Human Resource Selection and Development Across Cultures

Chapter 14 - Human Resource Selection and Development Across Cultures
Chapter 14
Human Resource Selection and Development Across Cultures
True / False Questions
1. Home-country nationals are managers who are citizens of the country where the MNC is
headquartered.
True False
2. Historically, MNCs have staffed key positions in their foreign affiliates with host-country
nationals.
True False
3. Home-country nationals are local managers who are hired by the MNC.
True False
4. Managers who live and work outside their home country are called expatriates.
True False
5. An individual from a host-country who is assigned to work in the host-country is referred to

as a multipatriate.
True False
6. Factors used to choose personnel for international assignments are referred to as

international selection criteria.
True False
7. Most MNCs strive for a balance between age and experience in their expatriate employees.
True False
14-1
8. The most common recruiting and selection procedures for international assignments would
be background and reference checks.
True False
9. Anticipatory and in-country factors will influence the expatriate's mode and degree of
adjustment to an overseas assignment.
True False
10. One of the reasons why there has been a decline in the number of expats in recent years is
that MNCs have found that the expense can be prohibitive.
True False
11. Base salary is the amount of money that an expatriate normally receives in the home
country plus a cost-of-living adjustment.
True False
12. Allowances are an expensive feature of expatriate compensation packages.

True False
13. An approach to developing an expatriate compensation package that is based on ensuring

the expat is "made whole" and does not lose money by taking the assignment is referred to as
the balance-sheet approach.
True False
14. An approach to developing an expatriate compensation package that involves giving the
expat a predetermined amount of money and letting the individual make his/her own decisions
regarding how to spend it is referred to as localization.
True False
14-2
15. For most overseas managers, repatriation occurs within five years of the time they leave.
True False
16. Repatriation agreements typically promise an expatriate a specific position and salary
when he/she returns to the home office.
True False
17. The hardest training, in terms of preparation time is to place a cultural integrator in each
foreign operation.
True False
18. An ethnocentric MNC puts host-office people in charge of key international management
positions.
True False
19. Learning is the acquisition of skills, knowledge and abilities that results in a relatively
permanent change in behavior.
True False
20. The primary reason for training overseas managers is to improve their ability to interact
effectively with local people in general and their personnel in particular.
True False
14-3
Multiple Choice Questions
21. There are four basic sources that MNCs can tap for positions. These are:
A. Host-country nationals, third-country nationals, United Nations placements and IMF
placements
B. Home-country nationals, IMF placements, inpatriates and multipatriates
C. Home-country nationals, host-country nationals, IMF placements and multipatriates
D. Home-country nationals, host-country nationals, third-country nationals and inpatriates
22. Expatriate managers who are citizens of the country where the multinational corporate is
headquartered are referred to as:
A. Host-country nationals
B. Home-country nationals
C. Inpatriates
D. Third-country nationals
23. Headquarters nationals is another term used for:

A. Third-country nationals
C. Inpatriates
D. Host-country nationals
24. Home-country nationals are frequently called _____, which refers to those who live and
work away from their home country.
A. Inpatriates
B. Third-country nationals
C. Expatriates
D. Multipatriates
25. Historically, MNCs have staffed key positions in their foreign affiliates with:
A. Home-country nationals
B. Host-country nationals
C. Inpatriates
14-4
26. _____ are local managers who are hired by the MNC.
A. Inpatriates
B. Indigenous-nationals
C. Host-country nationals
D. Home-country nationals
27. Which of the following statements about third-country nationals is false?

