Deck 15: Managing Human Resources Globally

Question 1

Capitalist systems attempt to reward individuals for their efforts by allowing them to keep more of their earnings.

Answer 1

True

Question 2

Denmark seeks to eliminate inequalities in power and wealth as much as possible, since it has a large power distance.

Answer 2

False

Question 3

Countries with high human capital are attractive sites for direct foreign investment that creates high-skill jobs.

Answer 3

True

Question 4

Mitsuru likes to show off and flaunt his success. These masculine values permeate his culture.

Question 5

Transnational scope refers to the fact that HRM decisions must be made from a global perspective rather than a national perspective.

Question 6

Human capital refers to the productive capabilities of individuals.

Question 7

Uncertainty avoidance describes how a culture deals with hierarchical power relationships.

Question 8

Since the United States is a collectivist culture, the salary structure is flat.

Question 9

The World Trade Organization (WTO) initiated the North American Free Trade Agreement (NAFTA) to resolve disputes among its members.

Question 10

Sean is being transferred from corporate headquarters to be the new plant manager in France. He is now an inpatriate.

Question 11

Masculine cultures value relationships over money.

Question 12

Domestic companies do not face problems with cultural diversity.

Question 13

According to Geert Hofstede's research, countries with individualist cultures were wealthier.

Question 14

Companies that do business in other countries have to present compensation packages to expatriate managers that are competitive in gross, rather than take-home, pay.

Question 15

How decisions are handled within the hierarchy of an organization has implications for the selection and training of managers in different countries.

Question 16

Cultures with weak uncertainty avoidance tend to be rather easygoing and flexible regarding different views.

Question 17

The North American Free Trade Agreement (NAFTA) is an agreement among Canada, the United States, and Mexico.

Question 18

The General Agreement on Tariffs and Trade (GATT) is an international framework of rules for reducing trade barriers across countries around the world.

Question 19

Margaret grew up in an individualistic culture. Now as an adult she is expected to look after the interests of her community over her own personal interests.

Question 20

A host country is a country in which an organization's headquarters is located.

Question 21

The adaptive skills required to maintain a positive self-image and psychological well-being are categorized into the perception dimension.

Question 22

Forough, a native Pakistani, lives with her parents, grandparents, and an aunt. She is there to protect them, which is typical of those in a(n) ________ culture.

A) individualist
B) consumerist
C) democratic
D) capitalist
E) collectivist

Question 23

Finn is from the Netherlands. In his ________ culture, he was raised to look after his own interests.

A) communist
B) individualist
C) socialist
D) aristocratic
E) collectivist

Question 24

Which of the following is true about the European Economic Community (EEC)?

A) All European nations are a part of the EEC.
B) Commerce within the EEC is regulated entirely by the World Trade Organization (WTO).
C) The General Agreement on Tariffs and Trade (GATT) is the confederation that regulates free trade within the EEC.
D) Most members of the EEC share a common currency.
E) Under the EEC, legal regulation in the participating countries has become uniform.

Question 25

Think about the different cultures around the world. Which of the following would be most likely to look after the interests of the larger community?

A) United States
B) Great Britain
C) Netherlands
D) Colombia
E) France

Question 26

A country with a large power distance

A) reduces the gap between employees at the higher and lower levels of a company.
B) increases opportunities for people from all socioeconomic groups.
C) maintains the inequalities in wealth among different sections of the society.
D) regulates distribution of power to ensure equal growth opportunities.
E) increases intervention to check disproportionate accumulation of wealth.

Question 27

Male and female expatriates can perform equally well in international assignments, regardless of the country's cultural predispositions toward women in management.

Question 28

Mikinos has been raised to seek security through his religion. He has been taught very clear rules about how to behave. He was raised in a(n) ________ culture.

A) power distance
B) individualist
C) masculinity
D) short-term orientation
E) uncertainty avoidance

Question 29

Sam visits Mexico for a business meeting. At the meeting, Sam addresses the vice president of the firm by his first name rather than using his title. This is considered offensive. In the context of Hofstede's cultural dimensions, this difference in cultures is part of the ________ dimension.

