HR 3
Content
Chapter 3--The Global Environment Student: ___________________________________________________________________________
1. Which industrialized nation emerged as the only intact major power after World War II? A. The United States . !apan ". #ermany $. "anada %. Africa
&. All %'"%(T which of the following countries are considered the leading industrial powers in today)s glo*al economy? A. The United States . !apan ". #ermany $. India %. All of these are considered leading industrial powers.
+. Which of the following trends is ,-T true of deeloped nations today /such as the United States0 !apan0 the United ingdom0 and so on2? A. (opulation growth is slowing. . International trade is e3panding. ". The la*or force is growing 4uic5ly. $. "ompetition from foreign countries is increasing. %. "ountries are *ecoming increasingly interdependent.
6. Which country is ,-T e3periencing rapid population growth? A. "hina . "anada ". India $. Indonesia %. 7e3ico
8. Under a geocentric staffing model0 A. host9country nationals are used heaily *ecause they 5now the local mar5ets. . the organization will hae a s5eleton human resource department at the host9country location0 while the home9country human resource department retains all control. ". the organization see5s to hire the *est person aaila*le for a position regardless of where the indiidual comes from. $. e3patriate home9country nationals are hired to fill higher9leel foreign positions. %. the home9office perspectie ta5es precedence oer local issues.
:. Which international staffing model inoles staffing high9leel foreign jo*s with parent9country nationals? A. #lo*alcentric . (olycentric ". #eocentric $. %gocentric %. ,one of these
;. ,o outplacement firms e3ist in seeral 7iddle %astern countries *ecause the religion of Islam specifies that indiiduals should not *enefit financially from other people)s misfortunes. This cultural factor pertains to what type of difference? A. <anguage . usiness practices ". "hildren)s rights $. =oles %. (ersonal norms
>. $ietrich prefers structured circumstances instead of situations that are relatiely am*iguous. Which cultural dimension does he e3hi*it? A. Indiidualism . "ollectiism "ollectiism ". 7asculinity 7asculinity $. Time orientation %. Uncertainty Aoidance
. What aspect of international *usiness do ,A@TA and the %U represent? A. Tariff systems . %conomic communities ". Trade controls $. %3port regulations %. uota guidelines
1B. !ohn prefers to wor5 *y himself on projects and aoids group wor5 that re4uires him to monitor the actions of others. Ce would score highly on the DDDD dimension of Cofstede)s model of culture. A. power distance . indiidualism ". masculinity $. uncertainty aoidance %. time orientation
11. Siemens has a comple3 matri3 organization organization structure. 7anagers who hae *een with the company for years years and *uilt relationships are the most most effectie. Someone with a cultural dimension of DDDDDD is more li5ely to e3perience success there. A. femininity . uncertainty aoidance ". time orientation $. power distance %. collectiism
1&. What is the term used when a company lets a foreign firm ma5e andEor distri*ute its products in a local mar5et? A. %3porting . <icensing ". $irect inestment $. !oint enture %. Strategic alliance
1+. Under which two approaches to international *usiness will the human resource function *e <%AST affected? A. <icensing and joint entures . $irect inestment and strategic alliances ". %3porting and licensing $. !oint entures and strategic alliances %. %3porting and direct inestment
16. What is an adantage of direct inestment in another country? A. <ess ris5 is inoled. . It is not e3pensie. ". There is more profit potential. $. The facility is less integrated in the foreign mar5et. %. Synergy *etween *usiness partners is achieed.
18. Under which international strategy will seeral companies agree to cooperate for mutual *enefit? A. %3porting . Importing ". $irect inestment $. 7ultinational organization %. Strategic alliance
1:. <ocal issues that must *e dealt with *y firms conducting *usiness in foreign mar5ets include all of the following %'"%(T A. recruiting. . compensation. ". selection. $. human resource technology. %. training.
1;. <ocating a facility in a relatiely underdeeloped area will impact all of the following human resource actiitiess %'"%(T actiitie A. training needs. . recruitment actiities. ". selection re4uirements. $. deelopment issues. %. production design.