A. TCN managers can often achieve corporate objectives more effectively than do expatriates
B. During periods of rapid expansion, TCNs can substitute for expatriates in well-established
operations
C. During rapid expansion, TCNs can offer different perspectives that can expand on the
narrowly focused viewpoints of local nationals
D. In joint ventures, TCNs can demonstrate a global image and bring unique cross-cultural
skills to the relationship
28. These are managers who are citizens of countries other than the one in which the MNC is
headquartered or the one in which they are assigned to work by the MNC.
A. Multipatriates
C. Inpatriates
29. An individual from a host-country or a third-country national who is assigned to work in

the home country is a(n):
A. Expatriate
B. Multipatriate
C. Inpatriate
D. Quasi-patriate
30. Factors used to choose personnel for international assignments are referred to as:
A. Global placement criteria
B. International selection criteria
C. Global selection heuristics
D. International recruitment and selection heuristics
14-5
31. All of the following are correct with regard to the impact of age, experience and education
on expatriate managers except:
A. There is universal agreement that degrees in marketing or engineering are the most
desirable for expatriate managers
B. Most MNCs strive for a balance between age and experience
C. Many companies consider an academic degree, preferably a graduate degree, to be of
critical importance to an international executive
D. There is evidence that younger managers are more eager for international assignments than
older managers
32. This is the primary language of international business and most expatriates from all
countries can converse in it.
A. French
B. German
C. Spanish
D. English
33. Borstorff and her associates examined the factors associated with employee willingness to
work overseas and concluded that:
A. Married couples with teenage children are probably the most willing to move
B. Prior international experience appears associated with willingness to work as an expatriate
C. Unmarried employees are least willing, compared to any other group, to accept expat
assignments
D. Careers and attitudes of spouses have an insignificant impact on employee willingness to
move overseas
34. The process of evaluating how well a family is likely to stand up to the stress of overseas
life is referred to as:
A. Suitability assessment
B. Selection fitness
C. Adaptability screening
D. Expatriate fitness
14-6
35. The two most common selection procedures used by MNCs are:
A. Assessment centers and tests
B. References and interviews
C. Application forms and assessment centers
D. Tests and interviews
36. In general, some evidence suggests that testing is:

A. Extremely popular among MNCs
B. Not extremely popular among MNCs
C. Used more in the selection of overseas managers than domestic managers
D. Used by a high percentage of MNCs in selecting expatriate managers
37. In recent years, international human resources management scholars have developed
theoretical models that help to explain the factors involved in effectively adjusting to overseas
assignments. These models are called:
A. Adjustment models
B. Adaptation theorems
C. Alignment models
D. Congruence theorems
38. There are two major types of adjustments that an expatriate must make when going on an
overseas assignment. These are:
A. Pre-deployment adjustment and post-deployment adjustment
B. Direct adjustment and indirect adjustment
C. Anticipatory adjustment and in-country adjustment
D. Iterative adjustment and continuous adjustment
39. The adjustment model of the selection procedure for international assignments would
include:
A. Training and previous experience
B. Education and modification
C. Work experience and exposure
D. Abilities and behavior
14-7
40. The organizational input into anticipatory adjustment is most directly related and
concerned with the:
A. Motivation process
B. Selection process
C. Compensation plan
D. Quality of leadership
41. Traditionally, what was the only selection criterion MNCs relied on for overseas
assignments?
A. Training
B. Education
C. Previous experience
D. Technical competence
42. The most common elements in the typical expatriate compensation package include:
A. Base salary, benefits, allowances, incentives and taxes
B. Base salary, bonuses, stock options and free housing
C. Base salary, benefits, free housing and free education for the expatriate's children
D. Base salary, benefits, free travel, free housing and taxes
43. Expatriate salaries typically are set according to the base pay of:
A. An index of 13 firms maintained by the United Nations
B. The home country
C. The host-country
D. A neutral third-country determined by the expatriate and his/her company
44. These are an expensive feature of expatriate compensation packages.

A. Base salaries
B. Allowances
C. Incentives
D. Taxes
14-8
45. The benefits of a lump-sum incentive system would include all of the following except:
A. One-time payment retaining its value as an incentive
B. Cost containment of firm due to one-time payment
C. Separate payment distinguishable from regular pay
D. Employees being encouraged to be motivated by financial incentives
46. An approach to developing an expatriate compensation package that is based on ensuring

