Deck 17: International HRM Challenge

Question 1

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.In which stage of internationalization is Hollar,Inc.?

A) Stage 2
B) Stage 3
C) Stage 4
D) Stage 5

Answer 1

C

Question 2

A company is in the second stage of internationalization when:

A) the company moves some of its operations out of the home country.
B) the company has production and assembly facilities in several countries and is part of strategic alliances with other international companies.
C) the company's operations are highly decentralized, there is little allegiance to the country of origin, and its managers see themselves as citizens of the world.
D) a firm expands into foreign markets but retains its production facilities in the home country.

Answer 2

A

Question 3

Which of the following is commonly used to lower labor costs by firms in stages 3,4,and 5 of internationalization?

A) Exporting
B) Decentralization
C) Outsourcing
D) Codetermination

Answer 3

C

Question 4

A firm that only does business domestically is in stage ________ of internationalization.

A) 1
B) 2
C) 3
D) 4

Question 5

Cartoon Corporation has its production facilities in the United States but is expanding into foreign markets.Cartoon is in Stage 1 of internationalization.

Question 6

Which term refers to a firm with highly decentralized operations in many countries and weak ties to any single country?

A) Subsidiary
B) Joint venture
C) Multinational corporation
D) Transnational corporation

Question 7

For companies in stage ________ of the internationalization process,HRM practices must focus on the selection,training,and compensation of expatriate managers,as well as the development of policies for employees of foreign facilities.

A) 1
B) 2
C) 3
D) 5

Question 8

All of the following are key concerns about global outsourcing EXCEPT:

A) online security threats.
B) unqualified employees.
C) inadequate quality control.
D) lack of legislative oversight.

Question 9

All of the following are common problems faced by small and medium-size enterprises attempting to internationalize EXCEPT:

A) inability to develop a product with global appeal.
B) lack of knowledge about foreign regulations.
C) inability to delegate control to expatriates.
D) lack of cross-cultural skills.

Question 10

Which of the following best describes a transnational corporation?

A) A company that exports its products to several countries and regions of the world
B) An international business consisting of a foreign branch owned partly by the home office and partly by an entity in the host country
C) A firm with assembly and production facilities in several countries and regions of the world
D) A highly decentralized firm that has operations in many countries and owes very little allegiance to any country

Question 11

Which of the following best describes a multinational corporation?

A) ION Enterprises has assembly and production facilities in several countries and regions of the world.
B) Avery Shoes exports its products to several countries and regions around the world.
C) Wilton Paper is a highly decentralized firm that has operations in many countries and little allegiance to any country.
D) Formby Manufacturing is an international business consisting of a foreign branch owned partly by the home office and partly by an entity in the host country.

Question 12

Hewit Computers makes most personnel decisions that affect its foreign branches through an international personnel department located at corporate headquarters in Texas.Hewit's foreign operations are managed primarily by expatriates.Hewit Computers is most likely in stage ________ of internationalization.

A) 2
B) 3
C) 4
D) 5

Question 13

Picture Perfect's market is exclusively domestic.Its plant locations all lie within the boundaries of its own nation.This company is in stage ________ of international involvement.

A) 1
B) 2
C) 3
D) 4

Question 14

Which of the following countries is NOT included in NAFTA?

A) China
B) Canada
C) Mexico
D) United States

Question 15

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.Prior to being purchased by Hollar,Tyro was most likely in which stage of internationalization?

A) Stage 1
B) Stage 2
C) Stage 3
D) Stage 4

Question 16

When in stage ________ of internationalization,HRM practices should facilitate exporting the firm's products through incentives,training,and staffing strategies that focus on the needs of international customers.

A) 1
B) 2
C) 3
D) 4
E) 5

Question 17

Electra,Inc.is a company in an advanced stage of internationalization.It has little allegiance to its country of origin,decentralized operations,relatively independent business units,and weak ties to any given country.This company is most likely in stage ________ of international involvement.

A) 2
B) 3
C) 4
D) 5

Question 18

The fourth stage of internationalization is marked by the company:

A) moving some of its operations out of the home country.
B) having production facilities in several countries of the world.
C) having highly decentralized operations and showing little allegiance to the country of origin.
D) expanding into foreign markets but retaining its production facilities in the home country.

Question 19

Which term refers to employees who are citizens of one country that are living and working in another country?

