12.

A(n) _____ staffing policy is one in which all

key management positions are filled by
1. _____ refers to a strategy that is concerned
parent-country nationals. ethnocentric
with the selection of employees for particular
jobs. Staffing policy
13. A(n) _____ staffing policy limits
advancement opportunities for host-country
2. _____ refers to a subset of expatriates who
nationals. ethnocentric
are citizens of a foreign country working in
the home country of their multinational
14. A(n) _____ staffing policy requires host-
employer. Inpatriates
country nationals to be recruited to manage
subsidiaries, while parent-country nationals
3. _____ refers to the premature return of an
occupy key positions at corporate
expatriate manager to his or her home
headquarters. polycentric
country. Expatriate failure
15. A(n) _____ staffing policy seeks the best
4. A firm pursues an ethnocentric staffing
people for key jobs throughout the
policy because it: believes the host country
organization, regardless of
lacks qualified individuals for senior
nationality. geocentric
management positions.
16. A(n) expatriate manager refers to: a citizen
5. A firm that adopts a polycentric staffing
of one country who is working abroad in
policy is less likely to: suffer from cultural
one of the firm's subsidiaries.
myopia.
17. According to Mendenhall and Oddou,
6. A firm's ability to reduce its use of
expatriate managers who lack the dimension
expatriates may be limited, particularly if it
of _____ tend to treat foreign nationals as if
is pursuing a(n) _____ staffing
they were home-country
policy. geocentric
nationals. perceptual ability
7. A firm's failure to understand host-country
18. According to Mendenhall and Oddou,
cultural differences that require different
perceptual ability refers to: an
approaches to marketing and management
expatriate's ability to empathize.
is referred to as _____. cultural myopia
19. According to Mendenhall and Oddou,
8. A polycentric staffing approach is effective
relationship development and willingness to
for firms pursuing a(n) _____
communicate are two important factors of
strategy. Localization
the dimension of _____. others-orientation

20. According to Mendenhall and Oddou, the

9. A principal concern of domestic unions
attribute of _____ provides an expatriate the
about multinational firms is that the
ability to understand why people of other
company can counter its bargaining power
countries behave the way they
with: the power to move production to
do. perceptual ability
another country.
21. According to Mendenhall and Oddou, the
10. A(n) _____ approach to staffing has the
dimension of _____ refers to the relationship
following disadvantages: it limits career
between the country of assignment and how
mobility and it isolates headquarters from
well an expatriate adjusts to a particular
foreign subsidiaries. polycentric
posting. cultural toughness
11. A(n) _____ refers to extra pay the expatriate
receives for working outside his or her 22. According to Mendenhall and Oddou, what
country of origin. foreign service premium is the major problem in the selection of
appropriate candidates for overseas
assignments in many firms? Equating
 domestic performance with overseas
performance potential
23. According to Mendenhall and Oddou, which
of the following dimensions that predicts
success in a foreign posting strengthens an
expatriate's self-esteem, self-confidence,
and mental well-being? Self-orientation
24. According to Mendenhall and Oddou, which
of the following is a dimension that seems to
predict success in a foreign
posting? Others-orientation
25. According to Mendenhall and Oddou's
dimensions that predict success in a foreign
posting, relationship development refers
to: the ability to develop long-lasting
friendships with host-country nationals.
26. According to Mendenhall and Oddou's
dimensions that predict success in a foreign
posting, which of the following is a result of
the attribute of others-orientation? The
expatriate speaks to the host-country
nationals in the local language.
27. According to R. L. Tung's study, which of
the following is the most important reason
for expatriate failures for U.S.
multinationals? Inability of the spouse to
adjust
28. According to the results of a seminal study
by R. L. Tung, the top reason that Japanese
expatriate managers fail is: the inability to
cope with larger overseas responsibilities.
29. According to the results of a seminal study
by R. L. Tung, what was the major reason for
expatriate failure among European
expatriates? Inability of spouse to adjust to
a new environment
30. According to the survey undertaken by
Towers Perrin, which of the following
countries provides the highest pay to HR
executives? The United States
31. Amanda, an American manager, is
successfully adjusting in a country where the
culture is extremely male-dominated.
According to Mendenhall and Oddou, which
of the following dimensions that predict
success in foreign postings is involved in this
situation? Cultural toughness
32. Broadly speaking, a(n) _____ staffing
approach is compatible with an
international strategy. Ethnocentric Cost-
of-living allowance
33. During performance appraisals, two groups
evaluate the performance of expatriate
managers—host-nation managers and
home-office managers. This is aimed at
avoiding the problem of
_____. unintentional bias
34. Firms pursuing a(n) _____ staffing policy
may be better able to create value from the
pursuit of experience curve and location
economies than firms pursuing other
staffing policies. geocentric
35. Firms that emphasize global standardization
try to create value by: realizing experience
curve and location economies.
