Deck 15: International Human Resources Management

Question 1

Which of the following organizations is pursuing a transnational strategy?

A) a car company developing a "world" car to gain scale economies
B) a brewery trying to achieve scale economies while simultaneously customizing its taste and marketing efforts for local markets
C) a company producing customized fashions for multiple regions of the world
D) a steel company trying to simultaneously gain scale economies and increase the quality of its products

Answer 1

B

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?

A) a transnational corporation
B) a global enterprise
C) a multidomestic corporation
D) an international corporation

Answer 2

C

Question 3

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

A) when the labour costs of expatriates increase
B) when local employees are fully trained
C) when it wants to send a signal that it values third-country nationals
D) when host-country nationals continue to experience difficulties with marketing the firm's products

Answer 3

D

Question 4

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

A) an international corporation
B) a transnational corporation
C) a global corporation
D) a domestic corporation

Question 5

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

A) political, environmental, sociocultural, and technological
B) technological, political, sociocultural, and economic
C) environmental, social, political, and economic
D) political, economic, social, and technological

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?

A) a short stay permit
B) an H2 visa
C) a work permit
D) a passport

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?

A) home-country nationals
B) third-country nationals
C) host-country nationals
D) expatriates

Question 8

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

A) a third-country national
B) a Canadian national
C) a home country national
D) a host-country national

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?

A) a multidomestic corporation
B) an international corporation
C) a global corporation
D) a transnational corporation

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?

A) a host-country national
B) a third-country national
C) an international manager
D) a home-country national

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?

A) a multidomestic corporation
B) a global corporation
C) an international corporation
D) a transnational corporation

Question 12

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

A) ritual environment
B) general environment
C) task environment
D) cultural environment

Question 13

What is another term for expatriates?

A) home-country nationals
B) host-country nationals
C) third-country nationals
D) repatriates

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?

A) an international corporation
B) a multidomestic corporation
C) a global corporation
D) a transnational corporation

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?

A) a host-country national
B) a home-host-country national
C) a third-country national
D) a home-country national

Question 16

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

A) They have better technical knowledge.
B) They are less costly than relocating expatriates.
C) They know more about the firm.
D) They have better chances of being promoted.

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?

A) transnational firms
B) multidomestic firms
C) international firms
D) global firms

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?

A) an expatriate
B) a third-country national
C) a host-country national
D) an international manager

Question 19

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

A) the adaptive country
B) the resource country
C) the host country
D) the receptive country

Question 20

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

A) the International Labour Organization
B) the World Trade Organization
C) the United Nations
D) the Free Trade Union

Question 21

Which of the following is a major reason for failure among expatriates?

A) inability to cope with larger responsibilities
B) a manager's personality
C) a spouse's inability to adapt
D) distaste for travel

Question 22

IAM Inc. has operations in many countries. Recently, it used staff from four of these countries to work on a project. What type of team would this be?

A) a transnational team
B) a global team
C) an integrated team
D) a borderless team

Question 23

What is most likely to happen when companies fail to use the knowledge, skills, and understanding that expatriate managers acquire in international assignments?

A) Language training is viewed as unnecessary.
B) The expatriates often take lower-level jobs upon return or leave the company.
C) Repatriation is no longer recommended.
D) Home-country nationals are used more often in favour of expatriates.

Question 24

Compared to North American managers, what kind of decision-making style do South American managers tend to use in the workplace?

A) a more participatory style
B) a more democratic style
C) a more inclusionary style
D) a more autocratic style

Question 25

Which of the following is a core skill that is critical for success abroad?

A) technical
B) change management
C) decision making
D) delegation

Question 26

In using the balance sheet approach to compensating expatriate managers, the term "incentive premiums" refers to which of the following concepts?

A) extra money for enduring the culture shock
B) offsetting the higher costs of overseas goods and services
C) compensating the managers for separation from family and friends and doing hazardous duty
D) covering moving, storage, and educational expenses

Question 27

What is evident when you compare wages and benefits for employees in European countries such as Norway and Denmark to employees in North America?

A) There are higher wages and benefits in Europe.
B) There are lower wages and better benefits in North America.
C) There are higher wages but lower benefits in North America.
D) There are higher wages and benefits in North America.

Question 28

What is a global compensation system?

A) a system where employees for a multinational firm in different countries are paid exactly the same
B) a system where host-country employees are paid similarly to employees in the home country
C) a system where expatriates are paid at the global rates for their services
D) a system where expatriates enjoy the balance sheet approach to their pay

Question 29

What type of document, made possible through NAFTA, do qualified Canadian professionals often use to work in the United States?

A) a travel permit
B) an international visa
C) a work order
D) a TN visa

Question 30

ABC Inc., a firm located in Tokyo, Japan, is likely to emphasize which of the following in its pay system?

