31.All of the following are often mandated by host governments, EXEPT

1. MNCs must hire a certain percentage of local nationals
2. MNCs must train native workers
3. MNCs must repatriate earnings back to the home country
4. MNCs must develop the local infrastructure

32.In order to circumvent the non-convertibility of currency, an MNC can

a.Use barter rather than currency

b.Trade currency on the black market

c.Both a and b

d.None of the above

33.Which of the following types of transactions allows traders to hedge against the risk of future exchange rate changes?

1. Spot transactions
2. Barter
3. Countertrade
4. Futures

34.Individuals disputes are not settled in the ICJ (International Court of Justice) because

1. Individual disputes seldom go to trial
2. This court is only empowered to decide on cases involving governments
3. This court does not exist
4. None of the above.

35.GATT's "most-favored nation" designation has been replaced by the WTO's

1. Normal trade relations designation
2. Omnibus Trade Act
3. Sarbanes-Oxley
4. Super 301

36.MNCs choose expatriates, as opposed to host-country or third-country managers, in order to

1. Be more responsive to the local needs
2. Learn the language of the host country
3. Afford them the opportunity to gain overseas experience and enhance their career advancement
4. Ingratiate themselves with the foreign government

37.What percentage of expatriate placements do not work out?

1. 10 to 20 percent
2. 30 to 50 percent
3. 50 to 60 percent
4. Approximately 75 percent

38.MNCs may offer intercultural training programs for their outbound expatriates in order to develop the following skills:

1. Self-awareness
2. Cultural flexibility
3. Interpersonal relationship-building
4. All of the above

39."Equal pay for equal work" based summarizes which type of compensation system?

1. The headquarters scale
2. The citizenship scale
3. The global scale
4. None of the above

40.When firms include third-country nationals in the candidate pool for managing overseas subsidiaries,

1. They recognize that they will not find someone who speaks the local language
2. They indicate their appreciation for attracting the most qualified candidate without preference for any one nationality
3. They agree to pay them as if they were expatriates from the home country
4. They do not typically train them if they are hired