Deck 15: Managing Human Resources Globally

Question 1

The World Trade Organization (WTO)initiated the North American Free Trade Agreement (NAFTA)to resolve disputes among its members.

Answer 1

False
Explanation: The GATT established the World Trade Organization (WTO)to resolve disputes among its members countries spread across the globe. The North American Free Trade Agreement (NAFTA)is an agreement on free trade among Canada, the United States, and Mexico.

Question 2

Cultures with large power distance seek to eliminate inequalities in power and wealth as much as possible.

Answer 2

False
Explanation: Cultures with small power distance, such as those of Denmark and Israel, seek to eliminate inequalities in power and wealth as much as possible, whereas countries with large power distances, such as India and the Philippines, seek to maintain those differences.

Question 3

Transnational scope refers to the fact that HRM decisions must be made from a global perspective rather than a national perspective.

Answer 3

True
Explanation: Transnational scope refers to the fact that HRM decisions must be made from a global rather than a national or regional perspective. This creates the need to make decisions that balance the need for uniformity (to ensure fair treatment of all employees)with the need for flexibility (to meet the needs of employees in different countries).

Question 4

A host country is a country in which an organization's headquarters is located.

Question 5

The General Agreement on Tariffs and Trade (GATT)is an international framework of rules for reducing trade barriers across countries around the world.

Question 6

According to Geert Hofstede's research, countries with individualist cultures were wealthier.

Question 7

Cultures with weak uncertainty avoidance tend to be rather easygoing and flexible regarding different views.

Question 8

Masculine cultures value relationships over money.

Question 9

Capitalist systems attempt to reward individuals for their efforts by allowing them to keep more of their earnings.

Question 10

Companies that do business in other countries have to present compensation packages to expatriate managers that are competitive in gross, rather than take-home, pay.

Question 11

Achieving something visible and showing off are considered masculine values.

Question 12

Inpatriates are managers transferred from an organization's corporate headquarters to work in an organization's subsidiaries.

Question 13

Countries with high human capital are attractive sites for direct foreign investment that creates high-skill jobs.

Question 14

The North American Free Trade Agreement (NAFTA)is an agreement among Canada, the United States, and Mexico.

Question 15

Individualistic cultures such as those found in the United States often exhibit minimal differences between the highest- and lowest-paid individuals in an organization.

Question 16

Uncertainty avoidance describes how a culture deals with hierarchical power relationships.

Question 17

Human capital refers to the productive capabilities of individuals.

Question 18

Domestic companies do not face problems with cultural diversity.

Question 19

People are expected to look after the interests of the larger community in individualist cultures.

Question 20

How decisions are handled within the hierarchy of an organization has implications on the selection and training of managers in different countries.

Question 21

The adaptive skills required to maintain a positive self-image and psychological well-being are categorized into the perception dimension.

Question 22

It is not necessary for the expatriate to understand his own culture as long as he understands the culture of the host country for the assignment to be successful.

Question 23

Communication refers to the extent to which the expatriate receives information and recognizes changes while abroad.

Question 24

In _____ cultures, people are expected to look after their own interest rather than being protected by the group.

A)communist
B)individualist
C)socialist
D)aristocratic
E)collectivist

Question 25

Which of the following is true about the European Economic Community (EEC)?

A)All European nations are a part of the EEC.
B)Commerce within the EEC is regulated entirely by the World Trade Organization (WTO).
C)The General Agreement on Tariffs and Trade (GATT)is the confederation that regulates free trade within the EEC.
D)Most members of the EEC share a common currency.
E)Under the EEC, legal regulation in the participating countries has become uniform.

Question 26

Which of the following cultural dimensions describes the degree of inequality among people that is considered normal?

A)Uncertainty avoidance
B)Individualism
C)Power distance
D)Masculinity
E)Long-term orientation

Question 27

The _____ established the World Trade Organization (WTO)to resolve disputes among its members.