that the expat is "made whole" and does not lose money by taking the assignment is referred
to as the:
A. Balance-sheet approach
B. Lump-sum method
C. Localization approach
D. Cafeteria approach
47. An approach to developing an expatriate compensation package that involves paying the
expat a salary comparable to that of local nationals is referred to as:
A. The cafeteria approach
B. The balance-sheet approach
C. Localization
D. The lump-sum method
48. An approach to developing an expatriate compensation package that involves giving the
expat a predetermined amount of money and letting the individual make his/her own decisions
regarding how to spend it is referred to as the:
A. Localization approach
B. Cafeteria approach
C. Lump-sum method
D. Balance-sheet approach
14-9
49. This approach to developing an expatriate compensation package entails giving the
individual a series of options and letting the person decide how to spend the available funds.
A. Lump-sum method
50. Which of the following approaches is used to develop an expatriate compensation package
that involves setting a compensation system for all expats who are assigned to a particular
region and paying everyone in accord with that system?
A. Regional system
B. Balance-sheet approach
C. Cafeteria approach
D. Lump-sum method
51. The return to one's home country from an overseas management assignment is referred to
as:
A. Repatriation
B. Reintroduction
C. Recruiting
D. Reentry
52. Strategies used to help smooth the adjustment from an overseas to a stateside assignment
are:
A. Readjustment strategies
B. Transition strategies
C. Changeover strategies
D. Progression strategies
14-10
53. An agreement whereby the firm tells the individual how long she/he will be posted
overseas and promises to give the individual, on return, a job that is mutually acceptable is a:
A. Strategic plan
B. Human resource plan
C. Labor-contract agreement
D. Repatriation agreement
54. This is the process of altering employee behavior and attitudes in a way that increases the
probability of goal attainment.
A. Organizing
B. Planning
C. Training
D. Controlling
55. An individual who is responsible for ensuring that a firm's business systems are in accord
with those of the local culture is a(n):
A. Cultural integrator
B. Global facilitator
C. International transition specialist
D. Global socialization specialist
56. The four basic philosophical positions that multinationals can assume and influence a
company's training program are:
A. Polycentric, geocentric, multicentric and ultracentric
B. Ethnocentric, globalcentric, regiocentric and unicentric
C. Multicentric, globalcentric, geocentric and unicentric
D. Ethnocentric, polycentric, regiocentric and geocentric
57. A(n) _____ MNC puts home-office people in charge of key international management
positions.
A. Ethnocentric
B. Polycentric
C. Regiocentric
D. Geocentric
14-11
58. Which of the following MNCs places local nationals in key positions and allows these
managers to appoint and develop their own people?
A. Geocentric
B. Polycentric
C. Regiocentric
D. Ethnocentric
59. This type of MNC relies on local managers from a particular geographic region to handle
operations in and around that area.
A. Ethnocentric
B. Geocentric
C. Polycentric
D. Regiocentric
60. This type of MNC seeks to integrate diverse regions of the world through a global
approach to decision making.
A. Polycentric
B. Ethnocentric
C. Geocentric
D. Regiocentric
61. These MNCs do all of their training at their headquarters.

A. Geocentric
B. Regiocentric
C. Polycentric
D. Ethnocentric
62. This is the acquisition of skills, knowledge and abilities that results in a relatively
A. Learning
B. Development
C. Motivation
D. Controlling
14-12
63. "Learning organizations" continually focus on activities such as:

A. Planning and development
B. Organizing and controlling
C. Training and development
D. Planning and organizing
64. Training programs are useful in preparing people for overseas assignments for many
reasons. These reasons can be put into two general categories which are:
A. Organizational and personal
B. Economic and philosophical
C. Personal and impersonal
D. Financial and psychological
65. The belief that one's own way of doing things is superior to that of others is:
A. Polycentrism
B. Geocentrism
C. Ethnocentrism
D. Regiocentrism
66. This is common in many large MNCs where managers believe that the home office's
approach to doing business can be exported intact to all other countries, because this approach
is superior to anything at the local level.
A. Regiocentrism
B. Ethnocentrism
C. Geocentrism
D. Polycentrism
67. Research shows that small firms undertaking international business generally rely on:
A. Standard training programs
B. Strategic alliances
C. Trade zones
D. Uniform commercial codes
14-13
68. Which of the following training programs are created for the specific needs of the
participants?
A. Generic
B. Standardized
C. Tailor-made
D. Universal
69. A(n) _____ is a programmed learning technique that is designed to expose members of
one culture to some of the basic concepts, attitudes, role perceptions, customs and values of
another.
A. Cultural assimilator
B. Ethnocentric regulator
C. Educational regulator
D. Developmental assimilator
70. Which of the following terms refer to the quality of being effective and producing the
desired results?
A. Capacity
B. Validity
C. Reliability
D. Stability
Essay Questions
71. Identify and explain the different sources that multinational corporations can use in their
recruiting and selection procedures.
14-14
72. Identify the criteria that would influence a multinational corporation in the selection of an
individual for an international assignment.
73. Discuss the various approaches that can be used to formulate a compensation package.
74. Describe what is meant by the term "training". What factors influence a company's
approach to training?
75. What is a cultural assimilator? What do cultural assimilators try to accomplish?
14-15
Chapter 14 Human Resource Selection and Development Across Cultures

