Question 1

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

Accepted Answer

Exporting and licensing involve less integration and operational control in foreign markets, thus impacting the human resource function less compared to other approaches that require more direct management and collaboration in the host country.

Question 2

In the context of Bartlett and Goshal's analysis of the situation relative to potential agency problems for international strategies, if an expatriate manageris expected to acquire, leverage, and transfer specializedknowledge and is yet given independence, he is most likely to be working with a firm using the _____.

Accepted Answer

Bartlett and Goshal argued that a transnational strategy is the most effective approach for firms that require global integration and local responsiveness. In a transnational strategy, expatriate managers are expected to acquire, leverage, and transfer specialized knowledge while also being granted autonomy to make decisions that are aligned with the needs of the specific local market. This approach minimizes potential agency problems by enabling managers to act in the best interest of both the global organization and the local market.

Question 3

Who among the following is likely to earn a hardship premium?

Accepted Answer

An expatriate manager posted in a war-torn country is likely to face significant challenges and risks, such as political instability, violence, and limited access to basic necessities. As a result, they may receive a hardship premium as compensation for these difficulties.

Question 4

Scenario 3.1
Mini-PC is a Houston-based manufacturer of handheld computers.In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld computer manufacturer in Stockholm, Sweden.Mini-PC allowed the management of Marstrand to continue its functions 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.The Swedish workforce is about 80 percent 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 scores higher than Sweden in individualism and uncertainty avoidance.
-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?

Accepted Answer

The most likely aspect of culture to affect Mini-PC's human resource activities at the corporate level is personal norms, as Sweden has a different approach to health benefits with higher personal taxes for workers but lower health benefits costs for employers. This could potentially impact employee compensation and benefits packages, and Mini-PC may need to adjust their HR policies to align with Swedish norms.

Question 5

Which of the following is the easiest way to enter a new market in the international business scenario?

Accepted Answer

Exporting is the easiest and least risky way to enter a new market because it involves selling products or services to customers in another country without the requirement of establishing a physical presence. It requires less investment and allows the company to test the market and gather information about the demand for their products or services.

Question 6

Wangkyo is an electrical engineer who designs power systems for factories.His employer sends him on a foreign assignment for one month to design a system for a new factory that is being built overseas.Which of the following skills is likely to help Wangkyo the most in this foreign assignment?

Accepted Answer

Technical skills are crucial for Wangkyo to effectively design power systems, which is the primary task of his foreign assignment.

Question 7

Which of the following cultural dimensions identified by Robert House's GLOBE project (Global Leadership and OrganizationalBehavior Effectiveness) was not discussed by Hofstede?

Accepted Answer

Hofstede did not include Gender Egalitarianism as one of his cultural dimensions, while the other options (Power distance, Collectivism, Uncertainty avoidance, Individualism) were all included by both Hofstede and the GLOBE project.

Question 8

Repatriation is said to occur when a(n):

Accepted Answer

Repatriation specifically refers to the process of an expatriate manager coming home from a foreign assignment. Therefore, option B is the correct answer.

Question 9

Scenario 3.1
Mini-PC is a Houston-based manufacturer of handheld computers.In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld computer manufacturer in Stockholm, Sweden.Mini-PC allowed the management of Marstrand to continue its functions 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.The Swedish workforce is about 80 percent 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 scores higher than Sweden in individualism and uncertainty avoidance.
-Refer to Scenario 3.1.Which staffing model is Mini-PC using for its Swedish unit?

Accepted Answer

Mini-PC is using a polycentric staffing model for its Swedish unit because they allowed the management of Marstrand to continue its functions without sending U.S. managers to oversee Swedish operations. This means that Mini-PC is using host country nationals to manage the Swedish unit, rather than transferring employees from the home country or hiring third-country nationals.

Question 10

Which international business strategy involves cooperation between firms and may not involve sharing of ownership?

Accepted Answer

A strategic alliance involves cooperation between firms, but does not necessarily involve sharing ownership. It can involve sharing technologies, marketing efforts, or other resources to achieve a common goal. The other options listed (exporting, importing, direct investment, and joint venture) all involve some level of ownership or control over a foreign operation.

Question 11

A pharmaceutical company headquartered in a country constructs a research lab in another country in order to make the best use of the efficient labor and technology available there.This is an example of:

Accepted Answer

This is an example of direct foreign investment, where a company invests directly in a foreign country by setting up a subsidiary or purchasing a company in that country. In this case, the pharmaceutical company is constructing a research lab in a foreign country to take advantage of its efficient labor and technology.

Question 12

Which of the following staffing models is based on the assumptionthat home-office perspectives and issues shouldtake precedence over local perspectives and issues?

Accepted Answer

The ethnocentric staffing model is based on the assumption that home-office perspectives and issues should take precedence over local perspectives and issues. This means that the headquarters or parent company of the multinational corporation places its own people in key positions in overseas subsidiaries and makes decisions based on the home-country perspective.

Question 13

In the context of a firm entering the international business market, which of the following is least associated with the firm's human resource function?

Accepted Answer

Production plans are not directly related to the human resource function. The other options all involve the management of employees in some way, such as providing training, determining compensation, recruiting new personnel, and managing the repatriation (return) of employees from international assignments.

Question 14

Which of the following is NOT an accurate statement about labor unions in the United States?

Accepted Answer

The answer of Which of the following is NOT an...

Question 15

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

Accepted Answer

Hofstede's five national cultural dimensions are power distance, collectivism vs. individualism, masculinity vs. femininity, uncertainty avoidance, and long-term vs. short-term orientation. Role identity is not one of the dimensions discussed by Hofstede.

Question 16

In the context of Bartlett and Goshal's analysis of the situation relative to potential agency problems for international strategies, which strategy poses the highest risk of agency problems?

Accepted Answer

The multidomestic strategy poses the highest risk of agency problems because it involves a high degree of decentralization, giving local managers significant autonomy. This can lead to misalignment of local managers' interests with the overall corporate goals, increasing the potential for agency problems.

Question 17

Which of the following is NOT true in the context of international transfers and assignments?

Accepted Answer

This statement is not true in the context of international transfers and assignments. Organizations often consider expatriates for new opportunities within the company, especially when their international experience can add value to the position.

Question 18

Which of the following is least likely to be the basis of selection of an expatriate manager who is sent on a foreign assignment as a developmental opportunity so that he can learn and bring back information to the home country?

Accepted Answer

Technical expertise is less likely to be the basis of selection for an expatriate manager who is sent on a foreign assignment as a developmental opportunity because the focus is on learning and bringing back information to the home country, rather than on specific technical skills.

Question 19

A leading mobile software developer agrees to develop exclusive software application platforms for a new line of good quality, affordable smartphones about to be launched by a popular smartphone device manufacturer.Their brand reputations and pricing strategies are expected to bring in large volumes of sales of the phones.Which of the following best exemplifies this business strategy?

Accepted Answer

The business strategy described is a strategic alliance, where two companies work together to create a mutually beneficial opportunity. The mobile software developer and the smartphone device manufacturer are collaborating to create a new product that is expected to generate high sales volumes.

Question 20

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

Accepted Answer

Complete tax exemptions are unlikely to be a part of the compensation package designed for an expatriate because the expatriate is still responsible for taxes in their home country and may also be responsible for taxes in the host country. It is common for companies to provide tax equalization to ensure that the expatriate is not over or under-taxed, but complete tax exemptions are rare.

Quiz 3: The Global Environment