Ch 17

Question 1

Area Studies

Answer 1

Factual Knowledge of the historical, political, and economic environment of the host country

Question 2

Codetermination

Answer 2

An industrial relations practice in which labor representatives sit on the corporate board and participate in company decision making

Question 3

Collective Bargaining

Answer 3

Joint negotiations between management and hourly labor and technical staff regarding wages and working traditions

Question 4

Cross Cultural Awareness

Answer 4

Ability to interact effectively and appropriately with people from different language and cultural backgrounds

Question 5

Cultural Intelligence

Answer 5

An employees ability to function effectively in situations characterized by cultural diversity

1. Strategy
2. Knowledge
3. Motivation
4. Behavioral Flexibility

Question 6

Culture Shock

Answer 6

Confusion and anxiety experienced by a person who lives in a foreign culture for an extended period

Question 7

Expatriate

Answer 7

An employee assigned to work and reside in a foreign country for an extended period, usually a year or longer

Question 8

Expatriate Assignment Failure

Answer 8

An employees premature return from an international assignment

-Difficulty adjusting

Question 9

Global Talent Pool

Answer 9

A searchable data base of employees, profiling their international skill sets and potential for supporting the firms global aspirations

Question 10

Host Country National

Answer 10

An employee who is a citizen of the country where MNE subsidairy or affiliate is located

Question 11

International Human Resource Management

Answer 11

The planning, selection, training, employment, and evaluation of employees for international operations

Question 12

Parent Country National

Answer 12

An employee who is a citizen of the country where the MNE is headquartered

Question 13

Performance Appraisal

Answer 13

A formal process for assessing how effectively employees perform their jobs

Question 14

Practical Information

Answer 14

Knowledge and skills necessary to function effectively in a country, including housing, health care, education, and daily living

Question 15

Repatiration

Answer 15

The expatriate’s return to his or her home country following the completion of the foreign assignment

Question 16

Third Country National

Answer 16

An employee who is a citizen of a country other than the home or host country

Question 17

Strategic Role of Human Resources In International Business

Answer 17

International Human Resource Management

1. Parent Country National
2. Host Country National
3. Third Country National

-Exapatriate

Six Key Tasks:
-International Staffing Policy

-Preparation and Training of International Employees

-International Performance Appraisal

-Compensation and including formulation of benefit packages that vary from country to country

-International Labor Relations

-Managing diversity in the International Workplace

Question 18

International Staffing Policy

Answer 18

-Managers best suited for working abroad typically have technical competence, self-reliance, adaptability, interpersonal skills, leadership ability, physical and emotional health, a family prepared for living abroad.

-Expatriate assignment failure

Question 19

Preparation and Training of International Employees

Answer 19

Training for foreign performance includes:
-Area studies
-Practical Information
-Cross-cultural awareness

*Training includes methods such as videos, lectures, readings, simulations, and field experience

-Repatriation

Question 20

Performance Appraisal and Compensation of International Employees

Answer 20

-International performance appraisals involve providing feedback on how well employee’s are doing their job, identifying problems and areas where more training is needed, and providing a basis to reward superior performance

-Compensation packages vary internationally because of differences in legally mandated benefits, tax laws, costs of living, local tradition, and culture

Typical Expatriate compensation includes 4 components:
-Base Salary
-Benefits
-Allowances
-Incentives

*Tax equalization must be considered because expatriates may face two tax bills for the same pay, from the host and home countries

Question 21

International Labor Relations

Answer 21

-MNEs employ many nonmanagerial employees abroad, represented by labor unions to work in factories and perform other tasks.

-Codetermination

-Leading MNEs establish an information system on labor developments, communicate with all employees, and formulate a standard policy on employment and working conditions worldwide.

Question 22

Diversity In The International Workforce

Answer 22

-Experienced MNEs include people from diverse backgrounds, nationalities, and gender who bring a wealth of experience and knowledge to addressing the firm’s problems and opportunities.

-Success comes from understanding and accepting differences and then using them to enhance planning, strategy, and the firm’s operations.