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Q76. A U.S. Based high tech company has built a R&D office in Bangalore, India. Four years have passed since the greenfield operation was successfully built. During this time, the new location has taken on higher priority engineering projects and has trained and developed managerial skills of its newly recruited managers in Banhalore. Headquarters wants the office to take on a new engineering project that would expand its business in the U.S. By adding a new product line. This project has been identified as the most important objective for the corporation in the mid-term. The project is still in the phase of identifying specifications and developing milestones, where the engineering management team is working closely with the product manager. The management team understands that it must create an international assignment program to have this project run smoothly. The team believes that extended business travel would be the most appropriate program. In order to confirm their belief, the HR manager does extensive research. The analysis shows that extended business travel will result in $10,000,000 additional revenue in the first year and $5,000,000 additional revenue in the second year due to the customization of the product to customer demand. The cost of the program is $400,000 initial investment plus a variable cost of $100,000 per year. What is the cost-benefit ratio in the first year?
A. 25:1
B. 20:1
C. 1:20
D. 1:25
Answer: B
Q77. An organization is in the growth stage of the organizational life cycle. It has five locations, one in the U.S. (headquarters), two in Asia, one in South America, and one in Europe. The foreign operations are relatively new, fully operational only within the last 5 years. During this time, each office has caucused on building both technical and managerial talent within its own site. Once a year the executive team from headquarters visits each office to meet with the managers at each site to discuss the coming fiscal year's strategic goals and objectives. Which of the following stages of globalization BEST descries the phase this company is in?
A. International
B. Transnational
C. Multinational
D. Domestic
Answer: C
Q78. An organization is in the global stage of globalization. Which of the following BEST describes the key functions of human resources professionals working in this company at this time?
A. Increasing activity in international assignment programs, so that they have an extensive knowledge about various host countries. Focused on change partner and navigator role.
B. Experts at moving resources back and forth across countries. Focused on only navigator role.
C. Increasing activity in international assignment programs, so that they have an extensive knowledge about various host countries. Focused builder and change partner role.
D. Experts at moving resources back and forth across countries. Focused on change partner and navigator role.
Answer: D
Q79. Which of the following is NOT likely an issue a human resources professional would help a dual career family to work though to determine the appropriateness of an international assignment for the family at that time?
A. How will the host country workers respond to a same sex family?
B. Will the accompanying spouse be able to find a job easily?
C. Will the employee consider commuting instead of moving the whole family to the host country?
D. How will the loss of income from one spouse impact the family and their finances?
Answer: A
Q80. A U.S. based Engineering Manager was sent to England for a short-term six-month assignment to recruit and build a team. He is done with the assignment and has returned home. When going out with family and friends, he describes the entire opportunity as being exciting and challenging. He wishes he could have stayed in Europe longer. Which of the following repatriation programs is the MOST appropriate to ensure a successful repatriation?
A. Re-entry training program
B. Compensation and benefits adjustment
C. Policies on repatriation
D. Recognition and appreciation
Answer: D
Q81. What are the 4P's in Marketing?
A. Place, Product, Promotion, Partnership
B. Price, Place, Product, Promotion
C. Price, Product, Promotion, Productivity
D. Price, Product, Promotion, Partnership
Answer: B
Q82. Which of the following stages of globalization is an organization likely in if it is pursuing a polycentric staffing approach?
A. Domestic
B. Global
C. Multinational
D. Transnational
Answer: C
Q83. After two years of selling mostly prototypes of their product, built to customer specifications, a company is beginning to commercialize this product. The current average cost to build the product is $1000 per unit, where $600 is the bill of materials and $400 id the direct labor. The company currently produces at the run rate of the 100 good units per week from 200 total units processed. The firm currently sells the product at $1500 per unit, without volume discounts. One of the major pressures from their customers is to cut costs by 40% within one year. Which of the following strategies should the firm pursue first based on the following research data? Please assume there is infinite customer demand.
A. Acquiring a company overseas in order to manufacture the product, which would reduce costs by 75% in Year 1 (5% probability of the success )
B. Developing a turnkey operation that reduces costs by 65% in Year 1 (30% probability of the success )
C. Participate in a joint venture for new R&D that would help reduce costs by 50% by improving yields in Year 1 (20% probability of success )
D. Licensing out the technology to a corporation in another country that would reduce costs by 55% in Year 1 (15% probability of success )
Answer: B
Q84. According to the global performance management process, an organization should be aliging company systems in phases EXCEPT in which of the following stages?
A. Specifying each employee's performance plan
B. Defining global business strategy and objectives
C. Linking benefits & rewards as well as employee development to the process
D. Conducting the appraisal with each employee
Answer: B
Q85. An organization is creating an incentive pay plan for its global executives. Due to time pressures, the HR Director is not able to perform a complete analysis as to the measures that should be evaluated for each executive. Therefore, since the focus of the organization this year is on meeting revenue targets in order to reach break-even in 2 years, the HR Director and CEO recommend to the Board of Directors an incentive plan for each executive tied to this year's revenue only. Which of the following statements is true in regards to the incentive pay plan?
A. This is not an effective executive incentive pay plan because it does not have a sunset clause
B. This executive incentive pay plan is not a win-win situation
C. This is not an effective executive incentive pay plan because it does not incorporate goals line of sight
D. This is not an effective executive incentive pay plan because it does not aligned with the organizational goals and objectives
Answer: C
Q86. Which of the following is NOT a reason why a company would pursue moving forward with an acquisition?
A. Improve customer relations
B. Increase their current market share
C. Acquire new skills and talents
D. Expand their product protfolio
Answer: A
Q87. Which of the following is NOT an international assignee?
A. Expatriate
B. Inpatriate
C. Third country nationals
D. Local nationals
Answer: D
Q88. The HR Manager is creating an interactive training program on recruiting for a group of 20 R&D managers as well as one for a group of 20 production line leads. Which of the following is NOT a factor to consider bearing in mind these target audiences?
A. R&D managers have probably had similar training in the past
B. Production line leads are probably kinesthetic learners
C. For the production line lead group, the best media to present this information is a video
D. The facilitator for the group of R&D managers should be a subject matter expert that can express content as "A" causes "B" incidents
Answer: C
Q89. A company decides to pursue an international assogment program to fill a new position in is new office in Beijing, China. With the assistance of the human professional, the management team has finalized a list of job-specific selection crieria of the ideal candidate for the role. During the interviewing process, the key selection tool utilized was role-playing. Role-playing was done entirely in Mandarin bases around common business and family situations an expatriate may face. In addition , role-playing was utilized to show how the candidate had successfully protrayedidentified success factors in past behavior. Which of the following selection methods was NOT utilized in this scenario?
A. Work sample
B. Situational assessments
C. Self-assessment
D. Interview
Answer: A
Q90. Which of the following is an intangible cost of an international assignment?
A. Career support for spouse in home and host country
B. Allowances
C. Home leave for vacation back to the home country to visit family
D. Opportunity cost of potential contributions in home country
Answer: D