Deck 14: International Hrm

Question 1

A localized compensation strategy is a pay banding system based on regions.

Answer 1

True

Question 2

Biculturalism is an adjustment phase wherein the expatriate embraces the new culture and begins to appreciate his/her old life at home as much as the new life overseas.

Answer 2

True

Question 3

An effective expatriate adjusts solely from the physiological perspective.

Answer 3

False

Question 4

A short-term orientation would focus on future rewards for work now, persistence, and the ordering of relationships by status.

Question 5

Norms are the shared expectations about what is considered correct and normal behavior.

Question 6

Foreign tax credit is a mechanism which requires the expatriate to file tax returns in the home country as well as in the host country.

Question 7

Power distance refers to the manner in which a society tolerates uncertainty.

Question 8

A multinational company produces its goods domestically and then sells them overseas.

Question 9

Collective societies are based on cohesive groups, whether it be family groups or work groups.

Question 10

A trade agreement is an agreement between two or more countries to reduce barriers to trade.

Question 11

A transnational company is a complex organization in which much of the decision making, research and development, and marketing are controlled by the individual foreign market.

Question 12

In a home-country national strategy, people who were born in the country in which the business is operating are employed.

Question 13

An overseas premium is an extra amount paid to an expatriate for accepting an overseas assignment.

Question 14

The advantage to codetermination is the sharing of power throughout all levels of the organization.

Question 15

Material culture can range from symbolic items, such as a crucifix, to items of daily use.

Question 16

By using a third-country national strategy, the language barrier in conducting business overseas is completely eliminated.

Question 17

A third-country national strategy means to employ people from an entirely different country from the home country and host country.

Question 18

In the adaptation phase of adjustment that an expatriate goes through, there is a feeling of excitement about the new surroundings.

Question 19

The main reason why companies use third-country nationals as a staffing strategy is the ability of such a candidate to represent the company's interests and transfer corporate technology and competencies.

Question 20

Expatriation is the process of helping employees make the transition to their home country.

Question 21

_____ represent a component of culture that classifies things as good or bad within the society.

A) Theories
B) Symbols
C) Constructs
D) Policies
E) Values

Question 22

Which of the following is a feature of a transnational company?

A) No integration with a home office
B) Centrally controlled production process
C) Use of only the existing production to sell overseas
D) Sale within the borders of the home country
E) High local responsiveness

Question 23

The HRM decision-making process has transnational scope when it considers the:

A) demand for its products and services in the domestic company.
B) need to uphold the cultural values of the home country.
C) availability of technology to make its production more efficient.
D) needs of all employees in all the countries where it operates.
E) home office directives and procedures as being the best for all foreign offices.

Question 24

_____ occurs when a business relocates or moves some or part of its operations to another country.

A) Licensing
B) Offshoring
C) Franchising
D) Insourcing
E) Greenfield venturing

Question 25

Which of the following refers to the scripted ways of interacting that usually result in a specific series of events?

A) Constructs
B) Rituals
C) Archetypes
D) Theories
E) Schemas

Question 26

Which of the following is a disadvantage of the host-country national strategy?

A) This strategy can adversely affect motivation of local workers.
B) Language and cultural barriers can hinder the success of this staffing strategy.
C) The added cost of visa and hiring factors add up to be a major expense.
D) Adapting to foreign environment may be difficult for a manager and his/her family, resulting in less productivity when using this strategy.
E) The host-country manager may not understand business objectives as well as his/her home-country counterpart without proper training.

Question 27

Which of the following is an advantage of the home-country national strategy?

A) The language barrier is eliminated.
B) This strategy allows managers to gain experience in local markets.
C) The various hiring costs, like visas, are eliminated.
D) The cultural understanding of the host country market is already present in the home-country national.
E) It builds the morale of host country employees, motivating them to work harder.

Question 28

John Bachmann heads the HR department of a software company. He encourages his subordinates to take decisions that aid their own achievements and emphasizes personal freedom and competitiveness. John likes to keep open channels of communication between him and his team and does not hesitate before taking advice from them. Which of the following is a feature reflected in John's approach to his subordinates?

A) High power distance
B) Individualism
C) Authoritarianism
D) Bureaucratic orientation
E) Short-term orientation

Question 29

Which of the following defines shared expectations about what is considered correct and normal behavior?

A) Norms
B) Dyads
C) Symbols
D) Engrams
E) Doctrines

Question 30

Which of the following is an example of the host-country national strategy?

A) An India-based firm starts operations in the U.K. and shifts 25% of its total employee strength to handle the startup.
B) A fashion apparel manufacturing company, based in France, opens operations in Sri Lanka and hires local nationals to fill the executive positions.
C) A recently started China-based firm has relocated some of its most talented employees India to manage its new production and manufacturing facility.
D) A financial conglomerate based in the U.S. hires students from the top management schools in Southeast Asia.
E) A firm in Germany changes its work model to homesourcing in order to bring down costs.

