Deck 2: Strategic International Human Resource Management

Question 1

Since firms differ in their levels of international development and the extent of their international operations, IHRM managers must develop the capabilities to assist in that development and those various levels of global operation.

Answer 1

True

Question 2

SIHRM is the part of IHRM that focuses on creating and implementing IHRM policies and practices that help achieve an MNE's international vision and objectives, that is, its international strategy.

Answer 2

True

Question 3

As a firm internationalizes, it moves through only two stages, and in each stage, it must make a choice of methods for market entry.

Answer 3

False

Question 4

Portfolio investment historically has been the initial step of internationalization for most firms and usually occurs while the firm is relatively small.

Question 5

If foreign sales or purchasing increase in importance, the fi rm will assign a sales manager or purchasing agent responsible for international sales.

Question 6

International professional employer organization (PEO) involves paying someone else in the foreign country who provides all the necessary organizational site or location (e.g., physical building) and management (e.g., employees and back-office expenses such as payroll, local taxes, organizational legalities, human resource management (HRM), etc.).

Question 7

As firms progress through becoming more internationalized and increasing their international activities, their IHRM responsibilities become increasingly less complex to manage.

Question 8

Licensing the rights to manufacture or market a product or service in an option for internationalization that does not involve the setting up of directly owned subsidiaries.

Question 9

Subsidiaries can be developed in a number of ways, including involvement in greenfield or brownfield projects.

Question 10

There has been a steady decline in the use of international joint ventures (where two or more firms create a new business entity) as an internationalisation option.

Question 11

The terms off-shoring and Outsourcing should not be used interchangeably.

Question 12

An MNEs business strategy is primarily guided by the extent of integration and/or local responsiveness required by the firm to manage its worldwide operations.

Question 13

Adopting a multi-domestic business strategy typically means that a firm views each national market as a specialized market for its particular subsidiaries' products and services, and, as such, involves being responsive to the needs, values, and demands of the local market.

Question 14

The tension between integration (centralisation) and differentiation (localization) is seldom a major dilemma for global firms and their HR managers.

Question 15

MNEs with a Multidomestic business strategy use an approach that attempts to maximize both responsiveness and integration.

Question 16

An IHRM strategy's effect on organizational effectiveness is always dependent on how well the IHRM strategy fits with and supports an MNE's business strategy.

Question 17

Strategic IHRM is the part of IHRM that focuses on

A) developing budgets
B) creating and implementing IHRM policies and practices to achieve international objectives
C) networking with industry partners
D) all of the above

Question 18

The two essential needs that compel senior executives to develop specific strategies for their organizations are

A) to react to changes in the environment and respond to new legislation
B) to resolve issues in emerging markets and keep customers satisfied
C) to actively shape how a business will be conducted and to mold a coordinated approach across the company
D) to actively downsize the business and meet shareholder needs

Question 19

Once the decision is made to go international (whether this is a pro-active or reactive choice), the task of all managers - including HR managers - is

A) to implement that decision
B) to convert the strategic plan into action and
C) to get on with whatever needs to be done to achieve the international vision and targeted objectives
D) all of the above

Question 20

An element of the strategic management process used to develop a global business strategy is

A) environmental scanning
B) downsizing
C) outsourcing
D) all of the above

Question 21

For a long time, ___________ has been the first step of internationalization for most firms while they were still relatively small.

A) importing
B) exporting
C) franchising
D) licensing

Question 22

McDonald's is an example of a firm that adopted a _______________ strategy to package the successful elements of their operations in their home market and offer this package to overseas investors, with perhaps training and marketing support.

A) sub-contracting
B) exporting
C) franchising
D) all of the above

Question 23

The reason why some new enterprises operate almost immediately across the globe ("born global") is

A) the nature of their products
B) the global networking of the engineers and scientists involved
C) marketing through the internet
D) all of the above

Question 24

Off-shoring involves the relocation of one or more aspects of an organization's business processes to a location in another country for the purpose, at least initially, of

A) creating career paths
B) developing networks and relationships
C) lowering costs
D) all of the above

Question 25

Market entry choices for an internationalizing firm are dictated by

A) the firm's internationalization strategy
B) options available to the firm in particular countries
C) timing of its entry into markets
D) all of the above

