Chapter 16: Opportunities and Challenges in International HRM

Test Bank

Multiple Choice

1. ______ organizations are humanitarian nonprofit organizations that aim to effect change in environmental, social, human rights, or other issues.

A. Multinational

B. Transnational

C. International

D. Nongovernmental

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Comprehension

Answer Location: Opening Case

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

2. A company that exports and imports products, but has their investments within one home country, is ______.

A. international

B. domestic

C. national

D. overseas

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Comprehension

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

3. A company that has a designated headquarters in their home country but operates in multiple countries is ______.

A. international

B. domestic

C. multinational

D. transnational

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Comprehension

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

4. A company that operates in multiple countries but does not consider any one country as the center of operations is ______.

A. international

B. multinational

C. national

D. transnational

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Comprehension

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

5. What is it called when a company produces some of its goods or performs some of its operations overseas to gain cost advantages?

A. outsourcing

B. offshoring

C. global integration

D. local differential

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Knowledge

Answer Location: Global Transfer of HR Practices

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

6. ______ refers to moving some operations of the company to a different company.

A. Offshoring

B. Integrating

C. Joint venturing

D. Outsourcing

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Knowledge

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

7. A company that repairs computers has grown and no longer finds it efficient to do payroll in house. The company moves its payroll operations to another company. This is an example of ______.

A. a strategic alliance

B. a joint venture

C. offshoring

D. outsourcing

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Application

Answer Location: Global Transfer of HR Practices

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

8. A company with locations in different countries decides to standardize operations to create a common corporate culture. What is this an example of?

A. local differentiation

B. a strategic alliance

C. global integration

D. offshoring

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Application

Answer Location: Global Transfer of HR Practices

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

9. A global organization that standardizes its HR practices around the world is engaged in ______.

A. local differentiation

B. global differentiation

C. global integration

D. local integration

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Knowledge

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

10. When a company requires that different locations have similar information on the corporate website, they are practicing ______.

A. information-based integration

B. people-based integration

C. centralization-based integration

D. formalization-based integration

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Application

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

11. An internationalized company has regular leadership meetings which includes headquarters and subsidiaries to ensure alignment for the implementation of its diversity management program. What is this an example of?

A. information-based integration

B. centralization-based integration

C. people-based integration

D. formalization-based integration

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Application

Answer Location: Global Transfer of HR Practices

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

12. An internationalized company using the same metrics for performance evaluations is implementing ______.

A. information-based integration

B. formalization-based integration

C. people-based integration

D. centralization-based integration

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Application

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

13. A diversity program provided by headquarters that is cascaded to other locations is a form of ______.

A. information-based integration

B. people-based integration

C. information-based integration

D. centralization-based integration

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Application

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

14. In global organizations using ______, HR practices are varied across the organization in consideration of the local environment.

A. local differentiation

B. global differentiation

C. global integration

D. local integration

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Knowledge

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

15. Allowing subsidiaries to develop their own HR practices is called ______.

A. centralization

B. local differentiation

C. global disintegration

D. fragmentation

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Comprehension

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

16. A benefit of local differentiation is ______.

A. the opportunity to transfer local practices to other locations

B. it allows for telecommuting and other forms of flexible work schedules

C. it centralizes all HR practices under the same policies and procedures across locations

D. it allows for more informal business practices across different locations

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Comprehension

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

17. What are three reasons a company may find that their best practices in one country may not be desirable in other countries?

A. cultural differences, unionization rates, and legal context

B. centralized integration, cultural differences, and legal context

C. people, technology, and culture

D. unionization rates, people integration, and legal context

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Important Considerations When Transferring HR Practices Across Borders

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

18. The procedures for terminating an employee are a part of the ______ considerations an organization should make when expanding their business practices across borders.

A. cultural differences

B. unionization rates

C. legal context

D. global integration

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Important Considerations When Transferring HR Practices Across Borders

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

19. The rules about working hours, minimum wage, mandatory break periods, and paid holidays are a part of the ______ considerations an organization should make when expanding their business practices across borders.

