chapter 14

Question 1

what is the key to high retention

Answer 1

employee engagement

Question 2

managers who are citizens of the country where the MNC is headquartered

Answer 2

expatriates

Question 3

individuals from a host country or third country who are assigned to work in the home country

Answer 3

inpats

Question 4

ensures the expat does not lose money by take a assignment

Answer 4

balance sheet approach

Question 5

involves working out a special, ad hoc arrangement that is acceptable to both the company and the expat

Answer 5

negotiation approach

Question 6

pays the expat a salary comparable to that of local nationals

Answer 6

localization

Question 7

gives expats a predetermined amount of money and lets them decide how to spend it

Answer 7

lump sum method

Question 8

gives expats a series of options and lets them decide how to spend the available funds

Answer 8

cafeteria approach

Question 9

sets a compensation system for all expats who are assigned to a particular region

Answer 9

regional system

Question 10

stresses nationalism and puts home office people in charge of key international management positions

Answer 10

ethnocentric MNC

Question 11

places local nationals in key positions and allows these managers to appoint and develop their own people

Answer 11

polycentric MNC

Question 12

relies on local managers from a particular geographic region to handle operations in and around that area

Answer 12

regiocentric MNC

Question 13

seeks to integrate diverse regions of the world through a global approach to decision making

Answer 13

geocentric MNC