1>. "ele*rity "ruises is *ased in @lorida0 *ut it hires wor5ers from arious countries to communicate with and sere guests from around the world. Which of the following is an accurate statement? A. "ele*rity will need to proide the same training to all of its foreign wor5ers. . "ele*rity will need to proide the same training to all of its wor5ers. ". "ele*rity will need to tailor training to *est deelop wor5ers from arious countries. $. "ele*rity will not need to train its wor5ers. %. "ele*rity will only need to train wor5ers who hae contact with customersF other wor5ers need no training.
1. (ra5ash is a human resource manager for an Indian company that is *uilding a manufacturing plant in Singapore. The plant will *e staffed with Indian managers and local wor5ers. Which adice would ,-T *e appropriate for (ra5ash? A. Gou must understand legal re4uirements for compensation in Singapore. . Gou must consider the Indian goernment)s legal re4uirements for compensation. ". "ompensation for wor5ers in Singapore will li5ely *e the same as for wor5ers in India. $. Wor5ers in Singapore will hae different preferences for compensation and *enefits than will Indian wor5ers. %. The cost of liing is different in Singapore than it is in India0 so compensation policy must account for that difference.
&B. When a company hires host9country nationals to staff foreign locations in underdeeloped countries0 it must often A. offer e3ercise classes. . proide e3tensie training and deelopment. ". hire a consultant. $. see5 permission from competitors. %. cut the *enefits pac5age proided to employees.
&1. Which of the following is ,-T li5ely to *e a part of a compensation pac5age designed for an e3patriate? A. Cousing *enefits . !o* location assistance for the spouse ". A cost9of9liing allowance $. A hardship premium %. Unlimited trael to and from the home country
&&. Wang5yo is an electrical engineer who designs power systems for factories. Cis employer is sending him on a foreign assignment for one month0 to design a system for a new factory that is *eing *uilt oerseas. Which s5ills will *e 7-ST important to Wang5yo in his foreign assignment? A. Technical s5ills . <anguage s5ills ". "ultural s5ills $. @inancial s5ills %. <eadership s5ills
&+. $isney chose Andre <acroi3 to *e "%- of %uro $isney0 following his success as "%- of urger ing International. $isney chose an e3perienced international manager who lied in @rance0 rather than send an American manager oerseas0 in part to eliminate the ris5 of e3patriate failure. %3patriate failure occurs when the A. e3patriate needs e3tensie training *efore he or she is a*le to accept the assignment. . cost of sending the manager to the foreign assignment is greater than the *enefit gained. ". e3patriate)s cowor5ers report that he or she is not fitting in well. $. *usiness that is managed *y the e3patriate loses money. %. e3patriate returns early *ecause of an ina*ility to perform.
&6. =epatriation occurs when a/n2 A. company sends a manager to a second foreign assignment. . e3patriate manager comes home from a foreign assignment. ". manager li5es a foreign assignment so much that he or she remains in the foreign country. $. manager is sent on a foreign assignment. %. manager on a foreign assignment is compensated in the local currency.
&8. Which of the following is an accurate statement a*out la*or unions outside the United States? A. In foreign countries0 few wor5ers *elong to la*or unions. . <a*or unions outside the United States are regulated *y U.S. laws. ". @oreign la*or unions are more li5ely to *e inoled in political and social issues. $. -utside the United States0 la*or contracts are formal legal contracts and employers can *e sued in court *y the unions for *rea5ing them. %. @oreign employers rarely negotiate with unions in their home country.
