Deck 16: Global Human Resource Management

Question 1

Identify a true statement regarding globalization.

A) Critics of globalization cite the extremely high wage rates paid by some international firms.
B) Countries with repressed social development are attractive to global firms.
C) Well-established legal systems offer continuity and consistency for global firms.
D) One of the major criticisms of globalization is the reduction in economies of scale.

Answer 1

C

Question 2

Jazz is a high-end handbag manufacturing firm based in Italy. It has achieved peak sales and profits in the home-country market. Jazz now wants to cater to the different fashion sensibilities of women across the world. The firm sets up facilities for production, marketing, and sales in the United States, India, and Japan. Which of the following is most likely the reason for Jazz's global expansion?

A) Obtaining investment capital for increased production
B) Diversifying its customer base
C) Accessing better raw materials
D) Accessing a deeper, more diverse talent pool of skilled managers

Answer 2

B

Question 3

Which of the following is true of the demographic trends in many developed nations around the world?

A) People under the age of 25 are becoming a larger share of the population.
B) The financial requirements to provide for older citizens are growing.
C) The population of people over the age of 65 is declining.
D) The available workforce is increasing, leading to mass unemployment.

Answer 3

B

Question 4

Rubizon is a sports equipment manufacturing company in France. It specializes in skiing and ice-skating shoes and equipment. Each year, the company suffers a decline in demand during the summer months. As a result, Rubizon has decided to expand in international markets such as Canada, Finland, and Russia to ensure robust sales throughout the year. Which of the following is the most likely reason for Rubizon's decision to expand globally?

A) Accessing a deeper, more diverse talent pool of skilled managers
B) Accessing cheaper and better raw material suppliers
C) Obtaining investment capital for increased production
D) Countering seasonal fluctuations in sales

Question 5

Cherry is a smartphone manufacturing company based in India. The sales of Cherry phones are declining because of intense competition from similar products in the market. Cherry decides to pursue global opportunities by opening marketing and sales offices in Indonesia, Malaysia, and the Philippines. With this move, the company hopes to reduce investment risk and achieve stable sales. Which of the following is most likely the reason for Cherry's decision to pursue global expansion?

A) Reducing dependence on current markets
B) Accessing a deeper, more diverse talent pool of skilled managers
C) Obtaining investment capital for increased production
D) Decreasing efficiencies/economies of scale

Question 6

The Republic Corporation is an industrial machinery manufacturing company based in India. It has a production facility in China. The Chinese facility follows the operations and manufacturing processes of the home-country office. The HR policies and practices are also copied from the home country. Which of the following international orientations has the Republic Corporation adopted?

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

Question 7

Which of the following statements is true of a transnational company with a regiocentric approach?

A) The company has a global mind-set that adopts ideas without regard to their region of origin.
B) The company's practices vary widely among operations in different countries.
C) The company considers countries as aggregates within a region.
D) The company operates in a standardized fashion across all countries.

Question 8

Onesty Inc. is a manufacturer of handmade paper greeting cards. It has production and sales offices in the United States, the United Kingdom, Japan, and India. Onesty manufactures and sells greeting cards according to the traditions and festivals in each of these countries. Its policies and practices too vary widely in these countries. Which of the following international orientations has Onesty Inc. adopted?

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

Question 9

Which of the following international orientations adopted by multinational enterprises places a strong emphasis on each country as a unique environment?

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

Question 10

Which of the following international orientations places a strong emphasis on the home-country practices, policies, and culture?

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

Question 11

Mettle Inc. is a multinational toy manufacturing company based in the United States. It has factories and offices in many countries around the world. In all its foreign offices, Mettle Inc. has applied the practices, policies, and culture followed in its U.S. office. As a result, Mettle Inc.'s operations are standardized across all countries. Which of the following international orientations has Mettle Inc. adopted?

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

Question 12

Which of the following statements is true of population demographics around the world?

A) Women constitute 70 percent of international migrants.
B) The overall population of people under the age of 25 is rapidly growing.
C) The available workforce is expanding.
D) People over the age of 65 are becoming a larger share of the world population.

Question 13

Asaii is a transnational health food company with operations in many countries around the world. Asaii places a strong emphasis on each country's environment by procuring unique natural products. The yield from each region is processed according to proven local practices. Asaii's policies rely heavily on the traditions and norms of each country. Which of the following international orientations has Asaii adopted?

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

Question 14

In the context of economic interdependence, which of the following is a concern of the critics of globalization?

A) The nonregulation of the quality of merchandise produced in foreign markets
B) The extremely low wage rates paid by some international firms for labor in developing countries
C) The domination of local businesses over international firms
D) The reduction in economies of scale as a result of international trade

Question 15

Identify a true statement about a multinational organization that adopts the polycentric orientation.

