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CHAPTER
1: Introduction
TRUE/FALSE
1. An inpatriate is an employee transferred out
of the home base into the firm’s international organization.
2. The HR department is the major user of
language translation services.
3. The IHR department does not get involved in
the employee’s personal lives such as marital status and children when
considered for assignments.
4. Less developed countries tend to have cheaper
labor but more government regulations.
5. Culture shock is a phenomenon experiences by
people who move across cultures.
6. A domestic HRM is involved with employees
within one national boundary.
7. Compensation and benefit programs are not an
activity of internal human resource management.
8. Awareness of cultural differences is not
essential for the HR manager at corporate headquarters. It is only important
for expatriate employees as well as those at the host location.
9. Multidomestic industries is one in which
competition in each country is essentially independent of competition in other
countries.
10. Multinational organizations need to strive
for consistency in the ways of managing people on a worldwide basis in order to
build, maintain and develop their corporate identity.
11. Cultural awareness is reflected by knowing
that local employees feel an obligation to employ extended family even if they
are unqualified for the position.
12. If a firm is in a multidomestic industry, the
role of HR department will most likely be more domestic in structure and
orientation.
13. A large home market is one of the key drivers
for seeking a new international market.
14. Local HR activities, such as human resource
planning and staffing, changes as a foreign subsidiary matures.
15. The nationality of an employee is not a major
factor in determining the person “category” in an international firm.
16. Human considerations are as important as
financial and marketing criteria in making decisions about multinational
ventures.
17. Global mindset is necessary for the success
of an international company.
18. The US had 8 companies in the top 30
multinationals ranked by the transnational index.
19. Cross- culture management is examining human
behavior within organizations from an international perspective.
20. The way diversity is managed within a single
national context should transfer to a multinational context without
modification.
21. It is a correct assumption that culture is
usually used as a synonym for nation or national difference represents culture
differences.
MULTIPLE
CHOICE
1. An expatriate:
a.
|
Is
an employee transferred out of their home base to the firm’s international
operation
|
b.
|
Is
an employee transferred into a parents organization
|
c.
|
Is
an employee who understands international business operations
|
d.
|
Is
an employee who has works in more than one country
|
2. Which of the following is not a category of
an employee in an international firm?
a.
|
Third
–country national
|
c.
|
Parent-country
national
|
b.
|
Host-country
national
|
d.
|
Multi-country
national
|
3. Which department of an organization is the
major user of language translation services?
a.
|
Tax
|
c.
|
Human
resources
|
b.
|
Shipping
|
d.
|
Operations
|
4. Tax equalization policies concerning
expatriates are designed to :
a.
|
Ensure
no tax incentives are associated with any particular international assignment
|
b.
|
Ensure
taxes are paid
|
c.
|
Ensure
employees are aware of tax responsibilities
|
d.
|
Keeps
records up to date
|
5. The direct costs of international assignment
failures can be as high as ___times the costs of those for similar failure in a domestic assignment:
a.
|
Five
|
c.
|
Ten
|
b.
|
Three
|
d.
|
Eight
|
6. One major difference between domestic and
international HRM is:
a.
|
Staff
training
|
c.
|
housing
relocation
|
b.
|
Tax
equalization
|
d.
|
risk
|
7. Which of the following is not a function of
internal resource management?
a.
|
Staffing
|
c.
|
Government
regulations
|
b.
|
Training
and development
|
d.
|
Compensation
|
8. Which of the following is not a major
external factor that influences IHRM?
a.
|
The
state of the economy
|
b.
|
Type
of government
|
c.
|
Generally
accepted practices of doing business
|
d.
|
Regulatory
requirements
|
9. Cultural difference is not necessarily
equivalent to:
a.
|
Social
Factors
|
b.
|
Values
and beliefs
|
c.
|
National
Differences
|
d.
|
Shared
and recognized ways of looking at the world
|
10. A multidomestic industry is:
a.
|
One
in which competition in each country is essentially independent of other
countries
|
b.
|
One
in which a firm competitive position in one’s country is significantly
influenced by its position in other countries.
|
c.
|
One
in which domestic products are not sole
|
d.
|
One
in which many products are sold
|
11. Examples of a global industry include all of
the following except:
a.
|
Commercial
air craft
|
c.
|
Copiers
|
b.
|
Semi-conductors
|
d.
|
Insurance
|
12. Series of linked domestic industries in which
rivals compete against each other on a worldwide basis is:
a.
|
Multidomestic
industry
|
c.
|
Conglometric
industry
|
b.
|
Global
industry
|
d.
|
Automobile
industry
|
13. Emnic refers to which kind of specific aspect
of concepts or behaviors?
a.
|
Language
|
c.
|
Country
|
b.
|
Culture
|
d.
|
History
|
14. What is a key driver for firms seeking
international markets?