Question 26

Methods of entry into international business include

A) licensing and subcontracting
B) outsourcing and off-shoring
C) mergers and acquisitions
D) all of the above

Question 27

Organizations can also use a variety of auxiliary methods to internationalize their operations, such as:

A) Importing
B) Outsourcing
C) Exporting
DAll of the above

Question 28

Which of the following statement about Outsourcing is true

A) Outsourcing is a form of exporting
B) Outsourcing began in 2010
C) The term "outsourcing" was developed to describe this process of contracting with an external firm to provide products or services that would otherwise be completed internally
DAll of the above

Question 29

Reasons for entering into IJV agreements include

A) to avoid host government requirements and insistence
B) to gain reduced economies of scale
C) to shift the risks to the IJV partners
D) none of the above

Question 30

Outsourcing success depends on all of the following factors except

A) executive-level support in the client organization for its outsourcing mission
B) ample communication to affected employees
C) the efforts of competing firms to manage contracts and agreements
D) the firm's ability to manage its service providers

Question 31

Issues that firms should consider when relocating services off-shore are

A) expertise in managing remote locations
B) cost of labor
C) language skills
D) all of the above

Question 32

The extent to which the subsidiaries and the headquarters of a firm develop a unified whole and therefore achieve a range of competitive advantages (such as economies of scale) is defined as _______ .

A) geocentric
B) integration
C) responsiveness
D) decentralization

Question 33

A MNE business strategy that enables subsidiaries to respond to local differences and encourages modification of products or services to meet local needs and increase local competition is called ___________ .

A) ethnocentric
B) integration
C) local responsiveness
D) reactionary

Question 34

Adopting a global business strategy means that an MNE implements the same unified approach in all countries regardless of their differences so that there is a high degree of

A) integration
B) decentralization
C) proactivity
D) regiocentric

Question 35

A MNE strategy that attempts to maximize both responsiveness and integration so that each subsidiary is responsible for making adaptations to suit the local needs, while still being able to draw on the global expertise and resources

A) ethnocentric
B) multi-domestic
C) global
D) transnational

Question 36

Using a home country standard as a reference in managing international activities is indicative of a(n) _______ orientation

A) geocentric
B) regiocentric
C) polycentric
D) enthnocentric

Question 37

A firm has reached the level of a global orientation, a(n) ___________ mindset will develop and be adopted

A) ethnocentric
B) geocentric
C) polycentric
D) regiocentric

Question 38

IHRM strategy is the creation and implementation of international HR practices that help the firm to achieve its international vision and business strategy as well as____________.

A) relocating employees
B) creating business opportunities for employees
C) reacting to resolve HR challenges
D) strategically managing the HR function

Question 39

Designing a IHRM strategy that concentrates authority and decision making at the top of the firm (the headquarters) is similar to the concept of integration, is considered as a decision to ____________.

A) regionalize
B) centralize
C) decentralize
D) localize

Question 40

An IHRM strategy's effect on organizational effectiveness is _________ dependent on how well the IHRM strategy fits with and supports a MNE's business strategy

A) often
B) rarely
C) always
D) sometimes

Question 41

A firm pursuing an active IHRM strategy is characterized by HR at corporate headquarters and HR at the subsidiary trying to _____________ the control over HR decision making.

A) avoid
B) balance
C) re-allocate
D) decentralize

Question 42

The use of parent-company policies and procedures throughout a firm's global operations is known as

A) convergence
B) divergence
C) outsourcing
D) restructuring

Question 43

An integrative framework for strategic international HRM in MNEs includes consideration of

A) exogenous factors
B) strategic MNE components
C) endogenous factors
D) all of the above

Question 44

Identify and explain the five stages of the internationalization process that most organizations experience as they begin to evolve their global operations.

Question 45

MNE business strategies can be categorized based on how they manage the forces of integration versus local responsiveness. Identify and explain the four types of business strategies in terms of their focus on integration versus local responsiveness.

Question 46

How does a transnational business strategy differ from a global business strategy?

Question 47

Explain the central trade-offs involved in making a decision about whether to centralize or decentralize IHRM decisions.

Question 48

Describe an organization's IHRM strategy. Why is it important to have an IHRM strategy?

Question 49

Identify and explain the three types of IHRM strategies.