Question 31

Which of the following is an example of the home-country national strategy?

A) A U.K. based multinational company, with a small presence in Nigeria, transfers the entire Nigerian business to the U.K.
B) A software company based in Germany hires employees from the U.K. and the U.S. to avail the latest technical knowledge.
C) A multinational company based in the U.S. outsources its back office operations to Kenya and then transfers a Kenyan employee to Sri Lanka to head operations there.
D) A multinational company based in the Italy hires British employees to manage their operations in Britain.
E) A multinational company based in France recruits software engineers for its new facilities in Paris.

Question 32

_____ involves contracting with another company to perform some business-related task.

A) Franchising
B) Greenfield venturing
C) Co-working
D) Outsourcing
E) Licensing

Question 33

Using which of the following categories of staff can eliminate the language and cultural barriers faced when entering an overseas market?

A) Home-country nationals
B) Expatriates
C) Host-country nationals
D) Inpatriates
E) Third-country nationals

Question 34

A transnational representation is seen when the:

A) company's product line is innovative and affordable.
B) decision-making process in the company is guided by the home country's culture.
C) composition of the firm's managers and executives is multinational.
D) buyers of the company's products are typically domestic customers.
E) economy in which the company operates discourages trade agreements.

Question 35

A company decides to contract its payroll services to a local financial organization. This is an example of _____.

A) offshoring
B) co-working
C) outsourcing
D) licensing
E) franchising

Question 36

In many cultures, managers resent taking advice from their employees. They also do not appreciate informal relationships between the employers and the employees. Such cultures represent a _____.

A) collaborative decision-making mechanism
B) low degree of uncertainty avoidance
C) participative leadership style
D) high degree of power distance
E) individualist culture

Question 37

A(n) _____ market is one in which a product or service is sold only within the borders of that country.

A) international
B) domestic
C) transnational
D) multinational
E) global

Question 38

Which of the following is an example of the third-country national strategy?

A) A multinational company based in Australia hires software engineers for its new facilities in Perth.
B) A multinational company sets up new operations outside its home country and hires employees from that country to work on the new branch.
C) A multinational company based in France hires employees from the U.K. and the U.S. to runs its operations in Paris.
D) A multinational company based in Spain has facilities in India and it has recently transferred an Indian manager to set up the new operations in Argentina.
E) A multinational company, based in the U.S., hires locals for its new facilities in Germany.

Question 39

Which of the following is true of global companies?

A) Centrally controlled operations
B) Use of only the existing production to sell overseas
C) Sale within the borders of the home country
D) Less local responsiveness than international companies
E) Foreign offices control production and markets

Question 40

An international market is characterized by:

A) its products or services being sold only within the borders of that country.
B) its products and services being in high demand in the domestic markets too.
C) its products being manufactured domestically and then sold overseas.
D) its production and sale processes being rooted in overseas markets.
E) the greatest sensitivity to the needs of the local markets.

Question 41

In the _____ phase of the adjustment process, the employee is excited about the new surroundings and finds the culture exotic and stimulating.

A) adaption
B) resistance
C) elation
D) struggle
E) biculturalism

Question 42

During the _____ phase of the adjustment process, the employee gains language skills and starts to adjust to life overseas.

A) resistance
B) biculturalism
C) adaption
D) honeymoon
E) struggle

Question 43

Explain the meaning of trade agreement with an example of an existing trade agreement.

Question 44

Differentiate between a domestic market and an international market.

Question 45

What is meant by a transnational scope as a strategy?

Question 46

An expatriate is most likely to feel frustrated during the _____ phase of the adjustment process.

A) resistance
B) adaption
C) biculturalism
D) exhaustion
E) elation

Question 47

Walter Marshal located to China a year ago from Sydney to oversee the newly started branch of the software company he works for. As an expatriate in a country whose culture is vastly different from his own, Walter has only recently started speaking the local language comfortably. He has also familiarized himself with the cultural nuances of the country which has enabled him to function smoothly without requiring too much help from his local colleagues. Walter is in the _____ phase of the adjustment process.

A) resistance
B) elation
C) honeymoon
D) adaption
E) biculturalism

Question 48

_____ is the practice of company shareholders and employees represented in equal numbers on the boards of organizations, for organizations with 500 or more employees.

A) Codetermination
B) Centralization
C) Adhocracy
D) Formalization
E) Codependency

Question 49

Explain offshoring and outsourcing.