&:. 7ore than DDDDDD the world HHss wor5force outside the United States *elongs to la*or unions. A. half . a third ". a 4uarter $. two thirds %. three fourths
&;. In DDDDDD 0 la*or contracts J are not really legal contracts at all *ut are merely understandings that can *e *ro5en at any time *y either party with no penalty. A. @rance . %ngland ". #ermany $. !apan %. the United States
&>. <a*or relations in DDDDDD tend to *e cordial. A. @rance . %ngland ". !apan $. the United States %. #ermany
&. C",s are <%AST li5ely to wor5 in DDDDDD positions. A. clerical . line wor5er ". maintenance $. management %. office wor5er
+B. Some countries0 such as DDDDDD0 focus compensation on assessing an indiidualHs performance and then compensating that indiidual accordingly. A. !apan . India ". Sweden $. @rance %. the United States
+1. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States and Sweden are a*out the same in power distance and long9term orientation0 *ut the United States is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. Which staffing model is 7ini9(" using for its Swedish unit? A. #eocentric . %thnocentric ". (olycentric $. %gocentric %. 7ulticentric
+&. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States and Sweden are a*out the same in power distance and long9term orientation0 *ut the United States is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. Which aspect of culture will 7-ST li5ely affect 7ini9(")s human resource actiities at the corporate leel *ecause of differences *etween its U.S. and Swedish *usiness units? A. <anguage . =eligious differences ". #ender roles $. (ersonal norms %. $ifferences in iews of child la*or
++. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs When aerage on Cofstede)s dimensions ofUnited culture0States the United Statesfor andemployers. Sweden are a*outcomparing the same in powernational distancescores and long9term orientation0 *ut the is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. -n the *asis of scores on Cofstede)s dimensions of culture0 which organization cultural alues will create the most discomfort and resistance among Swedish wor5ers? A. Swedes will resist 7ini9(")s policy of calling eeryone0 from the "%- to the lowest wor5er0 *y his or her first name. . Swedes will place a much greater alue on patience and persistence than do 7ini9(")s American wor5ers. ". Swedes will prefer to emphasize indiidual contri*utions0 as opposed to 7ini9(" wor5ers in the United States0 who alue team or group contri*utions. $. Swedes will *e much less competitie0 am*itious0 and drien than 7ini9(")s American wor5ers. %. Swedes will not *e comforta*le when gien tas5s that are too structured0 as opposed to American wor5ers0 who prefer lots of structure.
+6. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States and Sweden are a*out the same in power distance and long9term orientation0 *ut the United States is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. Which international strategy is 7ini9(" using to e3pand its international operations? A. %3porting . <icensing ". $irect inestment $. !oint enture %. Strategic alliance
+8. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States the sameand in power distance and long9term orientation0 the United States is higher and thanSweden Swedenare in a*out indiidualism uncertainty aoidance and much higher in*ut masculinity. =efer to Scenario +.1. Which of the domestic human resource issues is most li5ely affected /i.e.0 different at 7arstrand than at 7ini9("2 *y conditions descri*ed in the scenario? A. <ocal compensation issues . <ocal selection issues ". <ocal training issues $. <ocal recruiting issues %. <ocal deelopment issues
+:. The United States and !apan hae e3perienced slowing growth rates in employment in recent years. True @alse
+;. The interrelatedness of glo*al mar5ets was demonstrated *y the recent economic downturn in the United States that affected many other parts of the world. True @alse
+>. The ethnocentric staffing model utilizes host9country nationals e3tensiely throughout the company. True @alse
+. A joint enture might not inole ownership *ut still inoles cooperation *etween firms. True @alse
6B. In a relatiely underdeeloped country0 training and deelopment needs will *e ery e3tensie. True @alse
61. Trueenefit @alsepac5ages are remar5a*ly similar across most countries.
6&. Training is instruction directed at enhancing specific jo*9related s5ills and a*ilities and most often focuses on managers. True @alse
6+. 7ost companies follow the adice of e3perts and complete the repatriation process successfully. successfully. True @alse
66. $uring contract negotiations at @rench operations for "aterpillar0 Sony0 Sony0 and +70 angry la*or officials too5 senior managers hostage in efforts to win *etter employment contracts. True @alse
68. <a*or relations are not heaily regulated *y law. True @alse
6:. The following chart reports the aerage national scores of Cofstede)s fie dimensions of culture for three different countries. Using the relatie differences on these dimensions as the *asis of your answer0 *riefly descri*e in words each country)s national culture.
Country
"hina India !apan
Power Distance >B ;; 86
Iniviualism
!asculinity
18 6> 6:
88 8: 8
"ncertainty #voiance 6B 6B &
$on%-Term &rientation 116 :1 >B
6;. Cow may an organization choose to compete in the international enironment0 and how does each strategy affect its human resource function?