A. cultural differences

B. unionization rates

C. legal context

D. global integration

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Important Considerations When Transferring HR Practices Across Borders

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

20. The degree to which individuals define themselves as individuals as opposed to through their relationships are a part of the ______ considerations an organization should make when expanding their business practices across borders.

A. cultural difference

B. unionization rate

C. legal context

D. global integration

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Important Considerations When Transferring HR Practices Across Borders

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

21. What is the assumption that refers to employees having the freedom to join and leave a company at will and employers having the right to hire and dismiss as they see fit?

A. right to work

B. gig work

C. employment at will

D. freelance employment

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Comprehension

Answer Location: Legal Context

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

22. Where are there more protections for employees to guard against harm from employers?

A. United States

B. Europe

C. China

D. India

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Comprehension

Answer Location: Legal Context

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

23. Which country has the lowest union membership rate?

A. Iceland

B. Belgium

C. United States

D. Canada

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Unionization Rates

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

24. Afkarr leads a company in Iceland. Iceland is a country with a strong tradition of unions. Therefore, he ensures that there is a/an ______ involved all decision-making processes so has to maintain a good working relationship with the union.

A. human resource professional

B. manager

C. employee

D. union representative

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Comprehension

Answer Location: Unionization Rates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

25. Which cultural dimension, as explained by Hofstede, focuses on hierarchy being naturally accepted in the workplace?

A. collectivism

B. power distance

C. masculinity

D. uncertainty avoidance

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Comprehension

Answer Location: Cultural Differences

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

26. According to Hofstede’s dimensions of culture, the degree to which a society uses traditions to avoid risk is called ______.

A. collectivism

B. individualism

C. power distance

D. uncertainty avoidance

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Comprehension

Answer Location: Cultural Differences

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

27. According to Hofstede’s dimensions of culture, which country is best described as highly individualistic, with a high masculine culture, with moderately low values in power distance and uncertainty avoidance?

A. Colombia

B. United States

C. Canada

D. Slovakia

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Cultural Differences

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

28. A group reward system would work better in a ______ culture than a pay for performance system in which high achievers were individually rewarded.

A. collectivist

B. high power distance

C. high uncertainty avoidance

D. masculine

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Application

Answer Location: Cultural Differences

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

29. According to Hofstede’s dimensions of culture, ______ is the degree to which individuals define themselves singularly as opposed to through their relationships.

A. masculinity

B. power distance

C. individualism

D. collectivism

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Cultural Differences

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

30. According to Hofstede’s dimensions, cultures with high ______ emphasize loyalty to the group, face-saving, and cooperation within the in-group.

A. collectivism

B. power distance

C. uncertainty avoidance

D. masculinity

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Cultural Differences

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

31. According to Hofstede’s dimensions of culture, ______ is the degree to which a society embraces values such as achievement and materialism.

A. femininity

B. power distance

C. uncertainty avoidance

D. masculinity

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Cultural Differences

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

32. According to Hofstede’s dimensions of culture, ______ is the degree to which a society embraces values modesty, caring for the weak, and the quality of life.

A. femininity

B. power distance

C. uncertainty avoidance

D. masculinity

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Cultural Differences

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

33. When a subsidiary requires close coordination with the parent company, which is most likely to occur?

A. local differentiation

B. global integration

C. collectivism

D. outsourcing

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Application

Answer Location: Causes and Forms of Internationalization

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

34. In internationalization, ______ give the parent company full control over their overseas operations.

A. joint ventures

B. strategic alliances

C. multinational branches

D. wholly owned subsidiaries

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding their business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Causes and Forms of Internationalization

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

35. What is it called when two companies come together to form a new company?

A. wholly owned subsidiary

B. joint venture

C. global organization

D. outsourced agreement

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Comprehension

Answer Location: Causes and Forms of Internationalization

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

36. Giving employees anonymous ways of reporting unethical behaviors could help with the ______ aspect of enforcing a culture of ethics and integrity in global organizations.

