Ch15 Global HR Management – Test Bank – 10th Ed

1.

The North American Free Trade Agreement (NAFTA) is an agreement among Canada, the United States, and Mexico. 
 
True    False

2.

The General Agreement on Tariffs and Trade (GATT) is an international framework of rules for reducing trade barriers across countries around the world. 
 
True    False

3.

The World Trade Organization (WTO) initiated the North American Free Trade Agreement (NAFTA) to resolve disputes among its members. 
 
True    False

4.

People are expected to look after the interests of the larger community in individualist cultures. 
 
True    False

5.

Cultures with large power distance seek to eliminate inequalities in power and wealth as much as possible. 
 
True    False

6.

Uncertainty avoidance describes how a culture deals with hierarchical power relationships. 
 
True    False

7.

Cultures with weak uncertainty avoidance tend to be rather easygoing and flexible regarding different views. 
 
True    False

8.

Masculine cultures value relationships over money. 
 
True    False

9.

Achieving something visible and showing off are considered masculine values. 
 
True    False

10.

According to Geert Hofstede's research, countries with individualist cultures were wealthier. 
 
True    False

11.

How decisions are handled within the hierarchy of an organization has implications for the selection and training of managers in different countries. 
 
True    False

12.

Individualist cultures such as those found in the United States often exhibit minimal differences between the highest- and lowest-paid individuals in an organization. 
 
True    False

13.

Human capital refers to the productive capabilities of individuals. 
 
True    False

14.

Countries with high human capital are attractive sites for direct foreign investment that creates high-skill jobs. 
 
True    False

15.

Capitalist systems attempt to reward individuals for their efforts by allowing them to keep more of their earnings. 
 
True    False

16.

Companies that do business in other countries have to present compensation packages to expatriate managers that are competitive in gross, rather than take-home, pay. 
 
True    False

17.

A host country is a country in which an organization's headquarters is located. 
 
True    False

18.

Domestic companies do not face problems with cultural diversity. 
 
True    False

19.

Inpatriates are managers transferred from an organization's corporate headquarters to work in the organization's subsidiaries. 
 
True    False

20.

Transnational scope refers to the fact that HRM decisions must be made from a global perspective rather than a national perspective. 
 
True    False

21.

The adaptive skills required to maintain a positive self-image and psychological well-being are categorized into the perception dimension. 
 
True    False

22.

Male and female expatriates can perform equally well in international assignments, regardless of the country's cultural predispositions toward women in management. 
 
True    False

23.

It is not necessary for expatriates to understand their own culture as long as they understand the culture of the host country for the assignment to be successful. 
 
True    False

24.

Effective cross-cultural training helps ease an expatriate's transition to the new work environment. 
 
True    False

25.

Communication is the extent to which an expatriate receives information and recognizes changes while abroad. 
 
True    False

26.

Which of the following is true about the European Economic Community (EEC)? 
 

27.

Which of the following countries is a member of the North American Free Trade Agreement (NAFTA)? 
 

28.

NAFTA increased U.S. investment in Mexico because 
 

29.

The _____ involves an international framework of rules and principles for reducing trade barriers across countries around the world. 
 

30.

The _____ established the World Trade Organization (WTO) to resolve disputes among its members. 
 

31.

Which of the following HR practices is least likely to be effective for organizations based in collectivist cultures such as Japan? 
 

32.

In _____ cultures, people are expected to look after their own interest rather than being protected by the group. 
 

33.

The individualism-collectivism dimension primarily describes 
 

34.

Which of the following is true of cultures that are highly individualist? 
 

35.

In _____ cultures, people are expected to look after the interest of the larger community, which is expected to protect people when they are in trouble. 
 

36.

Which of the following is most likely a collectivist country? 
 

37.

Which of the following cultural dimensions describes the degree of inequality among people that is considered normal? 
 

38.

A country with a large power distance 
 

39.

Sam visits Mexico for a business meeting. At the meeting, Sam addresses the vice president of the firm by his first name rather than using his title. This is considered offensive. In the context of Hofstede's cultural dimensions, this difference in cultures is part of the _____ dimension. 
 

40.

_____ describes how cultures seek to deal with the fact that the future is not perfectly predictable. 
 

41.

A culture characterized by easygoing and flexible people who take each day as it comes is one that is _____. 
 

42.

Which of the following is true of cultures that are strong in uncertainty avoidance? 
 

43.

In the context of Hofstede's cultural dimensions, the masculinity-femininity dimension describes 
 

44.

Which of the following is likely to be valued most in a masculine culture? 
 

45.

Which of the following is likely to be valued most in a feminine culture? 
 

46.

Which of the following is most likely to be valued in feminine cultures? 
 

47.

Which of the following is likely to be valued in a culture with a long-term orientation? 
 

48.

Which of the following is likely to be valued in a culture with a short-term orientation? 
 

49.

According to Hofstede, a country's economic health is positively correlated with _____. 
 

50.

_____ usually exhibit greater differences between the highest- and lowest-paid individuals in an organization. 
 

51.

