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HRCI GPHR Exam
Global Professional in Human Resources (Page 2 )

Updated On: 7-Feb-2026
Page 2 of 27
PDF with 204 Questions

Which international market entry strategy involves a multinational organization acquiring an open area and building subsidiary facilities from scratch?

  1. Brownfield projects
  2. Greenfield ventures
  3. Franchise operations
  4. Mergers and alliances

Answer(s): B

Explanation:

Comprehensive and Detailed

A Greenfield venture is a type of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. This includes building new factories, offices, and distribution hubs--essentially "starting from scratch." It is commonly used when organizations want full control over their operations, infrastructure, and processes.


Reference:

Strategic Global Human Resources ­ International Market Entry Strategies:

"Greenfield investments involve acquiring land and constructing new facilities, offering full control over operations, but with high risk and initial cost."



What assignment compensation structure often makes it difficult to localize long-serving expatriates?

  1. Home-based pay
  2. Net-to-net
  3. Hybrid plan
  4. Incentive distribution plan

Answer(s): A

Explanation:

Comprehensive and Detailed

The home-based pay structure keeps expatriates' compensation tied to their country of origin, often using a balance sheet approach that maintains living standards consistent with their home country. This can make it difficult to transition these employees to local salaries, particularly if they've been on assignment for a long time and have grown accustomed to higher compensation levels.


Reference:

Global Compensation and Benefits ­ Expatriate Compensation Approaches:

"Home-country-based balance sheet approaches can create long-term inequities and hinder the ability to transition expatriates into localized roles."



An employee is being sent on a support assignment to a country affected by an ongoing local interruption of transportation systems.
Which of the following payments would most likely be provided to the employee?

  1. Mobility bonus
  2. Shipping stipend
  3. Hardship allowance
  4. Premium disbursement

Answer(s): C

Explanation:

Comprehensive and Detailed

A hardship allowance is provided to compensate for difficult living conditions in the host country. Ongoing transportation interruptions are considered a form of hardship, as they can disrupt daily life and employee productivity.


Reference:

Global Talent Acquisition and Mobility ­ Assignment Allowances and Incentives:

"Hardship allowances are provided when the living conditions in the host country are significantly more difficult than those in the home country."



In selecting a global staffing vendor to meet specialized needs, HR needs to consider the;

  1. placement success rate
  2. wage data analysis
  3. level of internal attrition rate
  4. employee survey results

Answer(s): A

Explanation:

Comprehensive and Detailed

The placement success rate is a key metric when evaluating a global staffing vendor. It indicates how effectively the vendor can meet talent acquisition needs, especially for specialized roles that are critical to the organization's success.


Reference:

Global Talent Acquisition and Mobility ­ Vendor Selection Criteria:

"A high placement success rate is critical in evaluating external staffing partners, particularly for niche or hard-to-fill global positions."



Which factor has a direct impact on the effectiveness of the HR function?

  1. Improving operations
  2. Enhancing profitability
  3. Understanding stakeholders
  4. Ensuring leadership well-being

Answer(s): C

Explanation:

Comprehensive and Detailed

Understanding stakeholders--both internal and external--is essential for HR to align its strategies with organizational goals. Effective stakeholder engagement allows HR to design initiatives that meet business needs and employee expectations.


Reference:

Strategic Global Human Resources ­ Stakeholder Analysis and Engagement:

"An understanding of the organization's stakeholders is fundamental to shaping HR's strategy and ensuring its contribution to business performance."






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