Deck 3: The Global Environment

Question 1

Under which two approaches to international business will the human resource function be LEAST affected?

A) Licensing and joint ventures
B) Direct investment and strategic alliances
C) Exporting and licensing
D) Joint ventures and strategic alliances
E) Exporting and direct investment

Answer 1

C

Question 2

Locating a facility in a relatively underdeveloped area will impact all of the following human resource activities EXCEPT

A) training needs.
B) recruitment activities.
C) selection requirements.
D) development issues.
E) production design.

Answer 2

E

Question 3

Which cultural dimension highlights a liking of structured circumstances instead of situations that are relatively unstructured?

A) Individualism
B) Collectivism
C) Masculinity
D) Femininity
E) Uncertainty Avoidance

Answer 3

E

Question 4

A cultural dimension that focuses on relationship building and quality of life is

A) femininity.
B) uncertainty avoidance.
C) time orientation.
D) power distance.
E) collectivism.

Question 5

Which international staffing model involves staffing high-level foreign jobs with parent-country nationals?

A) Globalcentric
B) Polycentric
C) Geocentric
D) Egocentric
E) None of these

Question 6

No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to what type of difference?

A) Language
B) Business practices
C) Children's rights
D) Roles
E) Personal norms

Question 7

Prakash is a human resource manager for an Indian company that is building a manufacturing plant in Singapore. The plant will be staffed with Indian managers and local workers. Which advice would NOT be appropriate for Prakash?

A) You must understand legal requirements for compensation in Singapore.
B) You must consider the Indian government's legal requirements for compensation.
C) Compensation for workers in Singapore will likely be the same as for workers in India.
D) Workers in Singapore will have different preferences for compensation and benefits than will Indian workers.
E) The cost of living is different in Singapore than it is in India, so compensation policy must account for that difference.

Question 8

John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others. He would score highly on the ____ dimension of Hofstede's model of culture.

A) power distance
B) individualism
C) masculinity
D) uncertainty avoidance
E) time orientation

Question 9

Which industrialized nation emerged as the only intact major power after World War II?

A) The United States
B) Japan
C) Germany
D) Canada
E) Africa

Question 10

Local issues that must be dealt with by firms conducting business in foreign markets include all of the following EXCEPT

A) recruiting.
B) compensation.
C) selection.
D) human resource technology.
E) training.

Question 11

What is the term used when a company lets a foreign firm make and/or distribute its products in a local market?

A) Exporting
B) Licensing
C) Direct investment
D) Joint venture
E) Strategic alliance

Question 12

Under a geocentric staffing model,

A) host-country nationals are used heavily because they know the local markets.
B) the organization will have a skeleton human resource department at the host-country location, while the home-country human resource department retains all control.
C) the organization seeks to hire the best person available for a position regardless of where the individual comes from.
D) expatriate home-country nationals are hired to fill higher-level foreign positions.
E) the home-office perspective takes precedence over local issues.

Question 13

Under which international strategy will several companies agree to cooperate for mutual benefit?

A) Exporting
B) Importing
C) Direct investment
D) Multinational organization
E) Strategic alliance

Question 14

Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the United Kingdom, and so on)?

A) Population growth is slowing.
B) International trade is expanding.
C) The labor force is growing quickly.
D) Competition from foreign countries is increasing.
E) Countries are becoming increasingly interdependent.

Question 15

Which international staffing model is typified by an organization using many host-country nationals to staff a variety of positions at many levels?

A) Ethnocentric
B) Polycentric
C) Geocentric
D) Egocentric
E) Globalcentric

Question 16

Celebrity Cruises is based in Florida, but it hires workers from various countries to communicate with and serve guests from around the world. Which of the following is an accurate statement?

A) Celebrity will need to provide the same training to all of its foreign workers.
B) Celebrity will need to provide the same training to all of its workers.
C) Celebrity will need to tailor training to best develop workers from various countries.
D) Celebrity will not need to train its workers.
E) Celebrity will only need to train workers who have contact with customers; other workers need no training.

Question 17

What is an advantage of direct investment in another country?

A) Less risk is involved.
B) It is not expensive.
C) There is more profit potential.
D) The facility is less integrated in the foreign market.
E) Synergy between business partners is achieved.

Question 18

What aspect of international business do NAFTA and the EU represent?

A) Tariff systems
B) Economic communities
C) Trade controls
D) Export regulations
E) Quota guidelines

Question 19

All EXCEPT which of the following countries are considered the leading industrial powers in today's global economy?

A) The United States
B) Japan
C) Germany
D) India
E) All of these are considered leading industrial powers.

Question 20

When a company hires host-country nationals to staff foreign locations in underdeveloped countries, it must often

A) offer exercise classes.
B) provide extensive training and development.
C) hire a consultant.
D) seek permission from competitors.
E) cut the benefits package provided to employees.

Question 21

Scenario 3.1
Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce. Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers. When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.
Refer to Scenario 3.1. Which staffing model is Mini-PC using for its Swedish unit?

A) Geocentric
B) Ethnocentric
C) Polycentric
D) Egocentric
E) Multicentric

Question 22

When Kodak constructed a research lab in Japan, this action was an example of:

A) exporting
B) a strategic alliance
C) importing
D) direct foreign investment
E) licensing

Question 23

The ethnocentric staffing model utilizes host-country nationals extensively throughout the company.