A) nonfinancial incentives
B) weekly or monthly salary guarantees
C) internal equity and personal needs
D) individual performance

Question 31

What is the first step in selecting individuals for an international assignment?

A) self-selection
B) assessing core skills
C) assessing augmented skills
D) creating a candidate pool

Question 32

What is the key purpose of the balance sheet approach to compensating expatriate managers?

A) to enhance the skills of the expatriate
B) to ensure that the expatriate does not lose financially in his or her international assignment
C) to balance the social costs of the assignment
D) to ensure that there is work-life balance

Question 33

In which sector do temporary foreign workers tend to work in Canada?

A) agriculture
B) university
C) mining
D) financial

Question 34

Which of the following best describes cultural conditioning?

A) It does not include the formal education or training a person receives.
B) It influences the attitudes, behaviours, and reactions of both workers and their managers.
C) It has little impact on international HRM.
D) It helps people react positively to tastes and behaviours similar to their own.

Question 35

What is repatriation?

A) a process to train expatriates prior to their first international assignment
B) adaptation of leadership and decision-making styles to the host country
C) a process to help employees make the transition back home
D) the ability of employees to settle in their international assignments

Question 36

Heineken recently organized a group of individuals with specialized skills representing each major country within Europe. Which of the following is this group an example of?

A) a transfunctional team
B) a multinational team
C) a multicultural team
D) a transnational team

Question 37

Which of the following is an essential component of training and development programs for employees going on international assignments?

A) expatriation
B) repatriation
C) self-confidence
D) financial

Question 38

Avinash, a Canadian who was sent on an international assignment to Brazil, experienced severe disorientation that caused perpetual stress during his posting. What was Avinash most likely experiencing?

A) dietary problems
B) lack of work-life balance
C) organizational disorientation
D) culture shock

Question 39

In designing compensation systems, what does the philosophy of "thinking globally and acting locally" mean?

A) Expatriates should be rewarded primarily for their local actions.
B) Pay plans should be originated at the local level but global organizational issues should be considered in pay plan development.
C) Expatriates should be rewarded for their local actions as well as their performance that impacts the entire organization.
D) Pay plans should be designed to support the overall strategic intent of the organization and also provide enough flexibility to customize certain policies to meet the needs of employees in specific locations.

Question 40

Compared to Canadian managers, what kind of decision-making style do Japanese managers tend to use in the workplace?

A) a more participatory style
B) a more decentralized style
C) a more autocratic style
D) about the same style

Question 41

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only five were women, even though women make up 40 percent of the management team. Expatriates on long-term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
Refer to Scenario 15.1. All of the following represent important information that they will need to know and understand EXCEPT which one?

A) the pay structure of the organization abroad
B) the country where they are going
C) the culture of the country where they are going
D) the history, values, and dynamics of their own organization

Question 42

The European Union (EU) was established to facilitate free trade with North America.

Question 43

In many countries, bribes are considered a normal business practice.

Question 44

Different cultural environments require different organizational behaviours.

Question 45

Scenario 15.2
Coffee Emporium has been one of Canada's premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald's, which has now moved into the coffee business with its signature McCafé. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US) and the United Kingdom (UK), where the cultures are somewhat similar to Canada's. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.
Refer to Scenario 15.2. Coffee Emporium HR managers will be responsible for staffing the international expansions. Which of the following is used for staffing by most corporations?

A) home-country nationals
B) host-country nationals
C) a combination of home-country, host-country, and third-country nationals
D) third-country nationals

Question 46

Which of the following is a common problem with performance appraisals of international assignees?

A) criterion deficiency
B) criterion contamination
C) lack of inter-rater reliability
D) lack of validity

Question 47

Scenario 15.2
Coffee Emporium has been one of Canada's premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald's, which has now moved into the coffee business with its signature McCafé. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US) and the United Kingdom (UK), where the cultures are somewhat similar to Canada's. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.
Refer to Scenario 15.2. If Coffee Emporium expands its business across the United States to begin with, what type of corporation would it become?

A) a multinational corporation
B) a transnational corporation
C) a global corporation
D) an international corporation

Question 48

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only five were women, even though women make up 40 percent of the management team. Expatriates on long-term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
Refer to Scenario 15.1. Assume that ForEx will use the balance sheet approach to compensate expatriates. Which of the following is NOT one of the steps in this approach?

A) add incentive premiums
B) figure cost-of-living adjustment
C) add assistance programs
D) calculate commission pay

Question 49

In many European countries, including Germany, a very high level of worker participation can be found, where national law requires that labour be part of, for instance, the boards of directors of companies. What is this participative arrangement called?

