Question 1

In the context of corporate international strategies, a firm using a transnational strategy:

Accepted Answer

A)  expects its expatriate managers to rely heavily on direction from the home office. 
B)  has centralized decision-making, with the lowest risk of agency problems. 
C)  can implement a knowledge contract to obtain all the information acquired by an expatriate manager. 
D)  faces the least number of threats for opportunistic behavior and the lowest information asymmetry. 
A)  expects its expatriate managers to rely heavily on direction from the home office. 
B)  has centralized decision-making, with the lowest risk of agency problems. 
C)  can implement a knowledge contract to obtain all the information acquired by an expatriate manager. 
D)  faces the least number of threats for opportunistic behavior and the lowest information asymmetry.

Question 2

Every aspect of the human resources management (HRM) process in a geocentric company must be undertaken from a domestic perspective.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true of the polycentric staffing model?

Accepted Answer

A)  This model makes extensive use of host-country nationals (HCNs) as employees in foreign subsidiaries. 
B)  This model assumes that parent-country nationals (PCNs) are better equipped to deal with local market conditions. 
C)  Organizations using this approach have one central HR department that is responsible for managing all HR issues for lower- and upper-level employees. 
D)  This model assumes that home-office perspectives and issues take precedence over local perspectives. 
A)  This model makes extensive use of host-country nationals (HCNs) as employees in foreign subsidiaries. 
B)  This model assumes that parent-country nationals (PCNs) are better equipped to deal with local market conditions. 
C)  Organizations using this approach have one central HR department that is responsible for managing all HR issues for lower- and upper-level employees. 
D)  This model assumes that home-office perspectives and issues take precedence over local perspectives.

Question 4

Which of the following international business approaches involves cooperation between firms but may not involve sharing of ownership?

Accepted Answer

A)  Direct foreign investment 
B)  Licensing 
C)  A strategic alliance 
D)  A joint venture 
A)  Direct foreign investment 
B)  Licensing 
C)  A strategic alliance 
D)  A joint venture

Question 5

In the context of the strategies that organizations adopt for competing in the international environment, the process of making products in the domestic marketplace and then selling them in other countries is called importing.

Accepted Answer

A) True 
 B)False

Question 6

The most important index that international HR managers need to consider while hiring a workforce in a host country is hourly wage.

Accepted Answer

A) True 
 B)False

Question 7

Who among the following individuals is most likely to receive a hardship premium?

Accepted Answer

A)  An intern who puts in extra hours of work on a daily basis 
B)  A business development manager on a foreign client visit 
C)  An expatriate manager posted in a war-torn country 
D)  A physician volunteering to serve the poor in his locality 
A)  An intern who puts in extra hours of work on a daily basis 
B)  A business development manager on a foreign client visit 
C)  An expatriate manager posted in a war-torn country 
D)  A physician volunteering to serve the poor in his locality

Question 8

Which of the following is a difference between labor relations in Japan and labor relations in most European nations?

Accepted Answer

A)  Unlike Japan, the use of a third-party mediator to solve disputes is rare in most European nations. 
B)  Unlike most European nations, confrontation and hostility are encouraged in Japan. 
C)  Unlike Japan, temporary work stoppages and strikes are rare in most European nations. 
D)  Unlike most European nations, unions and management in Japan tend to work together cooperatively. 
A)  Unlike Japan, the use of a third-party mediator to solve disputes is rare in most European nations. 
B)  Unlike most European nations, confrontation and hostility are encouraged in Japan. 
C)  Unlike Japan, temporary work stoppages and strikes are rare in most European nations. 
D)  Unlike most European nations, unions and management in Japan tend to work together cooperatively.

Question 9

In the context of economic communities, unlike the European Union (EU), the North American Free Trade Agreement (NAFTA) _____.

Accepted Answer

A)  has unified the human resource management practices and laws of its member nations 
B)  has a common currency designed to eliminate exchange-rate fluctuations 
C)  is a comprehensive and commonly cited economic community 
D)  attempts to reduce the trade barriers that exist among Canada, the United States, and Mexico 
A)  has unified the human resource management practices and laws of its member nations 
B)  has a common currency designed to eliminate exchange-rate fluctuations 
C)  is a comprehensive and commonly cited economic community 
D)  attempts to reduce the trade barriers that exist among Canada, the United States, and Mexico

Question 10

Companies that use the geocentric staffing model:

Accepted Answer

A)  heavily employ host-country nationals to better deal with local-market conditions. 
B)  have a common HR unit in their parent countries to handle employment issues for all foreign subsidiaries. 
C)  undertake every aspect of their human resource management process from an international perspective. 
D)  primarily hire home-country nationals to fill higher-level positions in their foreign offices. 
A)  heavily employ host-country nationals to better deal with local-market conditions. 
B)  have a common HR unit in their parent countries to handle employment issues for all foreign subsidiaries. 
C)  undertake every aspect of their human resource management process from an international perspective. 
D)  primarily hire home-country nationals to fill higher-level positions in their foreign offices.

