Deck 2: The Role of Globalization in HR Policy and Practice

Question 1

An organization's degree of foreign investment in relation to its domestic investment does not play a role in increasing the complexity of managing HR internationally.

Answer 1

False

Question 2

Factors associated with a company's task environment influence a company's decision to invest in the international market.

Answer 2

True

Question 3

Strategic alliances permit organizations to share risk and expenses,and also enable each partner to tap into and benefit from the strengths of the other.

Answer 3

True

Question 4

Licensing is one means of entering a foreign market.

Question 5

While multinational corporations sell their brand of product in multiple global locations,they typically use raw materials sourced from a local source.

Question 6

Individuals from societies with high levels of uncertainty avoidance tend to have a strong task orientation,prefer flexible work hours,and feel a strong loyalty to their employer.

Question 7

Third parties that specialize in facilitating importing and exporting are called intermediaries.

Question 8

The UNCTAD index is based on a composite of two ratios: foreign assets to total assets and foreign sales to total sales.

Question 9

A licensee leases the right to use intellectual property of another firm.

Question 10

A major disadvantage to joint ventures is the potential for conflict between the partners.

Question 11

Some firms prefer to enter international markets through actual ownership of business.

Question 12

People from highly individualistic societies attach more importance to freedom and challenges in jobs.

Question 13

Individuals from societies with a short-term orientation expect quick results,personal steadiness and stability,and place less emphasis on status.

Question 14

HR within a global company is complex because of the different cultures,politics and laws that exist between locations.

Question 15

Management contract is a special form of licensing.

Question 16

In global industries,business policies and practices can be as centralized or as decentralized,as management prefers.

Question 17

It is difficult to operate in a decentralized fashion in a multilocal industry because of the high need for coordination.

Question 18

Technological innovations,lower costs associated with skilled labor,and direct access to growing markets are all putting pressure on companies to decrease global expansion.

Question 19

The degree of cultural differences is one of the factors that affect the level of difficulty involved in operating HR on an international basis.

Question 20

Large corporations such as Walmart,are generally successful when they decide to embark on ventures within foreign markets,and because of their size,do not need to be concerned about the complexities associated with international HR issues within smaller companies.

Question 21

A(n)__________ involves the purchase of an up-and-running business that has established suppliers and customers.

A)Start-up operation Acquisition
B)Alliance
C)Strategic alliance
D)Sole ownership
E)Acquisition

Question 22

The successful placement of employees within international assignments is important to the success of a transnational organization.Studies have shown that difficulty adjusting to a different ______ is the number one reason for the failure of international assignments.

A)level of collectivism
B)level of compensation
C)set of laws
D)currency
E)culture

Question 23

__________ refers to the extent to which members of a society accept delayed gratification of their material,social,or emotional needs.

A)Individualism
B)Power distance
C)Dichotomy
D)Long-term versus short-term orientation
E)Uncertainty avoidance

Question 24

Hofstede's work on culture and its impact on managing HR within an international environment was conducted in the 1960's and '70's.It is interesting that

A) the results of his work have been replicated, confirming the validity of his findings, and recent studies have expanded on his original theory.
B)while his work is often cited, it was impossible to replicate his findings in subsequent studies.
C)the results of his study can only be applied within the electronics industry and have no relevance outside of that industry.
D)the definition of culture when used in reference to a society is in many ways very different from the definition when used to describe the environment within a company.
E)the study found vast differences between the culture of the society and the culture of the local companies that operated in that society.

Question 25

Individuals who are residents of the organization's home country who are sent offshore on assignment are called __________.

A)third-country nationals
B)host country nationals
C)parent country nationals
D)parent host nationals
E)third-host nationals

Question 26

When determining how to compensate expatriates,an advantage of the "going-rate approach" is that

A)the expatriate is kept whole during the assignment because his pay is similar to the pay that would have been received for working the same job in their home county
B)locals perceive the pay as fair because the expatriate is paid at a rate that is similar to the pay received by local employees of that company who have similar position, performance and experience.
C)it is an effective means to reduce costs because you are offering the expatriate the ability to choose from a variety of benefit options that are appropriate to the location of the expatriate assignment.
D) although it is a high cost approach, the ability of the expatriate to save on housing and social expenses while on assignment makes expatriate assignments in countries with low pay levels more attractive.
E)with the increase in dual income families, this options provides an incentive for both the employee of the company and their spouse to accept an expatriate assignment

Question 27

A(n)__________ is formed when companies agree to partner with one another,but do not set up a separate entity.