A. commit to a culture of integrity

B. eliminate undue performance pressures

C. provide training and policies

D. eliminate a culture of silence

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Application

Answer Location: Commitment to a Culture of Integrity

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

37. Teaching employees what to do when confronted with questionable requests could help with the ______ aspect of enforcing a culture of ethics and integrity in global organizations.

A. commit to a culture of integrity

B. eliminate undue performance pressures

C. provide training and policies

D. eliminate a culture of silence

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Application

Answer Location: Commitment to a culture of integrity

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

38. Which is an example of an organizational advantage to working in multiple geographies?

A. wider talent pool

B. standardization

C. legal context

D. local adjustments

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Application

Answer Location: Managing HR Globally

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

39. In areas where education and people with job readiness skills are limited, what can organizations do to develop the necessary talent?

A. offer tuition reimbursement

B. offer more competitive salaries

C. offer in-house training

D. offer better benefits

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Application

Answer Location: Recruitment and Selection

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

40. Multinationals must consider how extrinsic rewards fit with a given ______ to attract and retain talent.

A. cultural context

B. pay scale

C. workplace condition

D. financial system

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Comprehension

Answer Location: Recruitment and Selection

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

41. Which is similar to a union?

A. a joint venture

B. a subsidiary

C. a works council

D. a strategic alliance

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Knowledge

Answer Location: Employee Separations

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

42. According to the textbook, many people in the countries of the European Union view employment as ______.

A. a fundamental right

B. a union opportunity

C. a burden

D. a privilege

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Knowledge

Answer Location: Employee Separations

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

43. Which law in European Union countries gives employees more power over how their personal data are handled?

A. Personal Data Protection Grid

B. Employee Data Protection Act

C. General Data Protection Regulation

D. EU Data Protection Act

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Knowledge

Answer Location: Handling of Personal Data

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

44. A person who is living and working in a different country than their country of origin is referred to as a(n) ______.

A. trader

B. expatriate

C. inpatriate

D. outsourced employee

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Management of Expatriates

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

45. Expatriate assignments are usually ______.

A. less than 3 months

B. no more than 3 months

C. no more than 6 months

D. longer than 6 months

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Management of Expatriates

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

46. In multinational enterprises, expatriates are ______ or sent by the organization for a predetermined time to work in an overseas operation.

A. self-initiated

B. organizationally assigned

C. offshored

D. exiled

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Management of Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

47. Why might a skilled professional voluntarily move to another country to work?

A. to vacation

B. for better benefits

C. for health reasons

D. to gain overseas experience

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Analysis

Answer Location: Management of Expatriates

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

48. A person who voluntarily moves to another country to gain overseas work experience is called ______.

A. a self-initiated expatriate

B. organizationally assigned

C. offshored

D. outsourced

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Management of Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

49. One way global organizations can close a skill gap is by ______.

A. discouraging knowledge diffusion

B. decreasing research efforts

C. using expatriate assignments

D. limiting training to the best talent

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Benefits and Downsides of Using Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

50. An inpatriate is ______.

A. seen as competition by headquarters

B. an employee from a host country working at headquarters

C. is often assigned from headquarters to work overseas

D. a disadvantage when it comes to facilitating knowledge transfer

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Benefits and Downsides of Using Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

51. An inpatriate’s role is often to facilitate ______.

A. knowledge transfer from local operations to headquarters

B. knowledge from headquarters to other organizations

C. local shortcuts for responding to organizational pressures

D. ethical practices transfer

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Benefits and Downsides of Using Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

52. Using expatriate assignments works best for transferring ______.

A. technical knowledge

B. cultural context

C. locational-specific information

D. regional practices

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Benefits and Downsides of Using Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

53. It is estimated that expatriate assignments may cost at least ______ the salary of the employee.

A. half

B. twice

C. triple

D. quadruple

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Benefits and Downsides of Using Expatriates

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

54. For an expatriate, ______ refers to adjusting to the new culture one is now living in, including factors such as transportation, entertainment, health system, education, and general living conditions.

