Deck 15: International Human Resources Management

Question 1

Cultural environments differ across the world. What does this imply for business firms?

A) Canadian corporations have an advantage over firms from other nations.
B) The culture must adapt to the goods and services offered by transnational corporations.
C) Their management styles must remain consistent.
D) Strategies, structures, and management styles that work in one area of the world may be inappropriate in another.

Answer 1

D

Question 2

Cultural environment includes all of the following components EXCEPT which one?

A) education/human capital
B) religious beliefs
C) corporate structure
D) values and ideologies

Answer 2

C

Question 3

MAGNA is a Canadian firm located in Ontario. In this instance, what does Canada represent?

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

Answer 3

B

Question 4

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) multinational firms
C) global firms
D) international firms

Question 5

Many nannies come to Canada to work for a period of time. What is the name of the document issued by the government granting authority to these nannies to seek employment in Canada?

A) a work permit
B) a passport
C) an allowance permit
D) a birth certificate

Question 6

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

Question 7

Deccan Hardware Company, a Canadian firm, is now establishing a subsidiary in Mexico. As with many organizations at the early stages of international expansion, what type of employees would Deccan most likely use?

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

Question 8

Anna works as a compensation manager for IDL Inc., a multinational firm located in British Columbia. She has been posted to Hong Kong on an assignment. What type of employee is Anna?

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

Question 9

While GH Motors is located in Canada, it has allowed management in all of international operations to make independent decisions on how they conduct business in their different environments. How would you classify GH Motors?

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

Question 10

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 multinational corporation
C) a global corporation
D) a transnational corporation

Question 11

Which of the following factors is NOT a reason why firms may want to use host-country nationals?

A) they are mobile
B) they are preferred by host-country governments
C) they are less costly
D) they have knowledge of the culture

Question 12

What term do we use to describe the country in which an international business operates?

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

Question 13

What is the main purpose of free trade agreements, such as NAFTA?

A) to facilitate the free movement of goods, services, capital, and people across borders
B) to help fight terrorism
C) to help the United Nations with its work
D) to increase tourism

Question 14

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 15

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

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

Question 16

When a Canadian multinational corporation hires an employee from Australia to work in its office in Sydney, this employee referred to as which of the following?

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

Question 17

Which organization 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

Question 18

General Motors, headquartered in the United States, has operations in many parts of the world. Jimmy Lee, an IT manager from its Canadian operations, has been posted to India to oversee a start-up operation. What type of employee is Jimmy?

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

Question 19

Which of the following is the source of overseas employees that provides the advantages of less cost and greater facility in the language?

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

Question 20

Which of the following is a recent trend in expatriate assignments?

A) shorter, project-based assignments
B) more long-term assignments
C) increased heading of operations in foreign countries
D) permanent, full-time placements

Question 21

Which of the following statements best describes transnational teams?

A) They tend to be focused on projects that span multiple countries.
B) They tend to be homogenous.
C) They are usually comprised of members with generalized skills.
D) They are usually comprised of members from the same region.

Question 22

What is NOT one of the attributes of successful global managers that Levi Strauss identified?

A) ability to seize strategic opportunities
B) sensitivity to issues of diversity
C) interpersonal competency
D) ability to manage a highly centralized organization

Question 23

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 24

If you were concerned about maximizing your career benefits with a foreign assignment, which question would be the most important to ask?

A) Will the assignment afford me the opportunity to learn a new language?
B) How long will the assignment last?
C) How much will the assignment increase my salary?
D) How many executives within my organization have a foreign-service assignment in their background?

Question 25

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 26

Compared to Canadian managers, Japanese managers tend to use which of the following decision-making styles in the workplace?

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

Question 27

Which of the following is associated with 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 28

Individuals working internationally need to know as much as possible about all of the following host-country characteristics EXCEPT which one?

A) social and business etiquette
B) political structure
C) cultural values and priorities
D) popular fashion trends

Question 29

What 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 30

Compared to North American managers, European managers-especially those in France, Germany, and Italy-tend use which of the following decision-making styles?

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

Question 31

What is the key purpose of repatriation?

