Question 1

Labor unions in the United States are more concerned with social issues than they are in most other countries.

Accepted Answer

Labor unions in the United States, like those in many other countries, primarily focus on labor rights, wages, benefits, and working conditions. While they may engage in social issues, their core concerns are similar to unions globally.

Question 2

In the context of the strategies that organizations use for competing in the international environment, a direct foreign investment occurs when a firm owns physical assets in another country.

Accepted Answer

Direct foreign investment refers to a situation where a firm invests directly in facilities to produce or market a product in a foreign country. This often involves owning physical assets such as factories, stores, or offices in that country.

Question 3

Future orientation is one of the four dimensions of national culture identified by Dutch scholar Geert Hofstede.

Accepted Answer

Future orientation is not one of Hofstede's dimensions; it is part of the GLOBE study. Hofstede's dimensions include power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, long-term vs. short-term orientation, and indulgence vs. restraint.

Question 4

Every aspect of the human resources management (HRM) process in a geocentric company must be undertaken from a domestic perspective.

Accepted Answer

A geocentric company adopts a global perspective in its HRM process, aiming to hire the best talent regardless of nationality, rather than focusing solely on a domestic perspective.

Question 5

Florence is an expatriate manager at a multinational corporation. Her managers expect her to act independently and acquire specialized knowledge and transfer it to her subordinates. The only issue she faces is being unable to get the local employees to go along with her ideas. As a result, there is a high risk of agency problems. In the context of the four international strategies proposed by Bartlett and Goshal, Florence is working with a company that uses a(n) _____.
A) transnational strategy
B) international strategy
C) global strategy
D) regional strategy

Accepted Answer

Florence's company expects her to act independently and acquire specialized knowledge and transfer it to her subordinates, which is characteristic of a transnational strategy.

Question 6

Which of the following is a reason why host-country nationals are usually hired as nonmanagerial employees in international businesses?
A) They demand lesser hardship premium than parent-country nationals.
B) They are cheaper to employ than parent-country or third-country nationals.
C) They do not require training and eliminate the training costs of organizations.
D) They are not eligible for the provisions of international labor standards.

Accepted Answer

Host-country nationals are often hired as nonmanagerial employees in international businesses because they are generally cheaper to employ than parent-country or third-country nationals. This cost-effectiveness comes from lower salary expectations in the host country compared to the home country of the international business, as well as reduced costs related to relocation, housing, and other expatriate benefits.

Question 7

In the context of selecting expatriates, which of the following is a type of recruiting firm that actively seek qualified managers and other professionals for possible placement in positions in other organizations?
A) Career services centers
B) Employment contractors
C) Gatekeepers
D) Headhunters

Accepted Answer

Headhunters are specialized recruiters who actively seek out candidates, often for senior positions or roles requiring specific expertise, to fill positions in other organizations. They are known for their proactive approach in identifying and approaching potential candidates.

Question 8

The most important index that international HR managers need to consider while hiring a workforce in a host country is hourly wage.

Accepted Answer

While hourly wage is an important factor, international HR managers must also consider other indices such as cost of living, labor laws, cultural differences, and the availability of skilled labor in the host country.

Question 9

John prefers to work alone on projects and avoids tasks that require him to work in a group with other employees in his organization. He believes in self-reliance and gives precedence to his own ideas and values over the beliefs of others. In the context of the dimensions of national culture identified by Geert Hofstede, John is likely to score high on _____.
A) gender egalitarianism
B) individualism
C) femininity
D) in-group collectivism

Accepted Answer

John's preference for working alone and prioritizing his own ideas and values over those of others aligns with the characteristics of individualism. Hofstede's individualism dimension refers to the degree to which people in a culture emphasize personal achievements and individual rights.

Question 10

In the context of the dimensions of national culture identified by Dutch scholar Geert Hofstede, uncertainty avoidance refers to the status and authority differences between a superior and a subordinate.

Accepted Answer

Uncertainty avoidance refers to the degree to which members of a culture feel uncomfortable with uncertainty and ambiguity, leading them to support beliefs and behaviors that promise certainty and conformity. Status and authority differences are addressed in Hofstede's Power Distance dimension.

Question 11

In the context of the strategies that organizations adopt for competing in the international environment, the process of making products in the domestic marketplace and then selling them in other countries is called importing.

Accepted Answer

The process described is called exporting, not importing. Importing involves bringing products or services into a country from abroad for sale.

Question 12

Which of the following is an advantage of exporting as an international business strategy?
A) It allows a firm to have its own company-owned facilities in a foreign market.
B) Products exported to other countries are exempt from trade controls like tariffs and taxes.
C) There is no need to adapt the products to be exported to local conditions as they are sold "as is".
D) It reduces the transportation expenses incurred by a firm.

Accepted Answer

Exporting allows a firm to sell its products "as is" in foreign markets, often without the need for significant adaptation to local conditions, unlike other international business strategies that may require customization to meet local tastes or regulatory requirements.

Question 13

More than half the world's workforce outside the United States belongs to labor unions.

Accepted Answer

The question states that "More than half the world's workforce outside the United States belongs to labor unions." This means that more than 50% of the workforce outside the US is unionized. This is true, as according to the International Trade Union Confederation, there are over 200 million union members worldwide, with the majority of them being outside the US.

