Deck 11: Learning About International Human Resources Management

Question 1

Which type of company has expertise when it comes to relocating employees, establishing operations abroad, and helping with import/export and foreign tax issues?

A) multinational firms
B) international employment agencies
C) foreign HRM companies
D) international staffing firms

Answer 1

D

Question 2

What is a transnational corporation?

A) an existing firm that re-establishes its home base in a foreign country
B) a firm that has integrated worldwide operations through a centralized home office
C) a firm with independent business units operating in several countries
D) a firm that has invested in foreign operations and have a central corporate facility

Answer 2

D

Question 3

What is a good HR management system able to achieve in the areas of communication, record keeping, and a host of other activities worldwide?

A) replace them
B) facilitate them
C) fix them
D) reduce them

Answer 3

B

Question 4

What are the three sources of people from which to hire for international operations?

A) nationals, out-of-country nationals, regionals
B) expatriates, third-country nationals, out-of-country nationals
C) expatriates, home-country nationals, third-country nationals
D) third-country nationals, home-country nationals, out-of-country nationals

Question 5

Which type of organization is focused on adapting its products and services to each local market because it lacks coordinated product offerings in each country?

A) global corporation
B) franchise organization
C) multinational corporation
D) multi-unit national organization

Question 6

Which term refers to a country in which an organization is conducting business?

A) foreign entity
B) offshore worksite
C) host country
D) third country

Question 7

Why is Asia the fastest-growing trade region in the world?

A) its booming population
B) its numerous successful trade associations
C) its advanced technology
D) its superior products and export markets

Question 8

What is the benefit of using an HR system which allows employees' whereabouts to be tracked?

A) to locate employees in case of an accident or natural disaster
B) to monitor employees because they cannot be trusted
C) to ensure employees are working appropriately
D) to aid with training and supervising

Question 9

International corporations can choose the countries in which they do business. What characteristic do all the selected countries generally have?

A) trade agreements
B) the most similar culture
C) the most to offer
D) the cheapest labour

Question 10

Which term refers to employees who are native of a country other than the host or home country?

A) third-country nationals
B) expatriates
C) home-country nationals
D) host-country nationals

Question 11

Which term refers to a company that has investments in several countries, but does not have a coordinated product offering for each country?

A) multinational company
B) global company
C) international company
D) transnational company

Question 12

What is the biggest HR challenge faced by the Four Seasons Hotel chain, which has locations around the world?

A) enticing North American employees to work abroad
B) training local employees on luxury standards
C) developing management in a timely manner
D) facing communication challenges between staff and management

Question 13

Which of the following factors is considered to be part of a country's cultural environment?

A) property rights
B) environmental restrictions
C) economic factors
D) educational systems

Question 14

What is the benefit of using an international staffing company?

A) They have expertise to help with import/export and foreign tax issues.
B) They can provide multi-lingual staff.
C) They are less expensive than relocating employees.
D) The local staff can easily assimilate the corporate culture of the parent company.

Question 15

Which term refers to employees from the home country who are on an international assignment?

A) expatriates
B) domestics abroad
C) host-country nationals
D) third-country nationals

Question 16

What is the intent of the renewed Trans-Pacific Partnership?

A) to reduce the trading power of Canada, USA, and Mexico which resulted from NAFTA
B) to reduce pollution resulting from shipping between countries that boarder the Pacific Ocean
C) to enhance relationships between the countries that boarder the Pacific Ocean
D) to implement tariffs between the countries that boarder the Pacific Ocean

Question 17

What might be the outcome of using the same strategies, structures, and management styles in two different cultural settings?

A) They should work in both settings.
B) They may lead to success in one setting but failure in the other.
C) They should be acceptable in both settings.
D) They should fail in both settings.

Question 18

How much has China's economy grown in the past 15 years, drastically altering political and trading relations among nations in the process?

A) slightly
B) by half
C) by double
D) fourfold

Question 19

Which type of organization is a domestic firm that acts as an importer and exporter, and has no investment outside of its home country?

A) multinational company
B) transnational company
C) global company
D) international company

Question 20

Which type of organization requires international human resources capabilities to support their presence in many countries?

A) global corporation
B) franchise company
C) crown corporation
D) multi-unit national company

Question 21

In preparing for a home-country national's international assignment, who should be involved?

A) no preparations are required
B) the home-country national and his future international team
C) the home-country national and his family
D) the home-country national only

Question 22

Which of the following is likely to increase the success rate of an expatriate?

A) providing training once the expatriate is in his/her new position
B) involving the spouse and children early in the process
C) ensuring position has a defined end date by which the expatriate may return home
D) providing cultural training prior to starting in the new country

Question 23

In selecting individuals for a foreign assignment, what skills should be assessed to determine the individual's ability to adapt?

A) flexibility, negotiating, socializing skills
B) decision making, team building, negotiating
C) socializing skills, team building, leadership
D) leadership, decision making, flexibility

Question 24

What can cultural sensitivity training help expatriates with?