Question 11

Future orientation is one of the four dimensions of national culture identified by Dutch scholar Geert Hofstede.

Accepted Answer

A) True 
 B)False

Question 12

In the context of the four international strategies proposed by Bartlett and Goshal, which of the following strategies poses the highest risk of agency problems?

Accepted Answer

A)  The multidomestic strategy 
B)  The transnational strategy 
C)  The regional strategy 
D)  The global strategy 
A)  The multidomestic strategy 
B)  The transnational strategy 
C)  The regional strategy 
D)  The global strategy

Question 13

In the context of the dimensions of national culture identified by Dutch scholar Geert Hofstede, uncertainty avoidance refers to the status and authority differences between a superior and a subordinate.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true of the training of expatriate managers?

Accepted Answer

A)  It solely focuses on familiarizing expatriates with the language of their foreign destination. 
B)  It involves teaching managers general skills that will be useful for both present and future jobs. 
C)  It is typical to have a training component that deals with social manners and issues involved in social exchanges. 
D)  It is uncommon to send expatriates for short trips to their ultimate foreign destination before their permanent move as part of the training. 
A)  It solely focuses on familiarizing expatriates with the language of their foreign destination. 
B)  It involves teaching managers general skills that will be useful for both present and future jobs. 
C)  It is typical to have a training component that deals with social manners and issues involved in social exchanges. 
D)  It is uncommon to send expatriates for short trips to their ultimate foreign destination before their permanent move as part of the training.

Question 15

Which of the following statements is true of selecting expatriates for international assignments?

Accepted Answer

A)  People with foreign-language skills and international travel experience are attractive expatriate candidates. 
B)  Success in foreign assignments is based more on technical skills than on cultural skills. 
C)  More firms are increasingly hiring global managers because of their abundance in the international market. 
D)  The first step in selecting expatriates is to employ a headhunter to identify a pool of qualified applicants. 
A)  People with foreign-language skills and international travel experience are attractive expatriate candidates. 
B)  Success in foreign assignments is based more on technical skills than on cultural skills. 
C)  More firms are increasingly hiring global managers because of their abundance in the international market. 
D)  The first step in selecting expatriates is to employ a headhunter to identify a pool of qualified applicants.

Question 16

GeNext, a leading mobile software developer in Japan, agrees to develop exclusive software application programs for a new line of affordable smartphones to be launched by CelCom, a smartphone manufacturer in China. The brand reputation and pricing strategies of both of these companies are expected to bring in large volumes of smartphone sales. The profits from the sales will be divided between these two firms. In the given scenario, GeNext and CelCom have _____.

Accepted Answer

A)  entered into a licensing agreement 
B)  formed a strategic alliance 
C)  entered into an agreement for a merger 
D)  made a direct foreign investment 
A)  entered into a licensing agreement 
B)  formed a strategic alliance 
C)  entered into an agreement for a merger 
D)  made a direct foreign investment

Question 17

Sera Pharma, a pharmaceutical company, produces medicines in its home country. It recently started selling its products to foreign companies in order to expand its business and enter new markets. Which of the following international business strategies does Sera Pharma use in the given scenario?

Accepted Answer

A)  Exporting 
B)  Licensing 
C)  An acquisition strategy 
D)  A strategic alliance 
A)  Exporting 
B)  Licensing 
C)  An acquisition strategy 
D)  A strategic alliance

Question 18

Which of the following terms is defined as the set of values that helps an organization's members understand what it stands for, how it does things, and what it considers important?

Accepted Answer

A)  Culture 
B)  Diversity 
C)  Ethnicity 
D)  Folkway 
A)  Culture 
B)  Diversity 
C)  Ethnicity 
D)  Folkway

Question 19

Which of the following dimensions of national culture identified by Dutch scholar Geert Hofstede refers to the status and authority differences between a superior and a subordinate?

Accepted Answer

A)  Power distance 
B)  Collectivism 
C)  Assertiveness 
D)  Uncertainty avoidance 
A)  Power distance 
B)  Collectivism 
C)  Assertiveness 
D)  Uncertainty avoidance

Question 20

In the context of managing international transfers and assignments, repatriation occurs when a manager is:

Accepted Answer

A)  sent by his or her company on a second foreign assignment. 
B)  brought back home from a foreign assignment. 
C)  deported from his home country to a foreign country. 
D)  expelled from the foreign country where he or she is sent on an assignment. 
A)  sent by his or her company on a second foreign assignment. 
B)  brought back home from a foreign assignment. 
C)  deported from his home country to a foreign country. 
D)  expelled from the foreign country where he or she is sent on an assignment.