Question 24

Wangkyo is an electrical engineer who designs power systems for factories. His employer is sending him on a foreign assignment for one month, to design a system for a new factory that is being built overseas. Which skills will be MOST important to Wangkyo in his foreign assignment?

A) Technical skills
B) Language skills
C) Cultural skills
D) Financial skills
E) Leadership skills

Question 25

Disney chose Andre Lacroix to be CEO of Euro Disney, following his success as CEO of Burger King International. Disney chose an experienced international manager who lived in France, rather than send an American manager overseas, in part to eliminate the risk of expatriate failure. Expatriate failure occurs when the

A) expatriate needs extensive training before he or she is able to accept the assignment.
B) cost of sending the manager to the foreign assignment is greater than the benefit gained.
C) expatriate's coworkers report that he or she is not fitting in well.
D) business that is managed by the expatriate loses money.
E) expatriate returns early because of an inability to perform.

Question 26

Which strategy poses the lowest risk for agency problems?

A) Multidomestic
B) Transnational
C) International
D) Global
E) Foreign Market

Question 27

Repatriation occurs when a(n)

A) company sends a manager to a second foreign assignment.
B) expatriate manager comes home from a foreign assignment.
C) manager likes a foreign assignment so much that he or she remains in the foreign country.
D) manager is sent on a foreign assignment.
E) manager on a foreign assignment is compensated in the local currency.

Question 28

Scenario 3.1
Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce. Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers. When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.
Refer to Scenario 3.1. On the basis of scores on Hofstede's dimensions of culture, which organization cultural values will create the most discomfort and resistance among Swedish workers?

A) Swedes will resist Mini-PC's policy of calling everyone, from the CEO to the lowest worker, by his or her first name.
B) Swedes will place a much greater value on patience and persistence than do Mini-PC's American workers.
C) Swedes will prefer to emphasize individual contributions, as opposed to Mini-PC workers in the United States, who value team or group contributions.
D) Swedes will be much less competitive, ambitious, and driven than Mini-PC's American workers.
E) Swedes will not be comfortable when given tasks that are too structured, as opposed to American workers, who prefer lots of structure.

Question 29

The Star Alliance, which is a global group of airlines that cooperate so that reservations and purchasing is made easier for customers, is an example of:

A) exporting
B) a strategic alliance
C) importing
D) direct foreign investment
E) licensing

Question 30

Scenario 3.1
Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce. Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers. When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.
Refer to Scenario 3.1. Which aspect of culture will MOST likely affect Mini-PC's human resource activities at the corporate level because of differences between its U.S. and Swedish business units?

A) Language
B) Religious differences
C) Gender roles
D) Personal norms
E) Differences in views of child labor

Question 31

The United States and Japan have experienced slowing growth rates in employment in recent years.

Question 32

Scenario 3.1
Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce. Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers. When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.
Refer to Scenario 3.1. Which international strategy is Mini-PC using to expand its international operations?

A) Exporting
B) Licensing
C) Direct investment
D) Joint venture
E) Strategic alliance

Question 33

A culture that scores high in femininity tends to value quality of life and relationships.

Question 34

Hofstede partnered with ____ to collect cultural information from employees.

A) IBM
B) Motorola
C) Hewlett-Packard
D) 3M
E) Goodyear Tires

Question 35

Which of the following is NOT one of the cultural dimensions discussed by Hofstede?

A) power distance
B) collectivism
C) femininity
D) uncertainty avoidance
E) role identity

Question 36

The interrelatedness of global markets was demonstrated by the recent economic turndown in the United States that affected many other parts of the world.

Question 37

Scenario 3.1
Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce. Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers. When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.
Refer to Scenario 3.1. Which of the domestic human resource issues is most likely affected (i.e., different at Marstrand than at Mini-PC) by conditions described in the scenario?

A) Local compensation issues
B) Local selection issues
C) Local training issues
D) Local recruiting issues
E) Local development issues

Question 38

Cultural values and beliefs are usually not unspoken and are not taken for granted for individuals who live in a particular region of the world.

Question 39

Which of the following is NOT likely to be a part of a compensation package designed for an expatriate?

A) Housing benefits
B) Job location assistance for the spouse
C) A cost-of-living allowance
D) A hardship premium
E) Unlimited travel to and from the home country

Question 40

Which of the following is an accurate statement about labor unions outside the United States?

A) In foreign countries, few workers belong to labor unions.
B) Labor unions outside the United States are regulated by U.S. laws.
C) Foreign labor unions are more likely to be involved in political and social issues.
D) Outside the United States, labor contracts are formal legal contracts and employers can be sued in court by the unions for breaking them.
E) Foreign employers rarely negotiate with unions in their home country.

Question 41

How does the area of labor relations affect international human resource management?

Question 42

The following chart reports the average national scores of Hofstede's five dimensions of culture for three different countries. Using the relative differences on these dimensions as the basis of your answer, briefly describe in words each country's national culture.

Question 43

Importing is the process of making a product domestically and then selling it to another country.

Question 44

When a firm owns physical assets in another country, this is called foreign direct investment.

Question 45

Time orientation means that a society emphasizes long-term values such as thrift and persistence.

Question 46

When a multinational firm hires local workers, what types of training are needed?

Question 47

There are often many differences in the benefits packages received by employees in different countries.

Question 48

How may an organization choose to compete in the international environment, and how does each strategy affect its human resource function?

Question 49

How do businesses compensate expatriates?

Question 50

A culture that scores high in uncertainty avoidance prefers unstructured situations over structured situations.