A) overcoming ethnic prejudices that they might harbour
B) developing a better understanding of ethical considerations abroad
C) dealing with the dynamics they will face abroad
D) understanding business norms and standards in the host country

Question 25

In countries outside of Canada, which three factors do managers tend to use as a basis for hiring?

A) merit, social status, family ties
B) common origin, social status, family ties
C) merit, language, family ties
D) merit, common origin, family ties

Question 26

In Canada, what do managers tend to emphasize in their selection practices?

A) merit
B) common origin
C) social status
D) family ties

Question 27

What is the primary reason that an expatriate might fail in his or her assignment?

A) unrealistic expectations of the expatriate
B) the expatriate's lack of trust in the new environment
C) the expatriate not being open minded
D) the expatriate's family not being able to adapt

Question 28

Describe the impact that culture shock can often have on an expatriate and their spouse/family.

A) It would have no impact, as technology makes it easy for expatriates to stay in touch with their native country and friends.
B) Culture shock is only experienced by an expatriate and their family when they return to their native country.
C) Culture shock results in feelings of stress and isolation.
D) Culture shock results in feelings of excitement and a sense of learning.

Question 29

What are two key types of training for employees working internationally?

A) social training, cultural sensitivity training
B) social training, health and safety training
C) language training, health and safety training
D) language training, cultural sensitivity training

Question 30

Which statement best describes the necessary skills required for a manager's success abroad, when compared to those required for success at home?

A) Both locations have unique skills required for each situation.
B) For positions abroad, there is a higher focus on leadership skills
C) For positions abroad, there is a higher focus on technical skills.
D) Both locations require similar skills.

Question 31

What is the proper classification for a Canadian working for a U.S.-based, international company, on a six-month assignment in Saudi Arabia working under a U.S.-based compensation package?

A) a third-country national on a commuter assignment
B) a host-country national on a short-term assignment
C) a third-country national on a short-term assignment
D) an expatriate on a foreign assignment

Question 32

What is the first step when selecting individuals for international assignments?

A) encouraging self-identification
B) assessing the cultural environment
C) creating a candidate pool
D) assessing core skills

Question 33

Which four factors did a recent study suggest should be the focus for organizations in attracting and retaining talent in new countries?

A) costs, ability, brand, strategy
B) compensation, development, brand, culture
C) development, compensation, capability, culture
D) compensation, strategy, brand, development

Question 34

Which assumption represents the biggest mistake that managers can make when managing employees in a foreign country?

A) In some countries, people are more relaxed about time.
B) People in different countries have similar expectations.
C) People in different countries have different values.
D) Contracts may be negotiated differently in different countries.

Question 35

What might be the outcome of offering a position within the company to the spouse of an expatriate?

A) Employees in the host-country company may be upset because they wanted the position.
B) The husband and wife may behave in a way that is culturally unacceptable, while at work.
C) It may be perceived as preferential treatment.
D) It will significantly impact the expatriate's Canadian income tax if both spouses work internationally.

Question 36

Managers tend to be more autocratic, or participative, depending on their country of origin. On a continuum from autocratic to participative, where do Japanese managers fit?

A) at the most participatory end of the continuum
B) in the middle of the continuum
C) closer to the autocratic end of the continuum
D) at the extreme autocratic end of the continuum

Question 37

What is a benefit of employing host-country nationals, especially in the later stages of internationalization?

A) reducing the payroll costs associated with using expatriates
B) using local workers causes customers to believe it's a local company
C) meeting government requirements for hiring local workers
D) increasing the standard of living for the nationals

Question 38

What is the benefit of using a third-country national instead of an expatriate?

A) They remain more objective when forced to make quick business decisions.
B) They are more loyal to the company.
C) They often have the necessary language skills.
D) Their trips home to see family are fewer and less expensive.

Question 39

Which term refers to employees who are native to the country where the organization conducts international business?

A) nationals
B) host-country nationals
C) home-country nationals
D) third-country nationals

Question 40

What can the trend of global hiring be attributed to?

A) the fluctuating global economy
B) the aging population in developed countries
C) social media's ability to entice people to other parts of the world
D) the young population in developed countries

Question 41

What has happened to the wage gap between host-country managers and expatriate managers?

A) It has widened since the recession of 2008 began.
B) It has narrowed due to increased competition in the labour market.
C) It has remained virtually unchanged for many years.
D) It is currently under review as more countries introduce pay equity legislation.

Question 42

Which term refers to the representation of labour on the board of directors of a company?

A) union/management relations
B) codetermination
C) co-management
D) participative unionism

Question 43

What should companies focus on when they are making repatriation plans for their international workers?

A) the replacement of the expatriate with home-country nationals
B) reducing job responsibilities for the expatriate
C) ensuring that there is appropriate employment in the home country
D) finding a new international assignment for the expatriate

Question 44

What impact do ongoing economic challenges have on reward packages for host-country managers?

A) They provide incentives to the manager to work abroad at the company's home office.
B) They result in reward packages which are valuable only in the host-country.
C) They establish a link between global performance and employee rewards package.
D) They result in a fluctuating rewards package for the managers.

Question 45

What criteria would be inappropriate for measuring the effectiveness of an expatriate?