A) masculinity-femininity
B) individualism-collectivism
C) uncertainty avoidance
D) power distance
E) long-term-short-term orientation

Question 30

In the Philippines, there is a high degree of inequality among people that is considered normal. This hierarchical relationship is called

A) uncertainty avoidance.
B) individualism.
C) power distance.
D) masculinity.
E) long-term orientation.

Question 31

Communication is the extent to which an expatriate receives information and recognizes changes while abroad.

Question 32

The individualism-collectivism dimension primarily describes

A) the strength of the relationships between the members of a society.
B) how a culture deals with hierarchical relationships.
C) the unequal distribution of power within a society.
D) the division of roles between the sexes within a society.
E) how cultures seek to deal with the fact that the future is not perfectly predictable.

Question 33

The ________ involves an international framework of rules and principles for reducing trade barriers across countries around the world.

A) European Economic Community (EEC)
B) North American Free Trade Agreement (NAFTA)
C) General Agreement on Tariffs and Trade (GATT)
D) Association of Southeast Asian Nations (ASEAN)
E) International Monetary Fund (IMF)

Question 34

Effective cross-cultural training helps ease an expatriate's transition to the new work environment.

Question 35

David is being sent to Brazil to work. He is prepared, as he has learned Portuguese and the customs of the culture. He also knows that Brazilians value being on time for meetings so he is early to his first meeting.

Question 36

The ________ established the World Trade Organization (WTO) to resolve disputes among its members.

A) North American Free Trade Agreement (NAFTA)
B) European Union (EU)
C) European Economic Commission (EEC)
D) General Agreement on Tariffs and Trade (GATT)
E) World Trade Center Association (WTCA)

Question 37

Which of the following is true of cultures that are highly individualist?

A) In highly individualist cultures, individuals are expected to look after the interests of the larger community.
B) In highly individualist cultures, individuals are not encouraged to be self-sufficient.
C) In highly individualist cultures, individuals expect protection from the larger community.
D) In highly individualist cultures, individuals are not expected to look after their immediate family.
E) In highly individualist cultures, individuals are expected to stand on their own two feet and protect themselves.

Question 38

NAFTA increased U.S. investment in Mexico because

A) Mexico's infrastructure is better than that of the United States.
B) Mexico has substantially lower labor costs for low-skilled employees.
C) Mexico has been witnessing a gradual increase in transportation costs.
D) the United States wanted to create job openings for low-skilled labor in the United States.
E) the United States wanted to provide only high-skilled labor opportunities for Americans.

Question 39

Which of the following countries is a member of the North American Free Trade Agreement (NAFTA)?

A) Cuba
B) Dominican Republic
C) Panama
D) Mexico
E) Peru

Question 40

Which of the following HR practices is least likely to be effective for organizations based in collectivist cultures such as Japan?

A) Employee assistance programs
B) Participative management practices
C) Individual-based incentives
D) Project-based organizational structures
E) Tax structures that strengthen social responsibility

Question 41

Which of the following scenarios is likely to be valued in a culture with a short-term orientation?

A) Jaqueline's thriftiness to save the company money
B) Trevor's ability to save money for the future
C) Chi's persistence to get the job done
D) Karobi's focus on the future
E) Layton's reliance on traditions

Question 42

Which of the following is true of cultures that are strong in uncertainty avoidance?

A) These cultures condition individuals to accept uncertainty.
B) People in these cultures tend to be easygoing.
C) People in these cultures tend to be flexible to different views.
D) These cultures do not impose clear rules as to how one should behave.
E) These cultures condition people to seek security through technology and law.

Question 43

A ________ country is the country in which the parent country organization seeks to locate or has already located a facility.

A) third
B) governing
C) home
D) host
E) domestic

Question 44

Which of the following is true of how human capital affects foreign investment in a country?

