Question 1

The HRM problems multinational companies face are completely different from those faced by international companies.

Accepted Answer

Multinational and international companies both face HRM problems such as cultural differences, legal and regulatory compliance, and managing a diverse workforce, although the scale and specifics can vary.

Question 2

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

Accepted Answer

Countries with high human capital have a highly skilled workforce, which is attractive to foreign investors who require skilled labor. This can lead to the creation of high-skill jobs, which is beneficial for the economy of the host country.

Question 3

A country's economic system is completely unrelated to its level of human capital.

Accepted Answer

A country's economic system and level of human capital are closely related. A country with a high level of human capital, meaning its population has advanced skills and education, is likely to have a more productive economy. Additionally, the economic system in a country can impact the development and distribution of human capital. For example, a country with a strong emphasis on education and training may have a more skilled workforce, leading to a more prosperous economy.

Question 4

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

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) is an international agreement signed by multiple countries to reduce trade barriers and promote free trade. It was later replaced by the World Trade Organization (WTO) in 1995.

Question 5

NAFTA,the EEC and GATT all exemplify events that are reducing competition among companies worldwide.

Accepted Answer

NAFTA (North American Free Trade Agreement) and the EEC (European Economic Community, now known as the European Union) were established to increase free trade and competition among member countries. GATT (General Agreement on Tariffs and Trade, now replaced by the World Trade Organization) aimed to reduce trade barriers and promote free trade among member countries. These events actually increased competition among companies worldwide, rather than reducing it.

Question 6

All NAFTA,EEC,and GATT member countries share a common currency,the euro.

Accepted Answer

None of the NAFTA member countries, which include the United States, Canada, and Mexico, are part of the European Union and therefore do not use the euro as their currency. The same applies to other GATT (General Agreement on Tariffs and Trade) and EEC (European Economic Community, now the EU) member countries.

Question 7

Multinational companies are increasingly employing inpatriates,increasing the need for cross-cultural training.

Accepted Answer

Inpatriates are employees from foreign countries who are brought to work in the domestic location of a multinational company. As such, there is a growing need for cross-cultural training to help these inpatriates adapt to the host culture and work effectively with their domestic colleagues.

Question 8

Collectivist cultures,as well as those with less of an authoritarian orientation,value group decision making and participative management practices more highly than do individualistic cultures.

Accepted Answer

In collectivist cultures, the group is valued more than the individual, and therefore, group decision making and participative management practices are highly valued. In contrast, individualistic cultures place greater emphasis on individual achievement and autonomy, and thus, may value more centralized and directive management practices.

Question 9

Domestic companies do not face problems with cultural diversity.

Accepted Answer

Even domestic companies can have employees from diverse cultural backgrounds, leading to potential communication and cultural differences that need to be navigated.

Question 10

Third-country nationals are employees born in a country other than the parent country or host country,but who work in the host country.

Accepted Answer

Third-country nationals are individuals who work in a host country but were not born in the parent or host country.

Question 11

Human capital refers to the productive capabilities of individuals.

Accepted Answer

Human capital refers to the knowledge, skills, experience, and other productive capabilities of individuals that can be used to create economic value. This includes education, training, talents, and abilities that can be harnessed to enhance productivity and contribute to economic growth.

Question 12

Inpatriates are employees sent by his or her company in one country to manage operations in a different country.

Accepted Answer

Inpatriates are employees brought from a foreign subsidiary to the parent company's country to work, not sent from the parent company to manage operations in a different country.

Question 13

The parent country is the country in which a company's corporate headquarters is located.

Accepted Answer

The parent country is indeed the country in which a company's corporate headquarters is located.

Question 14

Hofstede found that culture has a profound impact on a country's economic health by promoting certain values that either aid or inhibit economic growth.

Accepted Answer

Hofstede's cultural dimensions theory suggests that a country's culture influences its economic success by promoting values such as entrepreneurship, individualism, and long-term orientation, which can aid economic growth. Conversely, cultures that prioritize conformity, collectivism, and short-term orientation can inhibit economic progress.

Question 15

Companies become international in scope when they build facilities in a number of different countries,attempting to capitalize on lower production and distribution costs in different locations.

Accepted Answer

The answer of Companies become international in scope when they...

Question 16

Cultures with small power distance stress putting relationships before money,helping others,and preserving the environment.

Accepted Answer

The answer of Cultures with small power distance stress putting...

Question 17

Cultures differ strongly on such things as how subordinates expect leaders to lead,how decisions are handled within the hierarchy,and what motivates individuals.

Accepted Answer

This statement is true, as different cultures may have varying values, beliefs, and expectations when it comes to leadership styles, decision-making processes, and motivation techniques.

Question 18

Transnational process refers to the extent to which the firm's planning and decision-making process includes representatives and ideas from a variety of cultures.

Accepted Answer

Transnational process involves incorporating diverse perspectives and cultural influences into a company's decision-making and planning process.

Question 19

The culture of the country in which the facility is located most influences the company's international HRM practices.

Accepted Answer

The culture of the country where the facility is located plays a significant role in shaping the international HRM practices of the company. The cultural differences in terms of values, beliefs, attitudes, and behavior affect various HRM functions such as recruitment, selection, training, compensation, and performance appraisal. Therefore, companies need to align their HRM practices with the cultural norms and values of the host country to ensure effective international operations.

Question 20

Power distance describes the division of roles between the sexes within a society.

Accepted Answer

Power distance describes the degree of inequality in distribution of power and authority within a society or organization, and is not specifically related to gender roles.

Quiz 13: Managing Human Resources Globally