A. culture shock

B. work adjustment

C. interactional adjustment

D. cultural adjustment

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Expatriate Adjustment

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

55. Expatriates experience many day-to-day issues related to adjustment. Adjusting to the health system and general living conditions in a different country is an example of a ______.

A. work adjustment

B. interactional adjustment

C. family adjustment

D. cultural adjustment

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Expatriate Adjustment

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

56. When expatriates adjust to living in a new country, they develop a new comfort level at work and with their new tasks. This is an example of ______.

A. a work adjustment

B. a cultural adjustment

C. an interactional adjustment

D. language adjustment

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Expatriate Adjustment

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

57. When expatriates adjust to living in a new country, they develop a comfort level getting along with local people inside or outside of work. This is an example of ______.

A. cultural adjustment

B. interactional adjustment

C. work adjustment

D. language adjustment

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Expatriate Adjustment

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

58. For an expatriate, ______ involves feeling comfortable at work and with one’s new tasks.

A. cultural adjustment

B. work adjustment

C. interactional adjustment

D. reverse culture shock

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Expatriate Adjustment

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

59. When an expatriate moves without their family to a new country, they run the risk of ______.

A. social isolation

B. cultural assimilation

C. financial complications

D. reverse culture shock

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Spouse Adjustment

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

60. Research shows that the biggest influence over an expatriate’s cultural adjustment is the adjustment of the ______.

A. work environment

B. expatriate to the job

C. spouse

D. extended family left behind

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Spouse Adjustment

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

61. Research shows that language ability has more impact on ______ than on work adjustment for the employee.

A. interactional and cultural adjustment

B. interactional and spouse adjustment

C. cultural and educational adjustment

D. interactional and compensation adjustment

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Language Ability

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

62. Being ______ helps expatriates seek support from locals and adjust better to their new surroundings.

A. conscientious

B. thoughtful

C. sociable

D. sensitive

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Expatriate Personality

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

63. The two most important job-related factors for expatriates are ______.

A. salary and insurance

B. role clarity and salary

C. role discretion and role clarity

D. role discretion and salary

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Job Characteristics

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

64. For successful adjustment of expatriates to their work, two sources of organizational support seem critical: support of the host country employees and support from ______.

A. the organization itself

B. host country management

C. host country people outside the organization

D. host country neighbors

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Support

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

65. What is usually the result when an expatriate feels cared for and valued by their organization?

A. lower levels of performance

B. higher levels of adjustments

C. higher demands for compensation

D. lower levels of investment

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Support

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

66. Which type of mind-set is indicative of a successful expatriate?

A. global

B. dreamer

C. introverted

D. leader

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Selecting Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

67. Irene enjoys meeting new people and forms relationships quickly. She is going to Germany to work for the next 3 years. Given Irene’s personality, without cultural training, what is likely to happen when she realizes that relationships are formed at a much slower pace in Germany?

A. poor role discretion

B. unclear role expectations

C. frustration with the organization

D. culture shock

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Analysis

Answer Location: Cultural Training

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

68. According to the textbook, a danger an expatriate could face in Latin America and Eastern Europe is an express kidnapping where they are ______.

A. briefly held for ransom

B. forced to walk to an ATM and withdraw cash

C. forced to hand over their passport and other identity papers

D. held until they pay for their own release

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Risk Management

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

69. When an expatriate returns home, they may feel like things have changed so much that their country of origin no longer feels like home. What does this describe?

A. culture shock

B. reverse culture shock

C. cultural adjustment

D. interactional adjustment

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Repatriation

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

70. Short-term assignments are better for containing costs and reducing the disruption of long-term stays on ______.

A. the local culture and business community

B. the organization and local community

C. local employees and their families

D. employees and their families

KEY: Learning Objective: 16.5: Identify alternatives to long-term relocation assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Alternatives to Long-Term Relocation Assignments

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

True/False

1. Private sector and for-profit organizations are the only two types of companies that engage in internationalization.

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Knowledge

Answer Location: Global Transfer of HR Practices

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

2. Companies find that it is cheaper to avoid offshoring work than it is to send work overseas.

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Comprehension

Answer Location: Global Transfer of HR Practices

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

3. Global integration of HR practices ensures that a company establishes a common corporate culture and common ways of doing business.

