Deck 15: Managing Human Resources Globally

Question 1

World Trade Organization (WTO)resolves disputes among GATT members.

Answer 1

True
Explanation: GATT has established the World Trade Organization (WTO)to resolve disputes among its members.

Question 2

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

Answer 2

True
Explanation: Some cultures, such as those of Singapore and Jamaica, have weak uncertainty avoidance. They socialize individuals to accept this uncertainty and take each day as it comes. People from these cultures tend to be rather easygoing and flexible regarding different views.

Question 3

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

Answer 3

False
Explanation: In individualist cultures, such as the United States, Great Britain, and the Netherlands, people are expected to look after their own interests and the interests of their immediate families.

Question 4

Third-country nationals are employees born in a country other than the parent country or host country, but who work in the host country.

Question 5

The North American Free Trade Agreement (NAFTA)is an agreement among Canada, the United States, and Mexico that has created a free market even larger than the European Economic Community.

Question 6

Countries with high human capital attract facilities that require low skills and low wage levels.

Question 7

Companies functioning at the domestic level face an environment with dissimilar human capital and economic situations.

Question 8

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

Question 9

Power distance is the division of roles between the sexes within a society.

Question 10

Masculine cultures stress putting relationships before money, helping others, and preserving the environment.

Question 11

Human capital refers to the productive capabilities of individuals.

Question 12

Cultures differ strongly on such things as how subordinates expect leaders to lead, how decisions are handled within the hierarchy, and what motivates individuals.

Question 13

Hofstede found that culture has a profound impact on a country's economic health by promoting certain values that either aid or inhibit economic growth.

Question 14

Members of NAFTA and GATT use euro as a common currency.

Question 15

Achieving something visible and making money are considered feminine values.

Question 16

The culture of the country in which the facility is located most influences the company's international HRM practices.

Question 17

In the United States, employees have a legal right to influence the important decisions that affect them, such as large investments or new strategies.

Question 18

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

Question 19

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

Question 20

Collectivist cultures, as well as those with less of an authoritarian orientation, value group decision making and participative management practices more highly than do individualistic cultures.

Question 21

Which of the following is a collectivist country?

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

Question 22

Transnational scope refers to the multinational composition of a company's managers.

Question 23

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

Question 24

The individualism-collectivism dimension describes:

A)the strength of the relationships between members of the 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 25

Which one of the following countries is a NAFTA member?

A)Argentina
B)Columbia
C)Peru
D)Mexico
E)Brazil

Question 26

NAFTA increased U.S. investment in Mexico because:

A)Mexico has superior infrastructure compared to the United States.
B)Mexico's labor costs are low for low-skilled employees.
C)a collectivist government prevailed in Mexico.
D)of the United States' desire to increase imports.
E)of the lack of highly skilled employees in the U.S. and Canada.

Question 27

Inpatriates are managers who are assigned to work in an organization's subsidiaries.

Question 28

Cost-of-living allowances are payments that offset the differences in expenditures on day-to-day necessities between the host country and the parent country.

Question 29

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

A)European Economic Community
B)NAFTA
C)GATT
D)ASEAN
E)IMF

Question 30

Which of the following HR practices is least likely to be found in collective cultures such as Japan?

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

Question 31

Which of the following is true about the European Economic Community?

A)All the European nations have agreed to engage in free trade with one another.
B)Commerce within the community is regulated entirely by the WTO.
C)The European Economic Community is a body that controls the European Commission.
D)Members of the European Economic Community share a common currency.
E)This community was prompted by Mexico's increasing willingness to open its markets.

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)industrialist
D)capitalist
E)collective

Question 33

Transnational process refers to the extent to which the firm's planning and decision-making process includes representatives and ideas from a variety of cultures.

Question 34

_____ refers to the set of important assumptions that members of a community share.

A)Culture
B)Ambiance
C)Confidence
D)Climate
E)Human capital

Question 35

Countries with large power distances seek to _____.

