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Q:
Planning for an expatriate's return should begin while the employee is still on the overseas assignment.
Q:
Which of the following is an implication of the global changes in political and economic systems for international business?
A. The ideological conflict between collectivism and individualism is less in evidence today.
B. Adoption of Western ideology is declining worldwide.
C. The global tide has been running in favor of command economies and totalitarian dictatorships.
D. Free markets and democracy are being replaced by mixed economies and communist governments.
E. Liberalization and privatization of state-owned enterprises has been losing popularity.
Q:
A candidate's fluency in the host country's language is a strong indicator of his or her ability to effectively adjust within the host country.
Q:
The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in:
A. an improvement in the operating efficiency of newly privatized firms.
B. reduced barriers to foreign direct investment and international trade.
C. an increase in the incentives to engage in economic activity.
D. deregulation and privatization of the economy.
E. the lack of incentives to engage in economic activity.
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:
A well-functioning market economy is most likely to lack:
A. laws protecting private property rights.
B. state intervention in pricing and production.
C. mechanisms for contract enforcement.
D. political and economic freedoms.
E. incentives to engage in entrepreneurial activities.
Q:
When managers are assigned and move abroad with their families, the most difficult adjustments are frequently for the children.
Q:
In the Republic of Lantharia, the state-owned telephone company enjoys a monopoly. The government of Lantharia Republic wants to maximize the operating efficiency this company by privatizing it. Which of the following is most likely to help the government in being successful in this endeavor?
A. Imposing high corporate taxes on the company immediately after its privatization
B. Increasing barriers to foreign direct investment
C. Intervening in the company's operations by exercising price controls
D. Spliting the company into independent units to compete with each other
E. Prohibiting foreign companies from entering into the field of telecommunication in the Republic of Lantharia
Q:
In two-career families, when one spouse accepts a foreign assignment and the other spouse goes along, that other spouse is referred to as a trailing spouse.
Q:
A recent study reported that 77 percent of companies considered that cross-cultural training was highly valuable and required such training for their expats or their families.
Q:
Which of the following statements is true about privatization?
A. The privatization movement started in China in the early 1980s.
B. Privatization involves replacing a state-owned monopoly with a private monopoly.
C. For privatization to become successful, countries should adopt communism.
D. When newly privatized firms are extensively protected from foreign competition, they have little incentive to restructure their operations to become more efficient.
E. In today's context, a country runs the risk of experiencing a serious economic crisis if it liberalizes and privatizes state-owned enterprises.
Q:
Relatively few expatriate failures are family-related. Most relate to the expatriate's lack of technical skills.
Q:
The government of Greenland Republic protects its newly privatized firms from foreign competition by imposing stringent barriers to international trade and foreign direct investment. As a result of this, the newly privatized firms will:
A. continue acting like state monopolies.
B. operate at their maximum efficiency.
C. pay huge taxes.
D. import raw materials and many industrial goods at low tariffs.
E. have no control over production and pricing.
Q:
Family adjustment is not critical in the job performance of expats.
Q:
Which of the following is most likely to guarantee the success of privatization?
A. Providing subsidies to the newly privatized firms for a prolonged period
B. Protecting newly privatized firms from foreign competition by increasing barriers to international trade
C. Ensuring that privatization simply replaces a state-owned monopoly with a private monopoly
D. Deregulating and opening of the economy
E. Increasing import tariffs, income tax, and corporate tax rates
Q:
How does privatization help stimulate gains in economic efficiency?
A. It allows newly privatized firms to gain monopoly position in a particular industry.
B. It provides incentives to new private owners to search for increases in productivity and to enter new markets.
C. It encourages state control over price and production output.
D. It raises barriers to direct investment by foreign enterprises.
E. It results in reservation of heavy industry for state ownership and the increase of import tariffs.
Q:
If a company feels that it probably will send parent-country nationals abroad, it will frequently encourage them to study the language and culture of the country to which they are going.
Q:
There is reverse culture shock when an expatriate returns to the home country and company.
Q:
The _____ movement started in Great Britain in the early 1980s when then Prime Minister Margaret Thatcher started to sell state-owned assets such as the British telephone company.
