Exam 3: The Global Environment

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When a firm owns physical assets in another country, this is called foreign direct investment.

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Scenario 3.1 Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs 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. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% 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 is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. -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?

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Scenario 3.1 Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs 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. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% 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 is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. -Refer to Scenario 3.1. Which of the domestic human resource issues is most likely affected (i.e., different at Marstrand than at Mini-PC) by conditions described in the scenario?

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Under which international strategy will several companies agree to cooperate for mutual benefit?

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All EXCEPT which of the following countries are considered the leading industrial powers in today's global economy?

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Locating a facility in a relatively underdeveloped area will impact all of the following human resource activities EXCEPT

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The interrelatedness of global markets was demonstrated by the recent economic turndown in the United States that affected many other parts of the world.

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

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There are often many differences in the benefits packages received by employees in different countries.

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Scenario 3.1 Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs 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. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% 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 is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. -Refer to Scenario 3.1. Which staffing model is Mini-PC using for its Swedish unit?

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Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the United Kingdom, and so on)?

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A cultural dimension that focuses on relationship building and quality of life is

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

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A culture that scores high in uncertainty avoidance prefers unstructured situations over structured situations.

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Which cultural dimension highlights a liking of structured circumstances instead of situations that are relatively unstructured?

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What is an advantage of direct investment in another country?

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Cultural values and beliefs are usually not unspoken and are not taken for granted for individuals who live in a particular region of the world.

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No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to what type of difference?

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Time orientation means that a society emphasizes long-term values such as thrift and persistence.

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A culture that scores high in femininity tends to value quality of life and relationships.

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