Deck 14: Global Human Resource Management

Question 1

Procter & Gamble is best categorized as a ________ corporation.

A) foreign-based
B) multinational
C) global
D) national

Answer 1

C
Explanation: C) Not many years ago, Procter & Gamble was primarily a U.S. business investing heavily in food brands. Now it is a truly global corporation with more than 300 brands in more than 180 countries crossing the Americas, Europe, the Middle East and Africa, and Asia. P&G shifted from an MNC to a GC.

Question 2

How are many U.S. firms preventing FCPA breaches?

A) moving corporate headquarters
B) conducting business online
C) using internal audit teams
D) bribing foreign officials

Answer 2

C
Explanation: C) Conducting business globally exposes the United States and other companies to an environment that permits bribery, which is against the law in the United States. To ward against problems, some companies have started deploying internal audit teams to help their compliance and legal departments uncover potential FCPA breaches and improve processes and controls.

Question 3

Which of the following is based in one country (the parent or home country) and produces goods or provides services in one or more foreign countries (host countries)?

A) global investment corporation
B) multinational corporation
C) foreign exporter
D) franchise

Answer 3

B
Explanation: B) A multinational corporation (MNC) is a firm that is based in one country (the parent or home country) and produces goods or provides services in one or more foreign countries (host countries). A multinational corporation directs manufacturing and marketing operations in several countries; these operations are coordinated by a parent company, usually based in the firm's home country.

Question 4

Wilson Enterprises has corporate units in a number of countries that are integrated to operate as one organization worldwide. Wilson Enterprises is most likely a(n) ________.

A) global corporation
B) multinational corporation
C) foreign corporation
D) international corporation

Question 5

Hartford Toys is a small business that wants to enter the global market. What is the most common way for small businesses such as Hartford Toys to enter the global market?

A) foreign investing
B) licensing
C) exporting
D) franchising

Question 6

The Foreign Corrupt Practices Act prohibits U.S. firms from ________.

A) bribing foreign officials
B) purchasing foreign firms
C) paying customs and tariffs
D) offshoring any technical jobs

Question 7

What has been a result of the Foreign Corrupt Practices Act?

A) U.S. firms have not been allowed to conduct any business overseas.
B) European and Asian firms have stopped bribing public officials.
C) U.S. firms have lost contracts because they cannot pay bribes.
D) European and Asian governments have passed bribery laws.

Question 8

Which of the following moves work to the places with the talent to handle the job and the time to do it at the right cost?

A) transnational corporation
B) national corporation
C) multinational corporation
D) global corporation

Question 9

Which of the following would most likely globalize through licensing?

A) fast food restaurant
B) telemarketing firm
C) luxury hotel chain
D) electronics manufacturer

Question 10

The Global Professional in Human Resources certification focuses on all of the following areas EXCEPT ________.

A) workforce relations
B) global compensation and benefits
C) global talent acquisition and mobility
D) regional taxation issues

Question 11

Research shows that ________ of the total amount of consumers worldwide resides in the United States.

A) 15 percent
B) 5 percent
C) 10 percent
D) 20 percent

Question 12

Dailey Enterprises is a mid-sized business that is considering expanding its operations globally. Which of the following is LEAST likely to occur as a result of Dailey globalizing?

A) improved selection process
B) some protection against domestic business cycles
C) increased competitiveness
D) increased profitability

Question 13

U.S. firms are prohibited from bribing foreign officials under the ________.

A) Federal Bribery Act
B) Foreign Corrupt Practices Act
C) Corruption Practices Act
D) U.S. Bribery Act

Question 14

Which of the following sells similar products throughout the world with components that are made in different countries?

A) foreign corporation
B) multinational corporation
C) international corporation
D) global corporation

Question 15

Jenny's Jewelry is a small firm that sells its products abroad, either directly or indirectly, by retaining foreign agents and distributors. Jenny's Jewelry is most likely involved in ________.

A) foreign investing
B) exporting
C) licensing
D) franchising

Question 16

PEC Enterprises is based in the U.S. and produces plastic cooking utensils at plants in Taiwan and India. All operations are coordinated from the firm's U.S. headquarters. PEC Enterprises is most likely a(n) ________.

A) franchiser
B) export/import firm
C) transnational corporation
D) multinational corporation

Question 17

Modern Mosaics, an American firm, has granted a Chinese firm the right to use the Modern Mosaics manufacturing processes for a specific period of time. Modern Mosaics is most likely involved in ________.

A) foreign investing
B) exporting
C) licensing
D) franchising

Question 18

What type of firm directs manufacturing and marketing operations in several countries, and these operations are coordinated by a parent company, usually based in the firm's home country?

