MANAGEMENT (MIDTERM) QUESTIONS
AND ANSWERS
PCN (Parent Country National) - ANSWER-In an international firm, a person whose
nationality is the same as that of the firm but different from the country in which they are
working in
HCN (Host country national) - ANSWER-Employees who are hired for jobs in their own
country. Can become inpatriates if they are transferred into the parent country as
expatriates
TCN (third country nationals) - ANSWER-Individuals who are in transit/applying for
visas in countries that are not their country of origin to go to places that are not their
country of origin
MNE (Multinational Enterprise) - ANSWER-A firm that owns business operations in
more than one country (subsidiaries/ affiliates)
SME (small and medium-sized enterprises) - ANSWER-The part of the economy
consisting of small and medium-sized, usually privately owned businesses.
Index of transnationality - ANSWER-in an average of ratios of foreign assets to total
assets; foreign sales to total sales; and foreign employment to total employment
Inpatriate - ANSWER-The transfer of subsidiary staff into the parent country
(headquarters) operations
Multi-domestic industry - ANSWER-Competition in which each country is essentially
independent of competition in other countries (ex: retail, insurance)
organizational culture - ANSWER-the set of values, ideas, attitudes, and norms of
behavior that is learned and shared among the members of an organization
Tax equalization - ANSWER-firms withhold an amount equal to the home-country tax
obligation of the expatriate, and pay all taxes in the host country
Asymmetric Events - ANSWER-Have been described as threats that
our political, strategic and military cultures regard as unusual
Artifacts - ANSWER-Described as visible organization structures and processes