6>. When a multinational firm hires local wor5ers0 what types of training are needed?
6. Cow do *usinesses compensate e3patriates?
8B. Cow does the area of la*or relations affect international human resource management?
"hapter +99The #lo*al %nironment ey 1. Which industrialized nation emerged as the only intact major power after World War II? #. The United States . . !apan !apan ". #ermany #ermany ". $. "anada "anada $. %. %. Africa Africa
&. All %'"%(T which of the following countries are considered the leading industrial powers in today)s glo*al economy? A. The The United States A. . !apan !apan . ". #ermany #ermany ". D. India %. %. All All of these are considered leading industrial powers.
+. Which of the following trends is ,-T true of deeloped nations today /such as the United States0 !apan0 the United ingdom0 and so on2? A. (opulation A. (opulation growth is slowing. . International International trade is e3panding. . C. The la*or force is growing 4uic5ly. $. $. "ompetition "ompetition from foreign countries is increasing. %. "ountries "ountries are *ecoming increasingly interdependent. %.
6. Which country is ,-T e3periencing rapid population growth? A. "hina A. "hina '. "anada ". India India ". $. Indonesia Indonesia $. %. %. 7e3ico 7e3ico
8. Under a geocentric staffing model0 A. host9country nationals are used heaily *ecause they 5now the local mar5ets. A. host9country . the the organization will hae a s5eleton human resource department at the host9country location0 while the . home9country human resource department retains all control. C. the organization see5s to hire the *est person aaila*le for a position regardless of where the indiidual comes from. $. e3patriate home9country nationals are hired to fill higher9leel foreign positions. $. e3patriate %. the %. the home9office perspectie ta5es precedence oer local issues.
:. Which international staffing model inoles staffing high9leel foreign jo*s with parent9country nationals? A. #lo*alcentric A. #lo*alcentric . (olycentric (olycentric . ". #eocentric #eocentric ". $. %gocentric %gocentric $. E. ,one of these
;. ,o outplacement firms e3ist in seeral 7iddle %astern countries *ecause the religion of Islam specifies that indiiduals should not *enefit financially from other people)s misfortunes. This cultural factor pertains to what type of difference? A. A. <anguage <anguage '. usiness practices ". ". "hildren)s "hildren)s rights $. =oles =oles $. %. (ersonal (ersonal norms %.
>. $ietrich prefers structured circumstances instead of situations that are relatiely am*iguous. Which cultural dimension does he e3hi*it? A. Indiidualism Indiidualism A. . . "ollectiism "ollectiism ". ". 7asculinity 7asculinity $. Time Time orientation $. E. Uncerta Uncertainty inty Aoidance Aoidance
. What aspect of international *usiness do ,A@TA and the %U represent? A. Tariff Tariff systems A. '. %conomic communities ". ". Trade Trade controls $. %3port %3port regulations $. %. %. uota uota guidelines
1B. !ohn prefers to wor5 *y himself on projects and aoids group wor5 that re4uires him to monitor the actions of others. Ce would score highly on the DDDD dimension of Cofstede)s model of culture. A. power distance A. power '. indiidualism ". masculinity masculinity ". $. uncertainty uncertainty aoidance $. %. %. time time orientation
11. Siemens has a comple3 matri3 organization organization structure. 7anagers who hae *een with the company for years years and *uilt relationships are the most most effectie. Someone with a cultural dimension of DDDDDD is more li5ely to e3perience success there. #. femininity . uncertainty . uncertainty aoidance ". time time orientation ". $. $. power power distance %. collectiism collectiism %.
1&. What is the term used when a company lets a foreign firm ma5e andEor distri*ute its products in a local mar5et? A. %3porting %3porting A. '. <icensing ". ". $irect $irect inestment $. !oint !oint enture $. %. Strategic Strategic alliance %.
1+. Under which two approaches to international *usiness will the human resource function *e <%AST affected? A. <icensing <icensing and joint entures A. . $irect $irect inestment and strategic alliances . C. %3porting and licensing $. $. !oint !oint entures and strategic alliances %. %3porting %3porting and direct inestment %.