Question 50

Maria Garza is the manager of the production department at a sports apparel company in the Philippines. When she was transferred from Milan two years ago, she had a lot of trouble adjusting. However, she has now embraced the new culture and appreciates the differences between her country's traditions and the traditions of her host country. Maria is in the _____ phase of the adjustment process.

A) biculturalism
B) honeymoon
C) adaption
D) resistance
E) elation

Question 51

Which of the following predictors of success for an expatriate is a factor of his/her motivational state?

A) Behavioral flexibility
B) Cultural empathy
C) Nonverbal communication
D) Congruence with career path
E) Language skills

Question 52

Christopher Novak works for a multinational financial organization based in Britain. He was transferred to Japan ten months ago to impart training on a new process to the executives at the company's back office. After experiencing the initial excitement of getting to know the new culture and surroundings, Christopher has begun to feel frustrated that he cannot carry out a single conversation satisfactorily due to his lack of fluency in Japanese. He now misses home and feels helpless in this foreign assignment. Christopher is experiencing the _____ phase of the adjustment process.

A) adaption
B) resistance
C) biculturalism
D) elation
E) exhaustion

Question 53

_____ is a phase in the adjustment process where the expatriate embraces the new culture and begins to appreciate his/her old life at home as much as the new life overseas.

A) Adaption
B) Resistance
C) Honeymoon
D) Repatriation
E) Biculturalism

Question 54

_____ allows expatriates working abroad to claim taxes paid overseas on their US tax forms, reducing or eliminating double taxation.

A) Localized compensation strategy
B) Balance sheet system
C) Payroll tax credit
D) Overseas premium
E) Foreign tax credit

Question 55

Grant Burke, a native of Canada, was transferred to Malaysia to establish a new branch of the software company he worked for. When Grant returned to Canada after three years, he was surprised to see the changes his country had undergone. At work, he was finding it difficult to accept the stress-free work relationships after having adapted himself to a stricter work style in Malaysia. These factors caused a sense of irritability and disorientation and left Grant feeling as though he could not work with the company anymore. Which of the following is Grant experiencing?

A) Biculturalism
B) Resistance
C) Alarm
D) Reverse culture shock
E) Eustress

Question 56

Sheila Alley has recently been relocated to Manila to head the sales department of her company's office there. She is extremely excited about the new surroundings and looks forward to acquainting herself with the culture and the people of Manila. Even though the culture is vastly different from her own, Sheila is determined to make the most of this opportunity. Which of the following phases of adjustment is Sheila experiencing?

A) Resistance
B) Adaption
C) Biculturalism
D) Repatriation
E) Elation

Question 57

Which of the following best explains the localized compensation strategy?

A) It is a performance-based method of payment to motivate employees to perform better.
B) It is a pay banding system based on regions to balance out cost-of-living considerations.
C) It is payment to compensate for the challenge that an overseas assignment involves.
D) It is an increment based on the employee's length of time spent on the job.
E) It is a method of payment that allows expatriates working abroad to claim taxes paid overseas on their US tax forms.

Question 58

One method of compensation in a global business is to pay a similar base salary company wide or region wide and offer expatriates an allowance based on specific market conditions in each country. This is known as _____.

A) broadbanding
B) the balance sheet approach
C) skills-based pay
D) competence-based pay
E) a pay grading system

Question 59

Which of the following comes under the relational dimension of predictors of success for an expatriate?

A) Administrative competence
B) Tolerance for ambiguity
C) Congruence with career path
D) A stable marriage
E) Fluency with the host-country language

Question 60

_____ is the process of helping employees make the transition to their home country.

A) Expatriation
B) Fraternization
C) Repatriation
D) Resistance
E) Ritualization

Question 61

What is codetermination?

Question 62

A(n) _____ scope means that HRM decisions are made based on the international scope.

Question 63

In the _____ phase of adjustment, the expatriate may start to make frequent comparisons between home and host country and may seek out reminders of home.

Question 64

The advantage to _____ is the sharing of power throughout all levels of the organization.

Question 65

_____ refers to the socially accepted ways of life within a society.

Question 66

Describe norms, values, and rituals.

Question 67

Explain the localized compensation strategy.

Question 68

_____ refers to the society's time horizons.

Question 69

Employees from the home country who live and work in the host country are called _____.

Question 70

Explain the three main staffing strategies a company can implement when entering an overseas market.

Question 71

A _____ market is one in which a product or service is sold only within the borders of that country.

Question 72

_____ refers to the extent to which the less powerful members of organizations accept that power is not distributed equally.

Question 73

A _____ is a pay banding system based on regions.

Question 74

Explain the phases of adjustment that expatriates go through when they move overseas for an assignment.

Question 75

With the _____ of compensation, the idea is that the expatriate should have the same standard of living that he or she would have had at home.

Question 76

Discuss reverse culture shock and repatriation.