Answer Key
True / False Questions
1. (p. 498) Home-country nationals are managers who are citizens of the country where the
MNC is headquartered.
TRUE
Difficulty: Easy
2. (p. 498) Historically, MNCs have staffed key positions in their foreign affiliates with host-
country nationals.
FALSE
Difficulty: Medium
3. (p. 498) Home-country nationals are local managers who are hired by the MNC.
FALSE
Difficulty: Easy
4. (p. 498) Managers who live and work outside their home country are called expatriates.
TRUE
Difficulty: Hard
14-16
5. (p. 498) An individual from a host-country who is assigned to work in the host-country is
referred to as a multipatriate.
FALSE
Difficulty: Easy
6. (p. 503) Factors used to choose personnel for international assignments are referred to as
international selection criteria.
TRUE
Difficulty: Easy
7. (p. 505) Most MNCs strive for a balance between age and experience in their expatriate
employees.
TRUE
Difficulty: Medium
8. (p. 511) The most common recruiting and selection procedures for international assignments
would be background and reference checks.
FALSE
Difficulty: Medium
9. (p. 510) Anticipatory and in-country factors will influence the expatriate's mode and degree of
adjustment to an overseas assignment.
TRUE
Difficulty: Medium
14-17
10. (p. 512) One of the reasons why there has been a decline in the number of expats in recent
years is that MNCs have found that the expense can be prohibitive.
TRUE
Difficulty: Medium
11. (p. 513) Base salary is the amount of money that an expatriate normally receives in the home
country plus a cost-of-living adjustment.
FALSE
Difficulty: Medium
12. (p. 514) Allowances are an expensive feature of expatriate compensation packages.
TRUE
Difficulty: Medium
13. (p. 515) An approach to developing an expatriate compensation package that is based on
ensuring the expat is "made whole" and does not lose money by taking the assignment is
referred to as the balance-sheet approach.
TRUE
Difficulty: Medium
14. (p. 515) An approach to developing an expatriate compensation package that involves giving
the expat a predetermined amount of money and letting the individual make his/her own
decisions regarding how to spend it is referred to as localization.
FALSE
Difficulty: Medium
14-18
15. (p. 518) For most overseas managers, repatriation occurs within five years of the time they
leave.
TRUE
Difficulty: Medium
16. (p. 519) Repatriation agreements typically promise an expatriate a specific position and
salary when he/she returns to the home office.
FALSE
Difficulty: Medium
17. (p. 520) The hardest training, in terms of preparation time is to place a cultural integrator in
each foreign operation.
FALSE
Difficulty: Medium
18. (p. 522) An ethnocentric MNC puts host-office people in charge of key international
management positions.
FALSE
Difficulty: Medium
19. (p. 523) Learning is the acquisition of skills, knowledge and abilities that results in a
relatively permanent change in behavior.
TRUE
Difficulty: Easy
14-19
20. (p. 525) The primary reason for training overseas managers is to improve their ability to
interact effectively with local people in general and their personnel in particular.
TRUE
Difficulty: Medium
Multiple Choice Questions
21. (p. 498) There are four basic sources that MNCs can tap for positions. These are:
A. Host-country nationals, third-country nationals, United Nations placements and IMF
placements
B. Home-country nationals, IMF placements, inpatriates and multipatriates
C. Home-country nationals, host-country nationals, IMF placements and multipatriates
D. Home-country nationals, host-country nationals, third-country nationals and inpatriates
Difficulty: Medium
22. (p. 498) Expatriate managers who are citizens of the country where the multinational
corporate is headquartered are referred to as:
A. Host-country nationals
C. Inpatriates
Difficulty: Easy
23. (p. 498) Headquarters nationals is another term used for:

A. Third-country nationals
C. Inpatriates
D. Host-country nationals
Difficulty: Easy
14-20
24. (p. 498) Home-country nationals are frequently called _____, which refers to those who live
and work away from their home country.
A. Inpatriates
B. Third-country nationals
C. Expatriates
D. Multipatriates
Difficulty: Easy
25. (p. 498) Historically, MNCs have staffed key positions in their foreign affiliates with:
A. Home-country nationals
B. Host-country nationals
C. Inpatriates
Difficulty: Medium
26. (p. 498) _____ are local managers who are hired by the MNC.
A. Inpatriates
B. Indigenous-nationals
C. Host-country nationals
D. Home-country nationals
Difficulty: Easy
27. (p. 500) Which of the following statements about third-country nationals is false?
A. TCN managers can often achieve corporate objectives more effectively than do expatriates
B. During periods of rapid expansion, TCNs can substitute for expatriates in well-established
operations
C. During rapid expansion, TCNs can offer different perspectives that can expand on the
narrowly focused viewpoints of local nationals
D. In joint ventures, TCNs can demonstrate a global image and bring unique cross-cultural
skills to the relationship
Difficulty: Medium
14-21
28. (p. 499) These are managers who are citizens of countries other than the one in which the
MNC is headquartered or the one in which they are assigned to work by the MNC.
A. Multipatriates
C. Inpatriates
Difficulty: Easy
29. (p. 500) An individual from a host-country or a third-country national who is assigned to
work in the home country is a(n):
A. Expatriate
B. Multipatriate
C. Inpatriate
D. Quasi-patriate
Difficulty: Easy
30. (p. 503) Factors used to choose personnel for international assignments are referred to as:
A. Global placement criteria
B. International selection criteria
C. Global selection heuristics
D. International recruitment and selection heuristics
Difficulty: Easy
14-22
31. (p. 505) All of the following are correct with regard to the impact of age, experience and
education on expatriate managers except:
A. There is universal agreement that degrees in marketing or engineering are the most
desirable for expatriate managers
B. Most MNCs strive for a balance between age and experience
C. Many companies consider an academic degree, preferably a graduate degree, to be of
critical importance to an international executive
D. There is evidence that younger managers are more eager for international assignments than
older managers
Difficulty: Medium
32. (p. 506) This is the primary language of international business and most expatriates from all
countries can converse in it.
A. French
B. German
C. Spanish
D. English
Difficulty: Easy
33. (p. 507) Borstorff and her associates examined the factors associated with employee
willingness to work overseas and concluded that:
A. Married couples with teenage children are probably the most willing to move
B. Prior international experience appears associated with willingness to work as an expatriate
C. Unmarried employees are least willing, compared to any other group, to accept expat
assignments
D. Careers and attitudes of spouses have an insignificant impact on employee willingness to
move overseas
Difficulty: Medium
14-23
34. (p. 507) The process of evaluating how well a family is likely to stand up to the stress of
overseas life is referred to as:
A. Suitability assessment
B. Selection fitness
C. Adaptability screening
D. Expatriate fitness
Difficulty: Medium
35. (p. 510) The two most common selection procedures used by MNCs are:
A. Assessment centers and tests
B. References and interviews
C. Application forms and assessment centers
D. Tests and interviews
Difficulty: Medium
36. (p. 510) In general, some evidence suggests that testing is:
A. Extremely popular among MNCs
B. Not extremely popular among MNCs
C. Used more in the selection of overseas managers than domestic managers
D. Used by a high percentage of MNCs in selecting expatriate managers
Difficulty: Medium
37. (p. 510) In recent years, international human resources management scholars have developed
theoretical models that help to explain the factors involved in effectively adjusting to overseas
assignments. These models are called:
A. Adjustment models
B. Adaptation theorems
C. Alignment models
D. Congruence theorems
Difficulty: Easy
14-24
38. (p. 510) There are two major types of adjustments that an expatriate must make when going
on an overseas assignment. These are:
A. Pre-deployment adjustment and post-deployment adjustment
B. Direct adjustment and indirect adjustment
C. Anticipatory adjustment and in-country adjustment
D. Iterative adjustment and continuous adjustment
Difficulty: Medium
39. (p. 510) The adjustment model of the selection procedure for international assignments
would include:
A. Training and previous experience
B. Education and modification
C. Work experience and exposure
D. Abilities and behavior
Difficulty: Medium
40. (p. 510) The organizational input into anticipatory adjustment is most directly related and
concerned with the:
A. Motivation process
B. Selection process
C. Compensation plan
D. Quality of leadership
Difficulty: Hard
41. (p. 510) Traditionally, what was the only selection criterion MNCs relied on for overseas
assignments?
A. Training
B. Education
C. Previous experience
D. Technical competence
Difficulty: Medium
14-25
42. (p. 513) The most common elements in the typical expatriate compensation package include:
A. Base salary, benefits, allowances, incentives and taxes
B. Base salary, bonuses, stock options and free housing
C. Base salary, benefits, free housing and free education for the expatriate's children
D. Base salary, benefits, free travel, free housing and taxes
Difficulty: Medium
43. (p. 513) Expatriate salaries typically are set according to the base pay of:
A. An index of 13 firms maintained by the United Nations
B. The home country
C. The host-country
D. A neutral third-country determined by the expatriate and his/her company
Difficulty: Medium
44. (p. 514) These are an expensive feature of expatriate compensation packages.
A. Base salaries
B. Allowances
C. Incentives
D. Taxes
Difficulty: Easy
45. (p. 514) The benefits of a lump-sum incentive system would include all of the following
except:
A. One-time payment retaining its value as an incentive
B. Cost containment of firm due to one-time payment
C. Separate payment distinguishable from regular pay
D. Employees being encouraged to be motivated by financial incentives
Difficulty: Hard
14-26