36. Firms that have a broad geographic scope
are most likely to have a(n) _____ mind-
set. geocentric
37. Firms that pursue a localization strategy try
to create value by: emphasizing local
responsiveness.
38. Firms that use an ethnocentric staffing
policy consider it to be: the best way to
maintain a unified corporate culture.
39. For expatriate managers, an exclusive
reliance on English: diminishes their
ability to interact with host-country
nationals.
40. From a strategic perspective, the key issue in
international labor relations is: the degree
to which organized labor can limit the
choices of an international business.
41. Home-country managers' performance
appraisals may be biased by: distance
and by their own lack of experience of
working abroad.
42. How is a geocentric staffing policy beneficial
to a firm? It enables the firm to make the
best use of its human resources.
43. If a firm tries to create value by transferring
core competencies to a foreign operation and,
therefore, transfers parent-country
nationals who have knowledge of that
competency to the foreign operation, it
pursues a(n) _____ staffing
policy. ethnocentric
44. In a firm with a(n) _____ staffing policy,
considerable resentment is caused among
foreign nationals who are members of the
international cadre and work with U.S.
nationals, if pay is not
equalized. geocentric
45. In a review of the research on expatriate
selection, _____ state(s) that a major
problem in many firms is that human
resource managers tend to equate domestic
performance with overseas performance
potential. Medenhall and Oddou
46. In firms following a(n) _____ staffing
policy, the issue of compensation can be
reduced to that of how much home-country
expatriates should be paid. ethnocentric
47. In firms following a(n) _____ staffing policy,
the lack of managers' mobility among
national operations implies that the pay for
expatriates should be kept country
specific. polycentric
48. In terms of expatriate pay, what does a firm
typically do when a reciprocal tax treaty is
not in force? The firm pays the
expatriate's income tax to the host-country
government.
49. In terms of expatriate pay, which of the
following is a characteristic of a foreign
service premium? It compensates
expatriates for having to live in an
unfamiliar country.
50. In terms of expatriate pay, which of the
following is true of a foreign service
premium? It is paid as a percentage of base
salary, with 16 percent being the average
premium.
51. In terms of training and management
development, _____ is aimed at helping the
expatriate manager and family ease
themselves into day-to-day life in the host
country. practical training
52. In the 1960s, organized labor began to
establish _____ to provide worldwide links
for national unions in particular
industries. international trade
secretariats
53. In the 1960s, organized labor believed that
by coordinating union action across
countries through an international trade
secretariat, it could counter the power of a
multinational corporation by: threatening
to disrupt production on an international
scale.
54. In the absence of a reciprocal tax treaty, the
expatriate: may have to pay income tax to
both the home- and host-country
governments.
55. In the context of approaches to expatriate
pay, which of the following is true of a
balance sheet approach? It provides
financial incentives to offset qualitative
differences between assignment locations.
56. In the context of expatriate compensation,
what is the role of a balance sheet
approach? It equalizes purchasing power
across countries so employees can enjoy the
same living standard in their foreign
posting that they enjoyed at home.
57. In the context of international labor
relations, a labor union concern arises when
an international business: attempts to
import employment practices and
contractual agreements from its home
country.
58. In the context of international labor
relations, one of the reasons for a decline in
union influence is the: importing of
employment practices and contractual
agreements that are alien to the host
country.
59. In the context of international labor
relations, which of the following is true of
organized labor? It limits a firm's ability to
integrate and consolidate its global
operations.
60. In the context of international labor
relations, which of the following is a concern
of organized labor? An international
business keeps highly skilled tasks in its
home country and farms out only low-
skilled tasks to foreign plants.
61. In the Swiss firm Terabithia Systems AG, all
the important positions in its international
operations are held by Swiss nationals.
Terabithia follows a(n) _____ staffing
policy. ethnocentric
62. International businesses differ in terms of
their approaches to international labor
relations, mainly in the degree to
which: labor relations activities are
centralized or decentralized.
63. International businesses differ markedly in
their approaches to international labor
relations. The trend now is toward _____
that reflect(s) international firms’ attempts
to rationalize their global
operations. greater centralized control
64. International businesses pursuing a(n)
_____ strategy are increasingly using
management development as a strategic tool
as they need a strong unifying corporate
culture and informal management networks
to assist in coordination and
control. transnational
65. International firms try to create value
by: transferring products and
competencies overseas.
66. International trade secretariats have been
less successful because of the: competition
between national unions to attract
investment from international businesses.
