Deck 10: Managing Human Resources Globally

Question 1

The most important influence on international HRM is the culture of the country in which a facility is located.

Answer 1

True

Question 2

Virtual expatriates are employees who never return to the home country,but rather spend their entire careers moving from one foreign assignment to another.

Answer 2

False

Question 3

Repatriation is the process of preparing expatriates for a foreign assignment.

Answer 3

False

Question 4

Research shows successful completion of an overseas assignment is most likely among employees who are extroverted,agreeable,and conscientious.

Question 5

Canada has a high power distance and long-term orientation culture.

Question 6

An international organization builds facilities in a number of different countries,in an effort to minimize production and distribution costs.

Question 7

The balance sheet approach to international compensation adjusts the employee's compensation so that it equals the host country's standard of living,further ensuring assimilation into the local culture.

Question 8

People in indulgence-oriented cultures are likely to place high value on having fun and enjoying life.

Question 9

Organizations fill many key foreign positions with host-country nationals.

Question 10

Job design aimed at employee involvement can be problematic in cultures with high power distance.

Question 11

Compared with many other countries,Canada allows employers wide latitude in reducing their workforce.

Question 12

Tax equalization allowance ensures that the worker neither gains nor loses with regards to tax liability as a result of an international assignment.

Question 13

Although the general principles of performance management may apply in most countries,the specific methods that work in one country may not work well in another.

Question 14

An organization that expands internationally does not require expertise in the host country's legal system because the organization is only required to adhere to the home country's laws and regulations.

Question 15

Employees who take assignments in other countries are called inpatriates.

Question 16

The education and skill levels of a country's labour force affect the extent to which companies want to operate there.

Question 17

A multinational company represents the highest level of global participation.

Question 18

The country in which an organization's headquarters is located is the home country.

Question 19

Foreign-born employees who come to Canada need cross-cultural preparation as much as Canadian employees sent on foreign assignments.

Question 20

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

Question 21

What type of organization operates at the highest level of involvement in the global marketplace?

A) Exporting
B) Domestic
C) International
D) Multinational
E) Global

Question 22

Valuing achievement,money making,assertiveness,and competition are associated with what type of culture?

A) Short-term orientation
B) Masculine culture
C) High power distance culture
D) Feminine culture
E) High uncertainty avoidance

Question 23

Which one of the following statements about global organizations is FALSE?

A) They are flexible organizations.
B) They offer top products tailored to segments of the market while keeping costs as low as possible.
C) They treat different cultures as a source of competitive advantage.
D) They tend to have centralized,home-country decision-making structures.
E) They need a transnational HRM system.

Question 24

A firm that is currently locating facilities in a large number of other countries in order to capitalize on lower production and distribution costs is at what level of global participation?

A) Domestic
B) International
C) Multinational
D) Global
E) Transnational

Question 25

The most important influence on international HRM is the _________ of the country in which a facility is located.

A) political-legal system
B) educational system
C) culture
D) economic system
E) power distance

Question 26

The ____________ of a country's labour force affect how and the extent to which companies want to operate there.

A) natural resources and cultural values
B) laws and religious practices
C) education and skill levels
D) geographic location and dominant language
E) None of the choices are correct.

Question 27

The country in which an organization's headquarters is located is the:

A) host country.
B) home country.
C) first country.
D) third country.
E) expatriate country.

Question 28

What is behind the trend toward expansion into global markets?

A) Foreign countries can provide a business with new markets in which there are millions or billions of new customers.
B) They can operate with lower labour costs.
C) Global activities are simplified and encouraged by trade agreements among nations.
D) Foreign countries can provide a business with new markets in which there are millions or billions of new customers,"they can operate with lower labour costs," and "global activities are simplified and encouraged by trade agreements among nations."
E) Foreign countries can provide a business with new markets in which there are millions or billions of new customers and "global activities are simplified and encouraged by trade agreements among nations" only.

