Question 1

Which of the following organizations is pursuing a transnational strategy?

Accepted Answer

A transnational strategy involves seeking to achieve both global efficiency and local responsiveness. Choice B, a brewery trying to achieve scale economies while simultaneously customizing its taste and marketing efforts for local markets, best exemplifies this strategy by balancing global scale with local adaptation.

Question 2

UVW is an international firm with headquarters in Germany. Its operations in other parts of the world are fully autonomous. What type of firm is UVW?

Accepted Answer

A multidomestic corporation is characterized by having operations in various countries, each operating autonomously or independently from the others, tailored to the local environment, which matches the description of UVW.

Question 3

Under which of the following conditions would a firm continue to use expatriates in its international operations even after a few years?

Accepted Answer

Expatriates may be retained in international operations when host-country nationals face challenges in marketing the firm's products effectively. Expatriates, with their deeper understanding of the company's strategies, products, and culture, can provide the necessary expertise and guidance to navigate these difficulties.

Question 4

What do we call a domestic firm that builds on its existing capabilities to penetrate overseas markets?

Accepted Answer

An international corporation refers to a domestic firm that leverages its existing capabilities to enter and operate in foreign markets. This term emphasizes the firm's origin and operational strategy of extending its reach beyond its home country by utilizing its established strengths and competencies.

Question 5

A PEST analysis refers to an assessment of which of the following types of factors?

Accepted Answer

The answer of A PEST analysis refers to an assessment...

Question 6

Many farm workers come to Canada to work during the summer period. What is the name of the document issued by the government granting authority to these farm workers to seek employment in Canada?

Accepted Answer

A work permit is the document issued by the Canadian government that grants foreign farm workers the authority to seek employment in Canada.

Question 7

NBC Petroleum Corporation, a French firm, is now establishing a subsidiary in Bangladesh. This represents an early stage of international expansion for the company. What type of employees would NBC Petroleum most likely use?

Accepted Answer

The answer of NBC Petroleum Corporation, a French firm, is...

Question 8

When an American multidomestic corporation hires a Canadian to work in its offices in India, what is this employee known as?

Accepted Answer

This employee is known as a third-country national because they are a citizen of one country (Canada), working in a second country (India), for a company headquartered in a third country (United States).

Question 9

While IT Motors is located in China, it has allowed management in all of its international operations to make independent decisions on how they conduct business in their different environments. What kind of corporation is IT Motors?

Accepted Answer

IT Motors is a multidomestic corporation because it allows management in its international operations to make decisions independently, tailoring their approach to the local environment and needs.

Question 10

Dimitri works as a compensation manager for IDL Inc., a multidomestic firm located in Nova Scotia. He has been posted to Brazil on an assignment. What type of employee is Dimitri?

Accepted Answer

Dimitri is a home-country national because he is originally from the country where the company's headquarters is located (Nova Scotia, Canada) and has been sent to work in a foreign country (Brazil).

Question 11

Rand Computers is a mid-sized firm located in Toronto. As a result of personal connections, Rand Computers has started a division in Buffalo, New York. What type of corporation is Rand Computers?

Accepted Answer

Rand Computers is considered an international corporation because it has expanded its operations into another country (from Canada to the United States) while likely maintaining its headquarters and primary operations in its home country. This type of expansion typically involves setting up a division or subsidiary in the new country to handle local operations, which aligns with the scenario described.

Question 12

What is the term used to refer to the religion, values and attitudes, politics, technology, education, and social organization of a nation?

Accepted Answer

The term "cultural environment" refers to the aspects of a society, including its religion, values and attitudes, politics, technology, education, and social organization, that shape the culture of a nation or region.

Question 13

What is another term for expatriates?

Accepted Answer

Expatriates are individuals who live and work in a country other than their own. They are also known as home-country nationals.

Question 14

Think about a spider's web with the spider in the middle. In this scenario, the spider controls the web from the centre. What type of corporation does this web resemble the most?

Accepted Answer

A global corporation centralizes its operations and decision-making processes, similar to how a spider controls its web from the center.

Question 15

If Canadian company Bombardier transferred Karl Hammer, a native German, away from his assignment in Bonn, Germany, to a new assignment in Paris, France, Karl would then be considered which of the following?

Accepted Answer

Karl would be considered a third-country national because he is a native of Germany working in France, which is neither his home country (Germany) nor the home country of the company (Canada).

Question 16

What is a key advantage of hiring home-country nationals for firms with international operations?

Accepted Answer

Home-country nationals are often less costly than relocating expatriates because there are no relocation expenses or additional compensation typically required for expatriates to work abroad.

Question 17

Some Japanese firms, such as Matsushita and NEC, tend to operate as domestic firms but see the whole world domestically-that is, as their market. What type of firms are these?

Accepted Answer

These firms are considered global firms because they view the entire world as their market and operate with a global perspective, rather than focusing on individual domestic markets.

Question 18

Manuela is from Brazil. She was hired by a Canadian multinational corporation to work in its office in Rio (located in Brazil). What is Manuela referred to as?

Accepted Answer

Manuela is referred to as a host-country national because she is a citizen of the country (Brazil) where the multinational corporation's office is located and where she is working.

Question 19

BC Computers is a Canadian firm located in British Columbia. In this instance, what does Canada represent?

Accepted Answer

Canada is considered the host country because it is the country where the firm BC Computers is located and operates.

Question 20

What is the name of the organization, formalized in 1995, that seeks to foster free trade globally?

Accepted Answer

The World Trade Organization (WTO) was established in 1995 to oversee and facilitate international trade agreements and negotiations, aiming to promote free trade globally.

Quiz 15: International Human Resources Management