A) Countries with low human capital attract foreign facilities looking for high skills and low wages.
B) Countries that have high human capital are likely to attract foreign facilities looking for high turnover.
C) Countries that shift unionized manufacturing jobs to other countries do so for high-skilled workers.
D) Countries that invest in education are likely to attract direct foreign investment.
E) Countries that have low human capital are likely to attract foreign facilities looking for low turnover.

Question 45

A culture characterized by easygoing and flexible people who take each day as it comes is one that is

A) weak in uncertainty avoidance.
B) low in short-term orientation.
C) high in power distance.
D) high in long-term orientation.
E) high in uncertainty avoidance.

Question 46

Juan is not used to communication problems and conflicts in the workplace. In his collectivist culture, he has most likely only seen

A) authoritarian orientation of leaders.
B) devaluation of group decision making.
C) participative management.
D) conflict of individual opinions.
E) highly centralized resolution of issues.

Question 47

________ cultures tend to have flatter salary structures.

A) Long-term-oriented
B) Individualist
C) Collectivist
D) Masculine
E) Short-term-oriented

Question 48

Which of the following is likely to be valued in a culture with a long-term orientation?

A) Tradition
B) History
C) Social obligation
D) Persistence
E) Respect for the past

Question 49

U.S. companies tend to relocate their low-skill-high-wage manufacturing and assembly jobs to Mexico because it has a

A) strong political-legal system.
B) low level of human capital.
C) strong economic system.
D) low power distance culture.
E) collectivist culture.

Question 50

In the United States there is a great difference between the highest and lowest paid individuals. Because of this difference, the United States is a(n)

A) culture with a long-term orientation.
B) individualist culture.
C) culture with low power distance.
D) feminine culture.
E) culture with low uncertainty avoidance.

Question 51

Countries such as Mexico with low human capital are likely to attract

A) direct foreign investment.
B) high-skilled job opportunities.
C) facilities looking for low turnover.
D) unionized low-skill-high-wage jobs.
E) companies looking for an educated workforce.

Question 52

Which of the following is likely to be valued most in a feminine culture?

A) Showing off
B) Solidarity
C) Success
D) Performance
E) Assertiveness

Question 53

MarchTech Corp. is a software company that has its headquarters in Japan. The company has operations in France and India. Japan is the ________ of MarchTech.

A) receiving country
B) third country
C) guest country
D) host country
E) parent country

Question 54

In the German culture, ________ is highly valued, since the culture favors masculinity.

A) service
B) solidarity
C) preservation of the environment
D) performance
E) care for the weak

Question 55

In the context of Hofstede's cultural dimensions, the masculinity-femininity dimension describes

A) the strength of the relationships between the members of a society.
B) how a culture deals with hierarchical relationships.
C) the unequal distribution of power within a society.
D) the division of roles between the sexes within a society.
E) how cultures seek to deal with the fact that the future is not perfectly predictable.

Question 56

According to Hofstede, a country's economic health is positively correlated with

A) feminist cultures.
B) cultures with no uncertainty avoidance.
C) individualist cultures.
D) cultures with high power distance.
E) collectivist cultures.

Question 57

When a company invests in education to reap future monetary rewards, it is part of a ________ system.

A) socialist
B) capitalist
C) communist
D) feminine
E) collectivist

Question 58

Which of the following scenarios is most likely to be valued in feminine cultures?

A) Sara winning an honor
B) Pilar making a point that everyone sees her accomplishment
C) Frances working hard to reach her goals
D) Deanna valuing relationships over money
E) Caterina confronting her boss about poor business practices

Question 59

China is the ________ for Lenovo Computers headquarters.

A) host country
B) guest country
C) third country
D) expat country
E) parent country

Question 60

Countries that ________ are attractive sites for direct foreign investment that creates high-skill jobs.