A)promote outgoing nature of its citizens
B)promote capitalism and related principles
C)maintain inequalities in the society
D)increase individualist responsibilities
E)reduce the level of government intervention

Question 36

In _____ cultures, people are expected to stand on their own rather than being protected by the group.

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

Question 37

Which of the following is an advantage that international expansions to new markets offer companies?

A)It helps firms reduce the risks associated with exchange rates.
B)It gives them access to well-developed infrastructures.
C)It gives them access to large numbers of potential customers.
D)It gives them access to organized capital markets.
E)It helps companies gain a better understanding involved in businesses.

Question 38

The perception dimension refers to the skills that enable a manager to maintain a positive self-image and psychological well-being.

Question 39

Transnational process refers to the extent to which the company's planning and decision-making processes include representatives and ideas from a variety of cultures.

Question 40

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

A)Uncertainty avoidance
B)Individualism
C)Power distance
D)Masculinity
E)Term orientation

Question 41

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

A)low power distance
B)short term orientation
C)high human capital
D)collectivist values
E)low uncertainty avoidance

Question 42

Intelitech, Inc. is a software company that has its headquarters in Japan. The company functions at a multinational level with operations in five other countries. Japan is the _____ for the Intelitech.

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

Question 43

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

A)feminist cultures
B)weak uncertainty avoidance
C)individualism
D)high power distance
E)long term orientation

Question 44

GlobeTech, Inc. is a software company headquartered in the U.S. The company also has operations in Germany. The company exports some products to China though they do not plan to have a facility in China. China is a _____ country for the company.

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

Question 45

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

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

Question 46

Sam Parker was visiting Mexico for a business meeting. At the meeting, Sam called his boss her first name instead of her title, which seemed to offend her. This offense most likely stemmed from a difference between the U.S. culture and Mexico's culture in the _____ dimension.

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

Question 47

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

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

Question 48

Which of the following values will most likely be promoted in feminine cultures?

A)achievement orientation
B)showing off
C)outgoing nature
D)helping others
E)money orientation

Question 49

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)strong in femininity
C)high in power distance
D)high in long-term orientation
E)low in collectivism

Question 50

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 human capital
C)a strong economic system
D)low power distance culture
E)a collectivist culture

Question 51

The masculinity-femininity dimension describes:

A)the strength of the relationships between members of the 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 52

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

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

Question 53

_____ cultures tend to have the flattest salary structures.

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

Question 54

Countries with low human capital attract facilities that require _____.

A)low skills and low wage levels
B)low skills and high wage levels
C)high skills and high capital
D)high skills and low capital
E)high wage levels and high capital

Question 55

Softel, Inc. is a company based in the U.S. After functioning at the domestic level for 5 years, the company is planning to expand its operations to Brazil. In this scenario, Brazil is the _____ country for the company.

A)intermediate
B)third
C)host
D)governing
E)facilitating

Question 56

In third countries, a company _____.

A)establishes the most important facilities
B)establishes its headquarters
C)may or may not have a facility
D)locates at least three facilities
E)locates at least one production plant

Question 57

Misha Branson was born in England and is currently working for a French company's facility in England. She is referred to as a(n)_____.

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

Question 58

Values such as success, performance, assertiveness, and competition are associated with _____ cultures.

A)short-term oriented
B)masculine
C)collectivist
D)weak uncertainty avoidance
E)high power distance

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)intermediate
D)host
E)facilitating

Question 60

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

A)Power distance
B)Individualism
C)Risk aversion
D)Short term orientation
E)Uncertainty avoidance

Question 61

Companies become _____ when they build facilities in a number of different countries, attempting to capitalize on lower production and distribution costs in different locations.

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

Question 62

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

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

Question 63

Which of the following dimensions involves skills that enable a manager to accurately perceive and evaluate the host environment?

A)The association dimension
B)The self dimension
C)The relationship dimension
D)The perception dimension
E)The interpersonal dimension

Question 64

The total compensation plan that equalizes the purchasing power of the expatriate manager with that of employees in similar positions in the home country and provides incentives to offset the inconvenience incurred in the location is known as the _____ approach.

