Question 1

Christopher, a U.S. businessman, visits India for a corporate meeting. While interacting with the board members, he addresses them by their first names, as he does with board members in the United States. However, the board members in India are offended by this gesture. Which difference in culture does this scenario reveal?
A) individualism/collectivism
B) uncertainty avoidance
C) power distance
D) long-term/short-term orientation
E) masculinity/femininity

Accepted Answer

This scenario reveals a difference in power distance, which refers to the degree to which less powerful members of a society accept and expect unequal distribution of power. In India, there is a high power distance, which means that people in higher positions are expected to be treated with respect and formality, while in the United States, there is a lower power distance and people tend to address each other by their first names regardless of their position. Christopher's use of first names in India was seen as disrespectful and offended the board members.

Question 2

What is the usual way in which companies first enter foreign markets?
A) importing
B) offshoring
C) exporting
D) outsourcing
E) relocating

Accepted Answer

The usual way in which companies first enter foreign markets is through exporting, meaning selling goods or services produced in one country to another country. Exporting allows companies to enter a foreign market without making significant investments in production facilities. It is also a way to test the waters and gain more knowledge about the foreign market before considering other options such as investing in local production or setting up a subsidiary in the foreign market.

Question 3

Sean's company lays down stringent rules for employees to follow at work. Employees are expected to set goals for each day and week and share those goals on the company intranet. This way, Sean and his co-workers can be aware of the progress of departmental projects and prepare far in advance to meet deadlines. These qualities best describe a company that rates high on
A) individualism.
B) long-term orientation.
C) femininity.
D) uncertainty avoidance.
E) power distance.

Accepted Answer

The company's strict rules and emphasis on planning and preparation for meeting deadlines indicate a high level of uncertainty avoidance.

Question 4

Jose, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Jose is a
A) host-country national.
B) parent-country national.
C) first-country national.
D) third-country national.
E) guest-country national.

Accepted Answer

Jose is a host-country national because he is a Spanish national working in Spain for a U.S. company.

Question 5

Which organizations are most likely to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage?
A) foreign subsidiaries
B) international organizations
C) multinational organizations
D) global organizations
E) domestic organizations

Accepted Answer

The answer of Which organizations are most likely to locate...

Question 6

Which agreement was adopted by Canada, Mexico, and the United States to encourage trade between the three countries?
A) CSN
B) NAFTA
C) PICTA
D) APEC
E) TAFTA

Accepted Answer

NAFTA stands for North American Free Trade Agreement and was adopted by Canada, Mexico, and the United States to encourage trade between the three countries. CSN (Central Security Network) is a security organization in the Caribbean. PICTA (Pacific Island Countries Trade Agreement) is an agreement amongst Pacific Island countries to facilitate trade. APEC (Asia-Pacific Economic Cooperation) is a forum of 21 Pacific Rim countries to promote economic cooperation. TAFTA (Transatlantic Free Trade Area) is a proposed trade agreement between the European Union and the United States.

Question 7

Vineet, an Indian, is employed by a pharmaceutical company whose headquarters are in Philadelphia. Vineet, however, operates out of the firm's production facility in New Delhi, India. Vineet is considered to be a(n)
A) parent-country national.
B) third-country national.
C) host-country national.
D) repatriate.
E) expatriate.

Accepted Answer

Vineet is considered a host-country national. He is working in his home country's production facility and he is not considered an expatriate because he has not been sent from the home country to work abroad. He is also not a parent-country national because he is not working at the company's headquarters. A third-country national is someone who is employed in a country that is not their home country nor the home country of their employer, which also does not apply to Vineet in this scenario. Repatriate is also not applicable, as it refers to someone who is returning to their home country after working abroad.