A) The organization emphasizes utilizing the best ideas and practices from anywhere in the world.
B) Rather than emphasizing each individual nation's uniqueness, countries are considered as aggregates within a region.
C) Home-country approaches dominate, and operations in other countries are typically copied from the home country.
D) The organization operates in a local fashion with practices varying widely among operations in different countries.

Question 16

FruYa is a company in the United States that manufactures and sells fruit jams and preserves. FruYa's best-selling product is its pineapple preserve, and the company has set up a processing and bottling plant in Brazil, which is one of the world's top pineapple producing countries. Which of the following is the most likely reason for FruYa's global expansion?

A) Countering seasonal fluctuations in sales
B) Obtaining investment capital for increased production
C) Accessing better and cheaper raw material supplies
D) Accessing a deeper, more diverse talent pool of skilled managers

Question 17

In the context of economic interdependence, identify a true statement about globalization.

A) Companies may decide to expand globally as a strategy to reduce costs by finding cheaper labor in developing countries.
B) France, Germany, and Switzerland top the list for hosting the most multinational enterprises.
C) Most multinational enterprises have ensured that their foreign factories adhere to high human resource standards.
D) Countries such as Cuba and Zimbabwe offer continuity and consistency for global firms because of the countries' stable legal and political systems.

Question 18

According to critics, which of the following alliances, formed in 1994, has encouraged employers in the United States to relocate jobs to Mexico where pay is much lower than in the United States?

A) The North American Free Trade Agreement
B) The Transatlantic Trade and Investment Partnership
C) The Trans-Pacific Partnership
D) The Organisation for Economic Co-operation and Development

Question 19

In the context of the international orientations adopted by multinational enterprises, which of the following statements is true of the polycentric orientation?

A) The idea of this orientation is to create a global mind-set that adopts ideas without regard to their origin.
B) This orientation considers countries as aggregates within a region.
C) Home-country approaches typically dominate the operations in other countries.
D) Practices, culture, and policies rely heavily on what is normal in each country.

Question 20

In which of the following international orientations do home-country approaches dominate and operations in other countries are typically copied from the home country?

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

Question 21

Medici and Athena are companies that manufacture medical equipment. The two companies have partnered for a unique project to create a specialized X-ray machine with the latest and the most expensive technology available. Medici and Athena will share their knowledge and resources as well as ownership and risk in the investment. However, each company will retain its own business identity. Which of the following business forms have Medici and Athena adopted for the project?

A) A joint venture
B) A merger
C) A licensing agreement
D) Piggybacking

Question 22

Which of the following business forms is likely to present the greatest risk to an expanding firm in the context of both financial and human investments?

A) A licensing arrangement
B) Franchising
C) Piggybacking
D) A joint venture

Question 23

In the context of international orientations adopted by transnational companies, identify a true statement about the geocentric orientation.

A) It relies heavily on what is normal in each country.
B) It places a strong emphasis on home-country practices, policies, and culture.
C) It is a blending of the ethnocentric and regiocentric orientations.
D) It emphasizes utilizing the best ideas and practices from anywhere in the world.

Question 24

TrueFoods, a packaged food manufacturing company, intends to expand its business in another country. However, it wants to do so with limited investment and risk. To this end, it partners with an overseas condiments company. As a result, both TrueFoods and the condiments company generate higher sales by promoting each other's products. Which of the following business forms does this scenario illustrate?

A) Outsourcing
B) Franchising
C) Licensing
D) Piggybacking

Question 25

A certain country in the Mediterranean region is known for its nurturing, cooperative culture. The people of this country prefer cooperation over competition. In the context of the dimensions of country cultures developed by Dutch scholar Geert Hofstede, this country is most likely to have _____.

A) high scores on the power distance index dimension
B) low scores on the masculinity versus femininity dimension
C) high scores on the long-term orientation dimension
D) low scores on the indulgence versus restraint dimension

Question 26

SoleAce, a luxury shoe-making company, intends to expand its sales in another country. However, it wants to do so with limited investment and risk. To this end, it partners with Comfies, an overseas premium socks manufacturing company. SoleAce and Comfies sign an agreement that allows each firm to sell the products of the other firm. As a result, both generate higher sales by promoting each other's products. Which of the following business forms has SoleAce adopted?

A) Outsourcing
B) Franchising
C) Piggybacking
D) Licensing

Question 27

Two small computer manufacturing companies, Zeus and Accent, combine their businesses together to create a larger, new business entity with a new name and logo. Which of the following business forms does this scenario illustrate?