In the context of corporate international strategies, a firm using a transnational strategy:

Every aspect of the human resources management (HRM) process in a geocentric company must be undertaken from a domestic perspective.

Which of the following statements is true of the polycentric staffing model?

Which of the following international business approaches involves cooperation between firms but may not involve sharing of ownership?

In the context of the strategies that organizations adopt for competing in the international environment, the process of making products in the domestic marketplace and then selling them in other countries is called importing.

The most important index that international HR managers need to consider while hiring a workforce in a host country is hourly wage.

Who among the following individuals is most likely to receive a hardship premium?

Which of the following is a difference between labor relations in Japan and labor relations in most European nations?

In the context of economic communities, unlike the European Union (EU), the North American Free Trade Agreement (NAFTA) _____.

Companies that use the geocentric staffing model:

Future orientation is one of the four dimensions of national culture identified by Dutch scholar Geert Hofstede.

In the context of the four international strategies proposed by Bartlett and Goshal, which of the following strategies poses the highest risk of agency problems?

In the context of the dimensions of national culture identified by Dutch scholar Geert Hofstede, uncertainty avoidance refers to the status and authority differences between a superior and a subordinate.

Which of the following statements is true of the training of expatriate managers?

Which of the following statements is true of selecting expatriates for international assignments?

Sera Pharma, a pharmaceutical company, produces medicines in its home country. It recently started selling its products to foreign companies in order to expand its business and enter new markets. Which of the following international business strategies does Sera Pharma use in the given scenario?

Which of the following terms is defined as the set of values that helps an organization's members understand what it stands for, how it does things, and what it considers important?

Which of the following dimensions of national culture identified by Dutch scholar Geert Hofstede refers to the status and authority differences between a superior and a subordinate?

In the context of managing international transfers and assignments, repatriation occurs when a manager is:

The Nature of Human Resource Management

The Legal Environment

The Competitive Environment

Information for Making Human Resource Decisions

Human Resource Decision-Making in Organizations

Recruiting, Selecting, Training, and Developing Employees

Managing a New and Diverse Workforce

Compensation and Benefits

Performance Appraisal and Career Management

Managing Labor Relations

Safety, Health, Well-Being, and Security

Motivation at Work

Managing and Enhancing

Filters

Exam 3: The Global Environment

In the context of corporate international strategies, a firm using a transnational strategy:

Every aspect of the human resources management (HRM) process in a geocentric company must be undertaken from a domestic perspective.

Which of the following statements is true of the polycentric staffing model?

Which of the following international business approaches involves cooperation between firms but may not involve sharing of ownership?

In the context of the strategies that organizations adopt for competing in the international environment, the process of making products in the domestic marketplace and then selling them in other countries is called importing.

The most important index that international HR managers need to consider while hiring a workforce in a host country is hourly wage.

Who among the following individuals is most likely to receive a hardship premium?

Which of the following is a difference between labor relations in Japan and labor relations in most European nations?

In the context of economic communities, unlike the European Union (EU), the North American Free Trade Agreement (NAFTA) _____.

Companies that use the geocentric staffing model:

Future orientation is one of the four dimensions of national culture identified by Dutch scholar Geert Hofstede.

In the context of the four international strategies proposed by Bartlett and Goshal, which of the following strategies poses the highest risk of agency problems?

In the context of the dimensions of national culture identified by Dutch scholar Geert Hofstede, uncertainty avoidance refers to the status and authority differences between a superior and a subordinate.

Which of the following statements is true of the training of expatriate managers?

Which of the following statements is true of selecting expatriates for international assignments?

Sera Pharma, a pharmaceutical company, produces medicines in its home country. It recently started selling its products to foreign companies in order to expand its business and enter new markets. Which of the following international business strategies does Sera Pharma use in the given scenario?

Which of the following terms is defined as the set of values that helps an organization's members understand what it stands for, how it does things, and what it considers important?

Which of the following dimensions of national culture identified by Dutch scholar Geert Hofstede refers to the status and authority differences between a superior and a subordinate?

In the context of managing international transfers and assignments, repatriation occurs when a manager is:

The Nature of Human Resource Management

The Legal Environment

The Competitive Environment

Information for Making Human Resource Decisions

Human Resource Decision-Making in Organizations

Recruiting, Selecting, Training, and Developing Employees

Managing a New and Diverse Workforce

Compensation and Benefits

Performance Appraisal and Career Management

Managing Labor Relations

Safety, Health, Well-Being, and Security

Motivation at Work

Managing and Enhancing

Filters