IMS 3310 EXAM 1 REVIEW QUESTIONS AND ANSWERS
The majority of MNE's employees would be: - CORRECT ANSWER✅✅Host Country Nationals (HCNs)
A(n) ____ emphasizes the norms and practices of the parent company relying on PCNs - CORRECT
ANSWER✅✅Ethnocentric Approach
Which of the following is NOT a disadvantage of host-country nationals? - CORRECT ANSWER✅✅Host
Country Nationals (HCNs):
Advantages:
1) Language and cultural barriers are eliminated
2) Continuity of management improves because HCNs stay longer in positions
3) Usually Cheaper
Disadvantages:
1) Control and coordination by HQ may be impeded
2) HCNs may have limited career opportunities
3) International experience for PCNs is limited
Which of the following is NOT an advantage of parent-country nationals? - CORRECT
ANSWER✅✅Parent Country Nationals (PCNs):
Advantages:
1) Control by HQ is facilitated
2) PCNs may be the most qualified people
3) Managers are given international experience
Disadvantages:
1) Opportunities for HCNs are limited
, 2) Adaptation may take a long time
3) PCNs are usually quite expensive
An ethnocentric staffing policy: - CORRECT ANSWER✅✅Emphasizes the norms/practices of Parent
Company (and parent company of MNE) by relying on PCNs
The expatriates' important roles are: - CORRECT ANSWER✅✅Strategists: Represent the interests of
MNE's HQ
Daily Managers: Run operations and build local capabilities
Ambassadors: Represent HQ's interests, build relationship w/ Host Country Stakeholders; Represent
interests of subsidiaries to HQ
Trainers: Train local employees
MNE strategies are: - CORRECT ANSWER✅✅Home Replication: Emphasizes on replicating home-
country-based competencies in foreign countries
Localization: Focuses on numerous potential foreign countries/regions, which stand alone in domestic
markets
Global Standardization: Relies on the development and distribution of standardized products globally to
reap maximum benefits from low-cost advantages
Transnational Strategy: Endeavors to be cost efficient, locally responsive, and learning driven around the
world
"Expatriate failure" can be defined as: - CORRECT ANSWER✅✅A) Premature return
B) Unfulfilled business objectives
C) Unfulfilled career development objectives
The majority of MNE's employees would be: - CORRECT ANSWER✅✅Host Country Nationals (HCNs)
A(n) ____ emphasizes the norms and practices of the parent company relying on PCNs - CORRECT
ANSWER✅✅Ethnocentric Approach
Which of the following is NOT a disadvantage of host-country nationals? - CORRECT ANSWER✅✅Host
Country Nationals (HCNs):
Advantages:
1) Language and cultural barriers are eliminated
2) Continuity of management improves because HCNs stay longer in positions
3) Usually Cheaper
Disadvantages:
1) Control and coordination by HQ may be impeded
2) HCNs may have limited career opportunities
3) International experience for PCNs is limited
Which of the following is NOT an advantage of parent-country nationals? - CORRECT
ANSWER✅✅Parent Country Nationals (PCNs):
Advantages:
1) Control by HQ is facilitated
2) PCNs may be the most qualified people
3) Managers are given international experience
Disadvantages:
1) Opportunities for HCNs are limited
, 2) Adaptation may take a long time
3) PCNs are usually quite expensive
An ethnocentric staffing policy: - CORRECT ANSWER✅✅Emphasizes the norms/practices of Parent
Company (and parent company of MNE) by relying on PCNs
The expatriates' important roles are: - CORRECT ANSWER✅✅Strategists: Represent the interests of
MNE's HQ
Daily Managers: Run operations and build local capabilities
Ambassadors: Represent HQ's interests, build relationship w/ Host Country Stakeholders; Represent
interests of subsidiaries to HQ
Trainers: Train local employees
MNE strategies are: - CORRECT ANSWER✅✅Home Replication: Emphasizes on replicating home-
country-based competencies in foreign countries
Localization: Focuses on numerous potential foreign countries/regions, which stand alone in domestic
markets
Global Standardization: Relies on the development and distribution of standardized products globally to
reap maximum benefits from low-cost advantages
Transnational Strategy: Endeavors to be cost efficient, locally responsive, and learning driven around the
world
"Expatriate failure" can be defined as: - CORRECT ANSWER✅✅A) Premature return
B) Unfulfilled business objectives
C) Unfulfilled career development objectives