A) have a low-skill-high-wage workforce
B) are developed and highly educated
C) have high human capital
D) invest less on education
E) have high illiteracy rates

Question 61

When a company expands from having one facility in another country to having a number of facilities in different countries, it is transforming from a(n)

A) domestic company to a global company.
B) domestic company to an international company.
C) international company to a multinational company.
D) multinational company to an international company.
E) global company to an international company.

Question 62

Which of the following is the parent country of Grazia S.p.A?

A) France
B) Spain
C) Italy
D) Japan
E) China

Question 63

________ are employees born in a country where neither a company's headquarters nor a facility is located but work in the host country.

A) Parent-country nationals
B) Host-country nationals
C) Third-country nationals
D) Inpatriates
E) Repatriates

Question 64

Luke has an idea to build a new car that works on solar power. It would be best to begin his operation in a ________ marketplace.

A) universal
B) international
C) multinational
D) domestic
E) global

Question 65

Plutus Inc. has its headquarters in the United States and has a facility in Germany. A virtual team operates from around the globe, with most members from China. China is a ________ country for Plutus.

A) home
B) domestic
C) parent
D) third
E) host

Question 66

Ryan has been sent from the New York City office to the office in London to manage the shipping of products. He is a(n)

A) expatriate.
B) inpatriate.
C) repatriate.
D) parent-country national.
E) third-country national.

Question 67

RapidFlow Systems is a Mexican company with operations across different states. After a few years, the company extends its operations to Canada and opens a facility there. As a result of this expansion, RapidFlow Systems has become a(n) ________ company.

A) universal
B) international
C) importing
D) domestic
E) global

Question 68

Lajita was born in India and is now employed at Indian Oil. She is a(n)

A) expatriate.
B) inpatriate.
C) repatriate.
D) parent-country national.
E) third-country national.

Question 69

Which of the following is a third country for Grazia?

A) Italy
B) France
C) Japan
D) India
E) Spain

Question 70

France is a ________ country for Grazia S.p.A.

A) host
B) parent
C) third
D) home
E) domestic

Question 71

Gaia Inc. is a company based in the United States. It expands its operations and sets up a manufacturing facility in Brazil. In this scenario, Brazil is the ________ country of Gaia.

A) parent
B) third
C) host
D) home
E) domestic

Question 72

________ is the multinational composition of a company's managers.

A) Transnational scope
B) Transnational participation
C) Transnational process
D) Transnational representation
E) Transnational capacity

Question 73

Which of the following is a host-country national?

A) John was born and raised in the United States and will now work in New York.
B) Jose was born and raised in Mexico City where Americal plans to relocate.
C) Heather was born and raised in Great Britain and now works in South Africa.
D) Donna was born and raised in France and now works and lives in the United States.
E) Mohamed was born and raised in Israel and has been working in France, but is now returning home.

Question 74

An individual who was born in France and is currently working in Peru for a company headquartered in Germany is called a

A) parent-country national.
B) host-country national.
C) home-country national.
D) third-country national.
E) domestic-country national.

Question 75

Misha Branson was born in England and is currently working for a French company in England. She will be considered a ________ in France.

A) guest-country national
B) parent-country national
C) host-country national
D) third-country national
E) home-country national

Question 76

Which of the following is true of a third country?

A) It has a facility but may not hire locals.
B) It establishes its headquarters there.
C) It may or may not have a facility there.
D) It is where it locates its administrative office.
E) It is where it locates its production facility.

Question 77

Which of the following is the host country for Grazia S.p.A?

A) Italy
B) Japan
C) India
D) The U.K.
E) Spain

Question 78

An expatriate is an employee

A) who was born and works in the parent country.
B) who is sent by a company in one country to manage operations in a different country.
C) who was born, was raised, and works in the host country, as opposed to the parent country.
D) who works for a foreign company in his or her own country.
E) who returns to work in his or her country of birth.

Question 79

A firm that enters foreign markets by exporting goods to another country is at the ________ level of global participation.

A) domestic
B) international
C) multinational
D) global
E) universal

Question 80

China is a ________ country for Grazia S.p.A.

A) parent
B) host
C) home
D) third
E) domestic