Deck 15: Managing Human Resources Globally

Question 1

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

Answer 1

True
Explanation: Cultures differ strongly on such things as how subordinates expect leaders to lead, how decisions are handled within the hierarchy, and (most important)what motivates individuals. These have different implications for selecting and training managers in the different countries.

Question 2

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

Answer 2

False
Explanation: A parent country is a country in which a company's corporate headquarters is located. The host country, on the other hand, is the country in which the parent country organization seeks to locate (or has already located)a facility.

Question 3

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

Answer 3

True
Explanation: The North American Free Trade Agreement (NAFTA)is an agreement among Canada, the United States, and Mexico that has created a free market even larger than the European Economic Community. The United States and Canada already had a free trade agreement since 1989, but NAFTA brought Mexico into the consortium.

Question 4

Individualistic cultures such as those found in the United States often exhibit minimal differences between the highest- and lowest-paid individuals in an organization.

Question 5

Human capital refers to the productive capabilities of individuals.

Question 6

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

Question 7

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

Question 8

Masculine cultures value relationships over money.

Question 9

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

Question 10

Achieving something visible and showing off are considered masculine values.

Question 11

People are expected to look after the interests of the larger community in individualist cultures.

Question 12

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

Question 13

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

Question 14

Cultures with large power distance seek to eliminate inequalities in power and wealth as much as possible.

Question 15

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

Question 16

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 17

Domestic companies do not face problems with cultural diversity.

Question 18

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

Question 19

Inpatriates are managers transferred from an organization's corporate headquarters to work in an organization's subsidiaries.

Question 20

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

Question 21

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 22

Which of the following HR practices is least likely to be effective for organizations based in collective 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 23

_____ describes how cultures seek to deal with the fact that the future is not perfectly predictable.

A)Power distance
B)Individualism
C)Masculinity
D)Short-term orientation
E)Uncertainty avoidance

Question 24

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 25

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 Centers Association (WTCA)

Question 26

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 27

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 28

It is not necessary for the expatriate to understand his own culture as long as he understands the culture of the host country for the assignment to be successful.

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

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

Question 31

In _____ cultures, people are expected to look after their own interest rather than being protected by the group.

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

Question 32

Which of the following is most likely a collectivist country?

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

Question 33

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 socio-economic 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 34

NAFTA increased U.S. investment in Mexico because:

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

Question 35

In _____ cultures, people are expected to look after the interest of the larger community, which is expected to protect people when they are in trouble.

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

Question 36

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

Question 37

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

Question 38

Which of the following cultural dimensions describes the degree of inequality among people that is considered normal?

A)Uncertainty avoidance
B)Individualism
C)Power distance
D)Masculinity
E)Long-term orientation

Question 39

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 40

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

Question 41

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

A)Achievement
B)Showing off
C)Performance
D)Relationships
E)Assertiveness

Question 42

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 43

_____ usually exhibit greater differences between the highest- and lowest-paid individuals in an organization.

A)Cultures with a long term orientation
B)Individualistic cultures
C)Cultures with low power distance
D)Feminine cultures
E)Cultures with low uncertainty avoidance

Question 44

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

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

Question 45

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

A)Service
B)Solidarity
C)Preserving the environment
D)Performance
E)Care for the weak

Question 46

In _____ systems, there is less opportunity to develop human capital without higher costs.

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

Question 47

Which of the following is most likely to occur during the communication process of an organization in a collectivist culture?

A)Authoritarian orientation of leaders
B)Devaluation of group decision making
C)Participative management practices
D)Conflict of individual opinions
E)Highly centralized resolution of issues

Question 48

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 49

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 50

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 51

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 52

A country that serves as the home for a corporation's headquarters is called the _____.

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

Question 53

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 54

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

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

Question 55

Countries like 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 educated workforce.

Question 56

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 57

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 58

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 59

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

A)Thrift
B)Saving
C)Persistence
D)Focus on future
E)Tradition

Question 60

_____ cultures tend to have flatter salary structures.

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

Question 61

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 62

_____ 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 63

_____ are employees who were born and live in the country where the headquarters of a company is located.

A)Expatriates
B)Inpatriates
C)Repatraites
D)Parent-country nationals
E)Third-country nationals

Question 64

Gaia Inc. is a company based in the U.S. 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 65

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, raised, and works in the host country, as opposed to the parent country.
D)who works for a foreign company in one's own country.
E)who returns to work in his country of birth.

Question 66

Plutus Inc. has its headquarters in the U.S. 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 67

_____ is the term generally used for employees sent by a company in one country to manage operations in a different country.

A)Expatriate
B)Inpatriate
C)Repatriate
D)Parent-country national
E)Third-country national

Question 68

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

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

Question 69

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 70

Most companies begin by operating within a(n)_____ marketplace.

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

Question 71

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 72

_____ reflects 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

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

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

Question 74

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 75

_____ are those employees who were born and raised in the country where a parent country organization seeks to locate a facility.

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

Question 76

Which of the following is a third country of Grazia?

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

Question 77

A third country is where a company _____.

A)has a facility but may not hire locals
B)establishes its headquarters
C)may or may not have a facility
D)locates its administrative office
E)locates its production facility

Question 78

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 79

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

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

Question 80

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