Deck 3: The Global Environment

Question 1

_____ refers to the setof values that helps anorganization's membersunderstand what it standsfor, how it does things, andwhat it considers important.

A) Culture
B) Diversity
C) Ethnicity
D) Egalitarianism
E) Organizational memory

Answer 1

A

Question 2

A cultural dimension identified by Hofstede that focuses on relationship building and quality of life is:

A) femininity.
B) uncertainty avoidance.
C) time orientation.
D) power distance.
E) individualism.

Answer 2

A

Question 3

In the context of entering the international business market, the process of making a product domestically and then selling it in another country is called importing.

Answer 3

False

Question 4

Which of the following models involves staffing high-level foreign jobs with parent-country nationals?

A) Anthropocentric
B) Polycentric
C) Geocentric
D) Regiocentric
E) Ethnocentric

Question 5

In the context of Hofstede's dimensions of national culture, a culture that scores high in uncertainty avoidance prefers unstructured situations over structured situations.

Question 6

Tanya is a social activist who works in association with a local community in her city to spread awareness on the importance of education in rural areas.She is actively involved in planning and organizing programs conducted by the community.In the context of cultural dimensions identified by Hofstede, she is likely to score high on _____.

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

Question 7

In the context of Hofstede's dimensions of national culture, a culture that scores high in femininity tends to value quality of life and relationships.

Question 8

According to Geert Hofstede's cultural dimension model, uncertainty avoidance refers tothe extent towhich persons define themselves as individuals ratherthan as members of groups.

Question 9

A geocentric staffing model is one where:

A) host-country nationals are used heavily because they know the local markets.
B) every aspect of the human resource managementprocessmust be undertaken from the host-countryperspective.
C) an organization seeks to hire the best person available for a position regardless of where the individual comes from.
D) expatriate home-country nationals are hired to fill higher-level foreign positions.
E) the home-office perspective takes precedence over local issues.

Question 10

Which of the following is true of developing countries like China and India today?

A) Their economies are independent of the economies of developed nations.
B) The demand for consumer goods in these countries has been steadily declining.
C) They have been experiencing slowing rates of population growth.
D) They are attractive sites for new businesses and joint ventures.
E) They are yet to enter the global business market.

Question 11

Cultural differences between people increase the potential for misunderstandings, miscommunication and similar problems.

Question 12

Which of the following staffing modelscalls for the dominantuse of host-country nationalsthroughout the organization?

A) Ethnocentric
B) Polycentric
C) Geocentric
D) Egocentric
E) Anthropocentric

Question 13

Time orientation, which was given by Hofstede as one of the five dimensions of national culture, is associated with the emphasis on either long-term values or short-term values.

Question 14

What is the term used when a company lets a foreign firm make and/or distribute its products in the foreign country's local market?

A) Exporting
B) Licensing
C) Direct investment
D) Joint venture
E) Strategic alliance

Question 15

The ethnocentric staffing model utilizes host-country nationals extensively throughout the company.

Question 16

In the international business scenario, when a firm owns physical assets in another country, it is called direct foreigninvestment.

Question 17

The interdependence of global markets was demonstrated by the recent economic turndown in the United States that affected many other parts of the world.

Question 18

John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others.He would score high on the ____ dimension of Hofstede's model of culture.

A) power distance
B) individualism
C) masculinity
D) uncertainty avoidance
E) time orientation

Question 19

Which of the following cultural dimensions identified by Hofstede emphasizes a preference for structured circumstances over situations that are relatively unstructured?

A) Power distance
B) Collectivism
C) Masculinity
D) Time orientation
E) Uncertainty avoidance

Question 20

There are often many differences in the benefit packages received by employees in different countries.

Question 21

Under which two approaches to international business will the human resource function be least affected?

A) Licensing and joint ventures
B) Direct investment and strategic alliances
C) Exporting and licensing
D) Joint ventures and strategic alliances
E) Exporting and direct investment

Question 22

In the context of Bartlett and Goshal's analysis of the situation relative to potential agency problems for international strategies, if an expatriate manageris expected to acquire, leverage, and transfer specializedknowledge and is yet given independence, he is most likely to be working with a firm using the _____.

A) regional strategy
B) global strategy
C) transnational strategy
D) local strategy
E) multidomestic strategy

Question 23

Who among the following is likely to earn a hardship premium?