16. What is an adantage of direct inestment in another country? A. <ess <ess ris5 is inoled. A. . . It It is not e3pensie. C. There is more profit potential. $. The The facility is less integrated in the foreign mar5et. $. %. %. Synergy Synergy *etween *usiness partners is achieed.
18. Under which international strategy will seeral companies agree to cooperate for mutual *enefit? A. %3porting A. %3porting . Importing Importing . ". $irect $irect inestment ". $. 7ultinational 7ultinational organization $. E. Strategic alliance
1:. <ocal issues that must *e dealt with *y firms conducting *usiness in foreign mar5ets include all of the following %'"%(T A. recruiting. A. recruiting. . compensation. compensation. . ". selection. selection. ". D. human resource technology. %. training. training. %.
1;. <ocating a facility in a relatiely underdeeloped area will impact all of the following human resource actiitiess %'"%(T actiitie A. A. training training needs. . recruitment recruitment actiities. . ". selection selection re4uirements. ". $. $. deelopment deelopment issues. E. production design.
1>. "ele*rity "ruises is *ased in @lorida0 *ut it hires wor5ers from arious countries to communicate with and sere guests from around the world. Which of the following is an accurate statement? A. "ele*rity "ele*rity will need to proide the same training to all of its foreign wor5ers. A. . "ele*rity "ele*rity will need to proide the same training to all of its wor5ers. . C. "ele*rity will need to tailor training to *est deelop wor5ers from arious countries. $. "ele*rity will not need to train its wor5ers. $. "ele*rity %. %. "ele*rity "ele*rity will only need to train wor5ers who hae contact with customersF other wor5ers need no training.
1. (ra5ash is a human resource manager for an Indian company that is *uilding a manufacturing plant in Singapore. The plant will *e staffed with Indian managers and local wor5ers. Which adice would ,-T *e appropriate for (ra5ash? A. Gou A. Gou must understand legal re4uirements for compensation in Singapore. . Gou must consider the Indian goernment)s legal re4uirements for compensation. . Gou C. "ompensation for wor5ers in Singapore will li5ely *e the same as for wor5ers in India. $. Wor5ers Wor5ers in Singapore will hae different preferences for compensation and *enefits than will Indian $. wor5ers. %. The %. The cost of liing is different in Singapore than it is in India0 so compensation policy must account for that difference.
&B. When a company hires host9country nationals to staff foreign locations in underdeeloped countries0 it must often A. offer e3ercise classes. A. offer '. proide e3tensie training and deelopment. ". hire hire a consultant. ". $. see5 see5 permission from competitors. $. %. %. cut cut the *enefits pac5age proided to employees.
&1. Which of the following is ,-T li5ely to *e a part of a compensation pac5age designed for an e3patriate? A. Cousing Cousing *enefits A. . !o* !o* location assistance for the spouse . ". A A cost9of9liing allowance ". $. A A hardship premium $. E. Unlimited trael to and from the home country
&&. Wang5yo is an electrical engineer who designs power systems for factories. Cis employer is sending him on a foreign assignment for one month0 to design a system for a new factory that is *eing *uilt oerseas. Which s5ills will *e 7-ST #. Technical s5ills important to Wang5yo in his foreign assignment? . . <anguage <anguage s5ills ". ". "ultural "ultural s5ills $. @inancial @inancial s5ills $. %. <eadership <eadership s5ills %.
&+. $isney chose Andre <acroi3 to *e "%- of %uro $isney0 following his success as "%- of urger ing International. $isney chose an e3perienced international manager who lied in @rance0 rather than send an American manager oerseas0 in part to eliminate the ris5 of e3patriate failure. %3patriate failure occurs when the A. A. e3patriate e3patriate needs e3tensie training *efore he or she is a*le to accept the assignment. . cost of sending the manager to the foreign assignment is greater than the *enefit gained. . cost ". e3patriate)s e3patriate)s cowor5ers report that he or she is not fitting in well. ". $. *usiness $. *usiness that is managed *y the e3patriate loses money. E. e3patriate returns early *ecause of an ina*ility to perform.