a.
|
A
small home market
|
c.
|
Large
home markets
|
b.
|
Tax
regulations
|
d.
|
Managerial
incompetence
|
15. Which ratio is not part of” index of
transnationality”?
a.
|
Foreign
assets to total assets
|
c.
|
Foreign
debt to total debt
|
b.
|
Foreign
sales to total sales
|
d.
|
Foreign
employment to total employment
|
16. Which of the following is a global mindset?
a.
|
Focus
on domestic issues
|
b.
|
Minimize
differences between international and domestic environments
|
c.
|
Transferability
between domestic and international HRM practices
|
d.
|
To
formulate and implement HR policies that develop globally oriented staff
|
17. An asymmetric event is:
a.
|
Terrorist
attack on 9/11
|
c.
|
HR
activities
|
b.
|
London
2012 Olympics
|
d.
|
Weekly
staff training
|
18. All of the following is a difference between
international and domestic HR except:
a.
|
Risk
exposure
|
c.
|
More
HR activities
|
b.
|
More
external influences
|
d.
|
Less
involvement in employee lives
|
19. What activity in international human resource
would not be required in a domestic environment?
a.
|
Staff
orientation
|
c.
|
Terrorism
considerations
|
b.
|
Tax
equalization
|
d.
|
Relocation
assistance
|
20. As foreign subsidiaries matures the local HR
activities:
a.
|
Have
broadening responsibilities
|
b.
|
Revert
to the home office
|
c.
|
decrease
as government relations are understood
|
d.
|
Stay
largely the same
|
21. Which three dimensions are presented in
Morgan’s model of IHRM?
a.
|
Types
of employees, countries and industries
|
b.
|
Types
of employees, countries and human resource activities
|
c.
|
Types
of products, industries and human resource activity
|
d.
|
Types
of employees, labor problems and human resource activity
|
22. Differences between domestic and
international HRM include:
a.
|
The
cultural environment, the extent of reliance of the multinational on its home
country or domestic market and the attitudes of senior management
|
b.
|
The
industry, the technology employed and communication capabilities
|
c.
|
The
cultural environment, the industry and the technology employed
|
d.
|
The
cultural environment, the attitudes of senior management and the
organizations authority structure
|
23. Senior managers with little international
experience:
a.
|
Are
very successful in multinational
operations
|
b.
|
Assume
that there is no transferability between domestic and international HARM
practices
|
c.
|
Assume
that there is a great deal of transferability between domestic and
international HRM practices
|
d.
|
Are
usually very eager to take on international responsibilities
|
24. Successful internationalizing the HR function
require all except:
a.
|
International
mindset of senior management
|
b.
|
Right
people to manage
|
c.
|
Global
mindset
|
d.
|
International
taxation procedures
|
25. In Porter’s value-chain model:
a.
|
HRM
is described as a primary activity
|
b.
|
HRM
is described as a support activity
|
c.
|
HRM
is not mentioned as an activity
|
d.
|
HRM
is described as an incidental activity
|
26. HRM in the multinational context contains an
overlap between elements of:
a.
|
Cross-cultural
management and leadership
|
b.
|
Cross-cultural
management and strategic management
|
c.
|
Strategic
management, comparable human resource and industrial relations systems
|
d.
|
Cross-cultural
management, comparable human resource
and industrial relations systems
|
27. A Japanese citizen working in Hong Kong for a
Japanese multinational would be classified as:
a.
|
A
host country national (HCN)
|
c.
|
A
parent country national (PCN)
|
b.
|
A
third country national (TCH)
|
d.
|
A
related country national (RCN)
|
28. Human Resource Management (HRM) activities
include all of the below EXCEPT:
a.
|
Human
resource planning
|
c.
|
Personal
family planning
|
b.
|
Performance
management
|
d.
|
Training
and development
|
29. International HRM is reflected in:
a.
|
The
need for a narrower perspective
|
c.
|
The
need for a judgmental perspective
|
b.
|
The
need for a short term perspective
|
d.
|
The
need for a broader perspective
|
30. As a foreign subsidiary matures:
a.
|
The
local HR unit’s responsibilities for planning, training and compensation
would broaden
|
b.
|
The
responsibilities of planning, training and compensation would narrow
|
c.
|
The
local HR unit’s responsibilities for planning, training and compensation
would stay the same
|
d.
|
The
local HR unit’s responsibility for planning, training and compensation would
end
|
SHORT
ANSWER
1. What
are the 3 broad approaches for international human resource management and how
do they relate to each other?
2. What
are the 3 categories of employees in an international firm?
3. What
are at least 2 types of risk exposure that international companies incur that
domestic companies are not as liable to incur?
4. Why
is an awareness of cultural differences important in an international company?
5. What
is the difference between a multidomestic industry and a global industry?
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