Chapter 17 - test bank for international business PDF

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International Business: The New Realities, 4e (Cavusgil) Chapter 17 Human Resource Management in the Global Firm 1) ________ are citizens of the country where the MNE's subsidiary is located. A) Third-country nationals B) Expatriates C) Host-country nationals D) Parent-country nationals Answer: C Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 2) ________ are typically the largest proportion of workers hired abroad and usually work in manufacturing, assembly, basic service activities, clerical work, and other nonmanagerial functions. A) Home-country nationals B) Parent-country nationals C) Third-country nationals D) Host-country nationals Answer: D Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 3) Richard Johnson, an American citizen, is a senior manager in a telecom company based in Texas. He is currently posted in and works from the company's subsidiary in Uganda, Africa. Richard is a ________. A) host-country national B) parent-country national C) third-country national D) repatriate Answer: B Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

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4) In which of the following situations is the employee considered a host-country national? A) a French MNE sends a French employee to work in its Canadian subsidiary B) a Japanese MNE sends an American employee to work at its Hong Kong subsidiary C) a Chinese MNE employs a Chinese citizen for its subsidiary in Singapore D) an American MNE employs a Mexican citizen for its subsidiary in Mexico Answer: D Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 5) Which of the following best describes an expatriate? A) an employee who is assigned to live and work in a foreign country for an extended period B) an employee who returns to his home country after a foreign assignment C) an employee hired on a temporary basis by an MNE D) an employee who is a host-country national Answer: A Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking Employee Categories (Scenario) Styleco Inc. is an international manufacturer of leather wallets and briefcases. Based in Canada, the firm has subsidiaries throughout Europe and Asia. High-level Styleco employees are often relocated for months at a time to foreign offices depending on the needs of the firm. Shelly Eaton, a Canadian, has been sent to manage the Styleco office in Italy. Raj Patel, an Indian, is an experienced software designer who is on assignment for Styleco in its Paris office. Keiko Tran of Japan is employed as a manager in Styleco's Tokyo office. Marcus Field is a Canadian working at the Styleco headquarters in Ontario as a manufacturing engineer. 6) Which of the following employees is most likely a host-country national? A) Shelly Eaton B) Raj Patel C) Keiko Tran D) Marcus Field Answer: C Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

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7) Which of the following employees is most likely a third-country national? A) Raj Patel B) Marcus Field C) Shelly Eaton D) Keiko Tran Answer: A Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 8) Which of the following employees is a parent-country national working in a host country? A) Marcus Field B) Keiko Tran C) Raj Patel D) Shelly Eaton Answer: D Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 9) Linda Grahams, an American citizen, works in a global conglomerate based in Washington D.C. A few months ago, Linda was assigned to work in the company's office in Hong Kong and live there for the next three years. Which of the following can Linda be best described as? A) expatriate B) host-country national C) third-country national D) repatriate Answer: A Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 10) International human resource management is usually more complex than domestic human resource management because ________. A) IHRM managers usually encounter routine situations akin to those present at home B) IHRM managers typically have a low exposure to risks C) IHRM managers are required to both hire and retain talent D) IHRM managers are required to demonstrate greater involvement in employees' personal lives Answer: D Diff: 2: Moderate Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 3 Copyright © 2017 Pearson Education, Inc.

11) Which of the following issues most likely complicates international human resource management? A) equal education opportunities B) health benefit reimbursement C) political risk and terrorism D) vacation and travel policies Answer: C Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 12) All of the following refer to key tasks of IHRM EXCEPT ________. A) developing global managers B) assessing job performance of expatriates C) evaluating internal accounting practices and audits D) handling labor disputes and strikes Answer: C Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 13) International human resource managers support subsidiary managers by providing IHRM guidelines and by hiring, training, and evaluating employees for international operations. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 14) Parent-country nationals (PCNs) are citizens of the country where the MNE's subsidiary is located. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 15) Avoiding country bias, nepotism, and other local practices and cultivating a global mindset are some of the significant challenges of the international staffing policy. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 4 Copyright © 2017 Pearson Education, Inc.