A) socialism
B) codetermination
C) quality circles
D) bipartite participation

Question 50

Scenario 15.2
Coffee Emporium has been one of Canada's premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald's, which has now moved into the coffee business with its signature McCafé. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US) and the United Kingdom (UK), where the cultures are somewhat similar to Canada's. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.
Refer to Scenario 15.2. All of the following are advantages of Coffee Emporium hiring host-country nationals EXCEPT which one?

A) It is generally more costly than relocating expatriates.
B) Locals have more experience running the business.
C) Customers want to do business with companies/people they perceive to be local.
D) Local citizens also know the cultural and political landscape of the country.

Question 51

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only five were women, even though women make up 40 percent of the management team. Expatriates on long-term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
Refer to Scenario 15.1. Based on material in the text, which of the following would be an inaccurate assumption by ForEx for its women expatriates?

A) They will fail at higher rates than men because of the tough conditions.
B) They will be subject to more sexual assaults than their male counterparts.
C) They are visible and distinctive and may even receive special treatment not given to their male colleagues.
D) Locals assume the company would not have sent a woman unless she was the very best.

Question 52

In some countries, such as India, profit sharing is mandated by law. Thus, companies have to distribute some of their profits to the employees. What is the key reason for this requirement?

A) These countries are corrupt, and thus they require foreign firms to bribe the workers.
B) This is a requirement for all new foreign investments, as mandated by the United Nations.
C) It is done to punish these companies for colonialism.
D) It allows for a redistribution of wealth at the firm level.

Question 53

Expatriates can be compensated for their services in several ways. At one end, their pay can be based on their earnings in the home country. What is at the other end of expatriate pay?

A) host-based pay
B) skill-based pay
C) balance sheet pay
D) third-country-based pay

Question 54

Which country is most associated with codetermination in union-management relations?

A) United States
B) Germany
C) Japan
D) China

Question 55

Which type of expatriate pay system is localization associated with?

A) the balance sheet approach
B) host-based pay
C) the global pay system
D) performance-based pay

Question 56

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only five were women, even though women make up 40 percent of the management team. Expatriates on long-term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
Refer to Scenario 15.1. While overseas assignments can be very rewarding, it is also important to ensure that the feeling continues after repatriation. Which of the following is NOT true?

A) Thirty-six percent of Canadian companies have a repatriation plan.
B) One-third of Canadian companies have programs to facilitate appropriate career positions on repatriation.
C) Fifty percent of Canadian companies provide this assistance after repatriation.
D) One-fifth of Canadian companies start planning for repatriation even before the candidate leaves

Question 57

Political factors are considered in a PEST analysis.

Question 58

What is the specialized agency of the United Nations that promotes the rights of workers?

A) the International Labour Organization
B) the World Trade Organization
C) the Centre for Labour Standards
D) the Security Council

Question 59

The host country is the country in which an international business operates.

Question 60

A multidomestic corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas markets.

Question 61

Subsidiaries of multidomestic corporations are usually run as independent companies.

Question 62

If an organization wanted to decrease the failure rate of its expatriates, one good strategy would be to give more women international assignments.

Question 63

A Canadian firm with fully autonomous operating units in Korea, Spain, and Sweden would be classified as a multidomestic corporation.

Question 64

The source of overseas employees that provides the advantages of less cost and greater facility in the language is host-country nationals.

Question 65

The failure of expatriate assignments is usually due to technical or managerial concerns.

Question 66

A global corporation has fully autonomous units operating in multiple countries.

Question 67

At early stages of international expansion, organizations often send home-country nationals to work in other countries.

Question 68

Women expatriates are thought to succeed in part because they are visible and distinctive.

Question 69

One of the biggest causes of expatriate failure is a spouse's inability to adjust to his or her new surroundings.

Question 70

Global managers must be capable of managing highly decentralized organizations.

Question 71

At early stages of international expansion, many organizations prefer to use host-country nationals.

Question 72

A work permit is a document issued by a government granting authority to a foreign individual to seek employment in that government's country.

Question 73

The first step in selecting expatriates should be self-selection, where employees who volunteer to go abroad are given the chance to do so.

Question 74

A global corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas markets.

Question 75

An advantage of home country nationals is that they have intimate knowledge of the environment and culture.

Question 76

Multinational corporations tend to use different kinds of external recruitment sources than are used in their home countries.

Question 77

A work permit or work certificate allows a foreign individual to seek employment in another country.

Question 78

Third-country nationals are natives of a country other than the home country or the host country.

Question 79

The employment of guest workers may result in indirect costs that may be substantial.

Question 80

Transnational teams are composed of members from multiple nationalities working on projects that span multiple countries.