Question 1

Identify the characteristics of companies in various stages of internationalization.How should a firm's HRM practices be adapted for each of the five stages of internationalization?

Accepted Answer

The answer of Identify the characteristics of companies in various...

Question 2

The most advanced stage of internationalization is when a firm's operations are highly decentralized,each business unit makes its own personnel decisions,and each branch has weak ties to any given country,including its country of origin.

Accepted Answer

This statement describes the highest degree of internationalization, which is characterized by a high level of decentralization and independence for each business unit, with weak ties to any particular country, including the company's country of origin.

Question 3

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.Which of the following questions is LEAST relevant to the decision to fill management positions in India with expatriates or host-country nationals?
A) What is the turnover rate for repatriated Hollar employees?
B) What is the international health and safety record at Hollar?
C) How important is it for Hollar to earn community acceptance?
D) What relocation and salary costs would be incurred by Hollar?

Accepted Answer

The international health and safety record at Hollar is least relevant to the decision between hiring expatriates or host-country nationals for management positions in India. This decision is more directly influenced by factors such as turnover rates of repatriated employees, the importance of community acceptance, and the costs associated with relocation and salaries.

Question 4

When General Electric chose to staff its Hungarian subsidiary with Hungarian nationals,it was using a(n)________ approach to management.
A) ethnocentric
B) polycentric
C) geocentric
D) multinational

Accepted Answer

Polycentric approach to management involves staffing and managing the subsidiary in the host country by employing personnel from that country. General Electric's decision to staff its Hungarian subsidiary with Hungarian nationals is an example of a polycentric approach, as it relies on local employees to manage operations.

Question 5

It is best to use an expatriate when:
A) the international and domestic units are highly independent.
B) the political situation is unstable.
C) there are minimal cultural differences between the host and home countries.
D) a shared corporate identity is not important.

Accepted Answer

When the political situation is unstable, it may be beneficial to use an expatriate who has experience navigating such environments. Expatriates may also have more familiarity with the laws and regulations of the host country. In all other options provided, using a local or host country employee may be more advantageous.

Question 6

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.Which of the following best supports the decision to fill management positions in India with expatriates?
A) Hollar desires a greater understanding of local conditions and customs.
B) Hollar needs to ensure a smooth transfer of business and management practices.
C) Hollar wants to reduce the firm's compensation costs related to construction of the plant.
D) Hollar's most globally skilled managers are part of dual-career couples with small children.

Accepted Answer

Hiring expatriates to oversee the construction of the new facility in India would help ensure a smooth transfer of business and management practices. Expatriates have a better understanding of the home office's strategies and culture, which could help maintain consistency in business practices across different locations. Host-country nationals may not have the same level of familiarity with the home office's practices and culture, potentially leading to communication and management issues. Therefore, filling management positions in India with expatriates would help ensure a seamless transition and reduce the risk of potential problems.

Question 7

It has been estimated that using an expatriate costs ________ more than a local employee.
A) 200%-400%
B) 500%-1,000%
C) 1,000%-2,000%
D) 3,000%-5,000%

Accepted Answer

The answer of It has been estimated that using an...

Question 8

The use of local nationals as managers in foreign subsidiaries will most likely:
A) act as a disincentive to local morale and motivation.
B) create problems of adaptability due to the lack of cultural flexibility.
C) lead to the postponement of difficult local decisions until they are unavoidable.
D) lead to increased government restrictions regarding transfers, salaries, and taxes.

Accepted Answer

Local managers may delay difficult decisions due to their close ties with the local community and potential conflicts of interest, leading to postponement until issues become unavoidable.

Question 9

A ________ is a company that is partly owned by a host country firm and partly owned by another firm,or a consortium of firms.
A) joint venture
B) multinational corporation
C) transnational corporation
D) multidomestic company

Accepted Answer

A joint venture is a type of business arrangement in which two or more companies come together to form a new entity. In this case, the joint venture is partially owned by a local company and another foreign or domestic company. The purpose of the joint venture is usually to leverage the strengths and resources of each company to achieve a common goal, such as entering a new market, developing a new product or service, or sharing knowledge and expertise.

Question 10

In most firms,expatriates are used for top management positions in international subsidiaries.

Accepted Answer

Expatriates are usually chosen for top management positions in international subsidiaries because they possess the required skills, knowledge, and experience to handle operations in an unfamiliar environment.

Question 11

A(n)________ is a citizen of one country living and working in another country.

Accepted Answer

The answer of A(n)________ is a citizen of one country...

Question 12

A firm with assembly and production facilities in several countries and regions of the world is referred to as a(n)________.

Accepted Answer

The answer of A firm with assembly and production facilities...

Question 13

A company in Stage 2 of internationalization physically moves some of its operations out of the home country.

Accepted Answer

In Stage 2 of internationalization, a company typically begins exporting or engaging in minor operations in foreign markets, but does not yet move significant operations abroad.

