HRM6645 Midterm UPDATED Questions
and CORRECT Answers
PCN (parent- country nationals) - CORRECT ANSWER - employees whose nationality is
the same as that of the firm headquarters. A German employee of a German company who is
working at a Chinese subsidiary.
HCN (host-country nationals) - CORRECT ANSWER - are employees who have the same
nationality as the local subsidiary. This could be a Chinese employee working at the Chinese
subsidiary of the German company
TCN (Third-country nationals) - CORRECT ANSWER - are employees whose nationality
is different from that of either the headquarters or the subsidiary office. In the above scenario,
this might mean an Indian employee working at the Chinese office of the German company.
MNE (multinational enterprise) - CORRECT ANSWER - company that has a worldwide
approach to markets, production and/or operations in several countries. A corporation that is
registered in more than one country or which functions in more than one country. It is a kind of
organization which both produces and manufactures its goods and services in more than one
country.
SME (small or medium-sized enterprise) - CORRECT ANSWER - are non-subsidiary,
independent firms which employ fewer than a given number of employees
Index of Transnationality - CORRECT ANSWER - A means of ranking multinational
corporations that is employed by economists and politicians; which is an average of ratios of
foreign assets to total assets; foreign sales to total sales; and foreign employment to total
employment.
Inpatriate - CORRECT ANSWER - An employee of a multinational company who is from
a foreign country, but is transferred from a foreign subsidiary to the corporation's headquarters.
The transfer of subsidiary staff into the parent country (headquarters) operations
, Expatriate - CORRECT ANSWER - An expatriate is an employee who is working and
temporarily residing in a foreign country.
Multidomestic Industry - CORRECT ANSWER - An industry in which competition takes
place on a country-by-country basis. One in which competition in each country is essentially
independent of competition in other countries. Traditional examples include retailing,
distribution and insurance. At the other end of the continuum is the global industry, one in which
a firm's competitive position in one country is significantly influenced by its position in other
countries
Organizational Culture - CORRECT ANSWER - is defined as the sense of common
identity and purpose across the whole organization.
Tax Equalization - CORRECT 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 - CORRECT ANSWER - have been described as threats that our
political, strategic and military cultures regard as unusual. Difficult to plan for and deal with.
Artifacts - CORRECT ANSWER - are described as visible organization structures and
processes
Communitarianism - CORRECT ANSWER - is about the rights of the group or society. It
seeks to put the family, group, company and country before the individual. It sees individualism
as selfish and short-sighted.
Diffuse Culture - CORRECT ANSWER - is characterized by: a large private life that
includes a relatively large number of people; small public space that is difficult to enter (e.g. an
outsider needs a formal introduction from a mutual friend in order to do business with a
particular manager); indirect communication-does not always say what is really meant; no clear
distinction between work and private life.
and CORRECT Answers
PCN (parent- country nationals) - CORRECT ANSWER - employees whose nationality is
the same as that of the firm headquarters. A German employee of a German company who is
working at a Chinese subsidiary.
HCN (host-country nationals) - CORRECT ANSWER - are employees who have the same
nationality as the local subsidiary. This could be a Chinese employee working at the Chinese
subsidiary of the German company
TCN (Third-country nationals) - CORRECT ANSWER - are employees whose nationality
is different from that of either the headquarters or the subsidiary office. In the above scenario,
this might mean an Indian employee working at the Chinese office of the German company.
MNE (multinational enterprise) - CORRECT ANSWER - company that has a worldwide
approach to markets, production and/or operations in several countries. A corporation that is
registered in more than one country or which functions in more than one country. It is a kind of
organization which both produces and manufactures its goods and services in more than one
country.
SME (small or medium-sized enterprise) - CORRECT ANSWER - are non-subsidiary,
independent firms which employ fewer than a given number of employees
Index of Transnationality - CORRECT ANSWER - A means of ranking multinational
corporations that is employed by economists and politicians; which is an average of ratios of
foreign assets to total assets; foreign sales to total sales; and foreign employment to total
employment.
Inpatriate - CORRECT ANSWER - An employee of a multinational company who is from
a foreign country, but is transferred from a foreign subsidiary to the corporation's headquarters.
The transfer of subsidiary staff into the parent country (headquarters) operations
, Expatriate - CORRECT ANSWER - An expatriate is an employee who is working and
temporarily residing in a foreign country.
Multidomestic Industry - CORRECT ANSWER - An industry in which competition takes
place on a country-by-country basis. One in which competition in each country is essentially
independent of competition in other countries. Traditional examples include retailing,
distribution and insurance. At the other end of the continuum is the global industry, one in which
a firm's competitive position in one country is significantly influenced by its position in other
countries
Organizational Culture - CORRECT ANSWER - is defined as the sense of common
identity and purpose across the whole organization.
Tax Equalization - CORRECT 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 - CORRECT ANSWER - have been described as threats that our
political, strategic and military cultures regard as unusual. Difficult to plan for and deal with.
Artifacts - CORRECT ANSWER - are described as visible organization structures and
processes
Communitarianism - CORRECT ANSWER - is about the rights of the group or society. It
seeks to put the family, group, company and country before the individual. It sees individualism
as selfish and short-sighted.
Diffuse Culture - CORRECT ANSWER - is characterized by: a large private life that
includes a relatively large number of people; small public space that is difficult to enter (e.g. an
outsider needs a formal introduction from a mutual friend in order to do business with a
particular manager); indirect communication-does not always say what is really meant; no clear
distinction between work and private life.