A)North American Free Trade Agreement (NAFTA)
B)European Union (EU)
C)European Economic Commission (EEC)
D)General Agreement on Tariffs and Trade (GATT)
E)World Trade Centers Association (WTCA)

Question 28

Which of the following HR practices is least likely to be effective for organizations based in collective cultures such as Japan?

A)Employee assistance programs
B)Participative management practices
C)Individual-based incentives
D)Project-based organizational structures
E)Tax structures that strengthen social responsibility

Question 29

The _____ involves an international framework of rules and principles for reducing trade barriers across countries around the world.

A)European Economic Community (EEC)
B)North American Free Trade Agreement (NAFTA)
C)General Agreement on Tariffs and Trade (GATT)
D)Association of Southeast Asian Nations (ASEAN)
E)International Monetary Fund (IMF)

Question 30

Which of the following is most likely a collectivist country?

A)United States
B)Great Britain
C)Netherlands
D)Colombia
E)France

Question 31

Which of the following is true of cultures that are highly individualist?

A)In highly individualist cultures, individuals are expected to look after the interests of the larger community.
B)In highly individualist cultures, individuals are not encouraged to be self-sufficient.
C)In highly individualist cultures, individuals expect protection from the larger community.
D)In highly individualist cultures, individuals are not expected to look after their immediate family.
E)In highly individualist cultures, individuals are expected to stand on their own two feet and protect themselves.

Question 32

In _____ cultures, people are expected to look after the interest of the larger community, which is expected to protect people when they are in trouble.

A)individualist
B)consumerist
C)democratic
D)capitalist
E)collectivist

Question 33

The individualism-collectivism dimension primarily describes:

A)the strength of the relationships between the members of a society.
B)how a culture deals with hierarchical relationships.
C)the unequal distribution of power within a society.
D)the division of roles between the sexes within a society.
E)how cultures seek to deal with the fact that the future is not perfectly predictable.

Question 34

Sam visits Mexico for a business meeting. At the meeting, Sam addresses the vice president of the firm by his first name rather than using his title. This is considered offensive. In the context of Hofstede's cultural dimensions, this difference in cultures is part of the _____ dimension.

A)masculinity-femininity
B)individualism-collectivism
C)uncertainty avoidance
D)power distance
E)long-term-short-term orientation

Question 35

NAFTA increased U.S. investment in Mexico because:

A)Mexico's infrastructure is better when compared to the U.S.
B)Mexico has substantially lower labor costs for low-skilled employees.
C)Mexico has been witnessing a gradual increase in transportation costs.
D)the U.S. wanted to create job openings for low-skilled labor in the U.S.
E)the U.S. wanted to provide only high-skilled labor opportunities for Americans.

Question 36

A country with a large power distance:

A)reduces the gap between employees at the higher and lower levels of a company.
B)increases opportunities for people from all socio-economic groups.
C)maintains the inequalities in wealth among different sections of the society.
D)regulates distribution of power to ensure equal growth opportunities.
E)increases intervention to check disproportionate accumulation of wealth.

Question 37

Which of the following countries is a member of the North American Free Trade Agreement (NAFTA)?

A)Cuba
B)Dominican Republic
C)Panama
D)Mexico
E)Peru

Question 38

Effective cross-cultural training helps ease an expatriate's transition to the new work environment.

Question 39

_____ describes how cultures seek to deal with the fact that the future is not perfectly predictable.

A)Power distance
B)Individualism
C)Masculinity
D)Short-term orientation
E)Uncertainty avoidance

Question 40

Male and female expatriates can perform equally well in international assignments, regardless of the country's cultural predispositions toward women in management.

Question 41

Which of the following is likely to be valued in a culture with a short-term orientation?

A)Thrift
B)Saving
C)Persistence
D)Focus on future
E)Tradition

Question 42

Which of the following is likely to be valued in a culture with a long-term orientation?

