Deck 19: International Human Resource Management and Labor Relations

Question 1

A firm's international division is usually located in ________.

A) the home country
B) the importing country
C) a centrally located country
D) the country with the highest foreign sales

Answer 1

A

Question 2

Who typically heads up an international division?

A) third country nationals
B) host country nationals
C) parent country nationals
D) primary country nationals

Answer 2

C

Question 3

Mercedes hired managers from the local community as operations managers in its Kentucky plant. Mercedes used ________.

A) parent country nationals
B) host country nationals
C) third country nationals
D) primary country nationals

Answer 3

B

Question 4

At which stage in the evolution of a firm's organizational structure are international staffing needs lowest?

A) export department
B) international division
C) global organization
D) matrix organization

Question 5

Companies that view themselves as multidomestic are more likely to ________.

A) provide visas to third country nationals
B) decentralize decision making
C) employ parent country nationals
D) centralize decision making

Question 6

Which of the following most likely restricts the hiring practices and compensation systems of international firms operating in foreign locations?

A) local laws
B) capital budgeting
C) benefits availability
D) practices of competing firms

Question 7

After training and development takes place, what comes next in the international human resource management process?

A) contribution to organizational effectiveness
B) performance appraisal
C) compensation and benefits
D) labor relations

Question 8

Which of the following is a true statement about China?

A) Government wage rates remain stagnant.
B) Numerous labor unions are available to professionals.
C) Working conditions have declined in the last ten years.
D) The number of labor complaints and strikes has risen in recent years.

Question 9

What is a disadvantage of using host country nationals to manage foreign operations?

A) high relocation costs to firm
B) unfamiliarity with firm's practices
C) loss of key talent from headquarters
D) inability to understand local customs

Question 10

Jessica is an HR manager at EXP Furnishings, an international firm. Which of the following is most likely NOT one of Jessica's job duties?

A) recruiting managers
B) providing training
C) appraising performance
D) assessing market share

Question 11

Pet Comfort Systems is a firm based in Chicago that has just started exporting a small number of pet beds to retail stores in London, Tokyo, and Paris. The export department manager at Pet Comfort Systems is most likely from which country?

A) England
B) Japan
C) France
D) U.S.

Question 12

What is most important in staffing managerial employees?

A) differences in cultural conditions
B) legal differences
C) strategic and development issues
D) political differences

Question 13

Using ________ will most likely improve a subsidiary's ability to adjust to changes in local economic and political conditions.

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

Question 14

TechWare, an MNE based in Canada, has foreign operations in Singapore and Tokyo. TechWare's foreign offices are managed by parent country nationals. What is the most likely advantage of this staffing policy?

A) develops community ties
B) generates innovative ideas
C) minimizes costs of relocating managers
D) facilitates communication with headquarters

Question 15

________ are employees who are not citizens of the firm's home country or of the host country.

A) Parent country nationals
B) Locals
C) Third country nationals
D) Expatriates

Question 16

What is the first step in the international human resource management process?

A) training and development
B) performance appraisal
C) recruitment and selection
D) compensation and benefits

Question 17

________ are residents of the international business's home country.

A) Parent country nationals
B) Host country nationals
C) Third country nationals
D) Primary country nationals

Question 18

Why do international HR managers most likely need to adjust hiring, firing, and training methods on a country-by-country basis?

A) ensure compensation equity
B) comply with international laws
C) adjust for national and cultural differences
D) meet requirements of joint venture contracts

Question 19

PDF Enterprises, an MNE, uses a centralized approach to management, so its international managers will most likely be ________.

A) parent country nationals
B) host country nationals
C) third country nationals
D) primary country nationals

Question 20

________ is the set of activities directed at attracting, developing, and maintaining the effective workforce necessary to achieve a firm's objectives.

A) Labor selection
B) Employee development
C) Human resource management
D) Strategic operations implementation

Question 21

Samsung tends to follow an ethnocentric staffing model. From which group will it most likely hire for upper-level management positions?

A) parent country nationals
B) host country nationals
C) third country nationals
D) primary country nationals

Question 22

Which country has the highest expatriate failure rates?

A) South Korea
B) the United States
C) Germany
D) Japan

Question 23

Why is the geocentric staffing approach encouraged by the European Union?

A) protect currency rates
B) promote worker mobility
C) ensure consensus building
D) maintain reasonable wage rates

Question 24

What term refers to people working and residing in countries other than their native country?

A) host country national
B) expatriate
C) nonpatriot
D) green card resident

Question 25

Japanese firms have a tendency to ________.

A) reserve top positions for Japanese managers
B) fill foreign management positions too quickly
C) ignore nationality when filling management positions
D) employ only non-Japanese managers for foreign positions

Question 26

Firms using a geocentric staffing model are primarily concerned with ________.

A) ensuring that home office views and policies are maintained
B) gaining support and assistance from local communities
C) hiring the best person available regardless of nationality
D) employing local managers with technical expertise

Question 27

Ballston Manufacturing, an MNC, adheres to an ethnocentric staffing approach when filling senior-level positions for its foreign locations. As a result, Ballston most likely devotes significant resources to ________.

