Question 1

Ideally, organizations should maintain a cadre of __________ managers who possess a high degree of both functional and environmental competence.

Accepted Answer

Cosmopolitan managers possess a global perspective and are able to navigate diverse cultural environments, making them highly effective in today's interconnected business world. Additionally, they have functional expertise in their specific areas of management. Regional or foreign managers may lack the global perspective necessary to operate effectively in diverse environments, while international managers may lack functional expertise in specific areas.

Question 2

Rather than attempting to hire nationals from a specific country, a __________ expands the candidate pool by seeking people from within a specific region.

Accepted Answer

A regiocentric orientation expands the candidate pool by seeking people from within a specific region, rather than limiting recruitment to nationals of a specific country (ethnocentric). An international orientation would seek the best candidates from around the world, regardless of their region of origin. Regional orientation may refer to a specific focus on a particular geographic region or location, rather than the candidate pool.

Question 3

Which of the following is the LEAST LIKELY reason why international HR management has taken on more strategic importance?

Accepted Answer

Cost reduction, while important, is not primarily a strategic aspect of international HR management but more of an operational or tactical concern. Strategic importance in international HR management often focuses on knowledge transfer, cultural integration, and leadership development to ensure global competitiveness and organizational effectiveness.

Question 4

__________ leads to a strong unified corporate culture and an informal management network because people no longer feel bound by local cultural ties and national loyalties.

Accepted Answer

Geocentric orientation entails the selection and placement of the best possible individuals for key jobs, regardless of their nationality, which leads to a strong unified corporate culture and an informal management network because people no longer feel bound by local cultural ties and national loyalties.

Question 5

For a successful M&A, HR management should be involved in the following activities except:

Accepted Answer

HR management should be involved in effective communication, retention of key employees, and blending corporate cultures to ensure a successful M&A. Financial due diligence is typically handled by the finance department.

Question 6

According to one survey, top managers believe that the effectiveness of transferring human knowledge, expertise, and critical capabilities is the most important factor for transferring an MNC's performance.

Accepted Answer

The statement is true according to one survey as mentioned.

Question 7

Explicit knowledge can be codified (i.e., expressed in words and numbers), and easily communicated and shared in the form of hard data, manuals, codified procedures, or universal principals.

Accepted Answer

This statement is true. Explicit knowledge refers to knowledge that can be articulated and codified, and can be easily communicated and shared through various means, such as written documents or databases. Examples of explicit knowledge include scientific theories, mathematical formulas, procedures, and other types of information that can be codified and represented in a tangible form.

Question 8

In other words, tacit knowledge has to do with information that can be derived from books or manuals.

Accepted Answer

Tacit knowledge refers to information that is not codified or explicit, and therefore cannot be easily transferred through written materials like books or manuals. It is knowledge that is gained through personal experience, practice, or observation, and is often difficult to articulate or share with others.

Question 9

Much of the knowledge transferred between the units of an MNC is not implicit but explicit.

Accepted Answer

Explicit knowledge is easily documented and shared, while implicit knowledge is more tacit and harder to communicate, often requiring personal interaction and experience.

Question 10

Given that tacit knowledge cannot be codified or explained in manuals, a company should not rely on personnel transfer for knowledge dissemination.

Accepted Answer

Personnel transfer is actually a valuable method for disseminating tacit knowledge within a company, as it allows for direct interaction and hands-on experience, which are effective ways to transfer knowledge that is difficult to codify or explain in manuals.

Question 11

International assignments are increasingly considered a mechanism for vital transfer of knowledge and capabilities needed for success.

Accepted Answer

International assignments provide employees with opportunities to learn and develop new skills, knowledge, and experience through exposure to different cultures, languages, and work practices. This knowledge and capability transfer is necessary for success in a globalized business environment.

Question 12

Difficulties in understanding behavioral characteristics and in properly interpreting various verbal and non-verbal signals pose great challenges to managers as they are exposed to a new and different environment.

Accepted Answer

This statement is true. Managers need to be aware of cultural differences in behavior and communication in order to effectively navigate and succeed in a new environment.

Question 13

Indeed, the most effective way to fundamentally change how people think about doing business globally is by having them work abroad.

Accepted Answer

Working abroad exposes individuals to different cultures, customs, and business practices, leading to a broader perspective on global business. It allows them to experience firsthand the challenges and opportunities of doing business in different parts of the world, enabling them to better understand and adapt to different environments. This experience can ultimately lead to a shift in mindset and approach to doing business that is more inclusive and globally-minded.

Question 14

Four major strategies that MNCs use to overcome challenges and compete on an international and global scale are global cost-leadership, multi-domestic, transnational, and regional.

Accepted Answer

This statement is true. MNCs (multi-national corporations) commonly use global cost-leadership, multi-domestic, transnational, and regional strategies to overcome challenges and compete on a global scale.

Question 15

MNCs should not only be cost competitive but also be capable of delivering products that satisfy the needs and preferences of local customers, which often differ from one country or region to another.

Accepted Answer

MNCs (multinational corporations) operating in different countries should not only focus on cost competitiveness but also on catering to the needs and preferences of local customers. This may involve adapting their products, marketing strategies, and distribution channels to fit the local market conditions and cultural values. By doing so, MNCs can increase their chances of success and create long-term value for both customers and shareholders.

Question 16

In firms that pursue a global strategy, the lower levels of coordination and interdependence required between foreign affiliates and parent company operations lead to the need for the company to be globally integrated.

Accepted Answer

A global strategy actually requires higher levels of coordination and interdependence between foreign affiliates and the parent company to achieve global integration and standardization across operations.

Question 17

With different national and regional laws and cultures, attempts to use a standard promotional message or product are best.

Accepted Answer

Different national and regional laws and cultures require a customized promotional message or product to effectively reach their target audience. A standardized approach may not resonate with local consumers and may even cause offense or be considered inappropriate in certain cultures. Localization is essential in global marketing strategies.

Question 18

To a great extent, consumers continue to demand locally differentiated products reflecting substantial divergence in standards, tastes, and perceived needs, except across countries within a regional bloc like the European Union that purports to be integrated and one large market.

Accepted Answer

Despite the European Union's efforts to integrate markets, there still exists a significant demand for locally differentiated products within the EU due to varying cultural preferences, traditions, and standards among member countries.

Question 19

Competitive pressures in an increasing number of industries indicate that firms pursue globalization and localization at the same time.

Accepted Answer

Many firms today adopt a "glocalization" strategy, which involves balancing global standardization and local adaptation to meet the needs and preferences of different markets. This allows firms to achieve economies of scale and scope through global integration, while also remaining sensitive to local cultures, regulations, and customer demands. Therefore, firms often pursue both globalization and localization strategies simultaneously rather than focusing on one or the other exclusively.

Question 20

As an alternative to balancing the trade-off between global strategy and multi-domestic strategy, many MNCs have employed a so-called regional strategy.

Accepted Answer

This statement is true. Many multinational corporations have adopted a regional strategy, which involves customizing their operations to fit the particularities of different regions while still maintaining a level of integration and coherence across the entire company. This approach helps MNCs take advantage of economies of scale while also being responsive to local needs and preferences.

Quiz 4: The Key Role of International Hr Management in Successful Mnc Strategy