A) Domestics
B) Expatriates
C) Transnationals
D) Host-country nationals

Question 20

HRM strategies at stage ________ of internationalization are designed to blend individuals of diverse backgrounds into a team sharing a vision and corporate identity.

A) 2
B) 3
C) 4
D) 5

Question 21

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?

Question 22

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.

Question 23

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?

Question 24

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

Question 25

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.

Question 26

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.

Question 27

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%

Question 28

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.

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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?

Question 35

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.

Question 36

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

Question 37

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

Question 38

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

Question 39

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.

Question 40

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.

Question 41

In the geocentric approach,international subsidiaries are managed and staffed by personnel from the host country.

Question 42

The ________ is an approach to managing international operations in which nationality is downplayed and the firm actively searches on a worldwide or regional basis for the best people to fill key positions.

Question 43

The most common reason for expatriate failure is:

A) overemphasis on technical qualifications.
B) inability to speak the language.
C) family problems.
D) culture shock.

Question 44

Sun Electronics is a South Korean firm.The HR director,VP of operations,and production staff at the firm's U.S.facility are South Koreans.Sun Electronics is most likely using a polycentric approach to managing its U.S.facility.

Question 45

Which of the following qualifications would most likely minimize culture shock for an expatriate?

A) Interpersonal skills
B) Bilingual capabilities
C) Advanced college degree
D) Sophisticated technical knowledge

Question 46

All of the following are primary reasons that international assignments fail EXCEPT:

A) inadequate technical skills.
B) lack of cross-cultural training.
C) culture shock.
D) family problems.

Question 47

In international business,a foreign branch owned partly by the home office and partly by an entity in the host country is called a(n)________.

Question 48

The failure rate for American expatriates in their overseas assignments is:

A) highest in European assignments.
B) lowest in Asian assignments.
C) half of what it is for Asian companies.
D) three to four times higher than for European companies.

Question 49

Some of the advantages of using local employees to staff international subsidiaries are lower labor costs,the demonstration of trust in the local citizenry,and the increased acceptance of the company by the local community.

Question 50

The ________ is an approach to managing international operations in which top management and other key positions are filled by people from the home country.

Question 51

Which of the following statements about U.S.expatriate assignments is most likely true?

A) Only about 30% of multinational corporations provide any cross-cultural training to expatriates.
B) Almost 75% of expatriate families adjust and find the international experience a rewarding one.
C) The majority of managers experience significant career advancement after overseas assignments.
D) International assignments are plum assignments only given to the very best of the managers in the home office.

Question 52

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 host-country nationals?

A) Hollar wants to exhibit trust in the local citizenry.
B) Hollar wants to maintain significant control from headquarters.
C) Hollar anticipates extensive government intervention.
D) Hollar's domestic and foreign operations are highly interdependent.

Question 53

According to recent surveys,what is the highest-rated selection criterion for an international assignment at most firms?

A) Advancement potential
B) Technical qualifications
C) Cultural sensitivity
D) Language skills

Question 54

Additional Case 17.2
Golden Rod is an electronics firm based in Detroit with subsidiaries in several countries including Indonesia, Egypt, Argentina, and Thailand. The top management positions in these subsidiaries are filled by U.S. citizens. Golden Rod is planning on creating a new expatriate assignment in Egypt. The firm has created a selection board of expatriates to choose the best person for the job. In the past, Golden Rod has experienced a high turnover rate among repatriated managers, so executives hope to solve this problem.
Refer to Additional Case 17.2.Golden Rod seems to use which of the following approaches to manage international subsidiaries?

A) The geocentric approach
B) The polycentric approach
C) The ethnocentric approach
D) The intranational approach

Question 55

In international business,a foreign branch owned fully by the home office is referred to as a(n)________.

Question 56

When a country's political situation is unstable,it is best to use expatriates in top management positions.

Question 57

What is the difference between a polycentric and a geocentric approach to international management? How can managers ensure that HRM practices match a culture's value system when an employer uses one of these staffing approaches?

Question 58

Premature returns from overseas assignments cost U.S.companies an estimated ________ a year in direct costs.

A) $70 million
B) $1.3 million
C) $50 million
D) $6.1 billion

Question 59

When is it more appropriate for a global firm to use expatriate management rather than local national management? How can a firm's screening process ensure that the best employee is chosen for an expatriate management position?

Question 60

An approach to managing international operations in which subsidiaries are managed and staffed by personnel from the host country is the ________.

Question 61

European and Asian firms are more successful than U.S.firms with expatriate assignments.