Question 29

An individual who was born in Mexico and is currently working for a Canadian company in Mexico is referred to as a:

A) home-country national.
B) host-country national.
C) third-country national.
D) home-country expatriate.
E) None of the choices are correct.

Question 30

Validation involves giving expatriates recognition for their international service when they return home.

Question 31

A firm that is currently shipping domestically produced items to other countries to be sold there is at what level of international participation?

A) Exporting
B) Subsidiary operations
C) Multinational
D) Global
E) Host-country consolidation

Question 32

Canada is high in:

A) power distance.
B) individualism.
C) uncertainty avoidance.
D) long-term orientation.
E) All of the choices are correct.

Question 33

An individual who was born in Canada and is currently working in Spain for a company headquartered in Germany would be considered a:

A) home-country national.
B) host-country national.
C) third-country national.
D) home-country expatriate.
E) None of the choices are correct.

Question 34

A transnational HRM system:

A) makes decisions from a global perspective,includes managers from many countries,and is based on ideas contributed by people from a variety of cultures.
B) is a home-country-based HRM program that has been extended to various overseas countries and cultures.
C) consists of HRM practices that have been approved and are supported by the World Trade Organization.
D) is dominated by the home country's culture.
E) All of the choices are correct.

Question 35

The Hofstede dimension that deals with the degree to which a culture encourages satisfying or suppressing gratification of human drives is:

A) power distance.
B) individualism/collectivism.
C) masculinity/femininity.
D) indulgence/restraint.
E) long-term/short-term orientation.

Question 36

According to Hofstede's cultural dimensions,a culture where people are expected to devote themselves to the interests of the community,and the community is expected to protect them when they are in trouble is high in:

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

Question 37

Assume that you are visiting Mexico for a business meeting and you call your host by his first name rather than his title.He seems offended.Your offense most likely stemmed from a difference between Canadian culture and Mexico's culture on which dimension?

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

Question 38

What type of culture tends to have much flatter pay structures?

A) Masculine
B) Low uncertainty avoidance
C) High power distance
D) Collectivist
E) Long-term orientation

Question 39

As an HR specialist in workforce planning,in which country would you experience the greatest freedom in reducing your company's workforce in response to a forecasted oversupply of workers?

A) Canada
B) Germany
C) Denmark
D) France
E) Sweden

Question 40

John,who was born in Canada and who works for a Canadian-based company,is on assignment in Japan.John is:

A) an expatriate.
B) an inpatriate.
C) a host-country national.
D) a third-country national.
E) a global national.

Question 41

The most notable disadvantage for virtual expatriates is:

A) the amount of time they must spend away from friends and family while on assignment.
B) the loss in income they will experience as a result of accepting their overseas assignments.
C) the difficulty they may experience in building relationships with host-country employees.
D) the isolation that comes with never returning to their home countries.
E) All of the choices are correct.

Question 42

The process of preparing a person to return from a foreign assignment and assisting him or her with that reentry is known as:

A) reorientation.
B) expatriation.
C) repatriation.
D) validation.
E) remuneration.

Question 43

Most organizations adjust expatriates' compensation so that it gives the employee:

A) the same standard of living as in the home country.
B) extra pay for any hardships of locating globally.
C) host country's prevailing wage.
D) both "the same standard of living as in the home country" and "extra pay for any hardships of locating globally."
E) both "extra pay for any hardships of locating globally" and "host country's prevailing wage."

Question 44

Employees from cultures high in uncertainty avoidance would expect and respond best to a training session where:

A) participation in exercises and questioning is determined by status in the company or culture.
B) a formal instructional style and environment exists.
C) trainers are flexible and open to schedule and activity changes.
D) trainees are asked to complete follow-up activities,such as development plans and assignments.
E) the instructional environment is informal.

Question 45

Training known as cross-cultural preparation is needed during which phase or phases of an international assignment?

A) Preparation for departure.
B) During the assignment.
C) Preparation for the return home.
D) Preparation for departure,"during the assignment," and "preparation for the return home."
E) Only "preparation for departure" and "during the assignment."

