Question 1

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

Accepted Answer

Under the exporting and licensing approaches, the human resource function will be less affected as there is no actual physical presence in the foreign market. The company's existing workforce can handle the exporting and licensing activities, and there will be limited hiring of new employees in the foreign market.

Question 2

Locating a facility in a relatively underdeveloped area will impact all of the following human resource activities EXCEPT
A) training needs.
B) recruitment activities.
C) selection requirements.
D) development issues.
E) production design.

Accepted Answer

Locating a facility in a relatively underdeveloped area will not impact production design, as it is a separate activity that focuses on the design and efficiency of the production process. However, the other activities listed (training needs, recruitment activities, selection requirements, and development issues) are all directly impacted by the location of the facility.

Question 3

Which cultural dimension highlights a liking of structured circumstances instead of situations that are relatively unstructured?
A) Individualism
B) Collectivism
C) Masculinity
D) Femininity
E) Uncertainty Avoidance

Accepted Answer

The cultural dimension of Uncertainty Avoidance refers to the extent to which societies feel threatened by ambiguity and uncertainty. Societies that score high on this dimension prefer structured circumstances and are concerned with rules, regulations, and controls to avoid unpredictable situations. Therefore, choice E, Uncertainty Avoidance highlights a liking of structured circumstances instead of situations that are relatively unstructured.

Question 4

A cultural dimension that focuses on relationship building and quality of life is
A) femininity.
B) uncertainty avoidance.
C) time orientation.
D) power distance.
E) collectivism.

Accepted Answer

The cultural dimension of femininity focuses on values such as building relationships, quality of life, and nurturing. It emphasizes the importance of cooperation, empathy, and caring for others. This is in contrast to the cultural dimension of masculinity, which prioritizes competition, achievement, and assertiveness. Therefore, A) femininity is the best choice that focuses on relationship building and quality of life.

Question 5

Which international staffing model involves staffing high-level foreign jobs with parent-country nationals?
A) Globalcentric
B) Polycentric
C) Geocentric
D) Egocentric
E) None of these

Accepted Answer

The correct term for staffing high-level foreign jobs with parent-country nationals is "ethnocentric," which is not listed among the options provided.

Question 6

No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to what type of difference?
A) Language
B) Business practices
C) Children's rights
D) Roles
E) Personal norms

Accepted Answer

The cultural factor mentioned in the scenario pertains to business practices in Middle Eastern countries where outplacement firms do not exist due to the Islamic principle of not benefiting financially from other people's misfortunes.

Question 7

Prakash is a human resource manager for an Indian company that is building a manufacturing plant in Singapore. The plant will be staffed with Indian managers and local workers. Which advice would NOT be appropriate for Prakash?
A) You must understand legal requirements for compensation in Singapore.
B) You must consider the Indian government's legal requirements for compensation.
C) Compensation for workers in Singapore will likely be the same as for workers in India.
D) Workers in Singapore will have different preferences for compensation and benefits than will Indian workers.
E) The cost of living is different in Singapore than it is in India, so compensation policy must account for that difference.

Accepted Answer

Compensation for workers in Singapore is not likely to be the same as for workers in India, as there may be different legal requirements, market norms, and cost of living considerations that impact compensation levels. Prakash should not assume that compensation policies that are effective in India will be equally effective in Singapore.

Question 8

John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others. He would score highly on the ____ dimension of Hofstede's model of culture.
A) power distance
B) individualism
C) masculinity
D) uncertainty avoidance
E) time orientation

Accepted Answer

According to Hofstede's model of culture, individualism refers to the extent to which people value independence, self-reliance, and individual achievement. John's preference for working by himself on projects and avoiding group work that requires him to monitor the actions of others suggests that he values independence and self-reliance, which are key components of individualism.

Question 9

Which industrialized nation emerged as the only intact major power after World War II?
A) The United States
B) Japan
C) Germany
D) Canada
E) Africa

Accepted Answer

While Japan and Germany were both industrialized nations, they were heavily damaged by World War II and had to undergo significant post-war reconstruction efforts. Canada, while not as heavily involved in the war as the other nations listed, was not considered a major power at the time. Africa is a continent and not a nation, so it is not a valid answer. The United States, on the other hand, emerged as the only intact major power after the war due to its geographic isolation from the conflict and its relatively unscathed infrastructure.

Question 10

Local issues that must be dealt with by firms conducting business in foreign markets include all of the following EXCEPT
A) recruiting.
B) compensation.
C) selection.
D) human resource technology.
E) training.

Accepted Answer

Human resource technology is not a local issue that must be dealt with by firms conducting business in foreign markets, as technology is often standardized and widely available globally. However, recruitment, compensation, selection, and training must all be tailored to local cultural and legal contexts.

Question 11

What is the term used when a company lets a foreign firm make and/or distribute its products in a local market?
A) Exporting
B) Licensing
C) Direct investment
D) Joint venture
E) Strategic alliance

Accepted Answer

Licensing is the term used when a company grants permission to a foreign firm to manufacture and/or distribute its products in a local market. This allows the company to expand its market reach without having to bear the costs and risks associated with direct investment.

Question 12

Under a geocentric staffing model,
A) host-country nationals are used heavily because they know the local markets.
B) the organization will have a skeleton human resource department at the host-country location, while the home-country human resource department retains all control.
C) the 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.

