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Briefly describe how national differences in compensation can affect an international business.

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Substantial differences exist in the com...

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What is a characteristic of an ethnocentric staffing policy?


A) It requires host-country nationals to be recruited to manage subsidiaries.
B) It is used when a firm places a low value on its corporate culture.
C) It increases advancement opportunities for host-country nationals.
D) It seeks the best people for key jobs throughout the organization, regardless of nationality.
E) It places parent-country nationals in key management positions.

F) A) and E)
G) A) and B)

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In her fifteen-year career at CalCorp, Samantha's work did not require any travel at all. Actually, Samantha has never traveled outside of the United States. However, she has excelled at her job and is good at communicating with everyone in the firm. An important position has opened in CalCorp's Dubai operations, and the company is considering whom to send. According to Mendenhall and Oddou, which attribute would seem unlikely to predict success in this situation?


A) Samantha's ability to project self-orientation
B) equating Samantha's domestic performance with overseas potential
C) an others-orientation demonstrated by Samantha
D) the ability to empathize shown by Samantha
E) Samantha's level of cultural toughness

F) A) and C)
G) A) and E)

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A polycentric approach to staffing might be less expensive to implement than an ethnocentric approach.

A) True
B) False

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A(n) ________ is compatible with a geocentric staffing policy, but immigration policies might limit the implementation of this strategy.


A) global standardization strategy
B) localization strategy
C) international strategy
D) TQM strategy
E) JIT strategy

F) D) and E)
G) None of the above

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One way organized labor responds to the increased bargaining power of multinational corporations is by trying to


A) impose regulations on multinationals through organizations such as GATT.
B) achieve international regulations on multinationals through the United Nations.
C) establish regional boards.
D) lobby multinational corporations to restrict their global reach to three or fewer foreign countries.
E) develop a local trade forum.

F) C) and D)
G) A) and B)

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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


A) threatening to disrupt production on an international scale.
B) introducing a reciprocal tax treaty.
C) trying to farm out highly skilled tasks back to the home country of the firm.
D) increasing its bargaining power.
E) lobbying for importing employment practices from the home country of the firm.

F) A) and B)
G) C) and D)

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Organizational architecture refers to an organization's norms and value systems.

A) True
B) False

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Ryan, a U.S. citizen, is the operations manager at the Middle East office of KB Constructions Inc., an American firm. In this situation, Ryan is a(n) ________ manager.


A) repatriate
B) host-country
C) inpatriate
D) expatriate
E) virtual

F) C) and D)
G) A) and B)

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When a reciprocal tax treaty is in place, how does an expatriate benefit?


A) They may not have to pay income tax to both host and home governments.
B) They do not have to pay any income tax.
C) They have to pay income tax at a lower rate to the host-country government.
D) They have to pay income tax at a higher rate to the home-country government.
E) They pay 50 percent more tax to the host-country government.

F) B) and E)
G) A) and B)

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