Question 1

Companies with a transnational strategic orientation follow a global staffing policy, selecting the best person for each job without considering national origin and generally having a consistent HRM strategy across all subsidiaries.

Accepted Answer

Companies with a transnational strategic orientation aim to balance global efficiency and local responsiveness, often adapting their HRM strategies to fit local markets rather than having a consistent HRM strategy across all subsidiaries. They may consider national origin to leverage local expertise and insights.

Question 2

One reason for using home-country citizens overseas is to prepare them for high-level positions at headquarters.

Accepted Answer

One benefit of using home-country citizens overseas is to provide them with international experience and cross-cultural competence, which can be valuable for leadership positions at headquarters.

Question 3

Parent-country nationals usually are not knowledgeable about the host-country culture and language, but many such expatriates have adapted, learned the language, and become thoroughly accepted in the host country, which allows them to avoid any biases of their own cultural experience and to be able to understand and perform effectively within the new operating context.

Accepted Answer

False

Question 4

The disadvantages of using employees from the home or host countries can sometimes be avoided by sending third-country nationals to fill management posts.

Accepted Answer

This statement is true. Hiring employees from the home or host countries may come with disadvantages such as cultural differences, language barriers, and lack of knowledge about the local environment. However, these issues can sometimes be avoided by sending third-country nationals who have experience working in different cultures and can bring fresh perspectives to the company.

Question 5

A disadvantage of hiring local managers is that they are often unfamiliar with the home country of the IC and with its policies and practices.

Accepted Answer

Local managers may lack familiarity with the international company's (IC's) home country culture, policies, and practices, which can lead to challenges in aligning the subsidiary's operations with the overall corporate strategy and standards.

Question 6

Under a polycentric staffing orientation, ICs primarily hire HCNs for subsidiaries and PCNs for headquarters' positions, and movement from the local subsidiaries to headquarters' positions is common.

Accepted Answer

Under a polycentric staffing orientation, ICs primarily hire host-country nationals (HCNs) for subsidiary roles and limit movement to headquarters, where parent-country nationals (PCNs) are typically employed. Movement from subsidiaries to headquarters is not common in this approach.

Question 7

To achieve global objectives, the selection and training of IC managers are the same whether the candidate is from the home country, the host country, or a third country.

Accepted Answer

The selection and training of IC (International Corporation) managers vary depending on whether the candidate is from the home country, the host country, or a third country, to address cultural, legal, and market differences effectively.

Question 8

Companies with a primarily international strategic orientation may adopt an ethnocentric staffing policy.

Accepted Answer

An ethnocentric staffing policy is one in which a company primarily hires individuals from the same country as the parent company or headquarters. This approach is often used by companies with a strong national or cultural identity. As such, it would make sense for a company with a primarily international strategic orientation to adopt this policy, as it would help to maintain a consistent organizational culture and values across different countries and regions.

Question 9

The effectiveness of every organization is totally controlled by the effectiveness of its workforce.

Accepted Answer

While the effectiveness of an organization's workforce is a significant factor, other elements such as leadership, strategy, technology, processes, and market conditions also play crucial roles in determining overall organizational effectiveness.

Question 10

An expatriate is a person living outside his or her country of birth.

Accepted Answer

The answer of An expatriate is a person living outside...

Question 11

Companies with a regional strategic approach can use a polycentric staffing policy, employing a variety of HCNs and TCNs.

Accepted Answer

The answer of Companies with a regional strategic approach can...

Question 12

When a company's primary strategic orientation is multidomestic, an ethnocentric orientation is particularly appropriate.

Accepted Answer

When a company's primary strategic orientation is multidomestic, it is more appropriate to have a polycentric orientation (decentralized decision-making by local managers). An ethnocentric orientation (centralized decision-making by headquarters) is more appropriate for a global or international strategic orientation.

Question 13

The use of third-country nationals has become particularly prevalent in the LDCs because they provide substantial cost savings over the use of home-country nationals.

Accepted Answer

The answer of The use of third-country nationals has become...

Question 14

Parent-company nationals commonly encounter difficulty overcoming the biases of their own cultural experience and being able to understand and perform effectively within a new operating context.

Accepted Answer

This statement is true. Cultural biases and differences can lead to difficulties for parent-company nationals when operating in a new context. They may struggle to understand local customs, communication styles, and business practices, which can hinder their ability to perform effectively.

Question 15

Sources of successful managers for IC activities include the home country, the host country, and a third country.

Accepted Answer

Successful managers for IC activities can come from different sources, such as the home country, the host country, or a third country. These diverse sources can bring different perspectives, skills, and knowledge, which can contribute to the success of IC activities. Therefore, it is important for organizations to consider and leverage the potential of all these sources to build effective IC strategies and operations.

Question 16

Managerial positions in overseas operations require more and different skills than do purely domestic executive jobs.

Accepted Answer

Overseas operations involve dealing with different cultures, languages, laws, and business practices. Therefore, managers in these roles need to have a broader set of skills that include cross-cultural communication, global business knowledge, adaptability, and sensitivity to cultural differences, among others. These skills are not typically required for purely domestic executive jobs.

Question 17

The combination of an openness to and awareness of diversity across cultures and markets with a propensity and ability to synthesize across this diversity has been termed a transnational mindset.

Accepted Answer

The answer of The combination of an openness to and...

Question 18

The effectiveness of every organization depends, to a great extent, on how well its human resources are used.

Accepted Answer

Human resources are an integral part of any organization, and their effective use can help achieve the goals and objectives of the organization. Therefore, the statement is true.

Question 19

According to Heenan and Perlmutter, the nationality of a company determines whether the organization's approach to international human resource management should be ethnocentric, polycentric, regiocentric, or geocentric.

Accepted Answer

Heenan and Perlmutter suggest that the approach to international human resource management (ethnocentric, polycentric, regiocentric, or geocentric) is a strategic choice made by the organization, rather than being determined solely by the nationality of the company.

Question 20

Because of the importance of the workforce to the effectiveness of organizational operations, a company's approach to international human resource management should drive its competitive strategy.

Accepted Answer

The answer of Because of the importance of the workforce...

Quiz 17: Managing Human Resources in an International Context