A. nationalization
B. privatization
C. anti-democratic
D. communist
E. anti-globalization
Q:
Approximately 15 percent of expatriates leave their firms during the course of their overseas assignment, and an additional 28 percent leave their companies within a year of their return from abroad.
Q:
Which of the following best supports the economic transformation from a centrally planned command economy to a market-based economy?
A. Reserving heavy industry for state-owned enterprises
B. Having a strict industrial licensing system
C. Restricting the imports of raw materials and several industrial goods
D. Charging high rates of income tax and corporate tax
E. Transferring the ownership of state property into the hands of private individuals
Q:
Failure rates for expatriate assignments have been reported to range from 25 to 45 percent.
Q:
Which of the following steps is most likely to be involved in the deregulation of an economy?
A. Increasing restrictions on direct investment by foreign enterprises and international trade
B. Privatizing the state-owned enterprises
C. Exercising a high degree of state control over production and pricing
D. Abolishing the laws that are related to the protection of property rights
E. Opposing democracy by adopting communism
Q:
Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation?
A. Erbian government exercises tight control over the prices of food grains.
B. The establishment of private enterprises in steel industry is prohibited by the Erbian government.
C. The retail sector in Erbia has been opened for foreign direct investment.
D. The Erbian government has been criticized for its inability to introduce a legal system to safeguard property rights.
E. Erbia ranks the lowest among the countries that grant both political and economic freedoms to its citizens.
Q:
Expatriate assignments have been reported to lead to faster promotions.
Q:
The United Nation of Zorwaya has strict restrictions on direct investment by foreign enterprises, and it opposes the establishment and operation of private enterprises. The highest authority in the country enforces tight control over prices and production output. According to this information, the United Nation of Zorwaya most likely opposes _____.
A. nationalization of private assets
B. deregulation
C. socialism
D. totalitarian ideologies
E. command economies
Q:
Worldwide, nearly 50 percent of expatriate positions are held by women.
Q:
Which of the following is most likely to be implemented by a country as a part of deregulation?
A. Prohibition of private enterprises from operating in certain sectors
B. Commitment toward communism
C. Removal of price controls
D. Centrally planned economic system
E. Increased restrictions on foreign direct investment
Q:
The government of Great Lanthania is planning to adopt a market-based economic system. To be able to do so, the government of this country should:
A. abolish the laws that deal with protection of property rights.
B. introduce stringent foreign investment regulations.
C. increase its intervention in the economy.
D. adopt privatization.
E. oppose democracy.
Q:
Employees hired in the host country are sometimes called flexpatriates.
Q:
Employees hired in the host country are sometimes called inpatriates.
Q:
Which of the following statements is true about the changing economic system since the 1980s?
A. There has been a shift from market-based economies to centrally planned economies.
B. There has been a shift away from a mixed economy.
C. Many states have restricted the sale of state-owned businesses to private investors.
D. The competition between economies has been reducing.
E. The extent to which property rights are protected has declined.
Q:
In developing countries, third-country nationals are often preferred by the host country over nationals of the home country.
Q:
In the context of global economy, which of the following has been widely accepted since the late 1980s?
A. Centrally planned command economy
B. Mixed economy
C. Nationalization of private property
D. Deregulation of economies to promote greater competition
E. Authoritarian regime
Q:
Generally, the host government will understand that a third-country national is better for the parent company than a local executive would be.
Q:
As international companies increasingly take the geocentric view, we can be certain to see less use of third-country nationals.
Q:
Which of the following is most likely to prove detrimental to democracy and international business?
A. Emergence of increasingly prosperous middle and working classes
B. Development of new information and communication technologies
C. Dominance of universal civilization which leads to the establishment of a more harmonious world
D. Transformation of nations from centrally planned command economies to market-based economies
E. Emergence of different civilizations, each of which has its own value systems and ideology
Q:
In Samuel Huntingtons thesis, global terrorism is a product of the:
A. clash of value systems and ideology between civilizations.
B. widespread acceptance of universal global civilization.
C. declining liberal democratic ideals.
D. differences in the factor endowments between countries.
E. geographical differences between nations.
Q:
The use of TCNs has become particularly prevalent in the developing countries.
