Question 1

Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.
-Refer to Additional Case 17.1.In which stage of internationalization is Hollar,Inc.?

Accepted Answer

Hollar, Inc. is in Stage 4 of internationalization, characterized by its extensive international operations, including assembly facilities in 12 countries, strategic alliances, and acquisitions abroad, indicating a multi-national or transnational stage of development.

Question 2

A company is in the second stage of internationalization when:

Accepted Answer

A

Question 3

Which of the following is commonly used to lower labor costs by firms in stages 3,4,and 5 of internationalization?

Accepted Answer

Outsourcing is commonly used by firms in stages 3, 4, and 5 of internationalization to lower labor costs. This involves contracting with external companies to handle certain business functions, including customer service, manufacturing, and administrative support. By outsourcing these activities, companies can take advantage of economies of scale and lower labor costs in other countries where wages are lower.

Question 4

A firm that only does business domestically is in stage ________ of internationalization.

Accepted Answer

Stage 1 of internationalization is when a firm only does business domestically and has no international involvement.

Question 5

Cartoon Corporation has its production facilities in the United States but is expanding into foreign markets.Cartoon is in Stage 1 of internationalization.

Accepted Answer

Stage 1 of internationalization is the Domestic stage where the company only operates in its home country. Since Cartoon Corporation is expanding into foreign markets, it is not in Stage 1 but rather in a later stage.

Question 6

Which term refers to a firm with highly decentralized operations in many countries and weak ties to any single country?

Accepted Answer

A transnational corporation is a firm with decentralized operations in several different countries and weak connections to any one specific country. It is also known as a borderless organization, as its operations are not confined by national borders. Subsidiaries, while they may be decentralized, are still closely tied to their parent company in a single country. Joint ventures involve partnerships between two or more companies, and while they may operate in multiple countries, they are generally not as decentralized as a transnational corporation. Multinational corporations are similar to transnational corporations, but they tend to have more centralized operations in each country where they operate.

Question 7

For companies in stage ________ of the internationalization process,HRM practices must focus on the selection,training,and compensation of expatriate managers,as well as the development of policies for employees of foreign facilities.

Accepted Answer

Stage 3 of the internationalization process involves establishing subsidiaries or joint ventures in foreign countries, meaning that HRM practices must focus on managing expatriate managers and employees in foreign facilities. This includes selecting, training, and compensating expatriate managers, as well as developing policies for employees in foreign subsidiaries.

Question 8

All of the following are key concerns about global outsourcing EXCEPT:

Accepted Answer

Global outsourcing often involves legislative oversight to regulate practices and standards, making lack of legislative oversight not a key concern compared to the other options which directly impact the quality and security of outsourced services.

Question 9

All of the following are common problems faced by small and medium-size enterprises attempting to internationalize EXCEPT:

Accepted Answer

The answer of All of the following are common problems...

Question 10

Which of the following best describes a transnational corporation?

Accepted Answer

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

Question 11

Which of the following best describes a multinational corporation?

Accepted Answer

Multinational corporations have operations in several countries and regions of the world, which is exactly what ION Enterprises has based on the given information. Avery Shoes only exports its products but may not have production facilities in other countries. Wilton Paper may have operations in many countries but it being described as having "little allegiance to any country" does not fit the typical characteristics of a multinational corporation. Formby Manufacturing is an international business but it has a specific ownership structure with only one foreign branch, which may not necessarily reflect the characteristics of a true multinational corporation.

Question 12

Hewit Computers makes most personnel decisions that affect its foreign branches through an international personnel department located at corporate headquarters in Texas.Hewit's foreign operations are managed primarily by expatriates.Hewit Computers is most likely in stage ________ of internationalization.

Accepted Answer

Stage 4 of internationalization involves a multinational strategy where the company manages foreign operations through a centralized international department and relies on expatriates for management.

Question 13

Picture Perfect's market is exclusively domestic.Its plant locations all lie within the boundaries of its own nation.This company is in stage ________ of international involvement.

Accepted Answer

This company is in the initial stage of international involvement, which is focused solely on its domestic market. International operations have not yet begun, and the company has not explored any foreign markets.

Question 14

Which of the following countries is NOT included in NAFTA?

Accepted Answer

China is not included in NAFTA. NAFTA stands for North American Free Trade Agreement and includes only the United States, Canada, and Mexico.

Question 15

Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.
-Refer to Additional Case 17.1.Prior to being purchased by Hollar,Tyro was most likely in which stage of internationalization?

Accepted Answer

The answer of Additional Case 17.1
Hollar, Inc. is a U.S.-based,...

Question 16

When in stage ________ of internationalization,HRM practices should facilitate exporting the firm's products through incentives,training,and staffing strategies that focus on the needs of international customers.

Accepted Answer

Stage 2 of internationalization is the pre-export stage, where the firm is preparing to enter international markets. During this stage, HRM practices should focus on facilitating exporting through incentives, training, and staffing strategies that cater to the needs of international customers.

Question 17

Electra,Inc.is a company in an advanced stage of internationalization.It has little allegiance to its country of origin,decentralized operations,relatively independent business units,and weak ties to any given country.This company is most likely in stage ________ of international involvement.

Accepted Answer

Electra, Inc. exhibits characteristics of a company in stage 5 of international involvement, known as the transnational stage. This stage is characterized by advanced internationalization, decentralized operations, and a global perspective that transcends any single country allegiance.

Question 18

The fourth stage of internationalization is marked by the company:

Accepted Answer

The fourth stage of internationalization is characterized by a company having production facilities in several countries of the world. This indicates that the company has expanded its operations beyond its home country and has established a significant presence in multiple countries. This stage is often referred to as the multinational stage, where companies have a presence in multiple countries but still retain a degree of centralized control.

Question 19

Which term refers to employees who are citizens of one country that are living and working in another country?

Accepted Answer

Expatriates refers to employees who are citizens of one country that are living and working in another country. Domestics refers to employees who work within their own country. Transnationals refer to companies that operate in multiple countries. Host-country nationals refer to employees who are citizens of the country in which the company is operating.

Question 20

HRM strategies at stage ________ of internationalization are designed to blend individuals of diverse backgrounds into a team sharing a vision and corporate identity.

Accepted Answer

At stage 5 of internationalization, HRM strategies focus on integrating diverse individuals into a cohesive team that shares a common vision and corporate identity. This stage emphasizes global cohesion and the effective management of a diverse workforce.

Quiz 17: International HRM Challenge