A) distributing products
B) building effective supply chains
C) selecting and training expatriate managers
D) determining compensation for local employees

Question 28

Which of the following is most likely NOT included in the cost of expatriate failure?

A) training
B) moving expenses
C) lost managerial productivity
D) decreased performance of foreign subsidiary

Question 29

Which of the following is frequently asked by MNCs to fill short-term foreign assignments?

A) interns
B) headhunters
C) retired executives
D) new college graduates

Question 30

ATX Electronics, an MNC, typically fills high-level foreign positions with host country nationals. Which staffing model is most likely used by ATX Electronics?

A) ethnocentric staffing model
B) polycentric staffing model
C) geocentric staffing model
D) monocentric staffing model

Question 31

Maria, an HR manager at PolyTech, an MNE based in Canada, has been given the task of determining the best candidates for a managerial position at the firm's Tokyo facility. Which tool would help Maria the most in this task?

A) self-assessment checklist
B) performance appraisal
C) subordinate evaluation
D) risk assessment

Question 32

What is the primary reason for high expatriate turnover rates among U.S. firms?

A) difficulty with communication
B) lack of adequate compensation
C) problems adjusting to the location
D) inability to remain on a career track

Question 33

________ is the early return of an expatriate manager to the home country because of an inability to perform in the overseas assignment.

A) Culture shock
B) Expatriate return
C) Expatriate failure
D) Managerial incompetence

Question 34

Which of the following characteristics is LEAST relevant to selecting a qualified manager for a foreign assignment?

A) managerial competence and skills
B) appropriate training and education
C) foreign language fluency
D) adaptability

Question 35

Which type of manager would most likely be employed to promote a global outlook through the firm's operations?

A) parent country national
B) host country national
C) third country national
D) home country national

Question 36

Which of the following skills and abilities is LEAST relevant to the success of an international manager?

A) flexibility
B) extroversion
C) technical knowledge
D) emotional and physical health

Question 37

Michael is a United States citizen who was sent from the U.S. headquarters to Italy to oversee procedural changes in one of the corporation's manufacturing subsidiaries. Michael is a(n) ________.

A) parent country national
B) host country national
C) third country national
D) primary country national

Question 38

Firms using a(n) ________ primarily use parent country nationals to staff higher-level foreign positions.

A) ethnocentric staffing model
B) polycentric staffing model
C) geocentric staffing model
D) monocentric staffing model

Question 39

Tanya's job requires her to actively seek qualified managers to fill positions in other organizations. Tanya is most likely a(n) ________.

A) expatriate
B) headhunter
C) foreign marketer
D) manufacturers' agent

Question 40

Mick is a native of South Africa. He works for Octagon, a British MNC, at the firm's Tokyo branch. Mick is best described as a(n) ________.

A) parent country national
B) host country national
C) home country national
D) third country national

Question 41

John has been transferred to an office in Japan for a year. In his first few weeks, he began to feel confused and rejected as well as a sort of mourning for home. John is experiencing ________.

A) expatriate failure
B) repatriation
C) acculturation
D) culture shock

Question 42

________ refers to bringing a manager back home after a foreign assignment has been completed.

A) Expatriation
B) Repatriation
C) Expatriate failure
D) Acculturation

Question 43

According to research, what is the primary barrier to a firm's successful entry into a foreign market?

A) lack of information
B) lack of foreign partners
C) lack of international talent
D) lack of knowledge about foreign customers

Question 44

A ________ is the process of determining how effectively people are performing their jobs.

A) performance appraisal
B) job review
C) job audit
D) developmental audit

Question 45

In the ________ stage of acculturation, the new culture seems exciting and interesting.

A) honeymoon
B) acceptance
C) adaptation
D) biculturalism

Question 46

After more than a year in Germany, Carol has become fluent in German and admires the workplace traditions of caution and attention to detail. However, Carol remains slightly anxious about living in Germany. Carol is in the ________ stage of acculturation.

A) acceptance
B) disillusionment
C) adaptation
D) biculturalism

Question 47

Which term refers to instruction directed at enhancing specific job-related skills and abilities?

A) training
B) development
C) screening
D) selection

Question 48

Which instructional method allows global employees to access training materials when convenient?

A) classroom lectures
B) assessment centers
C) multimedia methods
D) role-playing activities

Question 49

Which stage of acculturation do most people remain in?

A) honeymoon
B) disillusionment
C) adaptation
D) biculturalism

Question 50

What is a benefit of using customized training programs?

A) keep costs to a minimum
B) enable retention assessment
C) specify essential information
D) monitor cultural effectiveness

Question 51

Patricia moved a few weeks ago to South Korea to accept a promotion. While she was initially excited about the move and found many Korean traditions interesting, she is struggling with the language differences and different foods available. Which stage of acculturation is Patricia in?

A) acceptance
B) disillusionment
C) adaptation
D) biculturalism

Question 52

After several separate assignments in Russia, Tim feels as comfortable in Moscow as he does in his hometown of Chicago. Tim speaks Russian fluently, and his family practices cultural traditions from both Russia and the United States. What stage of acculturation is Tim experiencing?