46. (p. 515) An approach to developing an expatriate compensation package that is based on
ensuring that the expat is "made whole" and does not lose money by taking the assignment is
referred to as the:
A. Balance-sheet approach
B. Lump-sum method
D. Cafeteria approach
Difficulty: Medium
47. (p. 515) An approach to developing an expatriate compensation package that involves paying
the expat a salary comparable to that of local nationals is referred to as:
A. The cafeteria approach
B. The balance-sheet approach
C. Localization
D. The lump-sum method
Difficulty: Medium
48. (p. 515) An approach to developing an expatriate compensation package that involves giving
the expat a predetermined amount of money and letting the individual make his/her own
decisions regarding how to spend it is referred to as the:
A. Localization approach
C. Lump-sum method
Difficulty: Medium
14-27
49. (p. 516) This approach to developing an expatriate compensation package entails giving the
individual a series of options and letting the person decide how to spend the available funds.
A. Lump-sum method
Difficulty: Medium
50. (p. 516) Which of the following approaches is used to develop an expatriate compensation
package that involves setting a compensation system for all expats who are assigned to a
particular region and paying everyone in accord with that system?
A. Regional system
B. Balance-sheet approach
C. Cafeteria approach
D. Lump-sum method
Difficulty: Medium
51. (p. 518) The return to one's home country from an overseas management assignment is
referred to as:
A. Repatriation
B. Reintroduction
C. Recruiting
D. Reentry
Difficulty: Medium
52. (p. 519) Strategies used to help smooth the adjustment from an overseas to a stateside
assignment are:
A. Readjustment strategies
B. Transition strategies
C. Changeover strategies
D. Progression strategies
Difficulty: Medium
14-28
53. (p. 519) An agreement whereby the firm tells the individual how long she/he will be posted
overseas and promises to give the individual, on return, a job that is mutually acceptable is a:
A. Strategic plan
B. Human resource plan
C. Labor-contract agreement
D. Repatriation agreement
Difficulty: Medium
54. (p. 520) This is the process of altering employee behavior and attitudes in a way that
increases the probability of goal attainment.
A. Organizing
B. Planning
C. Training
D. Controlling
Difficulty: Easy
55. (p. 520) An individual who is responsible for ensuring that a firm's business systems are in
accord with those of the local culture is a(n):
A. Cultural integrator
B. Global facilitator
C. International transition specialist
D. Global socialization specialist
Difficulty: Medium
56. (p. 522) The four basic philosophical positions that multinationals can assume and influence
a company's training program are:
A. Polycentric, geocentric, multicentric and ultracentric
B. Ethnocentric, globalcentric, regiocentric and unicentric
C. Multicentric, globalcentric, geocentric and unicentric
D. Ethnocentric, polycentric, regiocentric and geocentric
Difficulty: Medium
14-29
57. (p. 522) A(n) _____ MNC puts home-office people in charge of key international
management positions.
A. Ethnocentric
B. Polycentric
C. Regiocentric
D. Geocentric
Difficulty: Medium
58. (p. 523) Which of the following MNCs places local nationals in key positions and allows
these managers to appoint and develop their own people?
A. Geocentric
B. Polycentric
C. Regiocentric
D. Ethnocentric
Difficulty: Medium
59. (p. 523) This type of MNC relies on local managers from a particular geographic region to
handle operations in and around that area.
A. Ethnocentric
B. Geocentric
C. Polycentric
D. Regiocentric
Difficulty: Medium
60. (p. 523) This type of MNC seeks to integrate diverse regions of the world through a global
approach to decision making.
A. Polycentric
B. Ethnocentric
C. Geocentric
D. Regiocentric
Difficulty: Medium
14-30
61. (p. 523) These MNCs do all of their training at their headquarters.
A. Geocentric
B. Regiocentric
C. Polycentric
D. Ethnocentric
Difficulty: Medium
62. (p. 523) This is the acquisition of skills, knowledge and abilities that results in a relatively
A. Learning
B. Development
C. Motivation
D. Controlling
Difficulty: Easy
63. (p. 523) "Learning organizations" continually focus on activities such as:
A. Planning and development
B. Organizing and controlling
C. Training and development
D. Planning and organizing
Difficulty: Medium
64. (p. 524) Training programs are useful in preparing people for overseas assignments for many
reasons. These reasons can be put into two general categories which are:
A. Organizational and personal
B. Economic and philosophical
C. Personal and impersonal
D. Financial and psychological
Difficulty: Medium
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65. (p. 524) The belief that one's own way of doing things is superior to that of others is:
A. Polycentrism
B. Geocentrism
C. Ethnocentrism
D. Regiocentrism
Difficulty: Easy
66. (p. 524) This is common in many large MNCs where managers believe that the home office's
approach to doing business can be exported intact to all other countries, because this approach
is superior to anything at the local level.
A. Regiocentrism
B. Ethnocentrism
C. Geocentrism
D. Polycentrism
Difficulty: Medium
67. (p. 526) Research shows that small firms undertaking international business generally rely
on:
A. Standard training programs
B. Strategic alliances
C. Trade zones
D. Uniform commercial codes
Difficulty: Hard
68. (p. 526) Which of the following training programs are created for the specific needs of the
participants?
A. Generic
B. Standardized
C. Tailor-made
D. Universal
Difficulty: Easy
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69. (p. 529) A(n) _____ is a programmed learning technique that is designed to expose members
of one culture to some of the basic concepts, attitudes, role perceptions, customs and values of
another.
A. Cultural assimilator
B. Ethnocentric regulator
C. Educational regulator
D. Developmental assimilator
Difficulty: Medium
70. (p. 529) Which of the following terms refer to the quality of being effective and producing
the desired results?
A. Capacity
B. Validity
C. Reliability
D. Stability
Difficulty: Easy
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Essay Questions
71. (p. 498-503) Identify and explain the different sources that multinational corporations can use
in their recruiting and selection procedures.
The basic sources include home-country nationals, host-country nationals, third-country

