D358 Global Human Resource Management - Set 2 - Part 1

Correct Answer: Cultural adaptability and interpersonal skills

While technical competence is necessary, cultural adaptability, flexibility, and interpersonal skills are the strongest predictors of expatriate success, since most failures stem from adjustment difficulties.

Correct Answer: The inability of the spouse or family to adjust

Family and spousal adjustment difficulties are consistently among the leading causes of early expatriate return, which is why many organizations extend support to accompanying family members.

Correct Answer: Disorientation experienced when adjusting to an unfamiliar culture

Culture shock is the disorientation, anxiety, and frustration people experience when immersed in an unfamiliar culture with different norms, language, and daily routines.

Correct Answer: Honeymoon, crisis, recovery, and adjustment phases

The U-curve model describes adjustment moving through an initial honeymoon phase, a crisis or culture-shock trough, gradual recovery, and eventual adjustment to the host culture.

Correct Answer: The process of returning an employee to their home country after an assignment

Repatriation is the process of bringing an expatriate back to the home country and reintegrating them into the organization, a stage often poorly managed and linked to high turnover.

Correct Answer: Loss of autonomy and unclear career progression on return

Repatriates often return to roles with less autonomy than they had abroad and find their new international skills undervalued, leading to dissatisfaction and elevated turnover.

Correct Answer: To prepare assignees for cultural differences and reduce adjustment problems

Pre-departure cross-cultural training builds awareness of host-country norms, values, and business practices, reducing culture shock and improving the assignee's effectiveness and retention.

Correct Answer: The extent to which less powerful members accept unequal power distribution

Power distance measures the degree to which less powerful members of a society accept and expect that power is distributed unequally, shaping attitudes toward hierarchy and authority.

Correct Answer: Whether people prioritize personal goals or group loyalty

This dimension contrasts societies where individuals are expected to look after themselves with those where people are integrated into cohesive groups that provide protection in exchange for loyalty.

Correct Answer: A society's tolerance for ambiguity and unstructured situations

Uncertainty avoidance reflects how comfortable a society is with ambiguity. High-avoidance cultures favor clear rules, structure, and predictability, influencing how policies and roles are defined.

Correct Answer: Implicit cues, relationships, and shared understanding

High-context cultures convey much meaning implicitly through context, relationships, and nonverbal cues, whereas low-context cultures rely on explicit, direct verbal and written communication.

Correct Answer: The balance sheet approach

The balance sheet approach maintains the expatriate's home-country purchasing power by building on home salary and adding allowances for cost-of-living, housing, and hardship differences.

Correct Answer: Ensuring the expatriate pays no more or less tax than they would at home

Tax equalization keeps the expatriate's tax burden neutral relative to their home country. The employer covers any excess foreign tax so that tax considerations do not distort assignment decisions.

Correct Answer: Has difficult living conditions, security risks, or poor infrastructure

Hardship or location premiums compensate employees for difficult conditions such as security risks, health hazards, isolation, or limited infrastructure in the assignment location.

Correct Answer: Offset higher prices for goods and services in the host location

A cost-of-living allowance compensates for higher prices of goods and services in the host location so the expatriate maintains comparable purchasing power to their home country.

Correct Answer: The going rate (host-based) approach

The going rate or host-based approach pays expatriates in line with local market rates. It promotes equity with local colleagues but can deter moves to lower-paying countries.

Correct Answer: To clarify the role and support the employee will receive on return

A repatriation agreement sets out expectations for the return, including the type of role, timing, and support, reducing uncertainty and improving retention of returning expatriates.

Correct Answer: Development of globally capable leaders and stronger knowledge transfer

Well-managed expatriate programs build global leadership capability, transfer knowledge between headquarters and subsidiaries, and strengthen coordination across the organization.

Correct Answer: Difficulty readjusting to one's home culture after living abroad

Reverse culture shock is the disorientation repatriates feel readjusting to their home country, where both they and the home environment have changed during their time abroad.

Correct Answer: Spouse career needs and children's schooling requirements

Spousal career disruption and children's education are major determinants of family adjustment and therefore assignment success, so both should be assessed and supported.