A) global investment
B) foreign corporation
C) multinational corporation
D) international corporation

Question 19

An arrangement whereby the parent company grants another firm the right to do business in a prescribed manner is referred to as ________.

A) foreign investing
B) exporting
C) licensing
D) franchising

Question 20

Franchising would most likely be used to globalize by a ________.

A) fast food restaurant
B) commercial bank
C) health insurance firm
D) toy manufacturer

Question 21

Murphy Enterprises recently acquired a controlling interest in Mexico's leading clothing retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy's top executives advocate the idea of transferring U.S. managers to Mexico to oversee the construction and opening of the new stores. Another group of Murphy executives believe that host-country nationals should manage the project. Which of the following best supports a decision to fill management positions with expatriates?

A) Murphy needs to ensure that Mexico operations are closely linked to headquarters.
B) Most Murphy expatriates resign within one year of their return to the United States.
C) Murphy wants to develop close community relationships in Mexico.
D) Employees hired by Murphy are provided extensive training.

Question 22

Which staffing strategy assumes that home-office perspectives and issues should take precedence over local perspectives and issues?

A) polycentric
B) ethnocentric
C) regiocentric
D) geocentric

Question 23

With which staffing strategy do companies primarily hire expatriates to staff higher-level foreign positions?

A) polycentric
B) geocentric
C) regiocentric
D) ethnocentric

Question 24

In most cases, the majority of employees in international offices are ________.

A) foreigners
B) third-country nationals
C) expatriates
D) host-country nationals

Question 25

Which of the following is most likely associated with hiring host-country nationals?

A) repatriation
B) lower costs
C) cultural problems
D) required relocation

Question 26

Which of the following is most likely a host-country national?

A) a U.S. citizen working for a Japanese company in the United States
B) a Japanese citizen working for a Japanese company in the United States
C) an Italian citizen working for a French company in Germany
D) an Indian citizen working for an Indian company in Singapore

Question 27

Murphy Enterprises recently acquired a controlling interest in Mexico's leading clothing retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy's top executives advocate the idea of transferring U.S. managers to Mexico to oversee the construction and opening of the new stores. Another group of Murphy executives believe that host-country nationals should manage the project. Which of the following best supports the decision to use a polycentric staffing approach?

A) Murphy's HR department has been unable to locate qualified Mexican managers.
B) Murphy wants to establish that the corporation is fully committed to Mexico.
C) HR managers at Murphy rely on selection tests to find competent workers.
D) Most Murphy managers have international work or travel experience.

Question 28

Sarita, a Spanish citizen, is employed at a Samsung facility in Texas. Samsung is a South Korean firm. Sarita would most likely be categorized as a(n) ________.

A) expatriate
B) third-country national
C) home-country national
D) host-country national

Question 29

Murphy Enterprises recently acquired a controlling interest in Mexico's leading clothing retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy's top executives advocate the idea of transferring U.S. managers to Mexico to oversee the construction and opening of the new stores. Another group of Murphy executives believe that host-country nationals should manage the project. Which of the following best supports a decision to fill management positions in Mexico with host-country nationals?

A) Murphy's marketing department created a new advertising campaign for the Mexican audience.
B) Murphy's HR department is translating the firm's e-learning programs from English to Spanish.
C) Murphy plans to direct operations in Mexico from the firm's U.S. headquarters.
D) Murphy is establishing a fully functioning HR department in Mexico.

Question 30

Companies that engage in the global economy place even greater emphasis on ________.

A) foreign language skills
B) talent mobility
C) strategic HRM
D) benefits

Question 31

The U.S. expatriate population has grown rapidly in recent years because of the large numbers being sent to ________.

A) Russia and Italy
B) China and India
C) France and Mexico
D) China and Taiwan

Question 32

Most foreign operations of North American MNCs are primarily staffed by ________.

A) host-country nationals
B) third-country nationals
C) contingent workers
D) expatriates

Question 33

Which of the following is NOT an approach to global staffing?

A) polycentric
B) biocentric
C) regiocentric
D) ethnocentric

Question 34

All of the following are primary HR concerns associated with ethnocentric staffing EXCEPT ________.

A) handling repatriation issues
B) selecting experienced local managers
C) developing global compensation packages
D) training managers for foreign assignments

Question 35

Jorge, a Mexican citizen, works for Ford Motor Company at the firm's factory near Mexico City. Jorge would most likely be categorized as a(n) ________.

A) host-country national
B) third-country national
C) expatriate
D) operant

Question 36

An employee who is not a citizen of the country in which the firm is located but is a citizen of the country in which the organization is headquartered is referred to as a(n) ________.

A) host-country national
B) third-country national
C) expatriate
D) operant

Question 37

Which of the following BRIC countries has the highest female labor-force participation rate?

