Question 1

Scenario 15.2
Coffee Emporium has been one of Canada's premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald's, which has now moved into the coffee business with its signature McCafe. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US)and the United Kingdom (UK), where the cultures are somewhat similar to Canada's. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.
-Refer to Scenario 15.2. Coffee Emporium HR managers will be responsible for staffing the international expansions. Which of the following is used for staffing by most corporations?

Accepted Answer

Most corporations use a combination of home-country, host-country, and third-country nationals for staffing their international expansions. This helps to balance the need for expatriate expertise with the knowledge and understanding of local markets and cultures. In the case of Coffee Emporium, this mix can help ensure that the brand remains faithful to its roots while also adapting to new market preferences in the US and UK.

Question 2

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only 5 were women, even though women make up 40 percent of the management team. Expatriates on long- term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
-Refer to Scenario 15.1. Based on material in the text, which of the following would be an inaccurate assumption by ForEx for its women expatriates?

Accepted Answer

The text does not provide any information to suggest that women expatriates would fail at higher rates than men due to tough conditions. It only indicates that women are underrepresented among the expatriate managers, despite making up 40 percent of the management team.

Question 3

In some countries, such as India, profit sharing is mandated by law. Thus, companies have to distribute some of their profits to the employees. What is the key reason for this requirement?

Accepted Answer

Mandating profit sharing allows for a redistribution of wealth at the firm level, ensuring that employees are also benefiting from the company's success. This is seen as a way to promote greater economic equity and reduce income inequality. It is not related to corruption, foreign investments, or punishment for colonialism.

Question 4

If you were developing a performance appraisal system for individuals on international assignments, it would be best to base individuals' appraisals on information from which of the following?

Accepted Answer

Incorporating both home- and host-country evaluations would provide a more comprehensive and balanced assessment of an individual's performance on international assignments. Home-country evaluations can provide insights into the individual's overall performance and potential, while host-country evaluations offer a perspective on how well the individual is adapting to and performing in the local environment. Peer evaluations can also be valuable, but may not be as reliable in international settings given potential cultural differences and biases. Relying solely on home-country or host-country evaluations may also lead to inconsistent or incomplete appraisals.

Question 5

What is one of the most common problems that occur with performance appraisals of international assignees?

Accepted Answer

Criterion deficiency is a common problem in performance appraisals of international assignees because the appraisal may not fully capture all aspects of the assignee's job performance, especially those unique to the international context.

Question 6

NAFTA has spurred job growth in all three member countries.

Accepted Answer

While there are differing opinions and effects on specific industries and regions, overall job growth has been seen in all three member countries since the implementation of NAFTA.

Question 7

Canadian companies have been conducting business on an international basis longer than anyone else.

Accepted Answer

The answer of Canadian companies have been conducting business on...

Question 8

Scenario 15.2
Coffee Emporium has been one of Canada's premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald's, which has now moved into the coffee business with its signature McCafe. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US)and the United Kingdom (UK), where the cultures are somewhat similar to Canada's. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.
-Refer to Scenario 15.2. If Coffee Emporium expands its business across the United States to begin with, what type of corporation would it become?

Accepted Answer

If Coffee Emporium expands its business to the United States, it would become an international corporation, as it is only operating in two countries (Canada and the US), and the company is adapting its existing products for overseas markets without changing much else about its normal operations. A multinational corporation operates in multiple countries with a decentralized management structure, a global corporation operates in multiple countries with a centralized management structure, and a transnational corporation operates in multiple countries with a hybrid management structure.

Question 9

Expatriates can be compensated for their services in several ways. At one end, their pay can be based on their earnings in the home country. What is at the other end of expatriate pay?

Accepted Answer

Host-based pay is at the other end of expatriate pay. Host-based pay refers to compensating an expatriate employee based on the pay levels for local employees performing similar jobs in the host country. This approach is often used when an expatriate is hired locally rather than being sent from their home country.