Question 46

Companies are increasingly using which of the following activities to facilitate repatriation?

A) Increased pay and validation
B) Communication and validation
C) Shorter assignments and increased pay
D) Validation and promotion
E) Communication and longer assignments

Question 47

Identify 5 topics that should be addressed to assess candidates' ability to adapt to a new global work environment.For each of the topics you identified what is at least one thing that you would be attempting to determine about the job candidate?

Question 48

The approach to compensating and rewarding expatriates 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 any hardships incurred in the location is known as:

A) the international approach.
B) the balance sheet approach.
C) the equalization approach.
D) the host-country approach.
E) the flexible benefits approach.

Question 49

Research has found that successful completion of an international assignment is most likely among employees who demonstrate all but one of the following characteristics.Name the exception.

A) Extroverted
B) Assertive
C) Agreeable
D) Conscientious
E) None of these characteristics are associated with successful completion of an international assignment.

Question 50

Employees from cultures high in power distance would expect and respond best to a training session where:

A) they are able to discuss and ask questions about the training content.
B) a formal instructional environment exists,with a structured agenda and timetable.
C) an impromptu style is used.
D) the trainer is an expert.
E) trainees are asked to complete follow-up activities,such as development plans and other assignments.

Question 51

According to the Global Mobility Policy & Practice (2014)survey,what is the number one reason why employees turn down assignments?

A) Pay is too low
B) Income tax rates are too high
C) Family or personal circumstances
D) Inability to speak the foreign language
E) Both "pay is too low" and "income tax rates are too high."

Question 52

The emotions that accompany an overseas assignment tend to follow a cycle of:

A) honeymoon,culture shock,recovery,and adjustment.
B) culture shock,honeymoon,learning,and adjustment.
C) honeymoon,learning,culture shock,and adjustment.
D) learning,culture shock,adjustment,and honeymoon.
E) honeymoon,recovery,culture shock,and return.

Question 53

What are home-country nationals,host-country nationals,and third-country nationals? Describe the different forms an organization can take as it tries to compete in the global marketplace.

Question 54

Which country tops the list of being the country with the highest business costs?

A) Mexico
B) United Kingdom
C) France
D) Canada
E) Germany

Question 55

In which of the following countries,does the average employee work more hours annually than the average worker in Canada?

A) Norway.
B) Netherlands.
C) Greece.
D) Norway,"Netherlands," and "Greece."
E) Only "Norway" and "Netherlands."

Question 56

The extent to which expatriates receive recognition following their overseas assignment refers to:

A) validation.
B) repatriation.
C) adjustment.
D) acknowledgment.
E) None of the choices are correct.

Question 57

Cross-cultural competence requires the expatriate to be:

A) sensitive to the host country's cultural norms.
B) flexible enough to adapt to the host country's cultural norms.
C) strong enough to survive the culture shock of living in another culture.
D) sensitive to the host country's cultural norms,"flexible enough to adapt to the host country's cultural norms," and "strong enough to survive the culture shock of living in another culture."
E) only "sensitive to the host country's cultural norms" and "flexible enough to adapt to the host country's cultural norms."

Question 58

Name and discuss the four factors that affect HRM in global markets.Which factor is thought to be the most important and why?

Question 59

Employees who manage an operation abroad without locating permanently in the country are called:

A) absentee expatriates.
B) inpatriates.
C) telecommuters.
D) temporary expatriates.
E) virtual expatriates.

Question 60

Which of the following items is typically included in an international assignment letter?

A) Location and duration of assignment.
B) Remuneration (e.g.salary,benefits,and currency of payment).
C) Relocation program (e.g.house hunting,moving,and schooling).
D) Repatriation (e.g.employment opportunities upon return and financial counselling).
E) All of the choices are correct.

Question 61

What is the purpose of the balance-sheet approach to expatriate compensation,and what are its four major components and their respective purposes?