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Human Resources

Final Exam - Chapter 15

QuestionAnswer
Cultural Environment The communications, religion, values and ideologies, education, and social structure of a country.
Host Country A country which an international corporation operates.
International Corporation A domestic firm that uses its existing capabilities to move into overseas markets.
Multinational Corporation (MNC) A firm with independent business units operating in multiple countries.
Global Coporation A firm that has integrated worldwide operations through a centralized home office.
Transnational Corporation A firm that attempts to balance local responsiveness and global scale via a network of specialized operating units.
Expatriates, or Home-Country Nationals Employees from the home country who are on international assignment.
Third-Country Nationals Employees who are natives of a country other than the home country or host country.
Work Permit or Visa A government document granting a foreign individual the right to seek employment.
Guest Workers Foreign workers invited to perform needed labor.
Transnational Teams Teams composed of members of multiple nationalities working on projects that span multiple countries.
Global Manager A manager equipped to run an international business.
Core Skills Skills considered critical to an employee's success abroad.
Augmented Skills Skills helpful in facilitating the efforts of expatriate managers.
Failure Rate The percentage of expatriates who do not perform satisfactorily.
Culture Shock Perpetual stress experienced by people who settle overseas.
Repatriation The process of transition for an employee home from an international assignment.
Global Compensation System A centralized pay system whereby host-country employees are offered a full range of training programs, benefits, and pay comparable with a firm's domestic employees but adjusted for local differences.
Home-based Pay Pay based on an expatriate's home country's compensation practices.
Balance sheet approach A compensation system designed to match the purchasing power in a person's home country.
Split Pay A system whereby expatriates are given a portion of their pay in the local currency to cover their day-to-day expense and a portion of their pay in their home currency to safeguard their earnings from changes in inflation or foreign exchange rate.
Host-Based Pay Expatriate pay comparable to that earned by employees in a host country
Localization Adapting pay and other compensation benefits to match that of a particular country
Codetermination Representation of labor on the board of directors of a company.
Created by: mmb3118