A) An intern who puts in extra hours of work
B) A business development manager on a foreign client visit
C) An expatriate manager posted in a war-torn country
D) A physician volunteering to serve the poor in his locality
E) A research scientist who often works long hours

Question 24

Scenario 3.1
Mini-PC is a Houston-based manufacturer of handheld computers.In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld computer manufacturer in Stockholm, Sweden.Mini-PC allowed the management of Marstrand to continue its functions rather than sending U.S.managers to oversee Swedish operations.Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs.The Swedish workforce is about 80 percent unionized, in comparison to Mini-PC's nonunionized workforce.Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers.When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States scores higher than Sweden in individualism and uncertainty avoidance.
Refer to Scenario 3.1.Which aspect of culture will most likely affect Mini-PC's human resource activities at the corporate level because of differences between its U.S.and Swedish business units?

A) Language
B) Religious differences
C) Gender roles
D) Personal norms
E) Differences in views on child labor

Question 25

Which of the following is the easiest way to enter a new market in the international business scenario?

A) Direct foreign investment
B) Joint venture
C) Exporting
D) Licensing
E) Strategic alliance

Question 26

Wangkyo is an electrical engineer who designs power systems for factories.His employer sends him on a foreign assignment for one month to design a system for a new factory that is being built overseas.Which of the following skills is likely to help Wangkyo the most in this foreign assignment?

A) Technical skills
B) Language skills
C) Cultural skills
D) Financial skills
E) Leadership skills

Question 27

Which of the following cultural dimensions identified by Robert House's GLOBE project (Global Leadership and OrganizationalBehavior Effectiveness) was not discussed by Hofstede?

A) Gender egalitarianism
B) Power distance
C) Collectivism
D) Uncertainty avoidance
E) Individualism

Question 28

Repatriation is said to occur when a(n):

A) company sends a manager on a second foreign assignment.
B) expatriate manager comes home from a foreign assignment.
C) expatriate manager is replaced in the middle of an assignment.
D) manager is sent on a foreign assignment.
E) manager fails to successfully complete a foreign assignment.

Question 29

Scenario 3.1
Mini-PC is a Houston-based manufacturer of handheld computers.In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld computer manufacturer in Stockholm, Sweden.Mini-PC allowed the management of Marstrand to continue its functions rather than sending U.S.managers to oversee Swedish operations.Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs.The Swedish workforce is about 80 percent unionized, in comparison to Mini-PC's nonunionized workforce.Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers.When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States scores higher than Sweden in individualism and uncertainty avoidance.
Refer to Scenario 3.1.Which staffing model is Mini-PC using for its Swedish unit?

A) Geocentric
B) Ethnocentric
C) Polycentric
D) Regiocentric
E) Multicentric

Question 30

Which international business strategy involves cooperation between firms and may not involve sharing of ownership?

A) Exporting
B) Importing
C) Direct investment
D) Joint venture
E) Strategic alliance

Question 31

A pharmaceutical company headquartered in a country constructs a research lab in another country in order to make the best use of the efficient labor and technology available there.This is an example of:

A) exporting.
B) a strategic alliance.
C) a joint venture.
D) direct foreign investment.
E) licensing.

Question 32

Which of the following staffing models is based on the assumptionthat home-office perspectives and issues shouldtake precedence over local perspectives and issues?

A) ​Ethnocentric
B) ​Egocentric
C) ​Geocentric
D) ​Polycentric
E) ​Anthropocentric

Question 33

In the context of a firm entering the international business market, which of the following is least associated with the firm's human resource function?

A) Training programs
B) Compensation plans
C) Personnel acquisition
D) Repatriation
E) Production plans

Question 34

Which of the following is NOT an accurate statement about labor unions in the United States?

A) They typically try to avoid confrontations.
B) Labor contracts are legal and binding in nature.
C) Their political activism often extends beyond compensation.
D) Labor relations are heavily regulated by law.
E) Labor unions are concerned with wages and conditions of employment.

Question 35

Which of the following is NOT one of the national cultural dimensions discussed by Hofstede?

A) Power distance
B) Collectivism
C) Femininity
D) Uncertainty avoidance
E) Role identity

Question 36

In the context of Bartlett and Goshal's analysis of the situation relative to potential agency problems for international strategies, which strategy poses the highest risk of agency problems?

A) Multidomestic
B) Transnational
C) Regional
D) Global
E) Foreign Market

Question 37

Which of the following is NOT true in the context of international transfers and assignments?

A) Expatriates are provided with housing and medical benefits in their new locations.
B) Repatriation assistance is as important as helping expatriates adjust to a new location.
C) When expatriates travel alone for short-term assignments, they are allowed more trips to the home country.
D) An organization ensures that it stays in touch with its expatriate managers throughout the duration of an assignment.
E) Expatriates on assignments are not considered when new opportunities present themselves within the organization.

Question 38

Which of the following is least likely to be the basis of selection of an expatriate manager who is sent on a foreign assignment as a developmental opportunity so that he can learn and bring back information to the home country?