67. Megan, a U.S. citizen, is the operations
manager at the Middle East office of HS
Constructions Inc., an American firm. In
this situation, she is an example of a(n)
_____ manager. expatriate
68. Mendenhall and Oddou identified that
expatriates with _____, a dimension that
predicts success, were able to adapt their
interests in food, sport, and music. self-
orientation
69. Most countries require extensive
documentation if they wish to hire a foreign
national instead of a local national. This is a
disadvantage of the _____ staffing
approach. geocentric
70. One aspect of a(n) _____ staffing policy is
the need for a cadre of international
managers that may include many different
nationalities. geocentric
71. Organized labor responds to the increased
bargaining power of multinational
corporations by: trying to achieve
international regulations on multinationals
through the United Nations.
72. Poor health care and housing standards and
inhospitable climate make it difficult for
expatriates to adjust to a particular posting.
According to Mendenhall and Oddou's four
dimensions that predict success in a foreign
posting, which of the following is required in
this situation? Cultural toughness
73. Repatriation refers to: reentry of
expatriate managers into their home-
country organization.
74. The _____ function of an international
business is typically responsible for
international labor relations. human
resource management
75. The long-term goal for organized labor to
establish international trade secretariats was
to: be able to bargain transnationally
with multinational firms.
76. The major drawback with a(n) _____
staffing policy is the gap that can form
between host-country managers and parent-
country managers. polycentric
77. The norms and value systems of an
organization constitute its
_____. corporate culture
78. What is the advantage of a geocentric
staffing policy? It enables firms to build a
cadre of international executives who feel
at home working in a number of cultures.
79. Which of the following allowances ensures
that an expatriate will enjoy the same
 standard of living in the foreign posting as at
home?
80. Which of the following is a characteristic
feature of an ethnocentric staffing
policy? It places parent-country nationals
in key management positions.
81. Which of the following is a disadvantage of
adopting a geocentric staffing
approach? Training and relocation costs
increase when transferring managers from
country to country.
82. Which of the following is a disadvantage of
an ethnocentric staffing policy? It leads
to resentment in the host country.
83. Which of the following is a drawback of
adopting a polycentric staffing approach? It
bridges the gap between the headquarters
of a firm and its foreign subsidiaries.
84. Which of the following is an additional and
difficult dimension to the long-standing
problem of expatriate failure due to the
inability of the spouse to adjust? Dual-
career families
85. Which of the following is an advantage of a
geocentric approach to staffing for
international businesses? It helps build a
strong culture and informal management
networks.
86. Which of the following is an advantage of
adopting a geocentric staffing approach? It
tends to reduce cultural myopia and
enhance local responsiveness.
87. Which of the following is an advantage of
adopting a polycentric staffing
approach? It is less expensive to
implement as compared to other staffing
approaches.
88. Which of the following is an advantage of an
ethnocentric staffing policy? It helps
transfer core competencies to a foreign
operation.
89. Which of the following is an impediment to
cooperation between national unions? The
wide variation in the structure and
ideology of unions
90. Which of the following is the most common
approach to expatriate pay which equalizes
purchasing power across countries so
employees can enjoy the same living
standard in their foreign posting that they
enjoyed at home? Balance sheet approach
91. Which of the following is true of a foreign
service premium? It is offered to
expatriates as an inducement to accept
foreign postings.
92. Which of the following is true of a
polycentric staffing policy? It prevents
mistakes arising from cultural
misunderstandings.
93. Which of the following is true of
organizations like the International Labor
Organization and the Organization for
Economic Cooperation and Development in
terms of their role in international labor
relations? They have adopted codes of
conduct for multinational firms to follow in
labor relations.
94. Which of the following staffing policies
relies extensively on the use of expatriate
managers? Ethnocentric staffing policy
95. Which of the following steps is true of bias
in performance evaluations? Due to
proximity, an on-site manager is more
likely to evaluate the soft variables that are
important aspects of an expatriate’s
performance.
96. Which of the following strategies is
compatible with a geocentric staffing
policy? Global standardization strategy
97. Which of the following is intended to build
a manager's skills over his or her career with
the firm? Management development
98. With a(n) _____ staffing policy, the
expatriates are all home-country nationals
who are transferred abroad. ethnocentric
99. With regard to the types of allowances often
included in an expatriate's compensation
package, a(n) _____ allowance is paid when
the expatriate is being sent to a difficult
location. hardship
100. Yuriko, a citizen of Japan, was working as
a manager in the Japanese branch of an
American firm. Due to her efficiency, she
was assigned a temporary posting at the
headquarters of the firm in America. In this
situation, she is known as a(n)
_____. inpatriate