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Knowledge

Answer Location: Global Transfer of HR Practices

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

4. Human resource practices are the same as human resource philosophy.

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Knowledge

Answer Location: Global Transfer of HR Practices

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

5. Businesses in the United States have a lot of freedom regarding talent management.

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Legal Context

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

6. There are more protections for employees in Europe than in the United States.

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Legal Context

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

7. In Europe, laws require most companies to establish employee representation committees. This means businesses need to involve union representatives in a more participatory approach to management.

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Application

Answer Location: Unionization Rates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

8. It is not uncommon for some cities within the same country to have different cultural values.

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Comprehension

Answer Location: Cultural Differences

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

9. Someone who is considered a freelance worker in the United States may be considered an employee in a different national context.

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Knowledge

Answer Location: Legal Context

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

10. The degree to which the local labor market meets the multinational needs for the right employment mix in overseas operations varies by industry and geography.

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Comprehension

Answer Location: Recruitment and Selection

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

11. Employee separations from employers are handled the same way around the world.

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Comprehension

Answer Location: Employee Separations

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

12. A U.S. citizen who lives and works in the United States is called an expatriate.

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Management of Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

13. It is usually beneficial to send an expatriate overseas to work on a marketing assignment that requires cultural knowledge and adaption.

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Application

Answer Location: Benefits and Downsides of Using Expatriates

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

14. Assigning employees to overseas positions on a long-term basis can be disruptive for the employee and their family.

KEY: Learning Objective: 16.5: Identify alternatives to long-term relocation assignments.

REF: Cognitive Domain: Knowledge

Answer Location: Alternatives to Long-Term Relocation Assignments

Difficulty Level: Easy

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

15. Cross-border commuter arrangements are usually a cost-effective solution for employees who live in one country and work in another.

KEY: Learning Objective: 16.5: Identify alternatives to long-term relocation assignments.

REF: Cognitive Domain: Comprehension

Answer Location: Alternatives to Long-Term Relocation Assignments

Difficulty Level: Medium

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

Essay

1. Compare and contrast the relationship between offshoring and outsourcing?

KEY: Learning Objective: 16.1: Describe the advantages and disadvantages to standardizing HR practices in different locations of a business and barriers to standardization.

REF: Cognitive Domain: Analysis

Answer Location: Global Transfer of HR Practices

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

2. Examine the dimensions of culture based on Hofstede’s framework.

KEY: Learning Objective: 16.2: Examine the considerations an organization should make when expanding its business practices across borders such as cultural differences, unionization rates, and legal context.

REF: Cognitive Domain: Analysis

Answer Location: Cultural Differences

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

3. Examine how multinational companies often differentiate their reward systems and benefits around the world to fit the national context.

KEY: Learning Objective: 16.3: Identify HRM practices that would benefit from local adjustments and those that would benefit from standardization across borders.

REF: Cognitive Domain: Analysis

Answer Location: Motivating, Rewarding, and Managing Employees

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

4. As a human resource professional, how would you compile a compensation package for an expatriate and explain what would be included?

KEY: Learning Objective: 16.4: Summarize the forces affecting adjustment of expatriates to their overseas assignments and identify ways in which organizations can prepare expatriates for successful assignments.

REF: Cognitive Domain: Analysis

Answer Location: Compensation

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context

5. Compare the effectiveness of long-term overseas assignments for employees to short-term assignments.

KEY: Learning Objective: 16.5: Identify alternatives to long-term relocation assignments.

REF: Cognitive Domain: Analysis

Answer Location: Alternatives to Long-Term Relocation Assignments

Difficulty Level: Hard

TOP: AACSB Standard: Diverse and multicultural work environments

SHRM: HR in the Global Context