A) Brazil
B) China
C) India
D) Russia

Question 38

Murphy Enterprises recently acquired a controlling interest in Mexico's leading clothing retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy's top executives advocate the idea of transferring U.S. managers to Mexico to oversee the construction and opening of the new stores. Another group of Murphy executives believe that host-country nationals should manage the project. Which of the following questions is LEAST relevant to the decision to fill management positions in Mexico with expatriates or host-country nationals?

A) What are Murphy's anticipated relocation costs for using expatriates?
B) What degree of corporate control does Murphy want in Mexico?
C) What is the global safety and health record for Murphy?
D) What is the attrition rate for Murphy's expatriates?

Question 39

Which of the following is NOT a type of global staff member?

A) expatriate
B) contingent worker
C) third-country national
D) host-country national

Question 40

Which of the following is an example of a third-country national?

A) a U.S. citizen working for a Japanese company in the United States
B) a Japanese citizen working for a Japanese company in the United States
C) an Italian citizen working for a French company in Germany
D) an Indian citizen working for an Indian company in Singapore

Question 41

Often, ________ is the weak link in global human resource management.

A) reciprocation
B) expropriation
C) repatriation
D) expatriation

Question 42

In which staffing approach would the corporate HR function typically be the most complicated?

A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric

Question 43

A background investigation of a potential employee would most likely take up to 40 days in which country?

A) United States
B) United Kingdom
C) Japan
D) Canada

Question 44

Which of the following is NOT one of the stages in the expatriate selection process?

A) supervisor recommendation
B) candidate pool creation
C) technical skills assessment
D) self-selection

Question 45

Monique is a manager at a firm based in Chicago. She has recently been selected to manage the firm's Singapore office along with three other managers from the Chicago office. The firm hopes that the American managers will effectively represent the views of the home office and will link the Singapore office to the Chicago office. Which type of staffing approach is most likely being used by Monique's employer?

A) polycentric
B) regiocentric
C) ethnocentric
D) geocentric

Question 46

Which of the following occurs in the first stage of the expatriate selection process?

A) creating a candidate pool from a database
B) conducting personal and family assessments
C) determining technical and managerial skills
D) conducting a thorough background investigation

Question 47

Which staffing approach uses a worldwide-integrated business strategy?

A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric

Question 48

Shelby Enterprises is a global corporation that has a fully functioning HR department in each of its foreign subsidiaries. Host-country nationals are employed throughout the firm. Which staffing approach is most likely used by Shelby?

A) biocentric
B) geocentric
C) polycentric
D) ethnocentric

Question 49

Firms that use a polycentric staffing approach will most likely employ ________ for positions at foreign facilities.

A) expatriates
B) contingent workers
C) third-country nationals
D) host-country nationals

Question 50

With which staffing approach does each region develop a common set of employment practices?

A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric

Question 51

With which staffing approach does the firm always attempt to hire the best person available for a position, regardless of where that individual comes from?

A) geocentric
B) polycentric
C) regiocentric
D) ethnocentric

Question 52

Which staffing model assumes that host-country nationals are better equipped to deal with local market conditions?

A) ethnocentric
B) regiocentric
C) polycentric
D) geocentric

Question 53

Which of the following is LEAST likely to be an expatriate selection criterion?

A) cultural adaptability
B) interpersonal skills
C) technical competence
D) foreign language degree

Question 54

Which staffing model is most likely to be adopted and used by truly global firms?

A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric

Question 55

With regard to background investigation, which country prohibits criminal checks of its citizens?

A) Mexico
B) Japan
C) Canada
D) United Kingdom

Question 56

Tyler is a corporate HR manager at a global corporation that uses the polycentric staffing approach. Which of the following most likely describes the focus of Tyler's job?

A) handling adjustment issues when home-country nationals return from assignment
B) coordinating relevant activities with their counterparts in each foreign operation
C) developing appropriate expatriate compensation packages
D) selecting and training managers for foreign assignments

Question 57

Which of the following is NOT a characteristic of the regiocentric staffing approach?

A) Each region develops a common set of employment practices.
B) Promotions from the region to headquarters rarely occur.
C) Each region actively recruits third-country nationals.
D) Some autonomy exists in regional decision making.

Question 58

With the ________ staffing approach, regional groups of subsidiaries reflecting the organization's strategy and structure work as a unit.

A) geocentric
B) polycentric
C) regiocentric
D) ethnocentric

Question 59

Women currently make up nearly 25 percent of expatriates, which is up from 14 percent not long ago. Unfortunately, these gains in female expatriate participation rates have not been equally distributed worldwide. Which of the following is most likely the cause for this disparity?