Question 10

The International Labour Organization has set itself a new agenda-called the "Decent Work Agenda." What is the main purpose behind this move?

Accepted Answer

The main purpose behind the "Decent Work Agenda" is to highlight the ethical dimension of work and promote decent working conditions for all.

Question 11

Scenario 15.2
Coffee Emporium has been one of Canada's premium coffee shops for decades. Recently, the company has been losing market share to giant multinational corporations such as McDonald's, which has now moved into the coffee business with its signature McCafe. Coffee Emporium recognizes that the only way to stay relevant and competitive is to expand its business across international borders and capitalize on its brand recognition and loyalty. The company wants to start off in the United States (US)and the United Kingdom (UK), where the cultures are somewhat similar to Canada's. Coffee Emporium will now be adapting its existing products for overseas markets without changing much else about its normal operations.
-Refer to Scenario 15.2. All of the following are advantages of Coffee Emporium hiring host-country nationals EXCEPT which one?

Accepted Answer

The given options list the advantages of hiring host-country nationals for Coffee Emporium. Option A states that hiring host-country nationals is generally more costly than relocating expatriates, which is not an advantage. Therefore, Option A is the answer. The other options (B, C, and D) provide advantages of hiring host-country nationals, such as their experience with running the business, knowledge of the cultural and political landscape of the country, and the perception of being a local company/people.

Question 12

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only 5 were women, even though women make up 40 percent of the management team. Expatriates on long- term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
-Refer to Scenario 15.1. While overseas assignments can be very rewarding, it is also important to ensure that the feeling continues after repatriation. Which of the following is NOT true?

Accepted Answer

The passage does not mention anything about 50 percent of Canadian companies providing assistance after repatriation. The correct statements are: A) 36 percent of Canadian companies have a repatriation plan, B) one-third of Canadian companies have programs to facilitate appropriate career positions on repatriation, and D) one-fifth of Canadian companies start planning for repatriation even before the candidate leaves.

Question 13

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only 5 were women, even though women make up 40 percent of the management team. Expatriates on long- term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
-Refer to Scenario 15.1. All of the following represent important information that they will need to know and understand EXCEPT which one?

Accepted Answer

The answer of Scenario 15.1
From 2008, ForEx Inc. has shifted...

Question 14

A multinational corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas markets.

Accepted Answer

The answer of A multinational corporation is essentially a domestic...

Question 15

The host country is the country in which an international business operates.

Accepted Answer

The host country refers to the country in which an international business operates.

Question 16

Which of the following best describes the difference between labour relations in Canada and those in Europe?

Accepted Answer

The answer of Which of the following best describes the...

Question 17

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only 5 were women, even though women make up 40 percent of the management team. Expatriates on long- term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
-Refer to Scenario 15.1. Assume that ForEx will use the balance-sheet approach to compensate expatriates. Which of the following is NOT one of the steps in this approach?

Accepted Answer

The balance-sheet approach includes three steps: (1) figure base pay, (2) figure cost-of-living adjustment, and (3) add incentive premiums and assistance programs. Commission pay is not typically included in the balance-sheet approach.

Question 18

Different cultural environments require different organizational behaviours.

Accepted Answer

Cultural factors such as values, beliefs, and customs influence the way organizations operate in a particular environment. Therefore, different cultural environments require different organizational behaviours.

Question 19

A very high level of worker participation in management is found in Germany, where national law requires that labour be part of the boards of directors of companies. What is this participative arrangement called?

Accepted Answer

Codetermination is the participative arrangement found in Germany where national law requires that labour be part of the boards of directors of companies. This system involves employees electing representatives to company boards, who work alongside shareholder representatives to make important decisions about the company's direction and management.

Question 20

The European Union (EU)was established to facilitate free trade with North America.

Accepted Answer

The European Union was not established to facilitate free trade with North America. Its primary goal was to promote political and economic cooperation among European countries. However, the EU has established trade agreements with North American countries such as the United States and Canada.

Quiz 15: International Human Resources Management