GPHR Study Questions - Untimed Test

Question 1

A home country office with separate country offices reporting to the home country.

Answer 1

International Organizational Structure

Question 2

A reporting structure that is based on functional departments reporting to home office.

Answer 2

Functional Organizational Structure

Question 3

A global organization that focuses resources without reference to national origins.

Answer 3

Transnational Operational Structure

Question 4

Each region operates independently and reports to CEO.

Answer 4

Regional or Geographical Organizational Structure

Question 5

What is the most likely strategy of a multi-national corporation that purchases a poorly performing competitor in another country?

Answer 5

Completely absorb the acquired company into the parent organization.

Question 6

A primary benefit of establishing centers of excellence within the international HR function is to:

Answer 6

Share HR best practices among locations.

Question 7

The best time for an organization to establish a formal international HR program is when:

Answer 7

Subsidiary business activity in more than one country reaches beyond basic import-export functions.

Question 8

In many European countries, a common trend in the HR function is a decrease in the:

Answer 8

Size of HR departments in relation to the overall size of the staff.

Question 9

A company has developed a strategy that requires a merger or acquisition. Once the company has scanned the environment and collected data, which process should occur before selecting a target to merge with or acquire?

Answer 9

Scenario planning

Question 10

What is a common alternative to greenfield investments and strategic alliances as a vehicle for internationalization?

Answer 10

Acquisitions

Question 11

What are Greenfield Investments (GI)?

Answer 11

A foreign direct investment (FDI) where a company establishes operations in a foreign country

Question 12

Why are acquisitions necessary?

Answer 12

Acquisitions allow Multi-National Companies (MNCs) to obtain another company that already has its structures, processes and business in place. It also allows the main company to maintain control and ramp up its internationalization quickly.

Question 13

What is a disadvantage when forming a strategic alliance?

Answer 13

Companies do not always have control over their partners’ operations.

Question 14

What is outsourcing?

Answer 14

A business practice in which companies use external providers to carry out business processes that would otherwise be handled internally

Question 15

What is an equity investment?

Answer 15

When an investor purchases shares of a company in the stock market, becoming a partial owner of the company. The investor receives a share of the company’s assets and profits, and may benefit from the company’s success

Question 16

What is a territorial market agreement?

Answer 16

A legal document that outlines the distribution of a company’s products or services across a particular geographic area.

Question 17

What does a territorial market agreement do?

Answer 17

The agreement sets the terms and conditions for selling, marketing, and distributing the products or services within a designated territory.

Question 18

The best approach to becoming an employer of choice is with:

Answer 18

Employer branding.

Question 19

Why are Centers of Excellence important to a business strategy?

Answer 19

Centers of Excellence drive leading practices and processes by applying deep HR functional domain knowledge, a strong understanding of business imperatives, and market trends to deliver thought leadership.

Question 20

What are some benefits of a Centers of Excellence?

Answer 20

Centralize administrative activities.
Increase communication across locations.
Ensure that parent-country HR practices are known and followed.

Question 21

What is a benefit of Formal International HR Program?

Answer 21

It will allow a company to be set up for future growth and setting standards

Question 22

What is not necessary when establishing a Formal International HR Program?

Answer 22

It is not always necessary to send expats to work in foreign locations.
There is no requirement for a specific number of countries; rather it will be dependent on each organization’s own global expansion.
It is not necessary for feasibility studies to be conducted in order for an organization to establish a formal international HR program

Question 23

European countries and its businesses are generally more established and therefore more likely to ___________.

Answer 23

Outsource

Question 24

At what stage does communication planning occur during the M&A process?

Answer 24

The Final Stage

Question 25

What are two steps that occur before the M&A strategy is developed?

Answer 25

Due Diligence & Financial Analysis

Question 26

What is Employer branding?

Answer 26

The term commonly used to describe reputation as an employer, and its value proposition to its employees, as opposed to its more general corporate brand reputation and value proposition to customers.

Question 27

Which of the following would be the most advisable method for reducing expatriate costs without threatening return on investment (ROI)?

Answer 27

Shorten assignment lengths Eliminate foreign service premiums. Tighten policies and limit the number of exceptions.

Question 27

What area does the expatriate receive coaching/training in?

Answer 27

Business etiquette, interpersonal communication, leadership styles and labor relations

Question 27

Which of the following would be the least advisable method for reducing expatriate costs without threatening return on investment (ROI)?

Answer 27

Increase use of unaccompanied assignments.

Question 28

What is the most important challenge to the effectiveness of a pre-departure, cross-cultural training program?

Answer 28

Applicability of the program to diverse cultures

Question 28

Why is cross cultural training important?

Answer 28

It assists the expatriate and his family to understand cultural differences in their new country. It reduces the stress of the relocation and provides coping strategies.

Question 29

Which term best describes people who live in one country but regularly travel to other countries to perform some aspect of their work?

Answer 29

International commuters

Question 30

What is an unaccompanied assignee?

