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The North American Free Trade Agreement promotes free trade between the United States, Cuba, and Mexico.

A) True
B) False

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In the context of compensation for international assignments, which of the following is a difference between the home-country-based approach and the host-country-based approach?


A) Unlike the home-country-based approach, the host-country-based approach involves calculating taxes and discretionary spending expenses based on those items' costs in the home country.
B) Unlike the host-country-based approach, the home-country-based approach compensates the expatriate at the same level as workers from the host country.
C) Unlike the host-country-based approach, the objective of the home-country-based approach is to maintain the standard of living the expatriate had in the home country.
D) Unlike the home-country-based approach, the host-country-based approach results in higher employer costs and more administrative complexity.

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

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Quality Cools, an ice cream company, bought Icee, a smaller ice cream company. The smaller company was folded into Quality Cools's business. Which of the following business forms does this scenario exemplify?


A) An acquisition
B) Piggybacking
C) Franchising
D) A joint venture

E) A) and D)
F) A) and B)

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In the context of global career concerns, which of the following statements is true of repatriates?


A) They seldom need to reacclimate to home-country lifestyles, transportation, and cultural circumstances.
B) They may feel a net decrease in total income, even if they receive promotions and pay increases.
C) They often continue to receive special compensation packages even after their return from international assignments.
D) They must adjust to a lack of close working and reporting relationships with home-country staff after having little flexibility or autonomy while living overseas.

E) All of the above
F) None of the above

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Which of the following international orientations adopted by multinational enterprises places a strong emphasis on each country as a unique environment?


A) The geocentric orientation
B) The regiocentric orientation
C) The polycentric orientation
D) The ethnocentric orientation

E) A) and C)
F) B) and C)

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Nations functioning under turbulent and varied legal and political systems are unattractive to global organizations.

A) True
B) False

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Countries such as Great Britain, Chile, South Korea, Thailand, Brazil, and Canada have universal health care programs.

A) True
B) False

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Zibb is a transnational electronics company based in Germany. It has factories in China, Mexico, and India. The company aims to streamline its manufacturing operations for maximum efficiency and profit. To this end, Zibb adopts the best manufacturing and packaging practices from around the world. This also leads to the creation of a global mind-set that adopts ideas without regard to their origin. Which of the following international orientations has Zibb adopted?


A) The polycentric orientation
B) The regiocentric orientation
C) The geocentric orientation
D) The ethnocentric orientation

E) All of the above
F) None of the above

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Which of the following is a difference between the geocentric orientation and the ethnocentric orientation?


A) The geocentric orientation requires the standardization of practices across all countries, whereas the ethnocentric approach requires the customization of practices in each country.
B) The geocentric orientation emphasizes each country's unique environment, whereas the ethnocentric orientation considers countries as aggregates within a region.
C) The geocentric orientation emphasizes utilizing the best ideas and practices from anywhere in the world, whereas the ethnocentric orientation emphasizes the home-country practices, policies, and culture.
D) The geocentric orientation adopts a local mind-set, whereas the ethnocentric orientation is truly global in its application.

E) A) and B)
F) A) and C)

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CottonOn is an apparel manufacturing company in Canada. It enters into a business arrangement with a firm in China. This arrangement grants the Chinese firm the right to use CottonOn's business model and brand to generate profits. In return, the Chinese firm has to pay a fee to CottonOn. This scenario most likely exemplifies _____.


A) offshoring
B) franchising
C) piggybacking
D) outsourcing

E) None of the above
F) All of the above

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In the context of regional alliances, within the Schengen Area, passport controls have been eliminated, and citizens of the Schengen nations can easily move between the countries.

A) True
B) False

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Foce is a premium jewelry company based in France. It has a gemstone mining and jewelry-making facility in South Africa. The design and execution team in South Africa adopts the best trends in jewelry fashion from all over the world, irrespective of their origin. The facility also utilizes the most effective advertising methods used the world over. Which of the following international orientations does Foce employ?


A) The ethnocentric orientation
B) The geocentric orientation
C) The regiocentric orientation
D) The polycentric orientation

E) A) and D)
F) A) and C)

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The Republic Corporation is an industrial machinery manufacturing company based in India. It has a production facility in China. The Chinese facility follows the operations and manufacturing processes of the home-country office. The HR policies and practices are also copied from the home country. Which of the following international orientations has the Republic Corporation adopted?


A) The regiocentric approach
B) The geocentric approach
C) The ethnocentric approach
D) The polycentric approach

E) None of the above
F) B) and C)

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Organizations that value consistency and hope to encourage employee mobility may favor a more customized approach to compensation, while those that wish to encourage local adaptation will likely choose a more standardized approach.

A) True
B) False

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Discuss the important considerations in determining compensation for expatriates.

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Multinational companies may staff their ...

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The people of an Asian country feel threatened by ambiguity and the future. As a result, they try to control behavior as much as possible to reduce ambiguity. In the context of the dimensions of country cultures developed by Dutch scholar Geert Hofstede, this country is most likely to have _____.


A) high scores on the indulgence versus restraint dimension
B) low scores on the power distance index dimension
C) high scores on the uncertainty avoidance dimension
D) low scores on the individualism versus collectivism dimension

E) A) and B)
F) A) and C)

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In the context of intercultural competence, behavioral training is most likely to include:


A) the Culture Assimilator method.
B) culture-specific training focusing on cultural customs.
C) a communication skills course.
D) a language course.

E) All of the above
F) None of the above

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In the context of the country culture dimensions developed by Dutch scholar Geert Hofstede, briefly explain the term power distance index.

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The power distance index refer...

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Discuss the key competencies required for global employees to succeed.

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The key competencies required for global...

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Onesty Inc. is a manufacturer of handmade paper greeting cards. It has production and sales offices in the United States, the United Kingdom, Japan, and India. Onesty manufactures and sells greeting cards according to the traditions and festivals in each of these countries. Its policies and practices too vary widely in these countries. Which of the following international orientations has Onesty Inc. adopted?


A) The ethnocentric orientation
B) The geocentric orientation
C) The regiocentric orientation
D) The polycentric orientation

E) All of the above
F) A) and B)

Correct Answer

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