16) Host-country nationals (HCNs) are citizens of the country where the MNE is headquartered. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 17) Foreign subsidiaries are never staffed from the home country. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 18) Margaret Lee, an American and a private bank employee from New York, is assigned to work and reside in Paris for five years. She is most likely to be known as a repatriate in Paris. Answer: FALSE Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

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19) In a short essay, discuss the factors that complicate the job of international human resource managers. Answer: International human resource management is usually more complex than domestic human resource management. Following are six factors that drive this complexity: 1. New HR responsibilities. IHRM managers encounter numerous factors not necessarily present at home, including foreign taxation issues for expatriates, international relocation and orientation, expatriate support, host government relations, language translation services, and repatriation (returning the expatriate to his or her home country). 2. Need for a broader, international perspective. Management must account for all its PCNs, HCNs, and TCNs, who may be nationals of numerous countries. In an emerging market, such as Vietnam, compensation may need to include allowances for housing, education, and other facilities not readily available there. Large MNEs are often challenged by the need to establish a fair and comparable compensation scale for employees, regardless of nationality. 3. Greater involvement in employees' personal lives. Human resource professionals help expatriates and their families with housing arrangements, health care, children's schooling, safety, and security, as well as appropriate compensation given higher living costs in some foreign locations. 4. Managing the mix of expatriates versus locals. Foreign subsidiaries may be staffed from the home country, the host country, and/or third countries. The mix of staff depends on several factors, including the firm's level of international experience, cost of living in the foreign location, and availability of qualified local staff. 5. Greater risk exposure. Employee productivity, labor union activism, employee turnover, and other human resource phenomena are often more pronounced abroad. Exposure to political risk and terrorism are major concerns for IHRM professionals and may require greater compensation and security arrangements for employees and their families. 6. External influences of the government and national culture. Employees must be hired, evaluated, and compensated in ways consistent with country and regional customs and regulations. Laws govern work hours, the firm's ability to dismiss or lay off employees, and severance pay. Diff: 2: Moderate Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking 20) In a short essay, discuss the key tasks in international human resource managers. Answer: There are six key tasks of international human resource managers. First is international staffing-activities related to recruiting, selecting, and placing employees. Second is preparing and training workers. Third is international performance appraisal, providing feedback necessary for employees' professional development. Fourth is formulating compensation and benefits packages that may vary greatly from country to country. Fifth is interacting with labor unions and collective bargaining. Sixth is achieving diversity in the international workforce. Diff: 2: Moderate Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

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21) Briefly describe the three types of managers commonly found in the foreign subsidiaries of MNEs. What are the distinctive traits of managers with a global mind-set? Answer: There are three types of managers commonly found in the foreign subsidiaries of MNEs: 1. Parent-country nationals (PCNs). These managers are citizens of the country where the MNE is headquartered. They are also called "home-country nationals." 2. Host-country nationals (HCNs). They are citizens of the country where the MNE's subsidiary is located. They are typically the largest proportion of workers hired abroad and usually work in manufacturing, assembly, basic service activities, clerical work, and other nonmanagerial functions. 3. Third-country nationals (TCNs). They are citizens of countries other than the home or host country. They typically work in management and are usually hired because of their special knowledge or skills. A geocentric orientation is synonymous with a global mind-set. Managers with a global mind-set are open to multiple cultural and strategic realities on both global and local levels. They do not force headquarters business methods on foreign subsidiaries. Diff: 2: Moderate Skill: Synthesis Objective: 17-1, 17-2: Understand the strategic role of human resources in international business, Explain international staffing policy AACSB: Analytical Thinking 22) Firms prefer HCNs when ________. A) the host country environment is complex B) the host country has no specialized knowledge to share C) the parent country is keen on maintaining full control over foreign operations D) managers located in the headquarters adopt a dominantly ethnocentric approach to hiring Answer: A Diff: 2: Moderate Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Diverse and Multicultural Work 23) Under which of the following circumstances would an MNE most likely hire a parentcountry national? A) when the MNE wants to maintain strong control over its foreign operations B) when the MNE wants to benefit substantially from specialized knowledge available in the host country C) when the MNE wants to transfer specific knowledge or corporate culture from third countries to host-country operations D) when the host country environment is complex Answer: A Diff: 2: Moderate Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking 7 Copyright © 2017 Pearson Education, Inc.