Question 14

GeNext, a leading mobile software developer in Japan, agrees to develop exclusive software application programs for a new line of affordable smartphones to be launched by CelCom, a smartphone manufacturer in China. The brand reputation and pricing strategies of both of these companies are expected to bring in large volumes of smartphone sales. The profits from the sales will be divided between these two firms. In the given scenario, GeNext and CelCom have _____.
A) entered into a licensing agreement
B) formed a strategic alliance
C) entered into an agreement for a merger
D) made a direct foreign investment

Accepted Answer

GeNext and CelCom have formed a strategic alliance by agreeing to work together on developing exclusive software for a new line of smartphones, with the expectation of sharing the profits from the sales. This collaboration between two companies for a specific project or set of goals, without merging into a single entity, characterizes a strategic alliance.

Question 15

Which of the following dimensions of national culture identified by Dutch scholar Geert Hofstede refers to the status and authority differences between a superior and a subordinate?
A) Power distance
B) Collectivism
C) Assertiveness
D) Uncertainty avoidance

Accepted Answer

Power distance refers to the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

Question 16

One of the domestic issues in international human resource management is that firms have to:
A) replace host-country nationals with parent-country nationals for nonmanagerial jobs as the former are more expensive to employ.
B) provide a hardship premium to all local employees as part of their pay packages.
C) provide equal compensation to all workers, irrespective of their place of work.
D) invest additional money to bring the workforce in underdeveloped countries up to the expected performance standards.

Accepted Answer

Investing additional resources to train and develop the workforce in underdeveloped countries is often necessary to meet performance standards. This is because the level of education, skill sets, and access to technology may vary significantly from developed countries, requiring firms to invest in training and development to bridge the gap.

Question 17

Which of the following dimensions of national culture identified by Robert House's GLOBE project (Global Leadership and Organizational Behavior Effectiveness) refers to equal opportunities for men and women in society?
A) Gender egalitarianism
B) Power distance
C) In-group collectivism
D) Humane orientation

Accepted Answer

Gender egalitarianism refers to the extent to which a society minimizes gender inequality and promotes equal opportunities for men and women, which directly answers the question.

Question 18

Organizations using the ethnocentric staffing model have a fully functioning human resource (HR) department in each foreign subsidiary that is responsible for managing all local HR issues for lower- and upper-level employees alike.

Accepted Answer

In an ethnocentric staffing model, key positions in foreign subsidiaries are filled by employees from the parent company's home country, rather than having a fully functioning HR department in each subsidiary responsible for managing all local HR issues.

Question 19

Tanya, a social activist, works closely with a local nonprofit organization (NGO) to spread awareness about the importance of education in rural areas. She is actively involved in planning and organizing programs conducted by the community. Together, they have helped enroll 500 students in public schools and have also been responsible for setting up 15 new schools. Tanya takes a lot of pride in her work and her association with the NGO. In the context of the dimensions of national culture as identified by Robert House in his GLOBE project (Global Leadership and Organizational Behavior Effectiveness), Tanya belongs to a culture that is likely to score:
A) low on femininity.
B) high on in-group collectivism.
C) high on masculinity.
D) low on uncertainty avoidance.

Accepted Answer

Tanya's active involvement in community programs and her pride in collective achievements suggest a culture with high in-group collectivism, as it emphasizes strong ties and loyalty within groups, such as families or organizations.

Question 20

The actions of management toward labor and the actions of labor toward management are heavily restricted by law.

Accepted Answer

Both management and labor actions are governed by labor laws, which set boundaries and guidelines for their interactions, negotiations, and disputes to ensure fair practices and protect the rights of both parties.

Quiz 3: The Global Environment

Labor unions in the United States are more concerned with social issues than they are in most other countries.

In the context of the strategies that organizations use for competing in the international environment, a direct foreign investment occurs when a firm owns physical assets in another country.

Future orientation is one of the four dimensions of national culture identified by Dutch scholar Geert Hofstede.

Every aspect of the human resources management (HRM) process in a geocentric company must be undertaken from a domestic perspective.

Which of the following is a reason why host-country nationals are usually hired as nonmanagerial employees in international businesses?

In the context of selecting expatriates, which of the following is a type of recruiting firm that actively seek qualified managers and other professionals for possible placement in positions in other organizations?

The most important index that international HR managers need to consider while hiring a workforce in a host country is hourly wage.

In the context of the dimensions of national culture identified by Dutch scholar Geert Hofstede, uncertainty avoidance refers to the status and authority differences between a superior and a subordinate.

In the context of the strategies that organizations adopt for competing in the international environment, the process of making products in the domestic marketplace and then selling them in other countries is called importing.

Which of the following is an advantage of exporting as an international business strategy?

More than half the world's workforce outside the United States belongs to labor unions.

Which of the following dimensions of national culture identified by Dutch scholar Geert Hofstede refers to the status and authority differences between a superior and a subordinate?

One of the domestic issues in international human resource management is that firms have to:

Which of the following dimensions of national culture identified by Robert House's GLOBE project (Global Leadership and Organizational Behavior Effectiveness) refers to equal opportunities for men and women in society?

Organizations using the ethnocentric staffing model have a fully functioning human resource (HR) department in each foreign subsidiary that is responsible for managing all local HR issues for lower- and upper-level employees alike.

The actions of management toward labor and the actions of labor toward management are heavily restricted by law.