rates.
C. supplier information to ensure competitive pricing.
D. B and C.
Q:
Transaction exposure occurs when:
A. the value of the currency changes between when the asset or liability is recorded and when results are consolidated.
B. the firm has transactions in a foreign currency.
C. the firm's strategic projections use a currency value that has changed.
D. the recorded value of an asset or liability changes between its being reported and its consolidation.
Q:
The cash flow management of a global firm, compared to that of a domestic firm, is:
A. exactly the same: moving money is moving money.
B. less complex, because the sums are larger and the process is centralized.
C. more complex, because currencies vary, as do national-level regulations.
D. more complex, because the number of subsidiaries or branches is larger.
Q:
In their measurement and disclosure for accounting systems, less developed countries tend toward:
A. transparency and conservatism.
B. transparency and optimism.
C. secrecy and optimism.
D. secrecy and conservatism.
Q:
In the current rate method, assets and liabilities are translated:
A. at their historical rates.
B. at an average of the historical and current rates.
C. on the date the balance sheet is produced.
D. however the company chooses, as long as it is consistent in all its foreign operations.
Q:
In some cases, an international company legally can keep more profit after taxes by allocating work and prices.
Q:
The more familiar, or the more similar, conditions in the host country are perceived to be, the more likely headquarters is to rely on subsidiary management.
Q:
A form of organization characterized by lateral decision processes, horizontal networks, and a strong corporatewide business philosophy is a horizontal corporation.