Q:
Which of the following statements is true about the late influential political scientist Samuel Huntington's vision of the new world?
A. Samuel Huntington maintained that as societies continue modernizing they will also become more Western.
B. Samuel Huntington theorized that modernization in non-Western societies can result in a retreat toward the traditional.
C. Samuel Huntington predicted that the universalization of Western liberal democracy will be the final form of human government.
D. Samuel Huntington envisioned the end of war of ideas between different civilizations.
E. Samuel Huntington suggested that most of the developing countries will stop adopting the material paraphernalia of the modern world.
Q:
Hiring personnel who are third-country nationals can be advantageous, especially in developing countries, because they may accept lower wages and benefits than will employees from the home country and they may come from a culture similar to that of the host country.
Q:
According to _____, the collapse of communism will result in the new world order that will dominated by a universal civilization characterized by democratic regimes and free market capitalism.
A. Amartya Sen
B. Samuel Huntington
C. Jeffrey Sachs
D. Francis Fukuyama
E. Adam Smith
Q:
The same general criteria for selecting home-country employees apply to host-country nationals.
Q:
According to the author Francis Fukuyama, the world is most likely witnessing the end of:
A. free market economies.
B. capitalism.
C. liberal democracies.
D. privatization.
E. mankinds ideological evolution.
Q:
To achieve global objectives, the selection and training of IC managers are the same whether the candidate is from the home country, the host country, or a third country.
Q:
Economic advances in many countries have led to the:
A. decline of middle and working classes.
B. rise of totalitarian reforms.
C. decline of property rights.
D. emergence of closed and self-contained societies.
E. emergence of increasingly prosperous middle and working classes.
Q:
Companies with a transnational strategic orientation follow a global staffing policy, selecting the best person for each job without considering national origin and generally having a consistent HRM strategy across all subsidiaries.
Q:
How have new information and communication technologies, including the Internet, affected the political economy in general?
A. They have led to the spread of communism.
B. They have reduced a states ability to control access to uncensored information.
C. They have led to the collapse of democracy.
D. They have created new conduits for the spread of closed societies.
E. They have led to increased suppression of political and economic freedoms.
Q:
The use of third-country nationals has become particularly prevalent in the LDCs because they provide substantial cost savings over the use of home-country nationals.
Q:
The collapse of _____ in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East.
A. democracy
B. communism
C. free economy
D. capitalism
E. individualism
Q:
The disadvantages of using employees from the home or host countries can sometimes be avoided by sending third-country nationals to fill management posts.
Q:
Not all democracies are free, as some still restrict certain political and civil liberties. Which of the following countries best fits this argument?
A. Australia
B. United States
C. Great Britain
D. Russia
E. Canada
Q:
In the context of the changing political economy since the late 1980s, which of the following statements is true? A. There has been a rapid spread of communism worldwide.
B. Capitalist ideologies have been in retreat.
C. A wave of totalitarian revolutions has swept the world.
D. Most of the countries have moved toward centrally planned and mixed economies.
E. Most of the worlds nation-states are providing greater political and civil liberties to their citizens.
Q:
Companies with a regional strategic approach can use a polycentric staffing policy, employing a variety of HCNs and TCNs.
Q:
During the late 1980s and early 1990s, many of the worlds nation-states moved away from:
A. democratically elected governments.
B. free market capitalism.
C. individualism.
D. political and civil freedoms.
E. totalitarian governments.
Q:
In the context of political economy, one notable development of the past 20 years has been the spread of:
A. centrally planned economies.
B. mixed economies.
C. totalitarian governments.
D. democracy.
E. communism.
Q:
A disadvantage of hiring local managers is that they are often unfamiliar with the home country of the IC and with its policies and practices.
Q:
Under a polycentric staffing orientation, ICs primarily hire HCNs for subsidiaries and PCNs for headquarters' positions, and movement from the local subsidiaries to headquarters' positions is common.