A)cost-based
B)balance-sheet
C)fixed-cost
D)parent-country
E)transaction

Question 65

Which attribute of a transnational HR system refers to the extent to which planning and decision making include managers from different cultures?

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

Question 66

An expatriate is an employee:

A)who was born and lives in the parent country.
B)sent by a company in one country to manage operations in a different country.
C)who was born and raised in the host, as opposed to the parent, country.
D)who was born in a country other than the parent country and host country but who work in the host country.
E)from a different country who becomes part of a company's corporate headquarters staff.

Question 67

Which one of the following is true of global organizations?

A)They attempt to develop identical products distributed worldwide.
B)They emphasize flexibility and mass customization of products to meet the needs of particular clients.
C)They open facilities in only one or few countries to manufacture and market their products.
D)Large part of their revenues comes from exports and they do not shift production from home country.
E)Global organizations do not face problems with cultural diversity.

Question 68

Which attribute of a transnational HR system refers to the multinational composition of a company's managers?

A)Transnational strategy
B)Transnational scope
C)Transnational standardization
D)Transnational representation
E)Transnational process

Question 69

RapidFlow Systems is an online security company, headquartered in Mexico. The company is planning to open a facility in the U.S. As a result of this, RapidFlow Systems would become a(n)_____ company.

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

Question 70

Which of the following dimensions includes the skills required to foster association with the host-country nationals?

A)The association dimension
B)The self dimension
C)The relationship dimension
D)The perception dimension
E)The interpersonal dimension

Question 71

A major U.S automaker has plants all over the world. It continues to shift its production from the United States, where labor unions demand high wages for their members, to facilities in Mexico and China, where the wages are substantially lower. The company minimizes distribution and labor costs by locating facilities in central and eastern European countries such as Poland and Hungary for manufacturing and assembling automobiles to sell in the European market. This company is an example of a(n)_____.

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

Question 72

Inpatriates are managers from:

A)countries other than the parent country placed in facilities of other countries.
B)the parent company, who are relocated to third countries to head operations.
C)different countries who become part of the corporate headquarters staff.
D)one part of the country being moved to another part of the country.
E)one division of the company being moved to another division.

Question 73

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

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

Question 74

Iman Fashions specializes in plus size clothing for men and women. They started as a small business in Florida and went on to start seventy successful stores across the United States. The company is planning to locate facilities in other countries like China to take advantage of the low cost of production in those countries. This would make it a _____ company.

A)facilitating
B)domestic
C)host
D)universal
E)multinational

Question 75

Which of the following is generally emphasized in cross-cultural training programs?

A)How host country employees view their own culture
B)How host country employees view women employees
C)Expatriates view on host country's political system
D)Relevant aspects of the host country's human capital system
E)How to communicate accurately in the new culture

Question 76

The _____ dimension refers to the skills that enable a manager to maintain a positive self-image and psychological well-being.

A)awareness
B)relationship
C)perception
D)self
E)association

Question 77

Which of the following is true about multinational companies?

A)They open facilities in only one or few countries to manufacture and market their products.
B)They attempt to develop identical products distributed worldwide.
C)Large part of their revenues comes from exports and they do not shift production from home country.
D)They compete on state-of-the-art, top-quality products and services.
E)They increasingly emphasize flexibility and mass customization of products to meet the needs of particular clients.

Question 78

A firm that is currently exporting goods to another country is at the _____ level of global participation.

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

Question 79

_____ has been almost the sole variable used in deciding whom to be sent on overseas assignments.

A)Interpersonal skill
B)Foreign language skill
C)Communication skill
D)Technical competence
E)Emotional sensitiveness

Question 80

_____ refers to the fact that HRM decisions must be made from a global rather than a national or regional perspective.

A)Transnational scope
B)Transnational practice
C)Transnational representation
D)Transnational process
E)Transnational standardization