Questions and CORRECT Answers
PCN - CORRECT ANSWER - An EE who is working and temporarily residing in a
foreign country
HCN - CORRECT ANSWER - An EE who is from the country in which a subsidiary is
located and works in their home country
TCN - CORRECT ANSWER - EE who are natives of a country other than the home
country or the host country
MNE - CORRECT ANSWER - Multinational Enterprise -firm that owns/ controls
business activities in more than 1 foreign country
SME - CORRECT ANSWER - Small and medium enterprises
Index of Transnationality - CORRECT ANSWER - in an average of ratios of foreign
assets to total assets; foreign sales to total sales; and foreign employment to total employment
Inpatriate - CORRECT ANSWER - employee who is transferred from a subsidiary to
work in the headquarters (parent-country) for a specified period of time
Multidomestic Industry - CORRECT ANSWER - one in which competition in each
country is essentially independent of competition in other countries
Organizational Culture - CORRECT ANSWER - the sense of common identity and
purpose across a whole organization
, Tax Equalization - CORRECT ANSWER - firms withhold an amount equal to the home-
country tax obligation of the expatriate, and pay all taxes to the host country -pg5
Asymmetric Events - CORRECT ANSWER - Have been described as threats that our
political, strategic, and military cultures regard as unusual - pg16
Artifacts - CORRECT ANSWER - Are described as visible organization structures and
processes -pg38
Communitarianism - CORRECT ANSWER - Cultural view; the rights of the group or
society (puts the group before the individual); opposite of individualism
Diffuse Culture - CORRECT ANSWER - characterized by a large private life that includes
a relatively large number of people; small public space that is difficult to enter(formal
introductions required); indirect communication; no clear distinction between work and private
life
High Context Communication - CORRECT ANSWER - in high context cultures, a more
indirect form of expression is common, where the receiver must decipher the content of the
message from its context
Particularism - CORRECT ANSWER - pays more attention to individual cases, deciding
what is good and correct depending on relationship and special friendship arrangements -pg36
Power Distance - CORRECT ANSWER - the degree to which members of a collective
expect power to be distributed equally
Spatial Distance - CORRECT ANSWER - Geographical distance between EE or locations
Uncertainty Avoidance - CORRECT ANSWER - includes the extent to which a society,
organization, or group relies on social norms, rules, and procedures to alleviate unpredictability
of future events