A)Tradition
B)History
C)Social obligations
D)Persistence
E)Respect for the past

Question 43

_____ cultures tend to have flatter salary structures.

A)Long-term oriented
B)Individualistic
C)Collectivist
D)Masculine
E)Short-term oriented

Question 44

Which of the following is likely to be valued most in a masculine culture?

A)Service
B)Solidarity
C)Preserving the environment
D)Performance
E)Care for the weak

Question 45

Which of the following is most likely to occur during the communication process of an organization in a collectivist culture?

A)Authoritarian orientation of leaders
B)Devaluation of group decision making
C)Participative management practices
D)Conflict of individual opinions
E)Highly centralized resolution of issues

Question 46

U.S. companies tend to relocate their low-skill-high-wage manufacturing and assembly jobs to Mexico because it has a _____.

A)strong political-legal system
B)low level of human capital
C)strong economic system
D)low power distance culture
E)collectivist culture

Question 47

Which of the following is most likely to be valued in feminine cultures?

A)Achievement
B)Showing off
C)Performance
D)Relationships
E)Assertiveness

Question 48

A culture characterized by easygoing and flexible people who take each day as it comes is one that is _____.

A)weak in uncertainty avoidance
B)low in short-term orientation
C)high in power distance
D)high in long-term orientation
E)high in uncertainty avoidance

Question 49

MarchTech Corp. is a software company that has its headquarters in Japan. The company has operations in France and India. Japan is the _____ of MarchTech.

A)receiving country
B)third country
C)guest country
D)host country
E)parent country

Question 50

In the context of Hofstede's cultural dimensions, the masculinity-femininity dimension describes:

A)the strength of the relationships between the members of a society.
B)how a culture deals with hierarchical relationships.
C)the unequal distribution of power within a society.
D)the division of roles between the sexes within a society.
E)how cultures seek to deal with the fact that the future is not perfectly predictable.

Question 51

Countries that _____ are attractive sites for direct foreign investment that creates high-skill jobs.

A)have low-skill-high-wage workforce
B)are developed and highly educated
C)have high human capital
D)invest less on education
E)have a high illiteracy rates

Question 52

_____ usually exhibit greater differences between the highest- and lowest-paid individuals in an organization.

A)Cultures with a long term orientation
B)Individualistic cultures
C)Cultures with low power distance
D)Feminine cultures
E)Cultures with low uncertainty avoidance

Question 53

A country that serves as the home for a corporation's headquarters is called the _____.

A)host country
B)guest country
C)third country
D)expat country
E)parent country

Question 54

In _____ systems, there is less opportunity to develop human capital without higher costs.

A)socialist
B)capitalist
C)communist
D)feminine
E)collectivist

Question 55

Which of the following is true of cultures that are strong in uncertainty avoidance?

A)These cultures condition individuals to accept uncertainty.
B)People in these cultures tend to be easygoing.
C)People in these cultures tend to be flexible to different views.
D)These cultures do not impose clear rules as to how one should behave.
E)These cultures condition people to seek security through technology and law.

Question 56

Which of the following is likely to be valued most in a feminine culture?

A)Showing off
B)Solidarity
C)Success
D)Performance
E)Assertiveness

Question 57

According to Hofstede, a country's economic health is positively correlated with _____.

A)feminist cultures
B)cultures with no uncertainty avoidance
C)individualist cultures
D)cultures with high power distance
E)collectivist cultures

Question 58

Countries like Mexico with low human capital are likely to attract:

A)direct foreign investment.
B)high-skilled job opportunities.
C)facilities looking for low turnover.
D)unionized low-skill-high-wage jobs.
E)companies looking for educated workforce.

Question 59

A _____ country is the country in which the parent country organization seeks to locate or has already located a facility.

A)third
B)governing
C)home
D)host
E)domestic

Question 60

Which of the following is true of how human capital affects foreign investment in a country?

A)Countries with low human capital attract foreign facilities looking for high-skills and low wages.
B)Countries that have high human capital are likely to attract foreign facilities looking for high turnover.
C)Countries that shift unionized manufacturing jobs to other countries do so for high-skilled workers.
D)Countries that invest in education are likely to attract direct foreign investment.
E)Countries that have low human capital are likely to attract foreign facilities looking for low turnover.

