Question 1

Cultural environments differ across the world. What does this imply for business firms?

Accepted Answer

Cultural environments differ across the world, which means that strategies, structures, and management styles that work in one area of the world may be inappropriate or ineffective in another. Therefore, business firms must adjust their approach based on the cultural environment they are dealing with.

Question 2

Cultural environment includes all of the following components EXCEPT which one?

Accepted Answer

The cultural environment includes education/human capital, religious beliefs, values and ideologies, as well as other factors such as social norms, traditions, and customs. Corporate structure, while influenced by cultural factors, is more closely related to the economic environment.

Question 3

MAGNA is a Canadian firm located in Ontario. In this instance, what does Canada represent?

Accepted Answer

Canada represents the host country as MAGNA is located in Ontario, which is within Canadian territory.

Question 4

Some Japanese firms, such as Matsushita and NEC, tend to operate as domestic firms but see the whole world domestically-that is, as their market. What type of firms are these?

Accepted Answer

Global firms operate as if the world is their domestic market, with a unified strategy across all countries. Matsushita and NEC are examples of global firms as they have a global mindset and integrate their operations internationally rather than treating each country separately. Transnational firms have subsidiaries in multiple countries that operate independently, while multinational firms operate in multiple countries but customize their products or services to the local markets. International firms primarily focus on their home country and export products or services to other countries.

Question 5

Many nannies come to Canada to work for a period of time. What is the name of the document issued by the government granting authority to these nannies to seek employment in Canada?

Accepted Answer

The document issued by the government granting authority to nannies to seek employment in Canada is a work permit. A passport is a travel document, a birth certificate is a proof of identity and C) an allowance permit is not a recognized document.

Question 6

Rand Computers is a mid-sized firm located in Toronto. As a result of personal connections, Rand Computers has started a division in Buffalo, New York. What type of corporation is Rand Computers?

Accepted Answer

Rand Computers is an international corporation because it has operations in multiple countries, but it is not large enough to be considered a global or transnational corporation.

Question 7

Deccan Hardware Company, a Canadian firm, is now establishing a subsidiary in Mexico. As with many organizations at the early stages of international expansion, what type of employees would Deccan most likely use?

Accepted Answer

Deccan Hardware Company, being a Canadian firm, would most likely use home-country nationals (Canadians) to establish and manage the subsidiary in Mexico initially, as they are familiar with the company's culture and practices.

Question 8

Anna works as a compensation manager for IDL Inc., a multinational firm located in British Columbia. She has been posted to Hong Kong on an assignment. What type of employee is Anna?

Accepted Answer

Anna is an expatriate because she is working in a foreign country (Hong Kong) on a temporary assignment from her home country (Canada).

Question 9

While GH Motors is located in Canada, it has allowed management in all of international operations to make independent decisions on how they conduct business in their different environments. How would you classify GH Motors?

Accepted Answer

GH Motors is classified as a multinational corporation because it allows its international operations to make independent decisions, indicating a decentralized approach typical of multinational corporations.

Question 10

Think about a spider's web with the spider in the middle. In this scenario, the spider controls the web from the centre. What type of corporation does this web resemble the most?

Accepted Answer

The answer of Think about a spider's web with the...

Question 11

Which of the following factors is NOT a reason why firms may want to use host-country nationals?

Accepted Answer

Mobility is not a factor that makes firms want to use host-country nationals. While host-country nationals may be mobile, this is not a defining characteristic that makes them preferred by firms over other options. The other factors listed - preference by host-country governments, cost savings, and cultural knowledge - are all commonly cited reasons for using host-country nationals.

Question 12

What term do we use to describe the country in which an international business operates?

Accepted Answer

The term used to describe the country in which an international business operates is the "host country". This refers to the country that provides the necessary infrastructure and legal framework for the business to operate, including access to resources and the ability to hire employees.

Question 13

What is the main purpose of free trade agreements, such as NAFTA?

Accepted Answer

The main purpose of free trade agreements such as NAFTA is to facilitate the free movement of goods, services, capital, and people across borders. This is achieved by reducing trade barriers such as tariffs and quotas, promoting fair competition, and encouraging investment between countries. Free trade agreements are designed to boost economic growth and create new opportunities for businesses and individuals in participating countries.

Question 14

If Canadian company Bombardier transferred Karl Hammer, a native German, away from his assignment in Bonn, Germany, to a new assignment in Paris, France, Karl would then be considered which of the following?

Accepted Answer

Karl would be considered a third-country national because he is being transferred from his home country of Germany to a different host country of France.

Question 15

ABM is an international firm with headquarters in the United States. Its operations in other parts of the world are fully autonomous. What type of firm is ABM?

Accepted Answer

ABM has operations in multiple countries, but they operate autonomously, meaning they have a decentralized approach to management. This is typical of a multinational corporation. A transnational corporation operates as a single entity across multiple countries, while a global enterprise has a centralized approach to management.

Question 16

When a Canadian multinational corporation hires an employee from Australia to work in its office in Sydney, this employee referred to as which of the following?

Accepted Answer

The employee hired by the Canadian multinational corporation to work in its office in Sydney is referred to as a host-country national. This is because the employee is a citizen of the country where the office is located and is not relocated from the home country of the multinational corporation. Expatiates are employees who are sent by their home country organization to work in a foreign country, third-country nationals are employees who are hired by an organization but are citizens of a country different from the home country and the host country, and international managers refers to high-level employees who manage multinational operations.

Question 17

Which organization is pursuing a transnational strategy?

Accepted Answer

A transnational strategy involves balancing the need for efficiency and local responsiveness. The brewery in option B is trying to achieve scale economies (efficiency) while customizing its taste and marketing efforts for local markets (local responsiveness), which aligns with a transnational strategy.

Question 18

General Motors, headquartered in the United States, has operations in many parts of the world. Jimmy Lee, an IT manager from its Canadian operations, has been posted to India to oversee a start-up operation. What type of employee is Jimmy?

Accepted Answer

Jimmy Lee is a third-country national because he is a citizen of neither the home country (the United States) nor the host country (India), but rather of Canada where GM has operations.

Question 19

Which of the following is the source of overseas employees that provides the advantages of less cost and greater facility in the language?

Accepted Answer

The answer of Which of the following is the source...

Question 20

Which of the following is a recent trend in expatriate assignments?

Accepted Answer

The trend in recent years has been toward shorter, project-based assignments rather than traditional long-term assignments. This is due to the changing needs of businesses, as well as a desire for greater flexibility and cost-effectiveness. Short-term assignments allow companies to quickly deploy skilled workers to specific projects, rather than keeping them on long-term expatriate packages.

Quiz 15: International Human Resources Management