Answer 30

Assignments in which the employee cannot bring their families on the overseas assignment.

Question 31

What are reverse expatriates?

Answer 31

Bringing home an expat who has been abroad for a significant period of time, to the point that they feel the overseas location is now their "home."

Question 32

What are domestic employees?

Answer 32

Employees who live and work in the home office and country.

Question 33

What is the primary expatriate selection criterion?

Answer 33

Technical competence

Question 34

Which of the following countries does not require an employment contract?

Answer 34

United States

Question 35

The best predictor of success for a potential international assignee is the ability to:

Answer 35

Perform specific job tasks and function well in a different culture.

Question 36

What are two examples of being successful on an international assignments?

Answer 36

Adaptable to change and willing to embrace the challenges of working on an international assignment.

Question 37

What are most often cited by expatriates as contributing to assignment success?

Answer 37

Role autonomy and job discretion

Question 38

A formal group work structure or hierarchy would be preferred by virtual team members residing in:

Answer 38

Germany

Question 39

What term describes expatriates who remain in their jobs despite their ineffective performance?

Answer 39

Brownouts

Question 40

The mindset that allows one to live and work successfully across cultures is called:

Answer 40

Global

Question 41

What is a global mindset?

Answer 41

Mindset that can be defined as one that is open-minded, adaptable, and curious.

Question 42

When interacting with employees from a Latin American country, it is appropriate to expect them to

Answer 42

Carry on simultaneous conversations.

Question 43

Employers make annual contributions based on estimates of future retirement plan performance to:

Answer 43

A defined benefit pension plan.

Question 44

What is a cash balance pension plan?

Answer 44

A pension plan under which an employer credits a participant's account with a set percentage of his or her yearly compensation plus interest charges.

Question 45

What is a profit sharing plan?

Answer 45

A contribution plan that lets companies help employees save for retirement and the contributions from the employer are discretionary.

Question 46

What is an umbrella pension plan?

Answer 46

A fund that pools the retirement investments of multiple employers thereby reducing the average cost per member and enhancing the overall returns and benefits to both the employer and the employees.

Question 47

The most prevalent global stock program is:

Answer 47

stock options.

Question 48

The governing principle of the European community regarding the right to annual leave is:

Answer 48

A fundamental social right which cannot be taken away from any worker.

Question 49

True or False: The EU has labor laws that mandate unpaid annual leave for workers.

Answer 49

False. The EU labor laws mandates that the annual leave for European employees as a paid leave.

Question 50

True or False: Works Councils do not always make decisions regarding annual leave

Answer 50

True. Works Councils do not always make those decisions

Question 51

Which of the following is the practice that ensures that international assignees neither gain nor lose with regard to home-country income and social taxes?

Answer 51

Tax equalization

Question 52

What is tax compliance?

Answer 52

Obeying the tax law

Question 53

What is tax protection?

Answer 53

The process that reimburses assignees the excess taxes that they incur while on international assignment but will incur the responsibility for the pay of all actual home and host country taxes.

Question 54

What is tax gross-up?

Answer 54

increasing reimbursements or wages for workers, for the taxes paid on some portion of their income, usually from a one-time payment such as relocation expenses.

Question 55

Collectively bargained multi-employer pension programs that supplement social security are mandatory in:

Answer 55

France

Question 56

What are some ideals that expatriates consider as preferences while on their international assignments?

Answer 56

If role autonomy and job discretion exist, the expats have the room to make decisions and operate independently without any micromanagement from the home office.

Question 57

Which of the following terms refers to the practice of paying international transfers essentially the same salary as local nationals in equivalent positions?

Answer 57

Localization

Question 58

What is most important to consider when implementing an international performance management system?

Answer 58

Relevance

Question 59

Which of the following is the most prevalent pay-mix practice for executive managers in global organizations?

Answer 59

Local-based salary and short-term incentives, but long-term incentives consistent globally

Question 60

Under the Foreign Corrupt Practices Act (FCPA), how is bribery defined?

Answer 60

Paying agents to do something inconsistent with the purpose of their position

Question 61

Which country generally does not require employers to justify dismissal of employees?

Answer 61

United States

Question 62

What has been the trend in the European Union (EU) for union membership by employees over the last two decades?

Question 63

What is a Monochronic Culture?

Answer 63

A culture that focuses on one conversation or topic at a time.

Question 64

True or False: Latin American is a monochronic Culture

Answer 64

False: It is a polychronic culture

Question 65

What is a polychronic culture?

Answer 65

A culture that focuses on multiple topics or conversations at one time.

Question 66

What is a unique factor regarding France's pension program?

Answer 66

Unlike other countries, France's pension plan is built into its country's social security programs. It requires collectively bargained multi-employer pension programs to supplement social security

Question 67

What is pay (salary protection) for assignees?

Answer 67

A process that reimburses an assignee the excess taxes they incur while on an international assignment, paying for all country and home taxes.

Question 68

What is standardization pay for assignees?

Answer 68

The process to which a company pays all employees a standard amount