A) An acquisition
B) A merger
C) A piggyback arrangement
D) A joint venture

Question 28

Two locomotive manufacturing companies have become partners in a special project to build a final assembly plant for their engines in China. The two companies will share ownership and risk in the investment. However, each company will retain its original business identity. Which of the following business forms does this scenario exemplify?

A) An acquisition
B) A merger
C) A licensing agreement
D) A joint venture

Question 29

Which of the following is a difference between the ethnocentric orientation and the polycentric orientation?

A) The ethnocentric orientation requires the customization of practices in each country, whereas the polycentric orientation requires the standardization of practices across all countries.
B) The ethnocentric orientation relies heavily on what is normal in each country, whereas the polycentric orientation utilizes the best ideas from anywhere in the world.
C) The ethnocentric orientation is truly global in its application, whereas the polycentric orientation is local in its application.
D) The ethnocentric orientation emphasizes the home-country policies, whereas the polycentric orientation emphasizes each country's unique environment.

Question 30

Quality Cools, an ice cream company, bought Icee, a smaller ice cream company. The smaller company was folded into Quality Cools's business. Which of the following business forms does this scenario exemplify?

A) An acquisition
B) Piggybacking
C) Franchising
D) A joint venture

Question 31

The people of an Asian country feel threatened by ambiguity and the future. As a result, they try to control behavior as much as possible to reduce ambiguity. In the context of the dimensions of country cultures developed by Dutch scholar Geert Hofstede, this country is most likely to have _____.

A) high scores on the indulgence versus restraint dimension
B) low scores on the power distance index dimension
C) high scores on the uncertainty avoidance dimension
D) low scores on the individualism versus collectivism dimension

Question 32

In the context of global business approaches, which of the following statements is true of non-equity business forms?

A) They present more financial risk to companies than equity business forms.
B) They demand little assistance from the headquarters HR staff.
C) They include joint ventures, mergers and acquisitions, and direct investment.
D) They offer businesses a high-cost entry into new, global markets.

Question 33

Foce is a premium jewelry company based in France. It has a gemstone mining and jewelry-making facility in South Africa. The design and execution team in South Africa adopts the best trends in jewelry fashion from all over the world, irrespective of their origin. The facility also utilizes the most effective advertising methods used the world over. Which of the following international orientations does Foce employ?

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

Question 34

Which of the following statements is true of a multinational enterprise with a geocentric approach?

A) The enterprise has a truly global mind-set that adopts ideas without regard to their origin.
B) The enterprise places a strong emphasis on the practices, policies, and culture of the home country.
C) The enterprise operates in a local fashion with practices varying among different countries.
D) The enterprise operates in a standardized fashion across all countries.

Question 35

Salties is a packaged food manufacturing company. It enters into a business arrangement with an overseas firm that grants the firm the right to use Salties's business model and brand to generate sales. In return, the overseas firm is required to pay a fee to Salties. This scenario most likely exemplifies _____.

A) franchising
B) offshoring
C) piggybacking
D) outsourcing

Question 36

Identify a true statement about the non-equity approaches of entering the international market.

A) They include joint ventures, mergers and acquisitions, and direct investment.
B) They demand extensive assistance from the HR department of the home country.
C) They present more financial risk to companies than equity approaches.
D) They provide businesses a low-cost entry into new, global markets.

Question 37

CottonOn is an apparel manufacturing company in Canada. It enters into a business arrangement with a firm in China. This arrangement grants the Chinese firm the right to use CottonOn's business model and brand to generate profits. In return, the Chinese firm has to pay a fee to CottonOn. This scenario most likely exemplifies _____.

A) offshoring
B) franchising
C) piggybacking
D) outsourcing

Question 38

Zibb is a transnational electronics company based in Germany. It has factories in China, Mexico, and India. The company aims to streamline its manufacturing operations for maximum efficiency and profit. To this end, Zibb adopts the best manufacturing and packaging practices from around the world. This also leads to the creation of a global mind-set that adopts ideas without regard to their origin. Which of the following international orientations has Zibb adopted?

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

Question 39

Which of the following is a common first step in expanding globally by using non-equity business approaches?

A) Creating a joint venture between two partners who share ownership and risk in the financial investment
B) Acquiring a controlling ownership interest in a business in another country
C) Merging two companies that offer similar products to create a new business entity
D) Importing and exporting goods and services to customers outside of the home country

Question 40

Which of the following is a difference between the geocentric orientation and the ethnocentric orientation?