&6. =epatriation occurs when a/n2 A. company sends a manager to a second foreign assignment. A. company '. e3patriate manager comes home from a foreign assignment. ". manager ". manager li5es a foreign assignment so much that he or she remains in the foreign country. $. $. manager manager is sent on a foreign assignment. %. %. manager manager on a foreign assignment is compensated in the local currency.
&8. Which of the following is an accurate statement a*out la*or unions outside the United States? A. In foreign countries0 few wor5ers *elong to la*or unions. A. In . <a*or . <a*or unions outside the United States are regulated *y U.S. laws. C. @oreign la*or unions are more li5ely to *e inoled in political and social issues. $. -utside $. -utside the United States0 la*or contracts are formal legal contracts and employers can *e sued in court *y the unions for *rea5ing them. %. %. @oreign @oreign employers rarely negotiate with unions in their home country.
&:. 7ore than DDDDDD the world HHss wor5force outside the United States *elongs to la*or unions. #. half . a . a third ". a a 4uarter ". $. $. two two thirds %. %. three three fourths
&;. In DDDDDD 0 la*or contracts J are not really legal contracts at all *ut are merely understandings that can *e *ro5en at any time *y either party with no penalty. A. @rance @rance A. '. %ngland ". #ermany #ermany ". $. !apan !apan $. %. %. the the United States
&>. <a*or relations in DDDDDD tend to *e cordial. A. A. @rance @rance . %ngland %ngland . C. !apan $. $. the the United States %. #ermany #ermany %.
&. C",s are <%AST li5ely to wor5 in DDDDDD positions. A. A. clerical clerical . line line wor5er . ". maintenance maintenance ". D. management %. %. office office wor5er
+B. Some countries0 such as DDDDDD0 focus compensation on assessing an indiidualHs performance and then compensating that indiidual accordingly. A. !apan A. !apan . India India . ". Sweden Sweden ". $. $. @rance @rance E. the United States
+1. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States and Sweden are a*out the same in power distance and long9term orientation0 *ut the United States is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. Which staffing model is 7ini9(" using for its Swedish unit? A. #eocentric #eocentric A. . %thnocentric %thnocentric . C. (olycentric $. $. %gocentric %gocentric %. 7ulticentric 7ulticentric %.
+&. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States and Sweden are a*out the same in power distance and long9term orientation0 *ut the United States is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. Which aspect of culture will 7-ST li5ely affect 7ini9(")s human resource actiities at the corporate leel *ecause of differences *etween its U.S. and Swedish *usiness units? A. A. <anguage <anguage . =eligious =eligious differences . ". #ender #ender roles ". D. (ersonal norms %. %. $ifferences $ifferences in iews of child la*or
++. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States and Sweden are a*out the same in power distance and long9term orientation0 *ut the United States is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. -n the *asis of scores on Cofstede)s dimensions of culture0 which organization cultural alues will create the most discomfort and resistance among Swedish wor5ers? A. Swedes Swedes will resist 7ini9(")s policy of calling eeryone0 from the "%- to the lowest wor5er0 *y his or her A. first name. . . Swedes Swedes will place a much greater alue on patience and persistence than do 7ini9(")s American wor5ers. ". Swedes Swedes will prefer to emphasize indiidual contri*utions0 as opposed to 7ini9(" wor5ers in the United ". States0 who alue team or group contri*utions. D. Swedes will *e much less competitie0 am*itious0 and drien than 7ini9(")s American wor5ers. %. Swedes %. Swedes will not *e comforta*le when gien tas5s that are too structured0 as opposed to American wor5ers0 who prefer lots of structure.
+6. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States and Sweden are a*out the same in power distance and long9term orientation0 *ut the United States is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. Which international strategy is 7ini9(" using to e3pand its international operations? A. A. %3porting %3porting . . <icensing <icensing C. $irect inestment $. !oint !oint enture $. %. Strategic Strategic alliance %.
