HRM 6645 MID-TERM STUDY GUIDE
QUESTIONS AND ANSWERS WITH
SOLUTIONS 2024-2025
PCN - ANSWER Parent-Country Nationals
HCN - ANSWER Host-Country Nationals
TCN - ANSWER Third-Country Nationals
MNE - ANSWER Multinational Enterprises
SME - ANSWER Small and Medium-Sized Enterprises
Index of Transnationality - ANSWER 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.
Multidomestic Industry - ANSWER One in which competition in each
country is essentially independent of competition in other countries. Traditional examples include
retailing, distribution, and insurance.
Organizational Culture - ANSWER the sense of common identity and purpose across the whole
organization
Tax Equalization - ANSWER These 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 threats that our political, strategic and military cultures regard as unusual
, Artifacts - ANSWER Visible organization structures and processes.
Communitarianism - ANSWER 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 - ANSWER 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
High Context Communication - 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 - ANSWER pays more attention to individual cases, deciding what is good and correct
depending on relationship and special friendship arrangements.
Power Distance - ANSWER 'the degree to which members of a collective expect power to be distributed
equally'.
Spatial Distance - ANSWER The focus of this dimension is on the
distance between people of various cultures when
communicating. Distance that is adequate for members of one culture, may feel intrusive for members
of another culture.
Uncertainty Avoidance - ANSWER 'the extent to which a society, organization, or group relies on social
norms, rules, and procedures to alleviate unpredictability of future events'
Agents of Socialization - ANSWER approach is based on assumptions
that appropriate behavior will have been instilled in the local workforce through training programs and
hiring practices, and that the multinational's way of operating has been accepted by the local staff in the
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