Question 8

Which description best defines an international organization?
A) an organization that builds facilities in a number of different countries in an effort to minimize distribution costs
B) an organization that builds facilities in a number of different countries in an effort to minimize production costs
C) an organization that sets up one or a few facilities in one or a few foreign countries
D) an organization that exports goods to more than a few countries
E) an organization that exports goods to a number of different countries

Accepted Answer

An international organization typically refers to an entity that operates in multiple countries, not necessarily by exporting goods or minimizing costs through overseas facilities, but by setting up operations (like offices, branches, or facilities) in foreign countries to conduct its business activities. Choices A, B, D, and E describe aspects of international business operations but do not encompass the broader definition of an international organization, which includes various types of cross-border activities beyond just manufacturing or exporting.

Question 9

Jocelyn works at a retail store in Los Angeles. She addresses her Indian manager, Anika, by her first name. Jocelyn's colleague advises against addressing Anika by her name, as she might find it disrespectful. The colleague is most likely right if Anika's cultural beliefs align with a
A) long-term orientation.
B) collectivist nature.
C) high power distance.
D) low uncertainty avoidance.
E) short-term orientation.

Accepted Answer

Indian culture tends to have a high power distance, meaning that there is a significant power gap between those in positions of authority and those who are not. Therefore, it is considered respectful to address those in positions of authority by their formal title or last name, rather than by their first name.

Question 10

Ashlee hails from a country whose legal system is based on religious scriptures. Social and business behaviors are judged based on religious laws and legal codes to a great extent. Which aspect of culture do these conditions represent?
A) masculinity
B) time orientation
C) high uncertainty avoidance
D) individualism
E) power distance

Accepted Answer

The scenario describes a high degree of reliance on religious laws and legal codes, which indicates a society with high uncertainty avoidance. This term describes a culture's tolerance for ambiguity and preference for structure and rules to avoid uncertainty and risk.

Question 11

Rite Inc., a company headquartered in the United States, opens an overseas facility in China. In this scenario, the Chinese facility is located in a
A) host country.
B) parent country.
C) first country.
D) third country.
E) guest country.

Accepted Answer

The Chinese facility is located in a host country, which is a country where a multinational company sets up an operation or subsidiary.

Question 12

A beverage company headquartered in Miami selects a Brazilian manager to run its Mexican operations. In this example, the Brazilian manager is a
A) parent-country national.
B) host-country national.
C) third-country national.
D) home-country national.
E) first-country national.

Accepted Answer

The Brazilian manager is a third-country national because they are from Brazil (neither the headquarters' country, the USA, nor the host country, Mexico, where they are assigned to work).

Question 13

Which description best defines a multinational company?
A) an organization that builds facilities within the same country to facilitate large-scale exports to various countries
B) an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs
C) an organization that sets up one or a few facilities in one or a few foreign countries
D) an organization that operates from one country and has customers from all over the globe
E) a domestic organization that chooses to locate a facility using cultural differences as an advantage

Accepted Answer

A multinational company is an organization that builds facilities in multiple different countries in order to minimize production and distribution costs. This allows the company to take advantage of different resources, labor, and tax benefits in different countries.

Question 14

Which term refers to a country that is neither the parent country nor the host country of a company?
A) first country
B) facilitating country
C) governing country
D) third country
E) guest country

Accepted Answer

A third country refers to a country that is neither the parent country nor the host country of a company.

Question 15

Quin believes that the key to effective management is to involve his team members in the firm's decision-making processes. He surmises that this will allow him and his team to work as one unit, making choices that will benefit them all in addition to the firm. In this case, Quin's thoughts reflect that of a person with
A) an individualistic nature.
B) a collectivist nature.
C) high power distance.
D) low uncertainty avoidance.
E) a short-term orientation.

Accepted Answer

Quin's belief in involving team members in decision-making processes shows a collectivist nature, where he values the opinions and contributions of the team as a whole rather than just focusing on his own individual goals.

Question 16

Kristen and Haley are employees of a publishing house and work together on the same team. Kristen believes that Haley hails from an individualistic culture. Which statement, if true, strengthens Kristen's belief?
A) Haley prioritizes helping her team members attain their career advancement goals.
B) Haley focuses on self-development and puts her needs before those of the group.
C) Haley places emphasis on achieving upward social mobility by fulfilling common goals.
D) Haley prefers decision making through her team members' participation in management.
E) Haley's traits are typical of those from cultures that expect protection from the community.