A) The geocentric orientation requires the standardization of practices across all countries, whereas the ethnocentric approach requires the customization of practices in each country.
B) The geocentric orientation emphasizes each country's unique environment, whereas the ethnocentric orientation considers countries as aggregates within a region.
C) The geocentric orientation emphasizes utilizing the best ideas and practices from anywhere in the world, whereas the ethnocentric orientation emphasizes the home-country practices, policies, and culture.
D) The geocentric orientation adopts a local mind-set, whereas the ethnocentric orientation is truly global in its application.

Question 41

Japan and Germany top the list for hosting the highest number of multinational enterprises.

Question 42

Michael is an employee of TechNew Corporation, a multinational enterprise based in the United States. He worked on an overseas managerial assignment in Chile for five years. During this period, he enjoyed a high degree of flexibility and autonomy. Michael is now set to return to the home-country office. Which of the following is most likely to happen in this scenario?

A) Michael will be offered a generous benefit package with a net increase in total income upon his return.
B) Michael will need to adjust to a lack of close working and reporting relationships with home-country staff upon his return.
C) Michael is likely to be offered an upper management position by the management to promote ethnocentrism.
D) Michael is likely to wonder about how he will be accepted back into the organization and what job he will have.

Question 43

A tribe resides along the Amazon river. The people of this tribe are open with each other and pursue gratification of their wants and desires freely. They place a strong emphasis on the future and do not believe in the regulation and suppression of individual desires. In the context of the dimensions of country cultures developed by Dutch scholar Geert Hofstede, this tribe is most likely to have _____.

A) high scores on the indulgence versus restraint dimension
B) low scores on the individualism versus collectivism dimension
C) high scores on the masculinity versus femininity dimension
D) low scores on the long-term orientation dimension

Question 44

Which of the following statements is true of union management relations in the United States?

A) Unions provide training programs that improve worker readiness and allow companies to hire a highly skilled workforce.
B) Unions typically focus on improving wages, benefits, job security, and working conditions.
C) Unions focus exclusively on activism and integration with ruling governmental and political powers.
D) Unions make agreements with the government and argue their cases before arbitration tribunals.

Question 45

Which of the following is a key difference between union management relations in the United States and union management relations in other countries?

A) Unlike other countries, national unions in the United States bargain with the government or with employer groups.
B) Unlike other countries, unions in the United States focus on activism and integration with ruling governmental and political powers.
C) Unlike other countries, unions in the United States provide training programs that improve worker readiness and allow companies to hire a highly skilled workforce.
D) Unlike other countries, collective bargaining contracts in the United States usually spell out compensation, work rules, and the conditions of employment for several years.

Question 46

In the context of the dimensions of country cultures developed by Dutch scholar Geert Hofstede, a hierarchical society is most likely to have high scores on _____.

A) the power distance index dimension
B) the individualism versus collectivism dimension
C) the long-term orientation dimension
D) the indulgence versus restraint dimension

Question 47

In the context of international assignments, which of the following actions by a multinational enterprise (MNE) clearly conveys the message that the MNE is making a commitment to its host country?

A) Assigning an expatriate to an international assignment
B) Employing host-country nationals
C) Employing third-country nationals
D) Returning an expatriate to the home country

Question 48

The emotional component of intercultural competence training is most likely to include _____.

A) language courses
B) coaching that clarifies prejudices
C) training on cultural customs
D) lessons on the history of a culture

Question 49

The cognitive component of intercultural competence training is most likely to include:

A) the Culture Assimilator method to modify individual behaviors.
B) social skills training focusing on unclear situations to reduce uneasiness.
C) a communication skills course focusing on nonverbal cues and empathy to enhance sensitivity.
D) culture-specific training focusing on the history of a culture.

Question 50

Identify a true statement about union management relations in the United States.

A) In the United States, management and labor traditionally take the roles of competing adversaries who often clash to reach agreement.
B) In the United States, union agreements are made for only one year because of political and social instability.
C) In the United States, labor unions typically provide training programs that improve worker readiness.
D) In the United States, unions focus exclusively on activism and integration with ruling governmental and political powers.

Question 51

Which of the following terms refers to a citizen of one country who is working in a second country for an organization that is headquartered in a third country?

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

Question 52

In the context of intercultural competence, behavioral training is most likely to include:

A) the Culture Assimilator method.
B) culture-specific training focusing on cultural customs.
C) a communication skills course.
D) a language course.

Question 53

In the context of compensation for international assignments, which of the following is a difference between the home-country-based approach and the host-country-based approach?

A) Unlike the home-country-based approach, the host-country-based approach involves calculating taxes and discretionary spending expenses based on those items' costs in the home country.
B) Unlike the host-country-based approach, the home-country-based approach compensates the expatriate at the same level as workers from the host country.
C) Unlike the host-country-based approach, the objective of the home-country-based approach is to maintain the standard of living the expatriate had in the home country.
D) Unlike the home-country-based approach, the host-country-based approach results in higher employer costs and more administrative complexity.