nationals, inpatriates and subcontracting or outsourcing. Home-country nationals are
managers who are citizens of the country where the multinational corporation is
headquartered and often are referred to as "headquarters nationals". Host-country nationals are
local managers who are hired by the multinational corporation and are mostly used at middle
and lower-level positions. Third-country nationals are managers who are citizens of countries
other than the one in which the multinational corporation is headquartered or one in which
they are assigned to work by the multinational. An inpatriate is an individual from a host-
country or a third-country national who is assigned to work in the home country, thereby
helping multinational corporations develop their global core competencies. Subcontracting
and outsourcing allow companies to utilize the services of employees, usually from other
countries on a temporary or permanent basis, at more competitive wages.
Difficulty: Medium
72. (p. 503-508) Identify the criteria that would influence a multinational corporation in the
selection of an individual for an international assignment.
General criteria, adaptability to cultural change, physical and emotional health, age,
experience and education, language training, motivation for a foreign assignment, spouses and
dependents or work-family issues, leadership ability and other considerations are all factors in
making an effective selection decision for international assignment.
Difficulty: Medium
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73. (p. 515-516) Discuss the various approaches that can be used to formulate a compensation
package.
The most common is the balance-sheet approach, which involves ensuring that the expat is
"made whole" and does not lose money by taking the assignment. A second and often
complementary approach is negotiation, which involves working out a special, ad hoc
arrangement that is acceptable to both the company and the expat. A third approach,
localization, involves paying the expat a salary that is comparable to the salaries of local
nationals. A fourth approach is the lump-sum method, which involves giving the expat a
predetermined amount of money and letting the individual make his/her own decisions
regarding how to spend it. The fifth approach is the cafeteria approach, which entails giving
expats a series of options and letting them decide how to spend the available funds. A sixth
method is the regional system, under which the MNC sets a compensation system for all
expats who are assigned to a particular region.
Difficulty: Medium
74. (p. 520-522) Describe what is meant by the term "training". What factors influence a
company's approach to training?
Training is the process of altering employee behavior and attitudes to increase the probability
of goal attainment. Many expatriates need training before as well as during their overseas
stay. The primary factor that will influence a company's approach to training is the overall
philosophy of international management. This includes the basic types of MNCs:
ethnocentric, polycentric, regiocentric and geocentric. Another factor is the learning style of
the trainees.
Difficulty: Medium
75. (p. 529-530) What is a cultural assimilator? What do cultural assimilators try to accomplish?
A cultural assimilator is a programmed learning approach that is designed to expose members