Accepted Answer

Haley focusing on self-development and prioritizing her needs before those of the group is a characteristic commonly associated with individuals from individualistic cultures.

Question 17

Which term accurately describes Corina, who was born in the United States and is currently working in Germany for a company headquartered in China?
A) parent-country national
B) host-country national
C) third-country national
D) home-country national
E) guest-country national

Accepted Answer

Corina is a third-country national because she is a citizen of one country (United States), working in another country (Germany), for a company headquartered in a different country (China).

Question 18

Owen, a British citizen, and Trevor, a U.S. citizen, are employees of an electronics manufacturing company headquartered in London. While Owen works out of the London office, Trevor operates out of New York. Which statement is true in this scenario?
A) Owen is a host-country national.
B) Owen is a parent-country national.
C) Owen and Trevor are expatriates.
D) Trevor is a third-country national.
E) Trevor is a home-country national.

Accepted Answer

Owen is considered a parent-country national because he is a citizen of the country where the company is headquartered (the UK) and works in that same country.

Question 19

Pablo, an American who works for a U.S.-based company, has been sent to England for a work assignment. Pablo would be known as a(n)
A) expatriate.
B) repatriate.
C) host-country national.
D) third-country national.
E) guest-country national.

Accepted Answer

An expatriate refers to an employee of a company who is sent to work in a foreign country. In this case, Pablo is an American who has been sent to work in England by his U.S.-based company. Therefore, he fits the definition of an expatriate.

Question 20

A company, which has its headquarters in Japan, has branches in the United States. A Pakistani manager works in a facility in the United States. In this scenario, Japan is the ________ country, and Pakistan is the ________ country.
A) parent; third
B) expatriate; host
C) host; guest
D) third; first
E) parent; host

Accepted Answer

Japan is the parent country because it is where the company's headquarters are located. Pakistan is the third country because it is neither the home country of the company (Japan) nor the country where the company's branch is located (the United States); it is the home country of the manager working in the U.S. branch.

Quiz 16: Managing Human Resources Globally

What is the usual way in which companies first enter foreign markets?

Jose, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Jose is a

Which organizations are most likely to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage?

Which agreement was adopted by Canada, Mexico, and the United States to encourage trade between the three countries?

Vineet, an Indian, is employed by a pharmaceutical company whose headquarters are in Philadelphia. Vineet, however, operates out of the firm's production facility in New Delhi, India. Vineet is considered to be a(n)

Which description best defines an international organization?

Jocelyn works at a retail store in Los Angeles. She addresses her Indian manager, Anika, by her first name. Jocelyn's colleague advises against addressing Anika by her name, as she might find it disrespectful. The colleague is most likely right if Anika's cultural beliefs align with a

Ashlee hails from a country whose legal system is based on religious scriptures. Social and business behaviors are judged based on religious laws and legal codes to a great extent. Which aspect of culture do these conditions represent?

Rite Inc., a company headquartered in the United States, opens an overseas facility in China. In this scenario, the Chinese facility is located in a

A beverage company headquartered in Miami selects a Brazilian manager to run its Mexican operations. In this example, the Brazilian manager is a

Which description best defines a multinational company?

Which term refers to a country that is neither the parent country nor the host country of a company?

Kristen and Haley are employees of a publishing house and work together on the same team. Kristen believes that Haley hails from an individualistic culture. Which statement, if true, strengthens Kristen's belief?

Which term accurately describes Corina, who was born in the United States and is currently working in Germany for a company headquartered in China?

Owen, a British citizen, and Trevor, a U.S. citizen, are employees of an electronics manufacturing company headquartered in London. While Owen works out of the London office, Trevor operates out of New York. Which statement is true in this scenario?

Pablo, an American who works for a U.S.-based company, has been sent to England for a work assignment. Pablo would be known as a(n)

A company, which has its headquarters in Japan, has branches in the United States. A Pakistani manager works in a facility in the United States. In this scenario, Japan is the country, and Pakistan is the country.