Accepted Answer

In a geocentric staffing model, the organization seeks to hire the best person available for a position regardless of where the individual comes from. This means that nationality or location does not serve as a barrier to hiring, and the organization strives to have a diverse workforce with the best talent global talent available.

Question 13

Under which international strategy will several companies agree to cooperate for mutual benefit?
A) Exporting
B) Importing
C) Direct investment
D) Multinational organization
E) Strategic alliance

Accepted Answer

A strategic alliance involves several companies agreeing to cooperate for mutual benefit, often to enter new markets or gain access to new technologies. Exporting and importing are individual strategies, while direct investment and multinational organizations typically involve a single company establishing a presence in a foreign market.

Question 14

Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the United Kingdom, and so on)?
A) Population growth is slowing.
B) International trade is expanding.
C) The labor force is growing quickly.
D) Competition from foreign countries is increasing.
E) Countries are becoming increasingly interdependent.

Accepted Answer

The labor force is not growing quickly in developed nations. In fact, some developed nations are facing an aging workforce and declining birth rates leading to a shrinking labor force.

Question 15

Which international staffing model is typified by an organization using many host-country nationals to staff a variety of positions at many levels?
A) Ethnocentric
B) Polycentric
C) Geocentric
D) Egocentric
E) Globalcentric

Accepted Answer

The polycentric staffing model is characterized by using many host-country nationals to staff various positions at different levels. This approach emphasizes the localization of management and decision-making to accommodate the needs of the local market. It also allows for the development of strong relationships with the local community, and it can be more cost-effective than other models that rely more heavily on expatriates.

Question 16

Celebrity Cruises is based in Florida, but it hires workers from various countries to communicate with and serve guests from around the world. Which of the following is an accurate statement?
A) Celebrity will need to provide the same training to all of its foreign workers.
B) Celebrity will need to provide the same training to all of its workers.
C) Celebrity will need to tailor training to best develop workers from various countries.
D) Celebrity will not need to train its workers.
E) Celebrity will only need to train workers who have contact with customers; other workers need no training.

Accepted Answer

Since Celebrity Cruises hires workers from various countries to serve guests from around the world, it is important to tailor the training based on the culture they come from. Different cultures have different ways of communication, work ethics, customer service styles, and expectations, and understanding these differences can help develop an effective training program. Therefore, the training program should be designed to best develop workers from various countries.

Question 17

What is an advantage of direct investment in another country?
A) Less risk is involved.
B) It is not expensive.
C) There is more profit potential.
D) The facility is less integrated in the foreign market.
E) Synergy between business partners is achieved.

Accepted Answer

Direct investment in another country allows a company to tap into new markets, access new resources or technologies, and potentially earn higher profits due to the increased market potential.

Question 18

What aspect of international business do NAFTA and the EU represent?
A) Tariff systems
B) Economic communities
C) Trade controls
D) Export regulations
E) Quota guidelines

Accepted Answer

NAFTA (North American Free Trade Agreement) and the EU (European Union) represent economic communities. NAFTA is a free trade agreement between Canada, the United States, and Mexico, while the EU is a political and economic union of 27 member states located primarily in Europe. Both aim to eliminate barriers to trade and promote economic cooperation between their members.

Question 19

All EXCEPT which of the following countries are considered the leading industrial powers in today's global economy?
A) The United States
B) Japan
C) Germany
D) India
E) All of these are considered leading industrial powers.

Accepted Answer

India is considered a developing country and not a leading industrial power despite its growing economy. The United States, Japan, and Germany are all considered leading industrial powers in the global economy.

Question 20

When a company hires host-country nationals to staff foreign locations in underdeveloped countries, it must often
A) offer exercise classes.
B) provide extensive training and development.
C) hire a consultant.
D) seek permission from competitors.
E) cut the benefits package provided to employees.

Accepted Answer

When hiring host-country nationals in underdeveloped countries, companies need to provide extensive training and development to ensure that employees have the necessary skills and knowledge to perform their jobs effectively. This is because there may be a lack of education or technical expertise in these areas, making training crucial for success. Additionally, providing training and development shows a commitment to the growth and development of employees, which can improve morale and retention rates.

Quiz 3: The Global Environment

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

Locating a facility in a relatively underdeveloped area will impact all of the following human resource activities EXCEPT

Which cultural dimension highlights a liking of structured circumstances instead of situations that are relatively unstructured?

A cultural dimension that focuses on relationship building and quality of life is

Which international staffing model involves staffing high-level foreign jobs with parent-country nationals?

No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to what type of difference?

Prakash is a human resource manager for an Indian company that is building a manufacturing plant in Singapore. The plant will be staffed with Indian managers and local workers. Which advice would NOT be appropriate for Prakash?

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

Which industrialized nation emerged as the only intact major power after World War II?

Local issues that must be dealt with by firms conducting business in foreign markets include all of the following EXCEPT

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

Under a geocentric staffing model,

Under which international strategy will several companies agree to cooperate for mutual benefit?

Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the United Kingdom, and so on) ?

Which international staffing model is typified by an organization using many host-country nationals to staff a variety of positions at many levels?

Celebrity Cruises is based in Florida, but it hires workers from various countries to communicate with and serve guests from around the world. Which of the following is an accurate statement?

What is an advantage of direct investment in another country?

What aspect of international business do NAFTA and the EU represent?

All EXCEPT which of the following countries are considered the leading industrial powers in today's global economy?

When a company hires host-country nationals to staff foreign locations in underdeveloped countries, it must often