A) a lack of opportunities for aspiring expatriates
B) the culture of gender bias in some countries
C) the lack of qualified female candidates
D) all of the above

Question 60

When host-country nationals are used throughout the organization, from top to bottom, what staffing approach is being used?

A) polycentric
B) geocentric
C) regiocentric
D) ethnocentric

Question 61

The process of bringing expatriates home is referred to as ________.

A) repatriation
B) global e-learning
C) strategic training
D) succession planning

Question 62

According to studies, which of the following best explains why expatriates leave their firms within one year of completing an international assignment?

A) discord among family and friends
B) desire to spend more time overseas
C) inadequate financial compensation
D) inability to utilize skills learned abroad

Question 63

Which of the following is LEAST likely to be a component of the ideal expatriate preparation and development program?

A) pre-move orientation
B) continual development
C) repatriation training
D) availability forecasting

Question 64

According to Chad Thompson, senior consultant at Aon Hewitt, the best virtual workers share all of the following characteristics EXCEPT ________.

A) avoiding collaborative relationships
B) preferring routine job responsibilities
C) preferring to work alone
D) thriving on interdependent working relationships

Question 65

The development process for expatriate employees should start ________.

A) on an as-needed basis
B) after they have begun the global assignment
C) as soon as they have been selected
D) during the recruitment process

Question 66

Which of the following topics would most likely be addressed during the continual development stage of expatriate preparation and development?

A) language skills
B) local customs and traditions
C) home-country development
D) home-country living conditions

Question 67

Which of the following is most likely a FALSE statement regarding virtual teams?

A) Dispersed team members often do not feel as connected or committed to the team.
B) Cultural differences complicate the communication among virtual team members.
C) Maintaining impersonal relationships on virtual teams increases group productivity.
D) Communication problems correlate to the number of time zones separating team members.

Question 68

Karen, a software engineer, belongs to a virtual team that meets regularly to solve problems and discuss issues. All of the following are most likely benefits of such a team EXCEPT ________.

A) feeling personally connected to team members
B) eliminating wasted time of traveling
C) accomplishing tasks quickly
D) lowering meeting expenses

Question 69

According to research, approximately ________ of employees of global corporations said that English is "required" or "important" in their jobs.

A) 30%
B) 50%
C) 70%
D) 91%

Question 70

Why have many global organizations established a formal buddy system for expatriates and their families?

A) provide them with technological assistance
B) reduce the stress of moving overseas
C) help them repatriate to the U.S.
D) give them temporary housing

Question 71

Language, culture, and history are addressed during which stage of expatriate preparation and development?

A) pre-move orientation
B) repatriation orientation
C) continual development
D) repatriation training

Question 72

What is becoming the world language?

A) English
B) French
C) Spanish
D) Russian

Question 73

Studies indicate that approximately ________ of repatriated employees leave the company within one year after an international assignment ends.

A) 50 to 60 percent
B) 20 to 50 percent
C) 15 to 20 percent
D) 20 to 30 percent

Question 74

E-mail and bulletin boards are generally best for tasks that ________.

A) require little collaboration such as information sharing
B) require thorough decision-making processes
C) require complex problem-solving skills
D) require thoughtful, extensive feedback

Question 75

Matt has a weekly meeting with other engineers who are located at different sites and regions around the world, yet none of the employees travel to the meetings. Matt most likely belongs to a(n) ________.

A) expatriate community
B) orientation group
C) virtual team
D) franchise

Question 76

Shannon, an HR professional, has been given the task of implementing a global e-learning program at her firm. Employees located in the firm's offices and factories around the world will use the e-learning program for training purposes. Which of the following is most important for Shannon to consider as she establishes the program?

A) virtual teams
B) global safety
C) cultural differences
D) global compensation

Question 77

All of the following are characteristics of an effective in-house repatriation program EXCEPT ________.

A) recognition of the employee's overseas contribution
B) clarification of the employee's position at the firm
C) reorganization of the employee's work environment
D) utilization of the employee's new international skills

Question 78

What is the key to keeping virtual teams working effectively together?

A) work sampling methods
B) strategic planning
C) communication
D) efficiency

Question 79

During the pre-move orientation and training phase, providing the expatriate with ________ would be insufficient.

A) immersion in the language
B) a cultural "dummies" guide and a basis phrasebook
C) an understanding of cultural dos and don'ts
D) continuing employee development

Question 80

Mary has been on assignment in Japan for one year, and she will soon be returning to work at her firm's Dallas headquarters. Which of the following would most likely improve Mary's repatriation experience?

A) career planning discussions
B) polycentric staffing options
C) e-learning opportunities
D) workforce reorganizations