A)Joint venture
B)Merger
C)Strategic alliance
D)Sole ownership
E)Task force

Question 28

The organization gives up a major amount of control over processes when using contract manufacturers.A concern with this approach is:

A)variation in advertising content
B)lack of ability to relieve excess capacity
C)irresponsible use of brand names and trademarks
D)product quality concerns
E)the difficulty of finding reliable distributors

Question 29

The UNCTAD index is based on a composite of ratios including:

A)Foreign assets, sales, and debt.
B)Domestic sales, employment and profit.
C)Foreign assets, employment, and profit.
D)Foreign assets, sales, and employment.
E)Domestic assets, employment and sales.

Question 30

When an organization directly owns part of or an entire business in a foreign market,it is called __________.

A)franchising
B)exporting
C)licensing
D)contract manufacturing
E)foreign direct investment

Question 31

An agreement that allows an independent organization or individual to run a business using the name of an established business for a fee is known as.

A)franchising
B)exporting
C)licensing
D)contract manufacturing
E)management contract

Question 32

A company that exports,as a means to sell its products in foreign markets will

A)Have a direct investment in a foreign market.
B)Increase sales volume allowing for better management of the costs associated with research and development
C)Avoid the high cost of transportation fees and tariffs and maintain a competitive advantage.
D)Enable individuals to take advantage of existing advertising and training to ensure success.
E)Maintain exclusivity with one other company to distribute product and control their brand in the foreign country.

Question 33

Pepsi provides Heineken with its formula or agrees to supply the cola syrup and Heineken adds carbonated water,packages it in appropriate containers,and sells it in the Netherlands.Pepsi cannot enter into a similar agreement with another firm to sell Pepsi in the Netherlands,and Heineken cannot alter the product,nor can it begin duplicating other Pepsi products (such as Lays Potato Chips)without a separate agreement.This is an example of:

A)Franchising.
B)Exporting.
C)Licensing.
D)Contract manufacturing.
E)Management contracts.

Question 34

Which of the following statement best describes host-country nationals?

A)Individuals who have proven themselves in the local marketplace.
B)Individuals who are residents of the organization's home country who are sent offshore on assignment
C)Individuals contributing important information, perspective, and decision-making factors.
D)Individuals attaching more importance to freedom and challenges in job.
E)Individuals who are residents of countries in which a foreign subsidiary is located.

Question 35

A(n)__________ leases the right to use its intellectual property to another firm.

A)Licensor
B)Licensee
C)Franchisee
D)Contractor
E)Expatriate

Question 36

The level of decentralization and empowerment within a culture can be understood by a reference to the ______ within that culture.

A)Individualism
B)Power distance
C)Dichotomy
D)Short-term orientation
E)Collectivism

Question 37

In __________ industries,a firm's competitive position in one country is significantly affected by its position in other countries.

A)Local
B)Decentralized
C)Centralized
D)Global
E)Multilocal

Question 38

UNCTAD is an abbreviation for __________.

A)United Nations Conference on Tariff and Development
B)United Nations Conference on Trade and Development
C)United National Conference on Trade and Development
D)United National Conference on Tariff and Development
E)Unified Nations Conference on Trade and Development

Question 39

In the __________ approach,foreign subsidiaries have little autonomy,operations are centralized,and major decisions are made at corporate headquarters.

A)Geocentric
B)Ethnocentric
C)Polycentric
D)Regiocentric
E)Sociocentric

Question 40

A(n)__________ allows an organization to make direct investment very gradually while sharing its risk with a knowledgeable,experienced other party while maintaining independence.

A)Joint venture
B)Alliance/partnership
C)Management contract
D)Contract manufacturing
E)Foreign direct investment

Question 41

What factors influence the decision to invest in a particular international market?

Question 42

List a few reasons for organizations to expand their business interests beyond their national boundaries?

Question 43

Which are the common areas of conflict in a joint venture?

Question 44

What is the objective of businesses creating offshore professional and operations centers.

Question 45

Explain the merits and demerits of licensing and franchising to the licensors,licensees,franchisors,and franchisees.

Question 46

List the five Asian economies expected to share the world's largest economies with the U.S.by 2020.

Question 47

Your company has decided to open a branch in another country.As the human resource manager,it is your job to determine how the foreign subsidiary will interact with the parent corporation.Define the four international human resource management strategies you may choose from.Be sure to describe the role both locals and expatriates would play in the subsidiary's development.

Question 48

What differentiates domestic HR from international HR?

Question 49

List few reasons why a company would choose exports as an option for international commerce.

Question 50

Explain the differences between licensing and franchising,licensor and franchiser,and licensee and franchisee.Use examples to illustrate.