Question 62

Why do many international assignments fail? What problems do returning expatriates frequently face?

Question 63

Nearly ________ of expatriates experience reverse culture shock upon their return to the U.S.

A) 100%
B) 80%
C) 60%
D) 40%

Question 64

Riya will soon repatriate to the United States after spending two years on assignment in Japan.Which of the following problems will Riya LEAST likely experience?

A) Status reversal
B) Reverse culture shock
C) Lack of respect for acquired skills
D) Inability to earn similar compensation

Question 65

About half of multinational companies provide cross-cultural training to expatriates.

Question 66

Typically,dual-career couples have less problems dealing with expatriation than do single-career couples because of numerous international career opportunities for spouses.

Question 67

Refer to Additional Case 17.2.Golden Rod chooses a woman named Chyna for the expatriate position in Egypt.Which of the following actions would LEAST likely solve reintegration problems for Chyna when she returns to the U.S.after the assignment?

A) Management should sit down with Chyna and lay out a potential career path before she goes abroad.
B) Golden Rod should provide a mentor for Chyna with whom she can communicate during her assignment.
C) Communication channels should be maintained between Chyna's home office and her office in Egypt.
D) Chyna's contributions need to be recognized by the local Egyptian community before she returns to the U.S.

Question 68

________ is the inability to adjust to a different cultural environment.

Question 69

While most expatriates experience some form of culture shock,few have difficulty readjusting to their home culture when they return from their assignment.

Question 70

Sami is on Patents,Inc.'s selection board,which has been assigned to choose an expatriate for an international subsidiary in Negril.She should most likely suggest that:

A) technical ability serves as the most important qualifying criterion.
B) the company screen applicants but not their families.
C) the board chooses someone who has had previous international experience.
D) the company not choose a foreign-born employee to serve as an expatriate.

Question 71

Refer to Additional Case 17.2.Which of the following best explains the firm's high turnover rate among repatriated managers?

A) Poor planning for new career assignments
B) Spouses and family suffering from culture shock
C) Inadequate compensation for cost-of-living expenses
D) Co-workers displaying a lack of cultural sensitivity

Question 72

Dual-career couples are:

A) less likely to return early from an international assignment than single-career couples.
B) less likely to have family difficulties during an international assignment.
C) more likely to be considered for international assignments.
D) more likely to face dissatisfaction with foreign assignments.

Question 73

Decisions regarding the selection of expatriates should most likely be:

A) made by a candidate's direct supervisor.
B) based upon the technical skill of the candidate.
C) handled by a selection board of repatriates.
D) based upon the candidate's personal interests.

Question 74

All of the following would most likely lower repatriation failure rates EXCEPT:

A) assigning mentors to expatriates.
B) requiring repatriates to take sabbaticals upon return.
C) recognizing the contributions of the repatriated employees when they return.
D) helping the expatriates with advance career planning before they leave on assignment.

Question 75

The repatriation of managers can be as complex as their initial overseas assignment.Repatriated managers are more likely to experience:

A) poor planning about what to do with them when they return to the home country.
B) an exaggerated respect for their expertise due to the overseas assignment.
C) a significant increase in responsibilities that leads to failure.
D) intense competition for their assignments.

Question 76

Companies can enhance the success of their expatriates through a careful selection process.A key criterion to consider when choosing successful expatriate managers is the candidate's:

A) domestic experience.
B) essential technical skills.
C) personal interests and hobbies.
D) spouse and family for adaptability.

Question 77

A significant difference between selecting an expatriate manager and selecting a manager for a domestic assignment is:

A) reviewing the candidate's political views.
B) screening the candidate's spouse and family.
C) measuring the candidate's interpersonal skills.
D) assessing the candidate's psychological make-up.

Question 78

A lack of technical qualifications for an international assignment is a key cause of expatriate failure.

Question 79

Approximately ________ of repatriates leave the organization shortly after returning home.

A) 5-15%
B) 20-40%
C) 50-70%
D) 75-85%

Question 80

Refer to Additional Case 17.2.In order to increase the likelihood of Chyna's success in Egypt,Golden Rod should most likely:

A) make sure her position in Egypt is slightly lower than her position at home.
B) not provide her with cross-cultural training to prevent establishing stereotypes.
C) spend more time on developing her technical abilities than her cross-cultural sensitivity.
D) make sure that this assignment will be a stepping stone for her advancement in the company.