of one culture to some of the basic concepts, attitudes, role perceptions, customs and values of
another. Assimilators have been developed for many different cultures. Their validity has
resulted in the improved effectiveness and satisfaction of those being trained as compared
with other training methods.
Difficulty: Medium
14-35

Human Resource Selection and Development Across Cultures

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Chapter 14 - Human Resource Selection and Development Across Cultures

True / False Questions

5. An individual from a host-country who is assigned to work in the host-country is referred to

6. Factors used to choose personnel for international assignments are referred to as

12. Allowances are an expensive feature of expatriate compensation packages.

13. An approach to developing an expatriate compensation package that is based on ensuring

23. Headquarters nationals is another term used for:

27. Which of the following statements about third-country nationals is false?

29. An individual from a host-country or a third-country national who is assigned to work in

36. In general, some evidence suggests that testing is:

44. These are an expensive feature of expatriate compensation packages.

46. An approach to developing an expatriate compensation package that is based on ensuring

61. These MNCs do all of their training at their headquarters.

63. "Learning organizations" continually focus on activities such as:

75. What is a cultural assimilator? What do cultural assimilators try to accomplish?

Chapter 14 Human Resource Selection and Development Across Cultures

True / False Questions

Multiple Choice Questions

23. (p. 498) Headquarters nationals is another term used for:

The basic sources include home-country nationals, host-country nationals, third-country

A cultural assimilator is a programmed learning approach that is designed to expose members

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