A) to train expatriates prior to their first international assignment
B) to help employees make the transition back home
C) to adapt leadership and decision-making styles to the host country
D) to reduce communication errors in foreign assignments

Question 32

According to the text, what is NOT a core skill that is critical for success abroad?

A) prudent decision-making skills
B) mental maturity
C) cultural sensitivity
D) strategic thinking

Question 33

In collectivist societies such as Japan and Taiwan, what is a key focus of the pay system?

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

Question 34

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 35

According to cross-cultural studies, nations tend to cluster according to similarities in all of the following cultural dimensions EXCEPT which one?

A) work goals
B) values
C) laws
D) job attitudes

Question 36

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 37

When comparing European countries such as Norway and Denmark with North America, which trend is evident in terms of compensation systems?

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

Question 38

Heineken recently organized a group of individuals with specialized skills representing each major region within Europe. This group is an example of which of the following?

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

Question 39

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

A) compensating the managers for separation from family and friends
B) offsetting the higher costs of overseas goods and services
C) paying essentially the same as home-country counterparts are paid in similar jobs
D) covering moving, storage, and educational expenses

Question 40

What is a current trend among multinational corporations when setting compensation levels for host-country managers?

A) paying the host-country managers considerably more than the expatriate managers
B) widening the salary gap between the host-country and the expatriate managers
C) paying only according to the local salary levels
D) narrowing the salary gap between the host-country and the expatriate managers

Question 41

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 McCafe. 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 42

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 5 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 43

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 44

If you were developing a performance appraisal system for individuals on international assignments, it would be best to base individuals' appraisals on information from which of the following?

A) home-country evaluations
B) peer evaluations
C) both home- and host-country evaluations
D) host-country evaluations

Question 45

What is one of the most common problems that occur with performance appraisals of international assignees?

A) criterion estimation
B) criterion deficiency
C) criterion contamination
D) lack of validity

Question 46

NAFTA has spurred job growth in all three member countries.

Question 47

Canadian companies have been conducting business on an international basis longer than anyone else.

Question 48

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 McCafe. 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) multinational corporation
B) transnational corporation
C) global corporation
D) international corporation

Question 49

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 50

The International Labour Organization has set itself a new agenda-called the "Decent Work Agenda." What is the main purpose behind this move?

A) to illustrate the decency embedded in international organizations
B) to stop itself from becoming irrelevant
C) to chart laws for international firms
D) to highlight the ethical dimension of work

Question 51

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 McCafe. 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 52

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 5 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) 36 percent of Canadian companies have a repatriation plan
B) one-third of Canadian companies have programs to facilitate appropriate career positions on repatriation
C) 50 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 53

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 5 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 54

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

Question 55

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

Question 56

Which of the following best describes the difference between labour relations in Canada and those in Europe?

A) In some European countries, government intervenes in all aspects of collective bargaining.
B) Salaried employees, including managerial employees, have a greater tendency to be unionized in Europe.
C) Unions in Canada have more political power than in most European countries.
D) European unions typically negotiate the agreement at the national rather than the local level.

Question 57

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 5 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 58

Different cultural environments require different organizational behaviours.

Question 59

A very high level of worker participation in management is found in Germany, where national law requires that labour be part of the boards of directors of companies. What is this participative arrangement called?

A) codetermination
B) worker councils
C) German unionization
D) the shop steward movement

Question 60

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

Question 61

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

Question 62

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

Question 63

Subsidiaries of multinational corporations are usually run as independent companies.

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

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

Question 66

In general, it is typically better to hire host-country nationals when operating abroad because it is less expensive, it pleases the local government, and it eliminates the problem of employees adjusting to the culture.

Question 67

International HRM is virtually identical to domestic HRM.

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

One reason to employ host-country nationals is that local governments want good jobs for their citizens.

Question 74

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 75

Some of the advantages of using home-country nationals for overseas managerial assignments are that the talent is already available within the organization and that the organization can have greater control.

Question 76

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

Question 77

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

Question 78

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

Question 79

Global managers must be capable of managing highly decentralized organizations.

Question 80

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