Q:
The work by Jeffrey Sachs suggests that investments in _____ help explain why some countries in Southeast Asia have been able to overcome the disadvantages associated with their tropical geography and grow far more rapidly than tropical nations in Africa and Latin America.
A. nuclear weapons
B. education
C. terrorist activities
D. nationalization of private properties
E. active bartering
Q:
When a company's primary strategic orientation is multidomestic, an ethnocentric orientation is particularly appropriate.
Q:
The influential economist Jeffrey Sachs argues that throughout history, _____ , with their long engagements in international trade, have been the most supportive of market institutions.
A. mountainous states
B. tropical regions
C. military societies
D. landlocked states
E. coastal states
Q:
One reason for using home-country citizens overseas is to prepare them for high-level positions at headquarters.
Q:
The belief that geography can influence economic policy, and hence economic growth rates, goes back to:
A. Adam Smith.
B. Amartya Sen.
C. Plato.
D. Aristotle.
E. Karl Marx.
Q:
Parent-country nationals usually are not knowledgeable about the host-country culture and language, but many such expatriates have adapted, learned the language, and become thoroughly accepted in the host country, which allows them to avoid any biases of their own cultural experience and to be able to understand and perform effectively within the new operating context.
Q:
_____ is most likely to be the consequence of economic progress.
A. Adoption of communism
B. Adoption of democracy
C. Adoption of command economy
D. Adoption of a totalitarian government
E. Restrictions on individual freedom
Q:
An expatriate is a person living outside his or her country of birth.
Q:
The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism:
A. until they adopt communism.
B. until property rights are better defined and protected.
C. if they adopt free market economies.
D. until their governments monopolize all means of production in their countries.
E. if they encourage innovation and entrepreneurship.
Q:
Parent-company nationals commonly encounter difficulty overcoming the biases of their own cultural experience and being able to understand and perform effectively within a new operating context.
Q:
Only a totalitarian regime that is committed to _____ is capable of promoting economic growth.
A. command economy
B. dictatorship
C. limiting human freedom
D. a market system and strong protection of property rights
E. limiting individualism and privatization
Q:
Companies with a primarily international strategic orientation may adopt an ethnocentric staffing policy.
Q:
People in the West tend to associate a(n) _____ with a free market system, strong property rights protection, and economic progress.
A. anarchist state
B. representative democracy
C. planned economy
D. communist state
E. command economy
Q:
According to Heenan and Perlmutter, the nationality of a company determines whether the organization's approach to international human resource management should be ethnocentric, polycentric, regiocentric, or geocentric.
Q:
Due to strong legal protection of property rights, businesses and individuals will:
A. invest more in innovations.
B. face huge burden from excessive taxation.
C. face more corruption.
D. move away from entrepreneurial activity.
E. run the risk of their profits being expropriated.
Q:
Because of the importance of the workforce to the effectiveness of organizational operations, a company's approach to international human resource management should drive its competitive strategy.
Q:
Which of the following creates an environment that is conducive to product and process innovations and to entrepreneurial activity?
A. Communism
B. Centrally planned economy
C. Privatization
D. Command economy
E. Lack of strong property rights
Q:
The combination of an openness to and awareness of diversity across cultures and markets with a propensity and ability to synthesize across this diversity has been termed a transnational mindset.
Q:
Which of the following creates an unfavorable environment for innovations and entrepreneurship?
A. Market economy
B. Economic freedom
C. State monopoly in production
D. Privatization
E. Strong legal protection of property rights
Q:
Sources of successful managers for IC activities include the home country, the host country, and a third country.
Q:
Which of the following statements is true about innovations and entrepreneurship?
A. Command economy creates greater incentives for innovation and entrepreneurship than a market economy.
B. If a countrys economy is to sustain long-run economic growth, the business environment must restrict entrepreneurial activity.
C. A high level of entrepreneurial activity leads to a low level of innovation.
D. Innovations in production and business processes lead to an increase in the productivity of labor and capital.
E. Strong legal protection of property rights creates an unfavorable environment for innovation and entrepreneurship.
Q:
Managerial positions in overseas operations require more and different skills than do purely domestic executive jobs.