Question 61

Which of the following is a third country of Grazia?

A)Italy
B)France
C)Japan
D)India
E)Spain

Question 62

When a company expands from having one facility in another country to having a number of facilities in different countries, it is transforming from a(n)_____.

A)domestic company to a global company
B)domestic company to an international company
C)international company to a multinational company
D)multinational company to an international company
E)global company to an international company

Question 63

RapidFlow Systems is a Mexican company with operations across different states. After a few years, the company extends its operations to Canada and opens a facility there. As a result of this expansion, RapidFlow Systems has become a(n)_____ company.

A)universal
B)international
C)importing
D)domestic
E)global

Question 64

An expatriate is an employee:

A)who was born and works in the parent country.
B)who is sent by a company in one country to manage operations in a different country.
C)who was born, raised, and works in the host country, as opposed to the parent country.
D)who works for a foreign company in one's own country.
E)who returns to work in his country of birth.

Question 65

Which of the following is the parent country of Grazia S.p.A?

A)France
B)Spain
C)Italy
D)Japan
E)China

Question 66

_____ is the term generally used for employees sent by a company in one country to manage operations in a different country.

A)Expatriate
B)Inpatriate
C)Repatriate
D)Parent-country national
E)Third-country national

Question 67

Plutus Inc. has its headquarters in the U.S. and has a facility in Germany. A virtual team operates from around the globe with most members from China. China is a _____ country for Plutus.

A)home
B)domestic
C)parent
D)third
E)host

Question 68

Which of the following is the host country for Grazia S.p.A?

A)Italy
B)Japan
C)India
D)The U.K.
E)Spain

Question 69

Gaia Inc. is a company based in the U.S. It expands its operations and sets up a manufacturing facility in Brazil. In this scenario, Brazil is the _____ country of Gaia.

A)parent
B)third
C)host
D)home
E)domestic

Question 70

_____ are employees born in a country where neither a company's headquarters nor a facility is located but work in the host country.

A)Parent-country nationals
B)Host-country nationals
C)Third-country nationals
D)Inpatriates
E)Repatriates

Question 71

A third country is where a company _____.

A)has a facility but may not hire locals
B)establishes its headquarters
C)may or may not have a facility
D)locates its administrative office
E)locates its production facility

Question 72

Most companies begin by operating within a(n)_____ marketplace.

A)universal
B)international
C)multinational
D)domestic
E)global

Question 73

_____ are employees who were born and live in the country where the headquarters of a company is located.

A)Expatriates
B)Inpatriates
C)Repatraites
D)Parent-country nationals
E)Third-country nationals

Question 74

_____ reflects the multinational composition of a company's managers.

A)Transnational scope
B)Transnational participation
C)Transnational process
D)Transnational representation
E)Transnational capacity

Question 75

Misha Branson was born in England and is currently working for a French company in England. She will be considered a _____ in France.

A)guest-country national
B)parent-country national
C)host-country national
D)third-country national
E)home-country national

Question 76

A firm that enters foreign markets by exporting goods to another country is at the _____ level of global participation.

A)domestic
B)international
C)multinational
D)global
E)universal

Question 77

China is a _____ country for Grazia S.p.A.

A)parent
B)host
C)home
D)third
E)domestic

Question 78

_____ are those employees who were born and raised in the country where a parent country organization seeks to locate a facility.

A)Parent-country nationals
B)Host-country nationals
C)Third-country nationals
D)Inpatriates
E)Repatriates

Question 79

An individual who was born in France and is currently working in Peru for a company headquartered in Germany is called a _____.

A)parent-country national
B)host-country national
C)home-country national
D)third-country national
E)domestic-country national

Question 80

France is a _____ country for Grazia S.p.A.

A)host
B)parent
C)third
D)home
E)domestic