A) profits, productivity, leadership development, and language skills
B) productivity, language skills, market share, and leadership development
C) language skills, profits, leadership development, and market share
D) productivity, profits, market share, and leadership development

Question 46

Which method of pay is quite common on a global scale for host-country employees?

A) piece rate
B) merit pay
C) daily rate
D) biweekly salary

Question 47

How often do expatriates receive a promotion, based upon their new skills, after returning home?

A) only a fraction of the time
B) thirty-three percent of the time
C) fifty percent of the time
D) the majority of the time

Question 48

The failure of companies to have effective repatriation plans has resulted in returning employees leaving the companies soon after returning home. What is a key reason for their departures from the organizations?

A) Co-workers don't know who they are.
B) They are given too much responsibility.
C) Their responsibilities are significantly diminished.
D) They get promoted beyond their comfort level.

Question 49

A firm that has integrated worldwide operations through a centralized home office is called a transnational corporation.

Question 50

In which country are unions more closely aligned with employers than with employees?

A) Sweden
B) India
C) Germany
D) China

Question 51

A domestic firm that uses its existing capabilities to move into overseas markets is called an international corporation.

Question 52

What must be in place in order to entice employees to agree to international assignments?

A) significantly higher wages for the same kind of work
B) a guarantee of promotion upon return from the assignment
C) taxation advantages for salaries earned in foreign countries
D) a compensation plan that is simple to administer

Question 53

In what country does the government intervene in all aspects of collective bargaining?

A) Russia
B) United Kingdom
C) Mexico
D) China

Question 54

On what basis have host-country managers traditionally been paid?

A) on local market salary levels
B) on the national aggregate salary levels of the host country
C) at the same salary level as the expatriate manager
D) on the salary levels of the home-country salary levels

Question 55

How do companies usually set their wage rates when they commence operations in foreign countries?

A) at the average of the prevailing wage rates for local companies
B) at, or slightly below, the prevailing wage for local companies
C) as low as they can, given the local unemployment rates
D) at, or slightly higher than, the prevailing wage for local companies

Question 56

A firm with independent business units operating in several countries is called a transnational corporation.

Question 57

How do companies typically address expatriate compensation issues?

A) Expatriates are paid in local currency to reduce the likelihood of tax issues.
B) Expatriates are paid quarterly when in the host-country to reduce income tax fees.
C) Expatriates are provided with a tax and financial advisor.
D) Expatriates are paid in their home-country currency, so there aren't any issues.

Question 58

In which country are nearly all the workers unionized and, as a result, unions have a great deal of power?

A) Australia
B) Sweden
C) Canada
D) France

Question 59

A firm with independent business units operating in several countries is called a global corporation.

Question 60

Who should be involved in an expatriate's performance review?

A) The HR managers of both the host-country and home country should be involved.
B) It should be a three-way review involving the home-country HR manager, the host-country manager and home-country manager.
C) The expatriate and the host-country manager should be involved with the results forwarded to the home-country manager.
D) The home-country manager should deliver the review, after receiving input from the host-country manager.

Question 61

Larger companies will have HR professionals devoted solely to assisting with the globalization process.

Question 62

The United Kingdom's exit from the European Union and the NAFTA renegotiations have minimal impact on Canada.

Question 63

There is an increased trend for international corporations to replace their expatriate managers with local managers as quickly as possible.

Question 64

A firm that attempts to balance local responsiveness and global scale by mean of a network of specialized operating units is called a transnational corporation.

Question 65

Expatriate assignments can cost three to five times what a domestic assignment costs.

Question 66

HRM can ensure the corporation's intellectual property rights throughout its worldwide operations by including appropriate language in its employment contract.

Question 67

China's population of 1.4 billion people represents a large market for organizations to sell to; however, legal restrictions prohibit transnational companies from operating in this market.

Question 68

Third-country nationals often have the required language skills and a deeper understanding of the culture within the host country than expatriates.

Question 69

HR planning in a global corporation will be affected by the health of the economies throughout their worldwide locations.

Question 70

Implementing strategies, structures, and management styles of the home-country office is the most effective way to guarantee success in host-county locations.

Question 71

It is often easier to recruit for unskilled workers than it is to recruit for skilled workers.

Question 72

It is not uncommon for governments to place pressure on international corporations to use more host-country employees.

Question 73

Guest workers are typically paid at a lower rate but cost more in the long run due to accommodations and transportation.

Question 74

Tax incentives, tariffs, and quotas are often used by host countries to encourage local hiring.

Question 75

Research suggests that unsuccessfully integrating cultural differences is often the reason global mergers and acquisitions fail.

Question 76

The European Union is Canada's largest trading partner.

Question 77

A shortage of talent is one of the reasons why more companies are recruiting internationally.

Question 78

International corporations must take into consideration the various cultural environments of their host countries when developing HR policies and programs.

Question 79

Japan, Asia's fastest growing country, has emerged as a dominant leader since implementing trade reforms.

Question 80

Third-country nationals must be from countries where there is an existing trade agreement (e.g., NAFTA) in order to work in the host-country.