A) honeymoon
B) acceptance
C) adaptation
D) biculturalism

Question 53

In which stage of acculturation does the expatriate begin to understand the new culture and gain language competence?

A) honeymoon
B) acceptance
C) adaptation
D) biculturalism

Question 54

________ is general education concerned with preparing managers for new assignments and/or higher-level positions.

A) Training
B) Development
C) Screening
D) Practicing

Question 55

Dawson Enterprises, an MNE, has experienced numerous expatriation and repatriation problems in recent years. Which of the following activities would most likely increase the success rate of overseas assignments at Dawson?

A) providing expatriates with generous travel and housing stipends
B) ensuring that only unmarried managers are sent overseas
C) assigning mentors in the home office to expatriates
D) assigning new college recruits to foreign positions

Question 56

________ is a psychological phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation.

A) Expatriate failure
B) Repatriation
C) Culture shock
D) Depression

Question 57

Ingrid has been transferred from Germany to the United States. She has been in the U.S. for a few weeks and finds the environment exciting and stimulating. She loves such things as the shopping in the U.S. and feels certain she will adjust to this new environment easily. Which stage of acculturation is Ingrid in?

A) honeymoon
B) acceptance
C) adaptation
D) biculturalism

Question 58

Which of the following is not a phase in the process of acculturation?

A) honeymoon
B) acceptance
C) adaptation
D) biculturalism

Question 59

Which method can reduce the level of culture shock an expatriate is likely to experience?

A) predeparture language training
B) increased foreign compensation
C) initial long-term assignments
D) personality testing

Question 60

In the ________ stage of acculturation, the differences between the new and old environments are blown out of proportion.

A) acceptance
B) disillusionment
C) adaptation
D) biculturalism

Question 61

________ is the rate at which people leave a firm.

A) Turnover
B) Retention
C) Repatriation
D) Transition

Question 62

Decentralized firms tend to prefer home country nationals in international assignments.

Question 63

In most international firms' foreign operations, nonmanagerial employees are ________.

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

Question 64

A(n) ________ is a means of ensuring that the expatriate's after-tax income in the host country is similar to what the person's after-tax income would be in the home country.

A) tax assessment system
B) tax equalization system
C) hardship premium
D) foreign-service premium

Question 65

According to surveys, which of the following cities has the highest cost of living?

A) New York
B) Barcelona
C) Hong Kong
D) London

Question 66

________ is the extent to which a firm is able to keep valued employees.

A) Turnover
B) Retention
C) Repatriation
D) Compensation

Question 67

The initial step in the international human resource management process is identifying training and development needs.

Question 68

Labor complaints heard by arbitration committees in China have declined significantly since 2000 because of increased wages and improved working conditions.

Question 69

Which of the following is a characteristic of labor unions in Europe?

A) avoiding hostile actions towards employers
B) relying on regulations to protect wage rates
C) using work stoppages to gain public support
D) involving third-party mediators to settle grievances

Question 70

Barton Manufacturing is considering the idea of capitalizing on inexpensive labor in Mexico by moving the firm's production facilities from Detroit to Mexico City. The firm manufactures complex circuit boards. To ensure high productivity, Barton will most likely need to invest heavily in which of the following?

A) workforce training
B) healthcare benefits
C) vertical integration
D) diversification

Question 71

After five years working as a manager at Water Sound Enterprises, Jeff has decided to quit. On his last day at work, Jeff is interviewed by the HR manager and asked his reasons for leaving Water Sound. Jeff is most likely participating in a(n) ________ interview.

A) outsourcing
B) selection
C) screening
D) exit

Question 72

Parent country nationals (PCNs) are commonly used to fill lower-level jobs abroad.

Question 73

Which of the following is a EU policy that promotes common job-related benefits and working conditions throughout the EU?

A) fixed alliance
B) social charter
C) statutory law
D) codetermination

Question 74

If a firm is at the export department stage of internationalization, its manager is likely to be a host country national.

Question 75

What factor is most important when determining compensation for nonmanagerial employees in a firm's foreign facility?

A) home country standards
B) international averages
C) appraisal systems
D) local norms

Question 76

Smith Enterprises seeks to entice one of its star managers to move to Iraq to oversee its negotiations for Iraqi oil. The firm will likely need to offer a ________ to a manager's base salary.

A) cost-of-living allowance
B) bonus
C) hardship premium
D) tax equalization adjustment

Question 77

The idea that a manager who accepts a foreign assignment is entitled to the same standard of living the manager enjoyed at home is the basis for ________.

A) premium expatriate salaries
B) cost-of-living allowances
C) hardship premiums
D) tax equalization

Question 78

Expatriate managers generally receive differential compensation to make up for dramatic differences in ________.

A) technical responsibilities
B) standards of living
C) travel demands
D) healthcare

Question 79

Which term refers to the process used to make agreements between management and labor unions?

A) labor management
B) collective bargaining
C) negotiations
D) labor allowances

Question 80

________ refers to the requirement in Germany that unions have input into how firms are run.

A) Codetermination
B) Collective bargaining
C) Workers' rights
D) Union power