24) For which of the following activities would parent-country nationals most likely be employed? A) marketing B) creating a global culture C) research and development D) sales Answer: C Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking 25) An MNE would most likely employ a host-country national when ________. A) it has substantial knowledge regarding upstream value-chain activities B) it emphasizes R&D and manufacturing C) it wants to maintain strong control over local operations D) it needs specialized knowledge about the local market Answer: D Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking 26) ________ refers to searching for and locating potential job candidates to fill the firm's needs. A) Retrenchment B) Recruitment C) Codetermination D) Repatriation Answer: B Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking 27) ________ refers to an employee's ability to function effectively with those from different cultural backgrounds or in different cultural contexts. A) Reverse culture shock B) Ethnocentrism C) Cultural intelligence D) Cultural pluralism Answer: C Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

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28) Which of the following is NOT one of the four dimensions of cultural intelligence? A) behavioral flexibility B) motivation C) strategy D) introversion Answer: D Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Diverse and Multicultural Work 29) ________ refers to the confusion and anxiety experienced by a person who lives in a foreign culture for an extended period. A) Culture shock B) Culture pluralism C) Enculturation D) Segregation Answer: A Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking 30) Firms with global mindsets are characterized by ________. A) staff diversity B) parochialism C) a strong sense of national pride D) rigid hiring policies Answer: A Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking 31) ________ refers to the employee's ability to adopt verbal and nonverbal behaviors appropriate in different cultures. A) Behavioral biases B) Parochialism C) Behavioral flexibility D) Ethnocentrism Answer: C Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

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32) Which of the following most likely occurs as a result of expatriate failure? A) culture shock B) diminished careers C) acculturation D) knowledge sharing Answer: B Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking 33) ________ tends to worsen culture shock. A) The ability to speak more than one language B) Proximity to family C) Inadequate cross-cultural skills D) High adaptability Answer: C Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking International Management Qualifications (Scenario) Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India. 34) Which of the following would be the most important for human resources managers to determine before deciding who should manage the New Delhi facility? A) Which candidate possesses the ability to be a flexible and sensitive leader with superior crosscultural knowledge? B) Which candidate best understands CCC corporate culture in Texas? C) Which candidate is the most knowledgeable about CCC's products? D) Which candidate has mentored the most CCC interns and new employees over the past three years? Answer: A Diff: 2: Moderate Skill: Critical Thinking Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Environments and Reflective Thinking

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35) Which of the following, if true, would strengthen the argument in favor of hiring a local manager for the New Delhi facility? A) Indians are mostly multilingual. B) Local connections are crucial to achieve success in the local marketplace in India. C) CCC wants to have strong control over all its foreign operations. D) The quality of labor in New Delhi is no lesser than that in Texas. Answer: B Diff: 2: Moderate Skill: Critical Thinking Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Environments and Reflective Thinking 36) Which of the following most supports hiring Craig Springer as manager for CCC's facility in New Delhi? A) Craig handles work-related stress mostly by exercising and spending time with friends. B) Craig has served as a manager for six months in CCC's office in Beijing. C) Craig learned to speak fluently in Spanish and French from his past assignments in Europe. D) Craig is able to work independently with little direction. Answer: D Diff: 2: Moderate Skill: Critical Thinking Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Environments and Reflective Thinking 37) Which of the following, if true, most seriously undermines the argument in favor of hiring Devon Parks as manager for CCC's facility in New Delhi? A) Devon has few local connections in New Delhi where success is largely determined by local connections and networking. B) CCC wants to maintain strong control over all its foreign operations including India. C) Devon is capable of working independently and with little direction. D) CCC has significantly benefitted in the past by hiring PCNs for training local managers in Asia. Answer: A Diff: 2: Moderate Skill: Critical Thinking Objective: 17-2: Explain international s...