+8. Scenario 3.1 7ini9(" is a Couston9*ased ma5er of handheld computers. In response to high %uropean demand0 7ini9(" purchased 7arstrand %lectronics0 a handheld manufacturer in Stoc5holm0 Sweden. 7ini9(" allowed the management of 7arstrand to continue in their jo*s rather than sending U.S. managers to oersee Swedish operations. 7ini9(" decided to purchase 7arstrand *ecause irtually all Swedes spea5 %nglish0 alue women)s rights0 and are predominantly "hristian in religious *eliefs. Sweden has an e3tremely sta*le political system0 a sound economy0 a highly educated wor5force0 and it is a mem*er of the %uropean Union. Coweer0 Swedes do ta5e a different iew of wor5 time0 in that they e3pect at least two months of acation per year. Also0 the Swedish wor5force is a*out >BK unionized0 in comparison to 7ini9(")s nonunionized wor5force. Sweden has a socialist approach to health *enefits0 which means higher personal ta3es for wor5ers *ut lower health *enefits costs for employers. When comparing aerage national scores on Cofstede)s dimensions of culture0 the United States and Sweden are a*out the same in power distance and long9term orientation0 *ut the United States is higher than Sweden in indiidualism and uncertainty aoidance and much higher in masculinity. =efer to Scenario +.1. Which of the domestic human resource issues is most li5ely affected /i.e.0 different at 7arstrand than at 7ini9("2 *y conditions descri*ed in the scenario? #. <ocal compensation issues . . <ocal <ocal selection issues ". <ocal <ocal training issues ". $. $. <ocal <ocal recruiting issues %. <ocal <ocal deelopment issues %.
+:. The United States and !apan hae e3perienced slowing growth rates in employment in recent years. T("E
+;. The interrelatedness of glo*al mar5ets was demonstrated *y the recent economic downturn in the United States that affected many other parts of the world. T("E
+>. The ethnocentric staffing model utilizes host9country nationals e3tensiely throughout the company. )#$SE
+. A joint enture might not inole ownership *ut still inoles cooperation *etween firms. )#$SE
6B. In a relatiely underdeeloped country0 training and deelopment needs will *e ery e3tensie. T("E
61. enefit pac5ages are remar5a*ly similar across most countries. )#$SE
6&. Training is instruction directed at enhancing specific jo*9related s5ills and a*ilities and most often focuses on managers. )#$SE
6+. 7ost companies follow the adice of e3perts and complete the repatriation process successfully. successfully. )#$SE
66. $uring contract negotiations at @rench operations for "aterpillar0 Sony0 Sony0 and +70 angry la*or officials too5 senior managers hostage in efforts to win *etter employment contracts. T("E
68. <a*or relations are not heaily regulated *y law. )#$SE
6:. The following chart reports the aerage national scores of Cofstede)s fie dimensions of culture for three different countries. Using the relatie differences on these dimensions as the *asis of your answer0 *riefly descri*e in words each country)s national culture.
Country
"hina India !apan
Power Distance >B ;; 86
Iniviualism
!asculinity
18 6> 6:
88 8: 8
"ncertainty #voiance 6B 6B &
$on%-Term &rientation 116 :1 >B
"hina)s culture shows a high respect for authority and status and a ery high emphasis on collectiism0 in which groups are alued oer indiiduals. "hina has moderate leels of assertion and competitieness and a moderate preference for structured situations oer unstructured ones. "hina)s most e3treme cultural alue is the ery0 ery high emphasis placed on long9term goals oer short9term goals. "hina)s score on this aria*le is the highest of any nation in the world. A long9term orientation would alue characteristics such as patience0 persistence0 saing0 and planning for the future. India)s culture0 in contrast to "hina)s0 has many more alues that are moderate. India has a high alue for status and authority0 *ut alues of indiidualismEcollectiism0 masculinityEfemininity0 uncertainty aoidance0 and long9 term orientation are all near 8B0 which would *e a middle of the road score. !apan also has moderate scores on power distance and indiidualismEcollectiism0 showing less respect for authority than was shown in "hina or India and only a slight trend in faor collectiism oer indiidualism. Coweer0 !apan)s scores on masculinity0 uncertainty aoidance0 and long9term orientation are all 4uite high0 demonstrating a focus on am*ition and assertieness0 a high preference for structured tas5s0 and an emphasis on long9term0 not short9term0 goals.