A) Level of self-reliance
B) Language ability
C) Appropriate experience
D) Technical expertise
E) Educational qualifications

Question 39

A leading mobile software developer agrees to develop exclusive software application platforms for a new line of good quality, affordable smartphones about to be launched by a popular smartphone device manufacturer.Their brand reputations and pricing strategies are expected to bring in large volumes of sales of the phones.Which of the following best exemplifies this business strategy?

A) Exporting
B) Strategic alliance
C) Repatriation
D) Direct foreign investment
E) Licensing

Question 40

Which of the following is NOT likely to be a part of the compensation package designed for an expatriate?

A) Housing benefits
B) Job location assistance for the spouse
C) A cost-of-living allowance
D) A hardship premium
E) Complete tax exemptions

Question 41

Scenario 3.1
Mini-PC is a Houston-based manufacturer of handheld computers.In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld computer manufacturer in Stockholm, Sweden.Mini-PC allowed the management of Marstrand to continue its functions rather than sending U.S.managers to oversee Swedish operations.Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs.The Swedish workforce is about 80 percent unionized, in comparison to Mini-PC's nonunionized workforce.Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers.When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States scores higher than Sweden in individualism and uncertainty avoidance.
Refer to Scenario 3.1.Which of the following domestic human resource issues is likely to be the most challenging due to cultural differences between the host country and the parent country?

A) Local compensation issues
B) Local selection issues
C) Local training issues
D) Local recruiting issues
E) Local development issues

Question 42

How does an organization choose to compete in the international environment, and how does each strategy affect its human resource function?

Question 43

How should businesses compensate expatriates?

Question 44

Scenario 3.1
Mini-PC is a Houston-based manufacturer of handheld computers.In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld computer manufacturer in Stockholm, Sweden.Mini-PC allowed the management of Marstrand to continue its functions rather than sending U.S.managers to oversee Swedish operations.Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs.The Swedish workforce is about 80 percent unionized, in comparison to Mini-PC's nonunionized workforce.Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers.When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States scores higher than Sweden in individualism and uncertainty avoidance.
Refer to Scenario 3.1.Which international strategy is Mini-PC using to expand its international operations?

A) Exporting
B) Licensing
C) Direct investment
D) Joint venture
E) Strategic alliance

Question 45

When a multinational firm hires local workers, how should it approach its local training issues?

Question 46

List the five dimensions of national culture as identified by Hofstede.

Question 47

How does the area of labor relations affect international human resource management?

Question 48

Robert, a marketing manager in a global exporting firm, prefers to strictly follow the work schedule designed by the top management team.Despite the flexibility given to him to reschedule certain functions in the marketing department, Robert favors a standardized and structured approach to work.In the context of Geert Hofstede's cultural dimension model,Robert is more likely to score high on:

A) ​collectivism.
B) ​individualism.
C) ​uncertainty avoidance.
D) ​femininity.
E) ​time orientation.

Question 49

Scenario 3.1
Mini-PC is a Houston-based manufacturer of handheld computers.In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld computer manufacturer in Stockholm, Sweden.Mini-PC allowed the management of Marstrand to continue its functions rather than sending U.S.managers to oversee Swedish operations.Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs.The Swedish workforce is about 80 percent unionized, in comparison to Mini-PC's nonunionized workforce.Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers.When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States scores higher than Sweden in individualism and uncertainty avoidance.
Which of the following forms of trade control places a limit on the number or value of goods that can be traded​?

A) ​Quota
B) ​Tariff
C) ​Common currency
D) ​Licensing
E) ​Strategic alliance

Question 50

Scenario 3.1
Mini-PC is a Houston-based manufacturer of handheld computers.In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld computer manufacturer in Stockholm, Sweden.Mini-PC allowed the management of Marstrand to continue its functions rather than sending U.S.managers to oversee Swedish operations.Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs.The Swedish workforce is about 80 percent unionized, in comparison to Mini-PC's nonunionized workforce.Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers.When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States scores higher than Sweden in individualism and uncertainty avoidance.
Refer to Scenario 3.1.Which of the following is likely to be true on the basis of scores on Hofstede's dimensions of culture?

A) The Swedish workers are less likely to accept an egalitarian work environment as compared to Mini-PC's Houston employees.
B) The Swedish workersare likely to place a much greater value on patience and persistence than do Mini-PC's American workers.
C) The Swedish workersare likely to emphasize individual contributions, as opposed to Mini-PC's workers in the United States, who value team or group contributions.
D) The Swedish workersare likely to be more comfortable working in unstructured environments as compared to Mini-PC's American workers.
E) The Swedish workersare more likely to require intensive training in communication and language skills .