_____ cultures tend to have flatter salary structures. 
 

52.

Which of the following is most likely to occur during the communication process of an organization in a collectivist culture? 
 

53.

Countries such as Mexico with low human capital are likely to attract 
 

54.

Which of the following is true of how human capital affects foreign investment in a country? 
 

55.

U.S. companies tend to relocate their low-skill–high-wage manufacturing and assembly jobs to Mexico because it has a _____. 
 

56.

Countries that _____ are attractive sites for direct foreign investment that creates high-skill jobs. 
 

57.

In _____ systems, there is less opportunity to develop human capital without higher costs. 
 

58.

A country that serves as the home for a corporation's headquarters is called the _____. 
 

59.

MarchTech Corp. is a software company that has its headquarters in Japan. The company has operations in France and India. Japan is the _____ of MarchTech. 
 

60.

A _____ country is the country in which the parent country organization seeks to locate or has already located a facility. 
 

61.

Gaia Inc. is a company based in the United States. It expands its operations and sets up a manufacturing facility in Brazil. In this scenario, Brazil is the _____ country of Gaia. 
 

62.

A third country is where a company _____. 
 

63.

Plutus Inc. has its headquarters in the United States and has a facility in Germany. A virtual team operates from around the globe, with most members from China. China is a _____ country for Plutus. 
 

Grazia S.p.A, a home furnishing company, has its headquarters in Italy. It has marketing facilities in France, has a manufacturing facility in Japan, and imports fabric from India and China. It sells its products exclusively to high-end customers in the U.K. and Spain.

64.

Which of the following is the parent country of Grazia S.p.A? 
 

65.

Which of the following is the host country for Grazia S.p.A? 
 

66.

Which of the following is a third country for Grazia? 
 

67.

France is a _____ country for Grazia S.p.A. 
 

68.

China is a _____ country for Grazia S.p.A. 
 

69.

A(n) _____ is an employee sent by a company in one country to manage operations in a different country. 
 

70.

_____ are employees who were born and live in the country where the company’s headquarters is located. 
 

71.

_____ are employees who were born and raised in the country where a parent country organization seeks to locate a facility. 
 

72.

_____ are employees born in a country where neither a company's headquarters nor a facility is located but work in the host country. 
 

73.

Misha Branson was born in England and is currently working for a French company in England. She will be considered a _____ in France. 
 

74.

An individual who was born in France and is currently working in Peru for a company headquartered in Germany is called a _____. 
 

75.

An expatriate is an employee 
 

76.

Most companies begin by operating within a(n) _____ marketplace. 
 

77.

A firm that enters foreign markets by exporting goods to another country is at the _____ level of global participation. 
 

78.

RapidFlow Systems is a Mexican company with operations across different states. After a few years, the company extends its operations to Canada and opens a facility there. As a result of this expansion, RapidFlow Systems has become a(n) _____ company. 
 

79.

When a company expands from having one facility in another country to having a number of facilities in different countries, it is transforming from a(n) _____. 
 

80.

_____ is the multinational composition of a company's managers. 
 

81.

Which attribute of a transnational HR system is the extent to which planning and decision-making include managers from different cultures? 
 

82.

Traditionally, _____ has been almost the sole variable used in deciding who will be sent on overseas assignments. 
 

83.

The _____ dimension comprises the skills that enable a manager to maintain psychological well-being. 
 

84.

Which of the following dimensions involves the skills required to foster associations with host-country nationals? 
 

85.

Which of the following dimensions includes the skills required to evaluate the host environment? 
 

86.

The total compensation package that equalizes the purchasing power of an expatriate manager with that of employees in similar positions in the home country and provides incentives to offset the inconvenience incurred in the location is known as the _____ approach. 
 

87.

_____ are payments that offset the differences in expenditures on day-to-day necessities between a host country and a parent country. 
 

88.

A Chinese manager is given an expatriate assignment in the United States. Day-to-day expenses in the United States are higher than in China. Which of the following is the firm likely to provide to offset this difference? 
 

89.

_____ is the extent to which an expatriate receives information and recognizes changes while abroad. 
 

90.

The extent to which expatriates receive recognition from peers and bosses following their expatriate assignment is called _____. 
 

91.

What led to the formation of the European Economic Community (EEC)? Describe how the EEC has affected the global economy. 
 

92.

List the four factors that affect HRM in global markets, and describe each briefly. 
 

93.

Describe Hofstede's cultural dimensions, and discuss their importance for HRM. 
 

94.

Explain how the human capital makes a country attractive in the global arena. 
 

95.

Describe how domestic firms become international organizations. 
 

96.

Differentiate between global and multinational companies. 
 

97.

Describe the three attributes of a transnational HRM system. 
 

98.

Describe the three dimensions of adaptive skills required by expatriates to adapt to a new culture. 
 

99.

Explain how the balance-sheet approach to expatriate compensation is used to offset the differences between costs in the home and host countries. 
 

100.

List the four components of total pay packages.