Question 54

Companies seeking globalization can review the guidelines developed by the Organisation for Economic Cooperation and Development on operating internationally to become a multinational enterprise.

Question 55

In the context of global career concerns, which of the following statements is true of repatriates?

A) They seldom need to reacclimate to home-country lifestyles, transportation, and cultural circumstances.
B) They may feel a net decrease in total income, even if they receive promotions and pay increases.
C) They often continue to receive special compensation packages even after their return from international assignments.
D) They must adjust to a lack of close working and reporting relationships with home-country staff after having little flexibility or autonomy while living overseas.

Question 56

In the context of compensation for an expatriate, which of the following statements is true of the host-country-based approach?

A) It aims to maintain the standard of living the expatriate had in the home country.
B) It compensates the expatriate at the same level as workers from the host country.
C) It can result in more administrative complexity than other plans.
D) It can result in higher employer costs than other plans.

Question 57

The Organisation for Economic Cooperation and Development is a consortium of 45 democratic nations that aims to foster sustainable international trade and economic development.

Question 58

In the context of global career concerns, identify a true statement about repatriation.

A) Repatriation efforts should focus on building organizational support to promote ethnocentrism.
B) It requires organizations to offer higher pay and benefits to repatriates after their return than when they were on overseas assignments.
C) Repatriation efforts should include some focus on the individual employee' needs and career aspirations.
D) It requires repatriates to adjust to a lack of close working and reporting relationships with home-country staff after having little flexibility or autonomy while living overseas.

Question 59

In the context of intercultural competence, the emotional component of training includes:

A) The Culture Assimilator method
B) Culture-specific training that includes traditions, history, and cultural customs
C) Sensitivity training that includes active listening, verbal/nonverbal cues, and empathy
D) A language course

Question 60

In the context of compensation for an expatriate, which of the following statements is true of the home-country-based approach?

A) It can result in higher employer costs and more administrative complexity than other plans.
B) It compensates the expatriate at the same level as workers from the host country.
C) It aims to significantly elevate the standard of living the expatriate had in the home country.
D) It makes sense when the cost of living is substantially lower in the host country than in the home country.

Question 61

Nations functioning under turbulent and varied legal and political systems are unattractive to global organizations.

Question 62

Organizations that value consistency and hope to encourage employee mobility may favor a more customized approach to compensation, while those that wish to encourage local adaptation will likely choose a more standardized approach.

Question 63

Union-led agreements and political support in Germany have encouraged employee wages in that country to steadily increase.

Question 64

In the context of global employees, a third-country national is an employee who is working in his or her home country for a firm that is headquartered in a different country.

Question 65

In the context of regional alliances, within the Schengen Area, passport controls have been eliminated, and citizens of the Schengen nations can easily move between the countries.

Question 66

For an expatriate, the ability to communicate in the host-country language, both verbally and in writing, is one of the key competencies for success.

Question 67

The Transatlantic Trade and Investment Partnership is the largest economic entity in the world and accounts for nearly one-fourth of the world's economy.

Question 68

Companies seek global expansion to decrease their economies of scale.

Question 69

In the context of compensation for international assignments, Australia, Sweden, and France offer the best-designed benefit programs to employees.

Question 70

The term power distance index refers to the extent to which people in a society prefer to act as individuals or as members of a group.

Question 71

Foreign direct investment occurs when a company partners with another firm that sells complementary products, and both generate higher sales by promoting each other's products.

Question 72

In the context of key competencies for successful global employees, the preferences and attitudes of spouses and other family members can influence the success of expatriate assignments.

Question 73

The North American Free Trade Agreement promotes free trade between the United States, Cuba, and Mexico.

Question 74

Reducing dependence on current markets by spreading risk is one of the reasons for a company to seek global expansion.

Question 75

The World Federation of People Management Associations is a professional association for HR professionals who oversee HR practices in multiple countries.

Question 76

An organization that adopts a geocentric orientation places an emphasis on utilizing the best ideas and practices from anywhere in the world.

Question 77

Critics of globalization cite the extremely high wage rates paid by some international firms.

Question 78

Migration of working age individuals from less-developed countries to more-developed countries can bolster economic growth and progress.

Question 79

Employers in the United States are required by law to provide paid holidays, vacation, and sick leave to all employees.

Question 80

Countries with well-established and stable political and legal systems are attractive to firms seeking globalization as they offer continuity and consistency for global firms.