Question 14

What are the five dimensions of culture identified by Geert Hofstede? How can an awareness of these dimensions benefit a firm in stage 5 of internationalization?

Accepted Answer

The answer of What are the five dimensions of culture...

Question 15

The stage of international involvement at which a company first starts a joint venture,if it chooses to do so,is most likely stage:
A) 1.
B) 2.
C) 3.
D) 4.

Accepted Answer

Stage 3 is typically when a company starts forming joint ventures as it seeks to expand its international presence beyond exporting and licensing.

Question 16

Van Siclen and Company is a German firm that fills top management and other key positions with Germans.Van Siclen is most likely using a(n)________ approach to managing its international subsidiaries.
A) ethnocentric
B) polycentric
C) geocentric
D) multinational

Accepted Answer

An ethnocentric approach to managing international subsidiaries is when the parent company’s executives, policies, and practices are imposed on foreign subsidiaries. In this case, Van Siclen and Company is filling top management and key positions with Germans, which implies that they are prioritizing the Germans’ expertise and experience over the locals. This approach is known as ethnocentric, which benefits the parent company but might not be effective in the host country.

Question 17

Brantley Services deliberately downplays the fact that it is a U.S.firm and actively searches internationally to fill key positions with the best people.Brantley is most likely using a(n)________ approach to management.
A) ethnocentric
B) polycentric
C) geocentric
D) multinational

Accepted Answer

A geocentric approach to management is characterized by a focus on finding the best people, regardless of their nationality or geographic location. This approach encourages a global mindset and a willingness to adapt management practices to fit the needs of different regions. Therefore, Brantley's emphasis on searching internationally for the best people suggests a geocentric approach. The other options (ethnocentric, polycentric, and multinational) all involve a greater reliance on domestic or regional perspectives, and do not fit with Brantley's approach as described.

Question 18

A(n)________ is a firm with operations in many countries and highly decentralized operations.

Accepted Answer

The answer of A(n)________ is a firm with operations in...

Question 19

Which of the following is an advantage of using local employees in international subsidiaries?
A) Difficult decisions are often handled earlier by local employees than by expatriates.
B) A local manager is better able to balance local demands with the firm's international priorities.
C) Using a local employee ensures transfer of management practices from the home company to the subsidiary.
D) Using local employees increases the community's acceptance of the company as a legitimate participant in the local economy.

Accepted Answer

Using local employees can enhance the company's acceptance and legitimacy within the local community, as they are familiar with local customs, language, and business practices.

Question 20

Which of the following is an advantage of using expatriates in international subsidiaries?
A) Labor costs are lower for an expatriate than for a local worker.
B) Using an expatriate increases recognition of the company within the local community.
C) An expatriate allows the home company to maintain close control of the foreign subsidiary.
D) The use of an expatriate increases the motivation and morale of local managers and workers.

Accepted Answer

Using an expatriate allows the home company to maintain close control of the foreign subsidiary. Expatriates are familiar with the home company's policies, practices, and culture, and they can ensure that the subsidiary is aligned with the parent company's goals and strategies. This level of control is essential for ensuring that the subsidiary operates consistently with the home company's mission and values, and consistent performance across different global locations is vital for creating a unified brand and image.

Quiz 17: International HRM Challenge

Identify the characteristics of companies in various stages of internationalization.How should a firm's HRM practices be adapted for each of the five stages of internationalization?

The most advanced stage of internationalization is when a firm's operations are highly decentralized,each business unit makes its own personnel decisions,and each branch has weak ties to any given country,including its country of origin.

When General Electric chose to staff its Hungarian subsidiary with Hungarian nationals,it was using a(n) ________ approach to management.

It is best to use an expatriate when:

It has been estimated that using an expatriate costs ________ more than a local employee.

The use of local nationals as managers in foreign subsidiaries will most likely:

A ________ is a company that is partly owned by a host country firm and partly owned by another firm,or a consortium of firms.

In most firms,expatriates are used for top management positions in international subsidiaries.

A(n)________ is a citizen of one country living and working in another country.

A firm with assembly and production facilities in several countries and regions of the world is referred to as a(n)________.

A company in Stage 2 of internationalization physically moves some of its operations out of the home country.

What are the five dimensions of culture identified by Geert Hofstede? How can an awareness of these dimensions benefit a firm in stage 5 of internationalization?

The stage of international involvement at which a company first starts a joint venture,if it chooses to do so,is most likely stage:

Van Siclen and Company is a German firm that fills top management and other key positions with Germans.Van Siclen is most likely using a(n) ________ approach to managing its international subsidiaries.

Brantley Services deliberately downplays the fact that it is a U.S.firm and actively searches internationally to fill key positions with the best people.Brantley is most likely using a(n) ________ approach to management.

A(n)________ is a firm with operations in many countries and highly decentralized operations.

Which of the following is an advantage of using local employees in international subsidiaries?

Which of the following is an advantage of using expatriates in international subsidiaries?