6;. Cow may an organization choose to compete in the international enironment0 and how does each strategy affect its human resource function? A company may choose a strategy of e3porting0 in which a product is made in the domestic mar5etplace and then sold in another country. The human resource function faces no meaningful differences in responsi*ilities from a solely domestic *usiness. Under a licensing strategy0 a company grants its permission to another company in a foreign country to manufacture andEor mar5et its products in the local mar5et. The licensing firm typically pays a licensing fee to the original firm. The human resource function faces no meaningful differences in responsi*ilities. In a direct inestment strategy0 a firm head4uartered in one country *uilds or purchases operating facilities or su*sidiaries in a foreign country. The human resource function changes su*stantiely from that of a domestic firm. %mployees of the firm will *e wor5ing in foreign locations0 and the corporate human resource function will need to e3tend and e3pand its scope and operations to manage employees across national *oundaries0 *ased on the staffing strategy /ethnocentric0 polycentric0 geocentric2 *eing used. !oint entures and strategic alliances inole two or more firms cooperating in the ownership andEor management of an operation0 often on an e4uity *asis. Cuman resource managers face a comple3 set of issues and challenges. The corporate human resource staff of each strategic partner will need to lin5 and coordinate with its counterparts. If the new enture is *eing operated within the conte3t of one of the e3isting partners) organization0 disparate relationships among the human resource staff mem*ers will complicate this coordination further.
6>. When a multinational firm hires local wor5ers0 what types of training are needed? The types of training that are needed to train local wor5ers depend on the location of the facility. In many deeloped nations0 the la*or force is highly educated and 5nowledgea*le a*out *usiness practices0 so only a small amount of firm9specific training may *e needed. In other areas0 the la*or force may *e relatiely educated *ut *usiness practices may ary considera*ly0 so more training may *e needed to proide *oth firm9specific s5ills and more generalized s5ills in areas such as team decision ma5ing or customer serice. In some deeloping countries0 local wor5ers may lac5 *usiness 5nowledge and they may een lac5 *asic s5ills0 such as literacy0 math s5ills0 and so on. Training in these regions is li5ely to *e ery comprehensie.
6. Cow do *usinesses compensate e3patriates? To remain competitie0 an international *usiness must proide preailing compensation pac5ages for its managers in a gien mar5et. (ac5ages include salary and nonsalary items and are determined *y la*or mar5et forces /i.e.0 supply and demand of managerial talent20 professional licensing re4uirements0 standard of liing0 occupational status0 and goernment regulations. -rganizations may need to proide differential compensation to ma5e up for differences in currency aluation0 standards of liing0 and life9style norms. This may include a cost9of9liing allowance0 a hardship premium /for less desira*le assignments20 andEor a ta3 e4ualization system. enefits may *e adjusted to include housing0 education0 medical treatment0 trael to the home country0 clu* mem*erships0 and jo* location assistance for spouses.
8B. Cow does the area of la*or relations affect international human resource management? <a*or relations is the process of dealing with employees who are organized into la*or units. $ifferent situations e3ist in countries throughout the world. 7any countries hae la*or parties that see5 to achiee the political goals of unions in those countries. In many countries0 la*or unions are much more concerned with social issues than they are in the United States0 so their political actiism may e3tend *eyond wages and conditions of employment. In many countries0 union mem*ership is 4uite large and continues to grow. 7ore than half the world)s wor5force outside the United States *elongs to la*or unions. $ifferent norms or e3pectations a*out the relationships *etween unions and management e3ist in different countries. "ountries may differ in the definition of la*or contracts0 use of la*or actiities such as temporary wor5 stoppage0 the leel of cordiality in negotiations0 and dispute resolution procedures. International human resource managers need to understand such differences and may need to draw heaily on local e3pertise to help them address la*or relations issues in an appropriate0 effectie0 and legal manner.
